Written answers

Thursday, 1 March 2007

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 25: To ask the Minister for Social and Family Affairs if reform is taking place of the Health Services Executive urgent needs loan scheme operated through his Department to allow for wider access of low cost credit to persons in crisis debt situations. [7935/07]

Photo of Ciarán CuffeCiarán Cuffe (Dún Laoghaire, Green Party)
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Question 42: To ask the Minister for Social and Family Affairs if he will address the disparities in the values of supplementary welfare payments across the country particularly in view of the concern expressed by the working group on the issue within his Department. [7926/07]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 52: To ask the Minister for Social and Family Affairs the main findings of the Government's working group on the rent supplement scheme; the changes he will make to the rent supplement scheme as a result; and if he will make a statement on the matter. [7896/07]

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 56: To ask the Minister for Social and Family Affairs the progress made with regard to his consideration of the major review of the supplementary welfare allowance scheme carried out under the Government's Expenditure Review Initiative; and if he will make a statement on the matter. [7898/07]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 62: To ask the Minister for Social and Family Affairs if he will confirm that a review of the supplementary allowance scheme has revealed significant inconsistencies in the levels of payments made under the scheme between different parts of the country; the steps he will take to ensure greater consistency in the level of payments made; and if he will make a statement on the matter. [7897/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 25, 42, 52, 56 and 62 together.

The review of the supplementary welfare allowance scheme was carried out as part of the Government's Expenditure Review Initiative series of Programme Evaluation reviews. Overall the review concluded that the scheme has, over the years, met its objective of guaranteeing that every person in the State has a minimum level of income sufficient to meet their basic day to day needs. However, the review also points out that the scheme has gone beyond its original "safety net" role and now plays a more extensive role than was originally intended. In overall terms the review argues for a unified system of income support delivered at Social Welfare Local Offices and complemented by a range of activation supports; vigorous support of the Rental Assistance Scheme to address housing needs of people in long-term rent supplementation; and a continued role for the Community Welfare Service in delivering a flexible and immediate response to those most in need.

In the case of rent supplement, the report recommends that the implementation of the rental assistance arrangements announced by Government in July 2004 should be vigorously pursued. In addition to improving the housing situation for people on low incomes and delivering better value for money for the Exchequer, full implementation of the arrangements would allow the rent supplement scheme to return to its original objective of being a short-term income support scheme, with fewer than half of the current number of recipients. The review identified a number of issues relating to the incentives under the rent supplement scheme for those wishing to take up an employment opportunity. In Budget 2007 I specifically addressed this issue when I announced improvements in the additional income disregards for those taking up employment or training. I said that any person who is on a local authority waiting list for accommodation under the Rental Accommodation Scheme (those with a long-term housing need), may return to full-time employment and be considered for a rent supplement payment under the standard means test as outlined above. This new system replaces the existing special retention arrangements, so that in the case of a person aged 65 or over whose combined household income is greater than the rate of supplementary welfare allowance appropriate to his or her circumstances, an amount equal to the difference between the maximum rate of State pension appropriate to his or her circumstances and the said rate of supplementary welfare allowance is no longer assessed in the means test for rent or mortgage interest supplement. These measures provide for significant improvements to the rent supplement scheme in terms of simplifying the current assessment process and in offering clear incentives to those returning to work.

Under the supplementary welfare allowance scheme, an exceptional or urgent needs payment may be made to help meet an essential, once-off cost which the applicant is unable to meet out of his/her own resources. There is no automatic entitlement to this payment; each application is determined by the Executive based on the particular circumstances of the case. If an urgent needs payment is paid to a person who is engaged in remunerative full-time work, the Health Service Executive may, if it is satisfied that in all the circumstances of the case it would be equitable to do so, determine or decide that the whole or part of the allowance so paid shall be recoverable from the person to whom it is paid. While the review of the SWA scheme contained a number of detailed recommendations for reform it did not recommend a loan scheme and I have no intention at this stage of introducing one.

The review included a detailed examination of expenditure and recipient trends for all elements of the scheme. The Group identified variations in the level of expenditure on exceptional needs payments but considered that such variations were likely to occur as the payments are made on the basis of a person's need and it was reasonable to expect that such needs would not occur uniformly across the country. The Working Group also examined the average value of exceptional needs payment throughout the country in relation to the various different types of exceptional and urgent needs payments and found variations in the levels of payments that could not be explained by geographical cost factors. While noting this, I am conscious that the discretionary nature of the payments is in itself a contributing factor to the variation in the level of payments. A balance has to be struck between the enforcement of a consistent approach and exercise of discretion on a case by case. During 2007 my Department will continue to monitor these payments. However, I will not take any action that might restrict the discretionary nature of the scheme in a manner that would be detrimental to people availing of the service.

The working group also recommended an easing of the means test for SWA purposes in the assessment of capital. Under existing rules the first €520 of capital is assessed at one-twentieth with the amount in excess of this amount assessed at one-tenth. In Budget 2007 I provided for an improved capital assessment under which the first €5,000 of capital will be disregarded; the next €10,000 will be assessed at €1 per €1,000; the next €25,000 will be assessed at €2 per €1,000; and the excess of €40,000 will be assessed at €4 per €1,000. The change presents a more reasonable approach and allows a person to retain a more meaningful sum that could be utilized should an unexpected emergency arise. I am making provision in the Social Welfare and Pensions Bill 2007, currently before the House, for the necessary legislation to give effect to this and other Budget 2007 improvements in the SWA scheme.

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