Pat Carey (Dublin North West, Fianna Fail)
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Question 632: To ask the Minister for Social and Family Affairs if his Department will adopt a more flexible approach to the minimum number of hours people on disability payments are allowed to work on back to work schemes as most can do approximately eight hours per week; if the €120 per week which they are allowed to earn will be index linked in line with inflation; and if he will make a statement on the matter. [14806/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The earnings disregard for those in receipt of Disability Allowance engaging in rehabilitative employment has been increased on a number of occasions since the transfer of the then Disabled Person's Maintenance Allowance (DPMA) from the Health Boards to my Department as Disability Allowance in 1996. At that time the disregard was £35.20 (equivalent to €44.69), increased to £36.30 (€46.09) from June 1997 and to £50 (€63.49) from 3 June 1998. It was then increased to £75 (€95.23) from 5 April 2000 and to its current level of €120 from April 2000. Prior to June last year, once a person exceeded earnings of €120 per week, payment of their Disability Allowance was withdrawn on a euro for euro basis.

In order to improve the employment incentives for people of working age and, as part of the Social Welfare Budget package, 2006, I introduced a new lower withdrawal rate of Disability Allowance, effective from 1 June 2006. This change means that, for earnings above €120 and under €350 per week, Disability Allowance is now withdrawn at 50 cents for every euro earned, rather than the previous euro for euro withdrawal. In practice, this means that a single person can earn up to €420 per week before their Disability Allowance fully ceases, compared with the previous amount of €240 per week.

The policy in relation to supporting employment incentives for people with disabilities will continue to be kept under review in my Department and any further changes will be considered within the wider budgetary context.

Brian O'Shea (Waterford, Labour)
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Question 633: To ask the Minister for Social and Family Affairs his proposals to extend the payment of fuel allowance throughout the whole year; and if he will make a statement on the matter. [14831/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The national fuel scheme assists householders on long-term social welfare or health service executive (HSE) 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 and are included in the recipient's weekly payment during this period. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.

The fuel allowance scheme has been improved and expanded over recent years. The range of improvements made to the scheme in recent years including an easing of the means test, extending the duration of payment from 26 to 29 weeks and an increase of €5 in the rate of payment in the 2006 Budget. In Budget 2007, I have provided for a number of further improvements in the fuel allowance scheme. These comprise an increase in the weekly rate of fuel allowance of €4 from €14 to €18 (€21.90 in designated smokeless areas) and an increase in the income threshold for eligibility to fuel allowance by €49 from €51 to €100 above the state pension (contributory) rate.

Some 274,000 people benefited from the fuel allowance in 2006 at an estimated annual cost of €125.1m. As a consequence of the increase in rate and the increase in the income threshold for eligibility as announced in the recent Budget, annual expenditure on the scheme in 2007 will increase by an estimated €36.4 million. The total annual cost in 2007 is estimated at €161.5m.

Fuel allowances are incorporated in the recipient's weekly social welfare payment. The Government's objective is to ensure that the recipient's total weekly income, including the fuel allowance, is sufficient to meet all of their income needs, including heating costs. Budget resources are concentrated on providing significant real increases over and above inflation each year in all primary social welfare pension, benefit and assistance rates. The increases of €16 and €18 per week in the rates of payment for contributory and non-contributory pensions respectively announced in the recent budget is a continuation of this policy.

This is a more costly approach than increasing fuel allowances as the increase is paid for the full year and not just for the 29 weeks of the winter heating season. This approach delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year, to better assist them in meeting their normal basic living costs, including heating. This approach has been very effective in delivering substantial real increases to long-term social welfare recipients. For example, the combined value of the State Pension (non-contributory) and fuel allowance has increases by more than 70% since December 2001 while cumulative inflation since then was less than 20%.

Any further extensions or improvements to the fuel allowance, such as extending the duration of the scheme, would have significant cost implications and would have to be considered in a Budget context and in the light of alternative approach to improvements in social welfare generally.

Paul Gogarty (Dublin Mid West, Green Party)
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Question 634: To ask the Minister for Social and Family Affairs if an applicant for rent allowance is entitled to a rent supplement if they are renting a house owned but not occupied by a sibling. [14835/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The supplementary welfare allowance scheme, which includes rent supplement, is administered on my behalf by the Community Welfare division of the Health Service Executive (HSE). The purpose of the scheme is to provide short-term income support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Eligibility is confined to those who are in receipt of a social welfare or HSE payment. Specific exclusions relate to applicants and spouses in full-time employment, those engaged in certain courses of study and those involved in trade disputes.

A person is not excluded from applying for rent supplement where the accommodation is owned by a family member. Each application would be decided by the HSE on its own merits and in accordance with the rules governing the scheme. One of the requirements for entitlement to rent supplement is that a bona fide tenancy must exist. The proof required may include registration of the tenancy with Private Residential Tenancies Board (PRTB), Landlord income tax records, a lease agreement or rent book. Neither I nor my Department has any function in relation to decisions on individual claims.