Written answers

Thursday, 11 May 2006

Department of Social and Family Affairs

Social Welfare Code

4:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 123: To ask the Minister for Social and Family Affairs if he will consider easing qualification limits for payment of carer's allowance; and if he will make a statement on the matter. [17828/06]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 133: To ask the Minister for Social and Family Affairs the cost to his Department of paying a half rate carers allowance to all widow or widower pensioners who are engaged in full-time care; and if he will make a statement on the matter. [17838/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Question Nos. 123 and 133 together.

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.

In Budget 2006, I provided for a significant increase in the rate of carer's allowance. From January this year, the rate of carer's allowance increased to €200 per week for carers aged 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 would strongly urge any person in this position to make enquiries with my Department.

In addition, 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 in relation to respite. Provision was made in Budget 2006 to increase the amount of the respite care grant from €1,000 to €1,200, from June 2006.

In line with other social assistance schemes, a means test is applied to the carer's allowance so as to ensure that limited resources are directed to those in greatest need. This means test has been eased significantly over the years, most notably with the introduction of the disregards of spouses' earnings. Following Budget 2006, from last month, 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 for carer's allowance would cost an estimated €140 million in a full year. The view of some support organisations is that if this level of resources were available, it would be more beneficial to carers if it were invested in further increases to carers allowance and in the type of community care services which would support them in their caring role, such as additional respite care facilities, more home helps, public health nurses and other such services.

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. This ensures that resources are not used to make two income support payments to any one person. Persons qualifying for two social welfare payments always receive the higher payment to which they are entitled.

According to Census 2002 there are over 48,000 people providing personal care for over 4 hours per day. Over 26,600 of these are in receipt of either carer's allowance or carer's benefit. It is likely that a proportion of the balance is in receipt of a different social welfare payment, for example an old age pension. It is not possible to estimate the number of people who are in this situation and it is therefore not possible to estimate the cost of the Deputy's proposal in relation to paying half rate carer's allowance to widow or widower pensioners who are engaged in full time care.

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. Those recommendations involving additional expenditure can only be considered in a budgetary context.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 125: To ask the Minister for Social and Family Affairs if he will review the qualification requirements for the back to education allowance with particular reference to standardising such requirements throughout the country in order that all applicants are treated equally; and if he will make a statement on the matter. [17830/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The back to education allowance is a second chance education opportunities programme 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 work force. The qualification requirements for access to the back to education are the same throughout the State.

At present, to qualify for participation in the BTEA scheme an applicant must be, prior to commencing an approved course of study, at least 21 years of age (18 for people with disabilities). Lone parents and unemployed persons may access the scheme at 18 years if they are out of formal education for 2 years or more. An applicant must also be in receipt of a relevant social welfare payment for at least six months, in the case of people wishing to complete a second level course, or twelve months in the case of people wishing to pursue third level qualifications. I recently made arrangements to change the twelve month requirement to nine in the case of people who wish to attend a third level course and who are participating in the National Employment Action Plan.

The back to education allowance is a non-statutory scheme and the eligibility criteria, as described above, are contained in my Department's Freedom of Information Guidelines. Such guidelines are issued to Deciding Officers to ensure consistency of decision with regard the scheme being administered.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 126: To ask the Minister for Social and Family Affairs the number of categories of people currently entitled to contribution credits; the extent to which he intends to improve or extend this in the future with particular reference to mothers working in the home and carers who have given up employment to care for a family member; and if he will make a statement on the matter. [17831/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Credited contributions (credits) form an integral part of the social insurance system. The primary purpose of credits is to protect the social insurance entitlement record of insured workers who, for reasons relating either to incapacity, ill-health, unemployment or the provision of care are not in a position to make PRSI payments.

In order to qualify for credits, a person must be an employed contributor insured under PRSI classes A, B, C, D, E or H. These include those who work in the industrial and commercial sector, public and civil servants, certain ministers of religion and members of the defence forces. These workers account for over two million insured persons or 82 per cent of the insured population. A recent attachment to the work force is necessary to avail of credits in that the person must have paid or credited contributions made in the last 2 complete income tax years to re-establish entitlement to credits once 26 contributions have been paid.

