Finian McGrath (Dublin North Central, Independent)
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Question 183: To ask the Minister for Social and Family Affairs if he will introduce a cost of disability allowance of €40 per week for people currently in receipt of means tested social welfare payment. [32315/06]

Séamus Brennan (Dublin South, Fianna Fail)
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A working group established under the Programme for Prosperity and Fairness (PPF), with cross-departmental membership which includes my Department and chaired by the Department of Health and Children, has examined the feasibility of the introduction of a cost of disability payment. The National Disability Authority, on behalf of the working group and in line with its own remit, commissioned research into the feasibility of the introduction of such a payment. The purpose of this research was to advise regarding the additional costs incurred by people with disabilities, owing specifically to the direct or indirect costs of disability and the appropriate mechanisms or instruments by which to address identified additional costs. The resultant report, Disability and the Cost of Living, was subsequently published by the National Disability Authority.

The group considers it vital that comprehensive data is available on which to base consideration of the introduction of a cost of disability payment, in addition to a structured process of the assessment of need. The working group recommended that steps be taken to improve the quality of data relating to disability in Ireland, for example, adjustment of existing data gathering exercises undertaken by the Central Statistics Office or other relevant bodies to include questions on the numbers per household with disabilities, the nature of disability and severity of impairment.

The group has also examined the scope for addressing barriers that exist for people with disabilities who wish to undertake or increase their employment and thus move to a position of greater economic independence. In this regard, as part of the Social Welfare Budget package 2006, I introduced a change to the withdrawal rate of Disability Allowance and Blind Pension for income in excess of the current earnings disregard level which means that a single person can earn up to a maximum of €390 per week from rehabilitative employment before their Disability Allowance or Blind Pension is fully withdrawn. The outcome of this change will be monitored to assess its effect on increased employment participation and to identify any further policy changes required.

In terms of ensuring adequate levels of income for people with disabilities, the current ten-year Social Partnership Agreement, Towards 2016, includes the commitment to work for the continued enhancement and integration of supports in line with overall social welfare targets. These will include a rationalisation of existing allowances for people with disabilities in the context of the Government's policy of mainstreaming and the proposed transfer of functions from the Health Services Executive to my Department which includes a number of disability-related schemes, including the Domiciliary Care Allowance, Mobility Allowance and Blind Welfare Allowance. An inter-departmental working group has now been established to progress the implementation of this transfer. Other issues around the cost of disability will be considered following the development of a needs assessment system provided for under Part 2 of the Disability Act, 2005.

My Department's Disability Sectoral Plan similarly contains actions in relation to the rationalisation of existing allowances for people with disabilities. The Plan also includes agreed protocols with the Department of Health and Children and the Department of Enterprise, Trade and Employment on actions required to ensure that income supports and associated benefits do not create financial barriers to people with disabilities participating in the labour force or availing of training, educational or other developmental opportunities.

I look forward to the implementation of the sectoral plan over the next three years and to continuing the commitment to expand and deliver services that best support, recognise and encourage people with disabilities as well as those who provide a caring role.

Finian McGrath (Dublin North Central, Independent)
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Question 184: To ask the Minister for Social and Family Affairs if he will increase disability allowance by €20 per week to €185 and make a commitment to sustained increases going forward. [32316/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Towards 2016, the recently ratified social partnership agreement, includes a commitment to achieve the target of €150 per week, in 2002 terms, for the lowest social welfare rates by 2007 and to maintain the value of these rates at this level over the course of the agreement, subject to available resources. This commitment applies to a wide range of social welfare schemes, including disability allowance. Budget 2006 saw an increase of €17 per week in the weekly rate of disability allowance to €165.80 per week. This represented an increase of 11.4%, which was well above the 2006 projected inflation rate and ensured that the Government remains on course to deliver on its commitment on the lowest social welfare rates. A €20 increase in the rate of disability allowance would cost an estimated €93.5 million in a full year. Further improvements in the rate of disability allowance will be considered in the context of the forthcoming Budget.

Róisín Shortall (Dublin North West, Labour)
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Question 185: To ask the Minister for Social and Family Affairs the cost to the Exchequer in each case of raising the qualifying threshold for fuel allowance by €20 per week, €50 per week and €100 per week. [32302/06]

Séamus Brennan (Dublin South, Fianna Fail)
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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 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. It is estimated that some 274,000 people (151,000 with basic fuel allowance and 123,000 with smokeless fuel supplement) will benefit in 2006 at an estimated annual cost €125.1m.

A number of improvements have been made to the scheme in recent years including the easing of the means test and extending the duration of payment from 26 weeks to 29 weeks. Most recently, Budget 2006 provided for an increase in the rate of fuel allowance of €5.00 from €9.00 to €14.00 (€17.90 in designated smokeless areas). Eligibility to the fuel allowance scheme is subject to means and other conditions. The main conditions that apply to the fuel allowance scheme are that a person must be in receipt of a qualifying payment, must satisfy a means test and must either be living alone or with a qualifying dependant.

People who are in receipt of relevant non-contributory payments do not have to undergo a further means assessment for fuel allowance purposes. An income test applies in the case of other applicants whereby they and members of their household may have savings/investments of up to €46,000 or a combined household income of up to €51 per week, over and above the maximum rate of state pension (contributory) and still qualify for fuel allowance. This income limit was increased to €51 per week with effect from 1 June 2005. The fuel allowance income limits increase each season in line with the increases in the rate of the state pension (contributory).

The cost to the exchequer from raising qualifying thresholds as outlined in the Deputy's question would depend on the extra numbers who would apply and qualify for the fuel allowance as a result of the measure. An accurate quantification of these numbers is not readily available. However, it is estimated that it could cost approximately €1.9 million to raise the income limit by €20, approximately €3.7 million to raise it by €50 and approximately €5.5 million to raise it by €100.

Any changes to the fuel allowance scheme such as rates of payment, income limits and eligibility would have significant cost implications and would have to be considered in the context of the Budget and in the light of the resources available for improvements in social welfare generally.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 186: To ask the Minister for Social and Family Affairs when the living alone allowance was last increased; the value of same if it had been indexed up over the intervening period with the contributory old age pension; and the cost of delivering such an increase. [32407/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The living alone allowance or living alone increase as it is now known, 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 increase is intended as a contribution towards the additional costs people face when they live alone. The payment was last increased in 1996 and at that time the Living Alone Increase represented 8% of the personal rate for old age contributory pensioners. If the increase had kept pace with the increase in pensions since then it would now be worth approximately €15.40 per week. The estimated cost of bringing the increase up to this level is €61.5 million per annum.

I should point out that, over the past 10 years, the Government has made great strides in improving and expanding social welfare payments and entitlements, e.g., since 1996, pensions have increased by almost 104%, or nearly 50% in real terms.