Written answers

Wednesday, 1 November 2006

Department of Social and Family Affairs

Social Welfare Benefits

6:00 am

Photo of Seán HaugheySeán Haughey (Dublin North Central, Fianna Fail)
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Question 472: To ask the Minister for Social and Family Affairs the measures he is taking to improve the position of widows; and if he will make a statement on the matter. [35388/06]

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 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 a 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 which comprises an earnings disregard, which is designed to assist with the extra costs those with children face in trying to access training or employment. Up to €146.50 of earnings per week is completely disregarded, while earnings in excess of that and up to €375 per week are assessed at 50%. This upper threshold was increased by €82 per week in the last Budget. From 30 June 2006, people whose earnings have risen above €375 per week may be entitled to half of their payment for up to 26 weeks. The widowed parent grant, introduced in 2000, also provides additional assistance following a bereavement. The grant is set at €2,700 and is paid in addition to the usual after death payments. In addition, increases in the rates of child benefit assist those widowed 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 €150 per month for each of the first and second children and €185.00 per month for the third and subsequent children. Furthermore, children under 6 years of age will also qualify for the annual €1000 early childcare supplement (ECS) announced in Budget 2006.

Widowed persons without dependent children may, if they are under 66 years of age, qualify for widow(er)'s non-contributory pension, or the state non-contributory pension if they are over 66 years of age. With regard to the latter, which I introduced in September, the basic means disregard was increased by €7.60 to €20 per week while a specific additional disregard of €100 per week has been included where the pensioner is in employment. This is intended as an incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce and also applies to widow(er)s under 66 who are in receipt of widow(er)'s non-contributory pension. Widowed persons 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, widowed people received increases of between €14 and €17 per week which is well ahead of the rate of inflation. I will continue to look for opportunities in the context of the forthcoming Budget to improve the position of this group.

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 473: To ask the Minister for Social and Family Affairs the reason there has been no increase in payments for dependants under the widow's pension in nine years; and if he will make a statement on the matter. [35421/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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My Department provides child income support in a number of ways. The principal support is child benefit, (CB) a universal payment which is neutral vis-À-vis the employment status of the child's parents and does not contribute to poverty traps. In addition to CB, child dependant allowances (CDAs) are paid to social welfare recipients in respect of qualified child dependants. A third support is family income supplement (FIS), an employment support paid where a person with child dependants is in low-income employment. The policy in recent years has been to maintain the rate of CDAs constant while concentrating additional resources in CB and FIS. 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. Current child benefit rates are €150 per month for each of the first two children and €185 per month for the third and each subsequent child. CB is paid to over 547,540 families in respect of approximately 1,060,740 children. In addition, a number of improvements have been made to the FIS 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 over 20,000 families receiving a weekly FIS payment, reaching over 38,000 children. Any change to existing policy, including CDA increases, will be considered in a Budgetary context and in the context of an overall review of targeted child income supports.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 474: To ask the Minister for Social and Family Affairs the way his Department assessed an overpayment for a person (details supplied) in County Mayo; the reason his Department did not respond to this person when they submitted a letter in 2001 notifying his Department of their employment; and if his Department will accept a repayment of €50 a month in this case. [35436/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The person concerned was in receipt of the maximum rate of one-parent family payment from the introduction of the scheme in 1997, having been previously in receipt of lone parent allowance from September 1995. Customers receiving one-parent family payment can earn up to €146.50 per week without it affecting the rate of payment. In the case of a person in employment, half of his or her earnings to a maximum of €375 per week, are assessed as means. Recipients of the one-parent family payment scheme are obliged to notify my Department when there is a change in their circumstances, for example, when they commence employment or receive an increase in earnings. One-parent family payment customers are advised of the requirement to notify my Department of any change in their circumstances when their entitlement is initially decided. Failure to notify my Department about any change in circumstances can lead to a customer incurring an overpayment.

Following a review carried out by officers in my Department during 2003 it transpired that this customer was in employment and had earnings in excess of €293 per week during the tax years ending 5 April 2001, 31 December 2001 and 31 December 2002. On the basis of her earnings from employment, it was decided that the customer was entitled to a transitional payment of half the rate of one parent family payment for the 12 month period to 4 April 2001. The entitlement to one parent family payment ceased completely from 5 April 2001. An overpayment of €19,577.76 resulted. My Department has no record on file of having received any notification from the customer in 2001 regarding a change in her earnings. Arrangements to repay the overpayment at the rate of €50 per month have been made in this case, and this has been communicated to the person concerned.

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