Séamus Healy (Tipperary South, Independent)
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Question 307: To ask the Minister for Social and Family Affairs if he will allow carers who are already in receipt of a social welfare payment or a social welfare pension to also qualify for the carer's allowance or alternatively to hold onto 50% of their social welfare payment or social welfare pension; and if he will make a statement on the matter. [8138/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The carer's allowance is a social assistance payment which provides income support to people who are providing certain elderly or incapacitated persons with full-time care and attention and whose incomes fall below a certain limit. The primary objective of the social welfare system is to provide income support and, as a general rule, only one weekly social welfare payment is payable to an individual. Persons qualifying for two social welfare payments always receive the higher payment to which they are entitled.

From June 2005, the annual respite care grant was extended to all carers who are providing full-time care to a person who needs such care, regardless of their income. Those persons in receipt of other social welfare payments, excluding unemployment assistance and benefit, are entitled to this payment subject to meeting the full-time care condition. This arrangement was introduced to acknowledge the needs of carers especially for respite. In budget 2006, provision was made to increase the amount of the respite care grant from €1,000 to €1,200 from June 2006.

In addition to the increase in the level of the respite care grant, I also announced a significant increase in the rate of carer's allowance. From January, the rate of carer's allowance increased to €200 per week for carers age 66 years and over. This rate of payment may be higher in many instances than the rate of old age pension or widow/er's pension payable to a person. Such a person who is providing full-time care and attention to a person who requires such care may be entitled to receive this higher rate of carer's allowance.

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.

Séamus Healy (Tipperary South, Independent)
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Question 308: To ask the Minister for Social and Family Affairs the changes he proposes to make to the conditions and requirements for the one-parent family payments referred to by him in the media recently; and if he will make a statement on the matter. [8139/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The risk of poverty, especially child poverty, tends to be higher among one-parent families, larger families and those faced by long-term unemployment, due mainly to the direct costs of rearing children, including child care costs, and the opportunity costs related to the reduced earning capacity of parents arising from their care responsibilities. This applies particularly to one-parent families as the lone parent has to be the main breadwinner and carer at the same time.

However, it is generally accepted that for all people in working age households, the main route out of poverty is through employment. Employment participation among lone parents in this country is among the lowest in the OECD. This is despite the huge employment growth in recent years, increased female participation in the workforce and the income disregards afforded to lone parents who take up employment under my Department's one-parent family payment.

I believe that every support should be given to lone parents to give them an opportunity to continue to increase their earnings in their efforts to improve their own lives and those of their children. In recognition of this, I was pleased to significantly increase the upper income limit for the one-parent family payment by €82 per week to €375 per week in the recent budget. This measure will come into effect in July of this year. In addition, as a result of taxation measures introduced in the budget, lone parents will not now become eligible for tax until they earn in excess of €23,000 per annum.

One of the key tasks in the "Ending Child Poverty" initiative under Sustaining Progress is to address obstacles to employment for lone parents. The senior officials group on social inclusion was mandated late in 2004 to examine this issue and report back to the Cabinet committee on social inclusion with specific proposals. A sub-group of the senior officials group has been examining obstacles to employment for lone parent families, with particular emphasis on income supports, employment, education, child care and support programmes and information. We must also look closely at income supports and at how we can adjust those supports to better address the social problems that can arise for those who receive these payments.

In this regard, a working group established in my Department to review the income support arrangements for lone parents has looked at issues, including the contingency basis of the one parent family payment, cohabitation and the fact that the payment can act as a disincentive to the formation of partnerships and discourage joint parenting, maintenance and secondary benefits. A consultation process with social partners and other interested parties was also undertaken to inform the work of the group. I intend to make the findings of both working groups public in the near future and to engage in a consultation process with interested parties.

It is my intention that the outcome of these reviews, together with initiatives already in place in my Department, will contribute to the ongoing development of proposals designed to better support and encourage both lone parents and those seeking work in achieving a better standard of living, employment and education opportunities, a better future for themselves and their children and a more appropriate social policy in the future.

David Stanton (Cork East, Fine Gael)
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Question 309: To ask the Minister for Social and Family Affairs the way in which both used land, in view of the change in income levels for the farming sector recently, and land that is not being farmed and therefore producing no income, are calculated as means for the purpose of non-contributory payments from his Department; and if he will make a statement on the matter. [8223/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I understand that the Deputy is concerned, in particular, about the current arrangements applying in the case of old age pensions and other social assistance pensions where the claimant is in possession of a farm. In assessing means for social assistance purposes, account is taken of any cash income the person may have, including income from farming, together with the value of capital and property, except the home.

When assessing means derived from farming, a person is assessed with the prospective income from the farm in the next 12 months. In most cases, the figures for the last 12 months are used for this purpose. However, regard will be taken of any major changes in stock levels or in method of farming or in the prices of farm products. The yearly value or net profit is calculated by deducting all necessary expenses from the gross income. Where land is let on short-term lettings, such as the 11 month system, the income from such lettings is calculated as cash income for the purpose of the means assessment. Again, all necessary expenses incurred by the owner, such as auctioneer fees, fencing or fertilising between lettings are deducted from the gross letting income.

Where land is lying fallow or idle, there are two methods, depending on the circumstances of the individual case, for the assessment of means. If the Department is satisfied that the pension claimant is depriving himself or herself of an income in order to qualify for a pension or a pension at a higher rate than would otherwise be the case, the relevant assessment is the income which would be received, if the land were let. Where the Department is satisfied that this is not the case, the value of the land is obtained from the Valuation Office and is assessed as capital for means purposes.

The recent budget contained a number of important measures which are designed to target resources at particular groups of older people, including the farmers in question. In considering these measures I was anxious to target resources at those who are at the greatest risk of poverty, to encourage saving, and to simplify the system of income support for older people who do not receive contributory pensions, including farmers. Budget 2006 provides for an increase of €16 per week or 9.6% for all non-contributory pensioners, bringing the weekly rate of pension to €182 per week with effect from January. This means that significant progress has been made towards the achievement of the Government's commitment to bring the basic State pension to over €200 per week by 2007. In addition, I increased the fuel allowance by €5 per week, from €9 to €14, and the over 80 allowance by €3.60 to €10. These measures will be of considerable benefit to many thousands of non-contributory pensioners, including many farmers.

On budget day, I was also pleased to announce that I proposed to establish, in September 2006, a standardised State non-contributory pension, replacing the old age pension and, for recipients aged 66 years and over, blind pension, widow/er's pension, one-parent family payment, deserted wife's allowance and prisoner's wife's allowance. All the schemes in question feature a common means disregard of €7.60 per week, which has not increased since the 1970s. The means disregard for the new non-contributory pension will be €20 per week, an increase of €12.40 per week. Over 30,000 pensioners who are currently in receipt of a reduced rate of payment will gain from this change. The increase in the personal rate of payment will be up to €12.50 per week while the qualified adult rate, where applicable, will increase by up to €8.30 per week. This measure, in particular, will benefit all those farmers who are in receipt of an old age non-contributory pension at present.

Furthermore, consequent on the increase in the means disregard to €20 per week, a single person with no other means will be able to have up to €35,000 in capital and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple.

By any standards, the levels of increases and revised means test arrangements announced in the budget are exceptional. The proposed modernisation of the current arrangements is also a further demonstration of our commitment to all those who are elderly, including those who continue to farm or lease land.