Róisín Shortall (Dublin North West, Labour)
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Question 63: To ask the Minister for Social and Family Affairs if she will give a commitment not to reduce the half-rate carers payment in Budget 2010. [40999/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Budget 2007 provided for new arrangements whereby people in receipt of a social welfare payment other than carers allowance or benefit who are also providing someone with full-time care and attention can retain their main welfare payments and receive a half-rate carers allowance. Similarly, people currently in receipt of a carers allowance who may have an underlying eligibility for another social welfare payment can transfer to that other payment and continue to receive up to a half-rate carers allowance.

The report of the special group on public service numbers and expenditure programmes made a range of recommendations relating to the Department of Social and Family Affairs, including on the half-rate carers allowance. The Department will consider the report's recommendations as part of the Estimates and budgetary process for 2010. Decisions on all the issues arising will be a matter for the Government. No decisions have been made on the implementation of any of the McCarthy proposals relevant to this Department. Full consideration will of course be given to the impact of the proposals on the recipients involved.

The Government is acutely aware and appreciative of the contribution made by carers to people needing ongoing care and support. In recognition of this, considerable improvements have been made in recent years in services and supports for carers. The payment rates for the carers allowance were increased further in the 2009 Budget by €7 to €239 per week for those aged 66 or over and by €6.50 to €220.50 per week for those aged under 66. Recipients of carers allowance are also eligible for household benefits, free travel and the respite care grant.

The means test for carers allowance has been significantly eased over the years and is now one of the most generous means tests in the social welfare system, most notably with regard to spousal earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €37,200 and qualify for the maximum rate of carers allowance as well as the associated free travel and household benefits package. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as free travel and household benefits. These levels surpass the Towards 2016 commitment to ensuring those on average industrial earnings continue to qualify for a full carer's allowance.

From June 2005 the annual respite care grant was extended to all carers who are providing full-time care to a person who needs such care regardless of their income. The rate of the respite care grant was also increased to €1,700 per year in respect of each care recipient from June 2008.

It is estimated that the combined expenditure on carers allowance, carers benefit, the respite care grant and half-rate carers allowance will be €650 million in 2009. It would not be appropriate for me to comment further on budgetary proposals at this stage pending the outcome of these deliberative processes.

Róisín Shortall (Dublin North West, Labour)
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I asked the Minister for a commitment not to reduce the half-rate carers allowance. The Taoiseach and several of her colleagues have already given a commitment to the wealthy that they will not be taxed further. If that kind of commitment can be given to people who are very well off, I do not know why she cannot give a commitment on the additional payment of just over €100 to those who provide care around the clock to family members.

I was disappointed that she did not take up the invitation by the Carers Association to visit a carer. I accompanied several colleagues from this House on a visit to a woman who is minding her 17 year old disabled son around the clock. She receives the lone parent payment and the half-rate carers allowance. How can this woman and the thousands of other people in similar circumstances possibly sustain a 33% reduction in their income and continue what they are doing? Does the Minister not accept it would be a false economy to cut the allowance?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I fully appreciate the valuable role played by carers. All of us visited people who are being cared for as well as their carers, including both those who receive no support from the State and those in receipt of the carers allowance. I have met groups representing carers, including in particular the Carers Association, on several occasions at local, county and national levels. We are conscious of the issue, therefore.

As the Taoiseach noted this morning, the social welfare budget of €21 billion constitutes more than one third of total expenditure. We cannot ignore this expenditure in the context of the forthcoming budget. Equally, however, it is not possible at this stage to go through the various elements of the budget and decide what we will cut because that would not be fair to the groups who are not being discussed today. No final decision has been made in respect of any element of the social welfare budget because cutting social welfare payments is the last thing anybody wants to do. However, we have to somehow reduce the budget. It is not the first area we will rush into when dealing with the budget but I cannot give the commitment the Deputy desires.

Róisín Shortall (Dublin North West, Labour)
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We know that approximately €8 billion in tax reliefs are available to the better off. Why can commitments be given to those people? It is easy for the Minister to say she values carers but if that is the case she will not hit them financially. I am asking her to give a commitment not to reduce the half-rate carers allowance, which has a ceiling of just over €100 per week. Does she accept this money is needed in households, not in recognition of the huge time commitments given by carers but to cover additional demands in respect of heating, lighting, dietary requirements and, in many cases, cleaning? The allowance is used to subsidise the additional costs involved in caring. Given the significant concerns held by thousands of carers throughout the country that their incomes will be cut, I ask her to put their minds at rest by giving a commitment that she will not hit them.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Deputy referred to the extra demands that arise in regard to care recipients. I appreciate that somebody with a severe disability has additional heating and dietary requirements but it does not necessarily follow that carers need additional money.

Róisín Shortall (Dublin North West, Labour)
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That is where the money is going.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In many cases carers do not live with the care recipients.

