Dáil debates

Wednesday, 5 March 2014

Ceisteanna - Questions - Priority Questions

Supplementary Welfare Allowance Payments

9:30 am

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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1. To ask the Minister for Social Protection to explain the reason for abolishing the diet supplement scheme; the number of persons who will be affected by the abolition; the savings that will be made from the decision; and if she will make a statement on the matter. [10611/14]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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2. To ask the Minister for Social Protection to explain the reason for her decision to close the special dietary supplement scheme, which offered social welfare recipients who, for example, have coeliac disease or who have suffered a stroke a small contribution towards the cost of medically necessary diets, which are substantially more expensive than the typical food bills of people who do not suffer such conditions; her views on whether this will impose hardship; and if she will reverse her decision. [10608/14]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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This question arises from a recent announcement on the website of the Department of Social Protection to the effect that this allowance which has been payable since the early 1990s and which was designed to assist a small group of people to purchase food which was medically necessary for them has been withdrawn.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 1 and 2 together.

The diet supplement, administered under the supplementary welfare allowance,SWA, scheme, is payable to qualifying people who have been prescribed a special diet as a result of a specified medical condition, at a cost of approximately €3.5 million in 2013. The numbers in receipt of the allowance have been declining in recent years, from 12,000 in 2006 to a current figure of 5,900. The scheme was closed to new applicants from 1 February 2014. Existing recipients as at the end of January will continue to receive the diet supplement at the current rate of payment for as long as they continue to have an entitlement to avail of the scheme or until their circumstances change. This will allow existing customers to adjust to the new arrangements and anticipate how they will be affected by any future change in their circumstances. It also ensures no one will be immediately worse off by the closure of the scheme.

The background to the closure of the scheme for new applicants is as follows. During 2013 the Department commissioned the Irish Nutrition and Dietetic Institute, INDI, to update previous research, published in 2006 and updated in 2007, on the cost of healthy eating and specialised diets. Pricing for a selection of foods based on branded and own label foods was surveyed in a sample of retail outlets for each diet. These outlets included large stores, large low-cost stores, medium-sized stores and convenience stores. The research shows that the range of costs associated with a specialised diet is influenced mainly by the shopping location, with the lowest costs being in the large discount stores and the highest in convenience stores. In general, choice was found to be limited in convenience stores with regard to healthier options. The more specialised the diet, for example, gluten-free, the more the individual is required to frequent the larger stores to be able to purchase the necessary food. The research shows that the average cost across all retail outlets of the diets supplemented under the scheme can be met from within one third of the minimum personal rate of social welfare payment, that is, the SWA scheme rate of €186 per week. Accordingly, I decided to discontinue the scheme on the basis of this evidence and have no plans to reverse the decision. Payment of the supplement will continue to be made to existing recipients for as long as they continue to be entitled to the payment. If cases of hardship present, officials have the power to award a payment under the SWA scheme where there is exceptional need. That is how I would prefer the matter to be dealt with should or when cases arise.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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What the Minister is saying, essentially, is that we are moving from a situation where people are entitled to the allowance to one where it will be paid entirely at the discretion of the local social welfare official. What the Minister did not say, although I had included it in my question, was how much per annum the Government envisaged it would save through this measure.

Two groups are particularly affected. First, there are people suffering from a coeliac disease. As the Minister will be aware, they were entitled to get their gluten-free food on a medical card but that concession has now been withdrawn. The special diet supplement has also been withdrawn.

The second category comprises people who have difficulty in swallowing and need liquidised diets because they may be stroke victims or suffering from throat cancer. Would the Minister agree that this is a very small and particularly vulnerable group of people? If her Department continues paying those already in payment and the numbers are dropping, will the savings not be minimal? Can the Minister tell us how much the Government will save as a result of this decision?

9:35 am

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I do not know if the Deputy does the family shopping, but if he was involved and particularly if he was shopping for anybody on a specialised diet, he would know what the report overwhelmingly shows, which is that in the larger, low-cost stores the availability and cost of the foods required has changed out of all proportion. The Deputy may be thinking of the previous situation whereby such foods were often sold in chemists at extraordinarily high prices. Currently, however, if one visits a convenience store, chain store, discount shop or supermarket, one will almost always find a significant section devoted to specialised diet food, including gluten-free foodstuffs. In addition, a number of specialised bakers make gluten-free products which are now much more widely available.

