Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 312: To ask the Minister for Social and Family Affairs the cost of increasing the cap on rent allowance by 50%. [11963/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 316: To ask the Minister for Social and Family Affairs the cost of increasing rent allowance thresholds by €100 weekly in 2005. [11968/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 312 and 316 together.

Rent supplements are provided through the supplementary welfare allowance scheme which is administered on my behalf by the community welfare division of the Health Service Executive. One of the conditions for receipt of rent supplement relates to limits on the level of rent an applicant can incur. The purpose of these rent limits is to ensure that the executive is not subsidising the cost of overly large or expensive accommodation.

The maximum levels of rent supported under the scheme for the period to 30 June 2005 are prescribed in regulations made under the Social Welfare Acts, S.I. 727 of 2003. These statutory rent limits differ across the various executive geographic areas to ensure that the rent being sought is reasonable and reflects local market conditions. Within each area, varying limits are specified also according to household composition, with scope for any special or exceptional circumstances of an applicant to be taken into consideration by the executive in determining the amount of rent supplement payable in a particular case.

In effect, the amount of rent supplement payable bridges the gap between the applicant's means and the rent being charged by the landlord, subject to statutory limits in the amount of rent towards which rent supplement is payable. Increasing the rent limits would inevitably lead to increases in the rents demanded. Increases of €100 or 50% per week in the level of rent limits would be both unrealistic and unjustified in terms of the current rental market.

Given the significant share of the private rented accommodation that is occupied by households receiving rent supplement, any such increases would have a major distorting effect on rent levels charged, not just for rent supplement recipients but for all tenants. This in turn would lead to a very significant increase in rent supplement expenditure with no net financial gain accruing to the people who rely on the scheme for their accommodation needs.

My Department is reviewing the current levels of rent limits to assist in determining what limits should apply from July 2005. This review will take account of prevailing rent levels in the private rental sector based on indices from the Central Statistics Office together with detailed input and guidance on the market situation from each area of the executive based on patterns of rent supplement applications.

Overall expenditure on rent supplement in 2005 is estimated to cost €369 million, supporting some 58,000 households on average each week. This is an increase of 4.3% on 2004 outturn, provisional, of €353.8 million.

It is not possible in the time available to estimate the cost of an increase of €100 or 50% in rent supplement levels owing to the wide variations in rents paid by households of different sizes in the different geographic areas and to the unknown impact of such increases on general market rent levels. As an indicative guide by reference to the crude average of weekly rent supplements paid, a €100 increase in weekly rent supplement could add some €300 million to scheme costs in a full year while a 50% increase in rent supplement could cost some €185 million.

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 313: To ask the Minister for Social and Family Affairs the likely cost to the Exchequer of increasing the back to school clothing and footwear allowance for each child aged from age two to 11 from €80 to €140 and increasing the rate for each child aged from 12-17 from €150 to €220. [11964/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 321: To ask the Minister for Social and Family Affairs the numbers qualifying for the back to school clothing and footwear allowance in 2004-05; the cost of the allowance; and if he will make a statement on the matter. [11973/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 313 and 321 together.

The back to school clothing and footwear allowance, BSCFA, scheme assists low income families with extra costs when children start school each autumn. The scheme operates from the beginning of June to the end of September each year and is administered on my behalf by the Health Service Executive. Under the scheme an allowance of €80 is payable in respect of qualified children aged from 2 to 11 years. An allowance of €150 is payable in respect of qualified children aged from 12 to 22 years. In 2004 a total of 153,409 children benefited under the BSCFA at a cost of €17.03 million. A total of €18 million has been allocated in the 2005 Estimates for this scheme.

Based on estimated qualifying child numbers in 2005, if the rate of allowance were increased for children aged 2 to 11 years from €80 to €140, the estimated additional cost would be approximately €6.1 million. An increase for children aged 12 to 17 years from €150 to €220 is estimated to cost €3.7 million extra. The extra cost of increasing the allowance for children aged 18-22 years similarly from €150 to €220 is estimated at €500,000. Any increase in the rates of allowance are a matter for consideration in a budget context, and in the light of other priorities at that time.

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 314: To ask the Minister for Social and Family Affairs the average increase in welfare benefits per year since 1994; the average increase in incomes per year since 1994. [11966/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 315: To ask the Minister for Social and Family Affairs the cost in 2005 of a €2 increase in pensions; the cost of a €7.40 increase for first and second children; and the cost of a €5.40 increase for third and subsequent children. [11967/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 317: To ask the Minister for Social and Family Affairs the cost of the living alone allowance in 2005. [11969/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 319: To ask the Minister for Social and Family Affairs if he will consider abolishing the limitation rule which applies to social welfare payments when more than one adult in a household is eligible for a social welfare payment; the likely cost of such an initiative; and if he will make a statement on the matter. [11971/05]

Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

Question 320: To ask the Minister for Social and Family Affairs the cost to the Exchequer of increasing the child dependant allowance to a single weekly figure to €26 for all recipients. [11972/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 314, 315, 317, 319 and 320 together.

The average increases in social welfare benefits and average industrial earnings from 1994 to 2005 is best shown by the following tabular statement. Since it has been the practice for many years to distinguish between payments to pensioners and other categories of recipients, the table shows the increases given to old age contributory pension, OACP, and to long-term unemployment assistance, LTUA. Increases in wages generally are shown by reference to gross average industrial earnings, GAIE.

The other data requested by the Deputy is as follows. The full year cost of a €2 per week increase in the rate of payments to pensioners is €42 million; the full year cost of a €7.40 per week increase in the rate of child benefit for each of the first two children and a €5.40 per week increase in the rate payable for the third and each subsequent child is €94 million; the estimated cost in 2005 of the living alone allowance is €57 million; the full year cost of increasing child dependant allowances to €26 per child is €135 million; it is tentatively estimated that the cost of abolishing the current limitation provisions would be of the order of €55 million in a full year.

The improvements outlined would have to be considered in a budgetary context and in the light of available resources.