Written answers

Wednesday, 22 February 2006

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Question 256: To ask the Minister for Social and Family Affairs the situation in relation to rent allowance regulations; if he will provide details of phased or reduced rent allowance which remains due to persons when they take up and return to employment; if similar concessions are available to persons in part-time or full-time work but under pressure from rent charges; and if such persons qualify for rent allowance. [7270/06]

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

The supplementary welfare allowance scheme, which is administered on my behalf by the community welfare division of the Health Service Executive, provides for the payment of rent supplement to eligible people whose means are insufficient to meet their accommodation costs.

I am very conscious of the need to facilitate persons in receipt of social welfare payments when taking up employment opportunities and to ensure that social welfare supports are structured to support this objective. Several measures have been introduced in recent years to remove disincentives to taking up employment and to assist in the transition from welfare to work. These measures include easing of means tests through income disregards, tapered withdrawal of benefits as earnings increase and employment support schemes such as the back to work programme.

Under standard 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 basic supplementary welfare allowance appropriate to his or her family circumstances, less a minimum contribution, currently €13, which each recipient is required to pay from his or her own resources. Where a person has an additional income as a result of participation on a training course or in part-time employment the standard means test now provides for a weekly disregard of up to €60 per week of additional income with half of any additional income between €60 and €90 also disregarded for means assessment purposes. For those participating in approved training courses, any lunch or travel allowances that are paid may also be disregarded. In addition certain training courses now provide a child care allowance to participants on certain courses. Budget 2006 provided that these child care allowances are to be treated in the same manner as a lunch or travel allowance and disregarded.

Alternatively, under special retention arrangements which have been in place for a number of years, a person is allowed to retain a portion of his or her rent supplement where he or she takes up employment through approved schemes, such as the back to work scheme or community employment scheme. Subject to certain conditions, including a weekly household income limit of €317.43, participants of these approved schemes can retain their rent supplement on a tapered basis for up to four years, namely, 75% in year one, 50% in year two and 25% in years three and four. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit. PRSI, reasonable travelling expenses and any child care allowances paid to participants on certain courses are also disregarded in the means test.

Participants on these approved employment or training schemes have the option of being assessed under either the standard means assessment or under the special retention arrangements and will be entitled to receive payment under the more favourable option in their case.

A person who has been unemployed for 12 months or more and who moves from a welfare payment to full-time open market employment may retain his or her rent supplement payment, subject to the €317.43 income limit, on the same tapered retention basis as outlined above.

All of these arrangements are designed to ease the transition from welfare to work by providing income support which by its nature is short term. However, I recognise that people on low incomes who have a long-term housing need require a long-term housing solution and the private rented sector does not meet their needs at present. The Government is committed to very significant investment in social and affordable housing which will assist people in this situation. The new rental accommodation scheme being implemented by the local authorities will provide secure, long-term accommodation and reasonable rent charges for people who would otherwise rely on rent supplement on a long-term basis. The measures address the roots of the problems to which the Deputy refers while the rent supplement arrangements I have outlined above ease the position in the meantime.

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Question 257: To ask the Minister for Social and Family Affairs the situation regarding extra energy costs on pensioners; his views on the way in which this concern will be addressed; if an estimate of increased VAT per annum on energy can be given on full population and pensioners for home heating or energy; if it is understood that pensioners need more heat due to health grounds or being in the house all day; and if the number of free units to elderly can be increased. [7287/06]

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

The schemes administered by my Department which assist pensioners with energy costs include the national fuel scheme and the electricity or gas allowance. The aim of the national fuel scheme is to assist householders on long-term social welfare or Health Service Executive payments with meeting the cost of their additional heating needs during the winter season. The fuel allowance is paid for 29 weeks from end-September to mid-April. Budget 2006 provided for an increase in the rate of fuel allowance of €5, from €9 per week to €14 per week, €17.90 in designated smokeless areas.

