Dáil debates

Tuesday, 24 January 2017

Other Questions

Farm Assist Scheme Administration

5:55 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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56. To ask the Minister for Social Protection the date the 15% income disregard announced in budget 2017 will apply to all current farm assist recipients; and if he will make a statement on the matter. [2580/17]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I ask the Minister when the 15% income disregard introduced in the budget for 2017 will be applied to all existing farm assist recipients. Can he clarify that it will apply to all existing farm assist recipients and if their payments will go up this year as a result?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am happy to confirm that, following the Government agreement on budget 2017, the total reversal of cuts to farm assist is now underway. Deputies will be aware that the programme helps more than 8,000 farm families across the country. The commitment given in A Programme for a Partnership Government, as part of the Government's commitment to rural Ireland, was to complete a review of the farm assist scheme, recognising the challenges facing farmers on low incomes. The review was completed by my Department in advance of discussions for budget 2017. Budget 2017 fully reverses the previous cuts to the farm assist means test. The changes mean that 70% of farm income will now be assessed as means, down from 100%, which is equivalent to a 30% income disregard, and an additional annual means disregard will be applied at €254 for each of the first two children and €381 for the third and subsequent children.

The introduction of additional income disregards for farmers with children further ensures that farm families with children will benefit. I also announced the provision of 500 more places on rural social schemes, bringing the total number of places from 2,600 to 3,100. At a time of falling farm incomes, it is essential we strengthen the safety net for farmers who are on the margin.

The farm assist scheme supplements mostly small farms on poor land, mainly in the west. Recipients retain the advantages of the jobseeker's allowance scheme, such as the retention of secondary benefits and access to activation programmes. In 2017, Revised Estimates for my Department provide for expenditure of almost €83 million on farm assist.

I am happy to confirm to the Deputy that all existing farm assist recipients currently assessed with means will have their payments adjusted to take account of the changes in budget 2017. This will come into effect from the 8 March implementation date, with the relevant payments changing on 15 March as farm assist is paid weekly in arrears.

Farm assist recipients will also benefit from other measures in the budget, including the €5 per week increase in the weekly rates of payment and the 85% Christmas bonus. Farm assist recipients will also be eligible to avail of the 500 additional places on the rural social scheme.

All of this answer applies to fish assist as well.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I thank the Minister for his response. As he will be well aware, because it has been raised with him on a number of occasions, the consecutive 15% cuts regarding the means disregard in assessing a farmer's eligibility for farm assist had a very real impact on the family income of those who depend on farm assist. I very much welcome this move in the budget and the confirmation from the Minister that it will apply to all existing farm assist recipients. The Minister might clarify further how this will be applied. Will he confirm that it will be a desktop exercise whereby the Department will go through all existing recipients of farm assist? I know they were all asked at the start of this year to confirm that their circumstances had not changed. I am pretty clear that this is what the Minister is saying, but if it is the case that the circumstances of each of these recipients have not changed from last year, will they see increases in their payments from the end of March as a result of the reintroduction of the 30% income disregard?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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That is certainly the intention. It will vary from one case to another. In some cases the uplift people see could be very modest; it could be as little as €5 or €10 per week. In other cases it will be as much as €40 per week. In any case, that is what we have in train to do over the next couple of weeks, and all the different offices are gearing up to do this. Anyone can request a review if his or her circumstances have changed.