David Stanton (Cork East, Fine Gael)
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Question 94: To ask the Minister for Social and Family Affairs his plans to introduce the sickness allowance as legislated for in the Social Welfare Act 1997; and if he will make a statement on the matter. [11902/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The social insurance system provides income support to those who are incapable of work due to illness and who have made the required number of contributions to the social insurance fund. This support is provided primarily through the disability benefit and invalidity pension schemes.

For those persons without the required number of social insurance contributions, income support for long-term incapacity is provided through the disability allowance, DA, scheme. This scheme was introduced following the transfer of responsibility for the disabled persons maintenance allowance scheme from the health boards to my Department in October 1996. For those without the required social insurance record, income support needs for periods of short-term temporary illness are catered for through the supplementary welfare allowance, SWA, scheme.

Following the introduction of the DA scheme in October 1996, the question of introducing a social assistance payment for periods of temporary illness was considered and the Social Welfare Act 1997 provided for the introduction of a sickness allowance scheme. The broad outline of the scheme was provided for in the Act, with the details of the scheme to be provided for in regulations.

In the event, it was decided to postpone the introduction of any such scheme pending a more fundamental review of the overall system of income maintenance payments for people who are ill and people with disabilities. This review took place as part of the Government's expenditure review initiative. The review concluded that there would be no financial gain for clients and indeed potential disimprovements in service for some clients in the event of the introduction of a separate sickness allowance scheme.

This could occur because of the need, in the context of a sickness allowance scheme, for a waiting period for some groups, in particular persons in self-employment. Furthermore, as SWA is currently paid at the same rate, as would have applied to sickness allowance, there would be no financial advantage in the proposed scheme in such circumstances.

The group concluded that the current arrangements for dealing with the social assistance needs of those who are short-term ill and disabled should continue to apply. It is not proposed therefore to proceed with the introduction of a scheme on the lines proposed.