Written answers

Wednesday, 28 September 2005

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 712: To ask the Minister for Social and Family Affairs if his attention has been drawn to the anomaly whereby lone parents who have joined community employment schemes find that they are being penalised in doing so due to the fact that health board payments have not been increased for a number of years, particularly secondary health board payments; if he plans to increase these payments in budget 2006 (details supplied); and if he will make a statement on the matter. [24259/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Under standard supplementary welfare allowance assessment rules, rent supplements are calculated to ensure that an eligible person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to his or her family circumstances, less a minimum contribution of €13 which each recipient is required to pay from his or her own resources. Family income supplement is disregarded in the standard means test. In addition, in cases where the applicant has part-time employment, that is, less than 30 hours per week, up to €60 of weekly earnings is disregarded.

Lone parents and others who participate in community employment, CE, schemes are not penalised for doing so. Up to €60 of weekly earnings is disregarded in the means test to ensure that a person is better off as a result of taking up a CE place, part-time employment or other such opportunities. There are also disregards for any family maintenance lone parents receive. A lone parent with one child living in Galway, for example, with rent of €175 per week, whose sole income is a one-parent family payment of €168.10 per week, would ordinarily receive rent supplement of €159.50 per week, resulting in a net income after paying rent of €152.60 per week. If she takes up a CE place, her total income before rent supplement and before paying rent would rise to €343.10 per week. In these circumstances, she would be entitled to €44.50 in rent supplement and her income after paying rent would be €212.60 per week. She would be €60 better off for having taken up a CE place.

The position facing people who take up full-time employment is different. Supplementary welfare allowance is not normally payable to people in full-time employment. However, arrangements have been in place for a number of years which allow people to retain a portion of their rent supplement where they take up employment through the back to work and other approved schemes. The weekly household income limit in these cases is €317.43.

While the €317.43 income limit has not changed in recent years, significant changes have been made to the means test. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are now disregarded in the assessment of household income. PRSI and reasonable travelling expenses are also disregarded. Rent supplement may be retained for up to four years on a tapered basis, that is, 75% in year one, 50% in year two and 25% in years three and four.

In effect, this means that people who commence employment through a back to work scheme, following a period of unemployment, can have a weekly household income significantly in excess of the €317.43 limit and still qualify to retain 75% of their rent or mortgage interest supplement. In the first year of their participation in the back to work allowance scheme, for example, a single person can have combined income from the back to work allowance and wages of €429 while a couple with two children can have a combined income of €528.25. In addition, the maximum payment limit of €317.43 per month on the amount of supplement payable was abolished for people on the approved schemes. As a participant in a back to work scheme, approved training course or employment programme, a person can opt to be assessed under either standard rules or under these special retention rules and will be entitled to receive payment under the more favourable option in their situation.

The Government has established an interdepartmental working group to examine ways in which the overall social welfare income support system for lone parents specifically can be improved, in particular to facilitate them in moving towards income self-sufficiency through employment, or further education if necessary, when their children move into the education system. The incentive or disincentive effects of the various secondary benefits, including rent supplement, is relevant is this regard and is being considered by the working group.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 713: To ask the Minister for Social and Family Affairs the reason the scheme whereby free schemes are extended to widows aged 60 years and over at the time of death of their spouse does not apply to widows upon reaching the age of 60 years; and if he will consider extending entitlements in this way. [24301/05]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 733: To ask the Minister for Social and Family Affairs if he will consider entitling those in receipt of carer's benefit to the household benefits package; and if he will make a statement on the matter. [24821/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 713 and 733 together.

The household benefits package, which comprises the electricity/gas allowance, telephone allowance and television licence schemes, is generally available to people living permanently in the State, aged 66 years or over, who are in receipt of a social welfare type payment or who satisfy a means test. The package is also available to carers in receipt of a carer's allowance and to people with disabilities under the age of 66 years who are in receipt of certain welfare type payments. People aged over 70 years can qualify regardless of their income or household composition. Widows and widowers aged from 60 to 65 years whose late spouses had been in receipt of the household benefits package retain that entitlement to ensure that households do not suffer a loss of entitlements following the death of a spouse.

A range of proposals have been made to extend the coverage of the household benefits package, including those raised by the Deputies. These proposals are kept under review in the context of the objectives of the scheme and budgetary resources.

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