In order to qualify for the national fuel scheme a person must be in receipt of a qualifying payment, satisfy a means test and be living alone or only with certain excepted people. The purpose of these qualifying conditions is to ascertain the ability of applicant households to meet their normal heating requirements out of their resources and to ensure the maximum amount of support is targeted at those most in need of assistance in meeting their heating needs.

The household benefits package, which comprises the electricity or 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 weekly means income limit fixed for this purpose is the maximum personal rate of old age contributory pension, which is set at €193.30 for a recipient aged 66 to 79 years, and €203.30 for a recipient aged 80 years or over; plus €38.09; plus any increases for a qualified adult, dependent children, living alone, as appropriate. The make-up of this income limit means that it increases automatically each year on foot of the budget increases in pension rates.

This means that a single pensioner who lives alone can have an equivalent weekly income of €231.39 per week and qualify for the free schemes. A pensioner living with a qualified adult can have an equivalent weekly income of up to €360.19 per week and qualify for the free schemes.

The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. People aged over 70 years of age can qualify regardless of their income or household composition.

The electricity allowance covers normal standing charges and up to 1,800 units of electricity each year. In February 2002, the number of units covered by the allowance increased by 20%, from 1,500 units to 1,800 units. VAT due on this standard allowance is also covered.

The natural gas allowance is an alternative to the electricity allowance for people whose homes are connected to a natural gas supply. For people paying for natural gas on the Bord Gáis standard tariff, from last October, the natural gas allowance covers a credit of up to €59.71 in each two-monthly billing period in winter and a credit of up to €44.68 in each two-monthly billing period in summer.

This increase met the 25.26% increase in natural gas tariffs. Recipients on one of the other tariffs can get an allowance up to this value. Proposals to increase the value of the electricity and gas allowances or to further increase the fuel allowance are kept under review for consideration in a budgetary context.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

Question 258: To ask the Minister for Social and Family Affairs the reason a person (details supplied) in County Mayo has been refused the unemployment assistance when she made application on 8 February 2006 for a period from 17 December 2005 to date in 2006. [7316/06]

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

The person concerned is in receipt of unemployment assistance at the maximum weekly rate of €165.80 from 8 February 2006. She had applied to have her claim made retrospective from 17 December 2005. A deciding officer disallowed her retrospective claim on the grounds that she failed to satisfy all the conditions for receipt of unemployment assistance and also that she failed to show that there was good cause for failing to make her claim throughout the period in question.

The deciding officer was aware that the person concerned had made a previous retrospective claim in September 2005 and would have known the importance of making a claim as soon as her employment ceased. It is open to the person concerned to appeal this decision and a form for this purpose has now been issued to her.

Under social welfare legislation decisions regarding claims must be made by deciding officers and appeals officers. These officers are statutorily appointed and I have no role in regard to making such decisions.

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 259: To ask the Minister for Social and Family Affairs if he will remove a spouse's or partner's income in the assessment of means for a payment (details supplied); and if he will make a statement on the matter. [7387/06]

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

The carer's allowance is a social assistance payment which provides income support to people who are providing certain older people or people with a disability with full-time care and attention and whose incomes fall below a certain limit.

In the course of the carer's allowance means test, account is taken of the claimant's own means and, in the case of a couple, the joint means are assessed. In this regard, recipients of carer's allowance are treated in the same way as recipients of all other social assistance payments. This ensures that resources are directed to those in greatest need.

The carer's allowance means test has been eased significantly in the past few years, most notably with the introduction of disregards of spouses' earnings. Provision was made in budget 2006 to increase the income disregard on the carer's allowance means test to €290 per week for a single person and to €580 per week for a couple from April 2006.

This will ensure that a couple with two children can earn up to €32,925 per annum and still receive the maximum rate of carer's allowance. The same couple will be able to earn up to €54,400 and receive the minimum rate of carer's allowance as well as the free travel, the household benefits package and the respite care grant. Complete abolition of the means test would cost an estimated €140 million in a full year.

I am always prepared to consider changes to existing arrangements where these are for the benefit of recipients and financially sustainable within the resources available to me. Recommendations involving additional expenditure will be considered in a budgetary context.

Comments

No comments

Log in or join to post a public comment.