The critical issue is that the cost of such items has fallen, so they are significantly cheaper. Some 75% of people in receipt of the dietary allowance are also in receipt of a pension or disability payments, so it is well within the income range.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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On 1 February, the Minister brought about this change in a quiet, slíbhín manner, discontinuing a scheme which was aimed at people with a condition, such as coeliacs, stroke victims or those suffering from motor neurone disease. The Minister cited the report but it stated that there is an additional cost which has increased as a proportion of social welfare spending.

This is a means-tested scheme which is aimed at the poorest in our society, yet the Minister is punishing those who are not only poor but also suffer from a condition. Has the Minister looked at the prices of such products, even in low-cost stores? I have done so and the majority of them charge five times as much for gluten-free pasta. Similarly, gluten-free bread is three times the price of normal bread, while gluten-free cornflakes are double the price. That places a huge burden on people who depend on social welfare.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I am glad the Deputy has acknowledged that the issue is the availability and cost of these products. They were once confined largely to chemists and like many chemist-based products in Ireland, particularly in the past, could be extraordinarily expensive. People involved in doing the family shopping will now see that nearly all stores, particularly the big multiples and low-cost discount supermarkets, have such foods available at much cheaper prices than heretofore. People with special dietary needs can obtain specific supplements via the supplementary welfare allowance scheme. That is a much better way of approaching it because the numbers availing of this scheme, as the Deputy will see from the statistics, have fallen dramatically. This is due to the availability and lower prices of such foods in the kind of stores I have mentioned.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I do not understand what the Minister is at here. She seems to be suggesting that the reason for this change, which was brought in through the back-door and not publicly announced, is to encourage people to go to the larger stores and get the stuff cheaper. Basically, however, this is a cost-saving measure. Will the Minister tell us how much she thinks the Government will save off the social welfare bill as a result of this change? Does she agree that the people being hit - a small voiceless minority - are among the poorest people in our society who can therefore least afford the change? From that point of view this change is regressive. Can the Minister tell us how much she envisages the Government will save on this change?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I told the Deputy before that 75% of the people currently in receipt of the scheme are either on a pension or disability payment. As the Deputy will know from his knowledge of social welfare, they are some of the people on the higher levels of weekly social welfare payments. The supplementary welfare allowance scheme rate is €186 per week. Somebody on a invalidity or retirement pension, or various kinds of illness and disability payments, is likely to receive significantly in excess of that in personal rates. The Deputy will be aware of that but perhaps that will clarify the matter.

Because nobody currently on the scheme is losing and they are all staying on the scheme so long as their medical circumstances indicate that they qualify for it, I do not anticipate any significant savings on this. I do anticipate a better way of dealing with this through the supplementary welfare allowance system of a special payment for people with particular needs. This does reflect changes in prices and availability.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The old saying goes, "If it's not broken, don't fix it." The Minister's own report said that an additional financial burden is being placed upon current beneficiaries of this scheme. Future applicants would obviously also have benefited.

The cost of these diets for coeliacs, stroke victims or people suffering from motor neurone disease has increased in the period covered by the report from 35% of social welfare income to 40%. That contradicts what the Minister said. Not every town and village in the country has one of these big multiples, so there is an extra cost for people who have to go out of their way to visit such outlets.

I do the weekly shopping so I know the prices involved. Ordinary pasta in Tesco costs 47 cent but gluten-free pasta costs €2.50, which is over five times the amount. I can quote similar price differentials for bread, crackers and cornflakes. Luckily there is a range of such products now, but the problem is that they still cost substantially more than normal foodstuffs. The poorest in our society are thus being penalised so I am asking the Minister to reverse this change. If the numbers applying for the scheme are dropping it would obviously be less of a cost, so I cannot see the logic behind this in any shape or form.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The weekly cost of the specialised diets in the study ranged from €35.66 to €73.97. That is a range of 19% to 40% of the lowest rate of social welfare payment, which is a supplementary allowance of €186 per week.

The number in receipt of the supplementary welfare allowance in the social welfare system is extremely small. As I indicated, almost all recipients of the allowance are on a much higher rate of social welfare payment than the minimum rate because these specialised diets are followed on health grounds. If there are cases of hardship, the individual in question should speak to officials in the social welfare service. The numbers on the scheme are falling for the reasons the Deputy outlined, namely, the greater availability and reduced cost of the relevant food items. Those who look after people with special needs will be aware that these foods used to be extraordinarily expensive and only available in specialised outlets.

9:45 am

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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They used to be available in chemists to medical card holders.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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When we checked the position, we found that, by and large, those who availed of the scheme had free travel. In a significant number of cases involving individuals with a severe illness, their carers are also entitled to free travel. The report addresses all of these matters.