Written answers

Tuesday, 19 April 2005

Department of Social and Family Affairs

Departmental Expenditure

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 340: To ask the Minister for Social and Family Affairs the amount of savings accruing to his Department from the budget 2004; the groups of persons who became the victims of these cuts; and if he will make a statement on the matter. [12247/05]

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 are 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 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. It is not possible to distinguish those 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 that review I listened to the views expressed by Members, the social partners and voluntary groups and others I have met since becoming Minister. On budget day, I announced new arrangements, and the position is as follows: the qualifying period for the back to education allowance is being reduced from 15 months to 12 months in September 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 has been restored and will be available for 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 has been increased since last January by €50 per week to €350; and the saving of €700,000 arising from last year's MABS; supplement measure has been redirected to the money advice and budgeting service to enable it to further develop its services; €2.3 million, an amount equivalent to the savings achieved by the discontinuation of crèche supplements, is being made available to ensure 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 has been made available to improve the diet supplement arrangements; €19 million in funding from the rent supplement scheme has been 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 has been amended to ensure bona fide tenants who experience a change of circumstances are not disadvantaged, for example, if they become ill or unemployed within six months of renting; and rent supplement remains in payment unless a third offer of local authority accommodation has been refused.

I did not raise 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 extended full year cost of the measures I announced is €36 million in a full year.

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