Written answers

Wednesday, 23 February 2005

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 116: To ask the Minister for Social and Family Affairs the extent to which cuts imposed in the budget of a year ago have impacted on social welfare recipients; the full extent of the savings affected by those cuts; the number of persons or families refused rent or other support on foot of same; the instructions issued by his Department then or subsequently; and if he will make a statement on the matter. [6002/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The measures introduced in the context of the 2004 Estimates included changes to the back to education allowance, one parent family payment, certain child dependant allowances, changes in the conditions of entitlement to short term social insurance payments and changes in the supplementary welfare allowance scheme.

It is not possible to quantify precisely the numbers affected by the measures in question in that, where disallowances or reduced entitlements occur, the specific reasons for such are not recorded on payment systems in a way which facilitates production of the information requested. While data is regularly available on the numbers in receipt of all payments, simple comparisons of such numbers would not reliably indicate the number of persons affected by the measures.

The number in receipt of any particular scheme can and does fluctuate for a wide variety of reasons, such as, for example, seasonal factors in the case of unemployment. Furthermore, in many instances, the individuals who may have been affected by a particular measure could have availed of alternative support. Again, it is not possible to distinguish those particular cases from those who, for other reasons, avail of these alternative supports over the same period.

The total overall projected expenditure in 2004 on the schemes affected by the measures was, however, broadly in line with expectations. I have conducted a review of the measures announced in November 2003 to assess their impact on people. During the course of that review I listened carefully to the views expressed by members of this House, by the social partners and by voluntary groups and others I have met since becoming Minister for Social and Family Affairs.

On budget day, I was pleased to announce the following new arrangements: the qualifying period for the back to education allowance is being reduced from 15 months to 12 months and in addition, the cost of education allowance is being increased by €254 to €400; the transitional payment for recipients of one parent family payment is being restored and will now be available for a period of six months where a recipient's income exceeds €293 per week; the income limit for entitlement to half-rate child dependant allowances for unemployment, disability and related schemes will be increased by €50 per week to €350.

The saving of €700,000 arising from last year's MABS supplement measure is being redirected to the Money Advice and Budgeting Service to enable it to further develop its services. The sum of €2.3 million, an amount equivalent to the savings achieved by the discontinuation of crèche supplements, is now being made available to ensure that vulnerable families can continue to have access to crèche supports, for example in cases where a social worker or public health nurse deems this necessary as part of their work with the family. I am consulting my colleagues, the Tánaiste and Minister for Health and Children and the Minister for Justice, Equality and Law Reform, about the most appropriate way to channel this funding.

An additional €2 million is being made available to improve the diet supplement arrangements. The sum of €19 million in funding from the rent supplement scheme is being transferred to the local authorities as an initial measure to enable them to put long-term housing solutions in place. The six months rule for entitlement to rent supplement is being amended in order to ensure that bona fide tenants who experience a change of circumstances are not disadvantaged, if for example they become ill or unemployed within six months of renting.

Rent supplement will now remain in payment unless a third offer of local authority accommodation has been refused. I am not raising the minimum contribution for rent supplement this year. In addition, the measure relating to half rate payments for widows and widowers and allied payments was amended earlier last year.

The full year cost of all of the measures I have detailed above is €36 million in a full year. The operation of the remaining measures will be kept under review. With regard to the supplementary welfare allowance scheme, circulars were issued by my Department to the community welfare staff who administer the scheme on my behalf, in December 2003 and in January 2005, advising them of the changes to the scheme and reminding them of the discretion available to them to deal with exceptional or emergency cases which may arise from time to time.

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