It is not possible to determine the total number of contributors who are currently availing of credited contributions. However, the main situations where contributions are credited are listed below and indicate the wide range of situations which may attract the award of credits: Pre-entry credits are awarded to individuals who have become an employed contributor for the first time and are designed to assist in qualification for short-term benefits; Change of status credits are awarded to employed contributors who commence in an employment which is insurable for old age (contributory) pension and retirement pension where they were previously insured at a modified rate of insurance; Periods during which employees avail of statutory maternity, adoptive, health & safety or carer's benefit; Workers who are entitled to statutory parental leave or spend time homemaking, caring, subject to certain conditions; Employed contributors are generally awarded credits when a person is receiving either unemployment or disability payments; Training credits are awarded to persons who are taking part in specified employment schemes or approved training/educational programmes. Student credits are awarded to students aged 23 or under who have completed their full-time education and are commencing an employment that is insurable for Old Age (Contributory) Pension.

For mothers working in the home, arrangements have been put in place through the homemakers scheme to protect the long-term pension rights of those who take time out from the workforce to care for children (up to the age of 12) or incapacitated relatives. The scheme — introduced in April, 1994 — works by disregarding up to 20 full years spent on caring duties when a person's social insurance record is being averaged for pension purposes. Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker.

Those in receipt of carer's benefit are entitled to credited contributions. Where there is no entitlement to carer's benefit, but carer's allowance is being paid, the legislation allows credits to be awarded if the person switched to the payment from another credit-bearing payment i.e. unemployment benefit.

Credited contributions will not, of themselves, establish entitlement to a social welfare benefit or pension but will assist towards it. The range of opportunities available to contributors to maintain and build a contributions record is comprehensive. My department constantly monitors the need for amendments or modifications to existing provisions to ensure the social insurance system continues to meet social protection needs in a changing work and social environment. In this context, a proposal to replace the system of disregards provided for under the homemakers scheme with one based solely on credited contributions is currently under consideration by my Department.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 129: To ask the Minister for Social and Family Affairs his proposals to extend or improve the qualification requirements for free schemes with a view to eliminating anomalies; and if he will make a statement on the matter. [17834/06]

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.

Widows and widowers aged from 60 to 65 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 of free schemes. These proposals are being kept under review in the context of the objectives of the scheme and budgetary resources.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 130: To ask the Minister for Social and Family Affairs if he intends to improve widows' pension payments for widows or widowers with dependent children; and if he will make a statement on the matter. [17835/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Widows and widowers can qualify for one of a number of different schemes depending on their particular circumstances. The contributory widow(er)s pension is available to those who satisfy the necessary PRSI contribution conditions, either on their own record or that of the deceased spouse. Those qualifying for this benefit are not subject to any means test.

Those without the necessary PRSI contributions can, if they have qualifying children, receive the one-parent family payment. This is a means tested payment but it does feature a reasonable earnings disregard which is designed to assist with the extra costs those with children face in trying to access training or employment. Up to EUR146.50 of earnings per week is completely disregarded, while earnings in excess of that and up to EUR293 per week are assessed at 50%. In Budget 206, I increased the upper threshold to EUR375 per week from end June 2006.

Widows and widowers with dependent children can benefit from the widowed parent grant, introduced in 2000, to provide additional assistance following a bereavement. The grant is currently valued at EUR2,700 and is paid in addition to the usual after death payments.

Increases in the rates of child benefit are also of benefit to widows and widowers with children. Since 1997, the monthly rates of child benefit have been increased significantly in accordance with Government commitments. The current rates of child benefit are EUR150.00 per month for each of the first and second children and EUR185.00 per month for the third and subsequent children. Furthermore, children under 6 years of age will also qualify for the annual EUR1,000 Early Childcare Supplement (ECS) announced in Budget 2006.

Widows and widowers are also entitled to the fuel allowance, back to school clothing and footwear allowance, and other secondary benefits, on the same basis as other social welfare recipients.

The adequacy of payments for widowed people, and for welfare recipients in general, is kept under review and, where appropriate, increases are granted in annual budgets. In Budget 2006, I was glad to provide increases for widowed people who received increases of between EUR14 and EUR17 per week. This is well ahead of the rate of inflation.

I will continue to look for opportunities in the context of future Budgets to improve the position of widows and widowers and other groups with dependent children.

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