Róisín Shortall (Dublin North West, Labour)
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In many cases they do.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The data on the half-rate carers allowance reveal the commitment of older people. Of the 19,000 people in receipt of the allowance, 7,500 are in receipt of the State or invalidity pension, 2,000 are in receipt of disability benefits and 3,500 receive lone parent benefits.

Róisín Shortall (Dublin North West, Labour)
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What point is the Minister making?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It is interesting to look at the profile of carers.

Róisín Shortall (Dublin North West, Labour)
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They are enabling other people to stay out of nursing homes.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I have outlined the significant improvements that have been made not only to rates of pay but also in terms of free travel and household benefits for carers. They also have generous income disregards.

Every single group would like my commitment to leave them alone in the budget but the next group will then ask for the same treatment. I am aware people are anxious and want reassurance but it is genuinely not possible at present to promise our full protection to any group affected by the social welfare system.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 64: To ask the Minister for Social and Family Affairs if she has advised her inspectors at local level that they are to accept the current economic situation of self-employed persons or those applying for farm assist; her views on whether many of these persons are in a critical situation at present; and if she will make a statement on the matter. [40831/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Jobseekers allowance and farm assist are both means tested payments. In such cases, a social welfare inspector interviews the claimant and makes such inquiries as are necessary to ascertain the means of the applicant. Historically self-employed persons were assessed on the basis of their income in the 12 months prior to claiming and a decision was given on that basis. In the context of relatively stable economic conditions this proved an effective measure of means. However, it was always open to an applicant to make a case showing that his or her income in the coming 12 months was likely to be greatly reduced in light of personal or economic circumstances. The Department's inspectors and deciding officers would take account of this and in assessing means would exercise their best judgment as to the likely income a person would receive in the 12 months following the claim

In light of the changed economic environment and recognising that the system of using past year earnings as a basis for assessing means was no longer as equitable as heretofore, the Department issued a circular in May 2008 advising inspectors of the changed economic circumstances and the need to recognise that less would be available to claimants in the foreseeable future. Inspectors were advised that each case should be examined on its merits and they should apply their knowledge of local conditions to arrive at a fair assessment of the income from self-employment in the coming 12 months. Where a self-employed person's circumstances change after he or she has made an initial claim for jobseeker's allowance or farm assist, he or she can apply to have his or her means reviewed. In addition, it is open to the individual, if he or she is dissatisfied with the means assessed, to make an appeal to the social welfare appeals office. In the meantime, it is important to remember that people who have urgent income support needs can apply for the means tested supplementary welfare allowance, SWA, and more than 95% of basic SWA applications are decided on and paid within one week.

I appreciate the need to ensure claimants who have been self-employed and whose income is significantly affected by the economic downturn receive their full and fair entitlements in a timely manner. I assure the House that the Department is doing its best to ensure this objective is achieved.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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While I appreciate the Minister's reply, it does not reflect the position on the ground. I was advised by a social welfare inspector in the past week that he was not aware that current rather than historical income should be taken into account. For example, I am aware of a young couple with two children who received a farm assist payment of only €6.50 based on their income for last year rather than this year. Is that fair?

Is it fair that a couple whose file was dealt with by the deciding officer was paid €3.61 per week for two weeks only to have the payment withdrawn by the local inspector who refused to accept current rather than past income? Does the Minister realise that if this issue is not addressed, many farming families and self-employed people who were earning good money until last year will face serious problems? One individual who employed ten people until 14 or 15 weeks ago when he encountered financial problems as a result of external factors cannot obtain one cent whereas his ten former workers receive jobseeker's allowance.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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A clear circular was issued to social welfare inspectors in May 2008 reminding them that they should have due regard to the likelihood that individuals' income was likely to fall and they should assess current rather than last year's income. The system appears to be working reasonably well in other areas because the number of self-employed people on jobseeker's allowance stands at more than 6,600 while the number of people in receipt of farm assist payments has increased to 8,600. People are, therefore, continuing to benefit from the scheme, which was the intention behind it. The specific cases referred to by the Deputy are being reviewed.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I do not doubt the Minister. She provided a straightforward answer to a question I put to her in committee last April. At the time, she advised me that a circular would be issued and that has been done. I ask her to ensure that full information is being used on the ground. At a meeting with representatives of the Irish Farmers Association in the past hour, I was told in no uncertain terms that while the system is working well in some areas, it is not working in others. A blitz is needed. Many farmers are losing income as a result of developments in disadvantaged area payments, REPS and so forth. Thousands more will be affected if this matter is not properly addressed.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I appreciate the issue the Deputy has raised. It is important that decision making is consistent across the country, particularly in the area of means tested assessments. The Department issues circulars to ensure inspectors at local level know precisely what they should take into account. I will ensure that the next meeting of inspectors is reminded of the need to apply the provisions of the circular on the self-employed and applicants for farm assist in a consistent manner.