Written answers

Thursday, 30 June 2005

Department of Social and Family Affairs

Social Welfare Benefits

8:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 53: To ask the Minister for Social and Family Affairs if he will consider introducing index linked social welfare payments in view of recent and future increases in fuel costs. [23040/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The social welfare benchmarking and indexation group, established under the terms of the Programme for Prosperity and Fairness, reported in September 2001. While it did not prove possible to reach consensus on the desirability of establishing a formal benchmark for social welfare rates, the group did produce the following majority recommendation:

Recognising that the exact rate was a matter for Government, and having balanced the various factors set out in the terms of reference, the majority of the Group considered that the target of 27% of GAIE [Gross Average Industrial Earnings] (on a current-year basis) for the lowest social welfare payments was not an unreasonable policy objective.

With regard to child related payments, the group recommended that the appropriate equivalence level of basic child income support should be set at 33%-35% of the minimum adult social welfare payment rate. The report of the group fed into the national anti-poverty strategy published in 2002. This revised strategy contains a specific commitment to:

To achieve a rate of €150 per week in 2002 terms for the lowest rates of social welfare to be met by 2007 and the appropriate equivalence level of basic child income support (i.e. Child Benefit and Child Dependent Allowances combined) to be set at 33%-35% of the minimum adult personal rate.

This commitment was also reiterated in An Agreed Programme for Government and Sustaining Progress. In addition, An Agreed Pro-gramme for Government also contains a commitment to "increase the basic State Pension to at least €200 by 2007". The achievement of these commitments requires levels of increase well ahead of projected price inflation over the period. Considerable progress has already been made and I was happy to increase the lowest rates of welfare payments by over 10% in the last budget, an increase over four times ahead of projected inflation for the year. In addition, the level of child income support was maintained within the target equivalence levels provided for in the NAPS.

Over the period since 1997, the lowest social welfare rate has increased by 79% or a real increase ahead of price inflation of 37%. Over the same period, the rate of old age contributory pension has increased by 81% or a real increase of over 39%. I look forward to making further progress towards completing these ambitious commitments in the rates of welfare payments in the next two years.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 55: To ask the Minister for Social and Family Affairs if he intends to reduce the qualifying period for the back to education allowance to nine months; if so, when he will introduce this change; and if he will make a statement on the matter. [22906/05]

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 88: To ask the Minister for Social and Family Affairs if he has reconsidered reversing the qualifying period for the back to education allowance to nine months; when he expects this change to be made; and if he will make a statement on the matter. [22889/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 55 and 88 together.

The back to education allowance is a second chance education opportunities programme designed to encourage and facilitate people on certain social welfare payments to improve their skills and qualifications and, therefore, their prospects of returning to the active work force. The scheme is intended to benefit people who had difficulty finding employment because of a lack of educational qualifications. In many cases, people who have not completed second level education are held back in their efforts to obtain employment because of this. The qualification period for people who wish to pursue second level education is six months and the numbers taking second level education with the support of BTEA are increasing.

The conditions for entitlement to the third level option of the back to education allowance were revised with effect from September 2004. From that date, the qualifying period was increased from six months to 15 months for new applicants intending to commence third level courses of study. I reduced the qualifying period for access to the third level option of the scheme to 12 months in last December's budget. I also increased the annual cost of education allowance, paid to people on BTEA, from €254 to €400. These changes will take effect from 1 September 2005.

I have undertaken to the Dáil and the social affairs committee that I will continue to keep the qualifying period for this scheme under regular review. I have requested my officials to further examine the current arrangements to ensure that the scheme supports those people who are most distant from the labour market and whose need is greatest. In particular, I have requested that they examine how the scheme might be accessed by people in need of further education who have been identified under the employment action plan operated by FÁS in conjunction with my Department. I expect to be in a position to finalise this matter in July.

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