Written answers

Tuesday, 4 April 2006

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 335: To ask the Minister for Social and Family Affairs if he has received correspondence from a person (details supplied) in County Wicklow of 11 March 2006; his response to same; and if he will make a statement on the matter. [13368/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The person in question, who is a participant in the back to education allowance scheme, contacted the Department of Social and Family Affairs regarding the recent High Court decision on the subject of discontinuation of summer payment. He also inquired about the reinstatement of postgraduate courses of education under the scheme. Correspondence was received on 14 March and a reply issued to him on 27 March 2006.

The back to education allowance is a second chance education opportunities scheme 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 workforce. Following a review of the basic purpose underlying the Department's back to education provisions, the scheme was revised.

In framing proposals to change elements of the scheme the concern was to ensure resources should be focused where the need is greatest. In line with this, payments under the scheme for the summer period have been discontinued for the scheme's participants as many students traditionally find seasonal work at home or abroad during the summer months. Participants in the scheme who fail to find employment during the summer may be entitled to an unemployment payment, subject to satisfying the usual qualifying conditions.

The issue was recently the subject of a High Court case concerning the cessation of back to education payments during the summer of 2003. I am considering the implications of the judgment and have sought advice from the Attorney General. I will consider the matter further in the light of that advice.

The recent High Court decision deals only with the discontinuation of summer payments to the scheme's participants. Regarding changes to the scheme as it relates to postgraduate courses of education, I am satisfied people in possession of a third level qualification have already achieved a good level of academic attainment, which should impact positively on their employment prospects. I should add, that the scheme continues to support those wishing to take up a higher diploma in any disciplines or graduate diploma in primary school-teaching.

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 336: To ask the Minister for Social and Family Affairs his plans to review the means test for farmers who apply for the old age non-contributory pension; and if he will make a statement on the matter. [13390/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Budget 2006 contained several important measures designed to target resources at particular groups of older people, including farmers. In considering these measures I was anxious to target resources at those 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.

One key measure I was pleased to announce on budget day was the establishment from next September of a single standardised pension scheme with a greatly enhanced means-testing regime. The State pension, non-contributory, will replace the old age pension and, for recipients aged 66 years and over, blind pension, widow's and widower's pension, one parent family payment, deserted wife's allowance and prisoner's wife's allowance.

All 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. More than 30,000 pensioners who are in receipt of a reduced rate of payment will gain from this change with increases of up to €12.50 per week in the personal rate of payment and increases in the qualified adult rate, where applicable, of up to €8.30 per week. I should point out that these increases will be in addition to the increase of €16 per week in the rate of old age non-contributory pension which took effect from January. Furthermore, the new State pension, non-contributory, will also feature an innovative disregard of €100 per week in respect of earnings from employment. These measures will benefit those farmers who are in receipt of an old age, non-contributory, pension, as well as entitling some to a means-tested pension for the first time.

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.

The levels of increases and revised means test arrangements announced in the budget are exceptional. The proposed modernisation of the arrangements is also a further demonstration of our commitment to the elderly, including farmers.

I will continue to keep the current arrangements under review, particularly in the context of framing future budget proposals.

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 337: To ask the Minister for Social and Family Affairs the position on the introduction of common free travel areas for pensioners between Ireland and the UK; and if he will make a statement on the matter. [13391/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The free travel scheme is available to all people living in the State aged 66 years or over. All carers in receipt of carer's allowance and carers of people in receipt of constant attendance or prescribed relative's allowance, regardless of their age, receive a free travel pass. It is also available to people under 66 years in receipt of certain disability type welfare payments, such as disability allowance, invalidity pension and blind person's pension.

People resident in the State who are in receipt of a social security invalidity or disability payment from a country covered by EU regulations, or from a country with which Ireland has a bilateral social security agreement, and who have been in receipt of this payment for at least 12 months are also eligible for free travel.

There have been several requests and inquiries on the extension of entitlement to free travel in Ireland to Irish-born people living outside of Ireland, or to those in receipt of pensions from the Department of Social and Family Affairs, particularly in the UK, when they return to Ireland for a visit. I am continuing to explore all aspects of a possible approach, subject to clarification of legal advice.

I will continue to review the operation of the free travel scheme with a view to identifying the scope for further improvements as resources permit.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 338: To ask the Minister for Social and Family Affairs his views on amending the practice of paying the free fuel allowance on a weekly basis to social welfare recipients to a system where they are given the option of a once-off payment to allow them pay for oil and so on; and if he will make a statement on the matter. [13428/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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A review of the fuel allowance scheme several years ago considered the option of a lump sum payment but concluded it would present difficulties for recipients in certain respects. A survey of recipients carried out in conjunction with the review showed that a majority favoured weekly payments. There are no plans to change the payment arrangements for the allowance.

In addition to the fuel allowance, more than 320,000 pensioner and other households qualify for electricity or gas allowances through the household benefits package, payable towards their heating, light and cooking costs throughout the year, at an overall cost of €109 million in 2005. These allowances are linked to unit energy consumption, thus affording a level of protection against unit price increases in electricity or gas.

If a person has an exceptional heating cost by virtue of a particular infirmity or medical condition which he or she is unable to meet out of household income, it is open to him or her to apply to the local community welfare officer for a special heating supplement under the supplementary welfare allowance scheme.

Some 264,400 customers, 145,800 with basic fuel allowance and 118,600 with smokeless fuel supplement, will benefit in 2006 at an estimated cost of €125.1 million.

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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Question 339: To ask the Minister for Social and Family Affairs if he will include schools in the free schemes as they relate to television licences; and if he will make a statement on the matter. [13574/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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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 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 objectives and scope of the arrangements, which broadly relate to the social and financial support of persons in receipt of certain social welfare payments, would not extend to the area proposed by the Deputy.

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