Written answers

Wednesday, 22 March 2006

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 98: To ask the Minister for Social and Family Affairs if, when a person reaches the age of eligibility for the old age pension, his Department informs that person by letter that they are eligible and that they should contact his Department; and if he will make a statement on the matter. [10951/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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My Department advises customers in receipt of social welfare payments who are approaching pension age to apply for a pension in good time. Approximately 30% of all pensioners are notified in this way. The most significant group in this category comprises those who are in receipt of invalidity pension. To further improve customer service to this particular category I have introduced a new measure in budget 2005 which will confer automatic entitlement to old age contributory pension for recipients of invalidity pension who reach 66 years of age. This will remove the need for some 3,000 people annually to submit a separate application for old age contributory pension.

I have also arranged for the same legislation to cater for the automatic transfer from retirement pension to old age contributory pension for customers who reach 66 years of age. Similarly, recipients of blind pension and widow/er's non-contributory pension will be transferred to old age non-contributory pension by my Department in advance of them reaching pension age.

In my Department's information booklets and other promotional material concerning pension qualification, customers are advised to apply for pension at least three months in advance of pension age. If they have worked in another EU country or a country with which Ireland has a bilateral agreement on social security, customers are advised to apply for pension six months in advance of pension age. This is to ensure that arrangements can be made to receive their contribution details from the relevant country in time to process their pension application before they reach pension age.

My Department strives to keep pensioners informed of their entitlements through a variety of means including: a telephone service through all departmental offices; a range of leaflets and booklets; an information officer service in each of my Department's social welfare local offices; by way of the Department's website, www.welfare.ie. The statutory body, Comhairle, which operates under the aegis of my Department, has responsibility for the provision of independent information, advice and advocacy services for all citizens through the nationwide network of citizens information centres, through its dedicated phone inquiry service and on the Internet through the OASIS website, www.comhairle.ie.

My Department, as part of its service delivery modernisation — SDM — programme, is working on developments which will electronically consolidate customers' insurance records. This will, over time, result in improved customer service as complete records, on which entitlements rely, will become accessible in a more automated manner, and this will facilitate the proactive initiation of claims for certain categories of customer.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 100: To ask the Minister for Social and Family Affairs the number of children receiving the child dependent allowance; and if he will make a statement on the matter. [10943/06]

Photo of Shane McEnteeShane McEntee (Meath, Fine Gael)
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Question 118: To ask the Minister for Social and Family Affairs if he will amend the child dependent allowance to just one rate applicable to all children; his plans to address this anomaly; and if he will make a statement on the matter. [10939/06]

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 127: To ask the Minister for Social and Family Affairs the progress he has made in introducing a second tier payment for children; and if he will make a statement on the matter. [10944/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 100, 118 and 127 together.

My Department provides child income support in a number of ways. The main support is provided through child benefit, a universal payment which is neutral vis-À-vis the employment status of the child's parents and does not contribute to poverty traps. Over the period since 1997, the monthly rates of child benefit have increased by €111.91 at the lower rate and €135.48 at the higher rate, increases of 293.8% and 273.6% respectively. From April 2006, child benefit rates will be €150 per month for each of the first two children and €185 per month for the third and each subsequent child. Child benefit is paid to over 547,540 families in respect of approximately 1,060,740 children.

Child income support for low income families is also provided through child dependant allowance, paid in addition to weekly social welfare payments in respect of over 255,700 children at full rate and almost 84,000 at half rate. In addition, my Department provides cash support by way of weekly payments to families at work on low pay, through the family income supplement scheme. A number of improvements have been made to the scheme over the years, including assessment of entitlement on the basis of net rather than gross income and progressive increases in the income thresholds, making it easier for lower income households to qualify for payment. As a result, there are currently 17,448 families receiving a weekly FIS payment, reaching nearly 34,000 children.

Child poverty is clearly a complex area requiring co-ordinated action across a range of Government services and income support payments. My Department is responsible for developing income supports which make the most effective contribution to child poverty and there has been a considerable real increase over a succession of annual budgets in the level of resources which are going to families with children. The broad approach over the last ten years to child income support policy was recently commended by the NESC. However, the NESC has also raised the question of a new instrument which would target low income families across the welfare-work divide and is, I understand, currently working on a more detailed report on this approach.

I expect that the NESC finalised report will be of significant assistance in informing the future direction of policy in this area. On receipt of the report, I will consider how this approach can be brought forward to address the problem of poverty in families with children in a practical and effective way.

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 101: To ask the Minister for Social and Family Affairs the steps he will take to end the anomaly whereby Irish born emigrants who return here are not entitled to the living alone allowance or free fuel allowance on equal terms with Irish pensioners; and if he will make a statement on the matter. [10997/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The living alone allowance is an additional payment of €7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments and who are living alone. It is also available to people under 66 years of age who are living alone and who receive payments under one of a number of invalidity type schemes. The allowance is intended as a contribution towards the additional costs people face when they live alone.

The allowance is not a payment in its own right but one that is paid as a supplement to an Irish social welfare payment. As such, it cannot be paid to people without a social welfare entitlement or to those whose pension payments are made exclusively under the social security regimes of other countries. With regard to the latter, the needs of older people are often provided for in different ways by other countries. While the Irish system provides a basic pension, supplemented by allowances and other benefits, the approach adopted by other countries can be very different involving, for instance, a pension based on pre-retirement earnings.

The fact that a living alone allowance is not paid by another administration should not be viewed as an anomaly but rather as a different approach to providing for the needs of older people. Accordingly, the payment of a living alone allowance independent of an Irish welfare entitlement would not be appropriate. It is, of course, open to recipients of pensions from other countries to apply for the old age non-contributory pension. To qualify for the old age non-contributory pension a person must satisfy a means test. The pension, including, where appropriate, a living alone allowance, can be paid in addition to other pension income.

Changes in the income disregard for non-contributory pensions announced in the budget will help more people to qualify for a pension and improve the income of existing pensioners on reduced payments. In budget 2006, the means disregard was increased by €12.40 per week to €20 per week.

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. Fuel allowances are paid for 29 weeks from end-September to mid-April. The allowance represents a contribution towards a person's normal heating expenses. In addition, many of the households concerned qualify for electricity or gas allowances. Budget 2006 provided for an increase in the rate of fuel allowance from €9 per week to €14 per week —€17.90 per week in designated smokeless areas.

To qualify for a fuel allowance, a person must be receiving one of a number of designated payments, which range from long-term unemployment assistance to old age non-contributory pension, including both contributory and non-contributory payments. Pension payments made by other EU states or countries with which Ireland has a bilateral agreement are qualifying payments for the purposes of the scheme. To qualify for an allowance a person, and the other members of the household, must be unable to pay for their heating needs from their own resources. To fulfil this condition the household must satisfy a means test.

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