Bernard Durkan (Kildare North, Fine Gael)
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Question 184: To ask the Minister for Social and Family Affairs if his attention has been drawn to the extent to which inflation has eroded the value of the recent social welfare budget increases; his proposals to address this issue; and if he will make a statement on the matter. [15589/07]

Séamus Brennan (Dublin South, Fianna Fail)
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One of the key objectives of the 2007 social welfare package was to protect and enhance the value of all weekly rates of payment in relative terms by giving increases which are well in excess of the projected rate of inflation (4.1%) for this year. In Budget 2007: i. Contributory State pensions were increased by €16 per week, or 8.3%, with proportionate increases being given to those on reduced rates of payment; ii. The State Pension Non-Contributory was increased by €18 per week or 9.9%. This means that the Government has now achieved its commitment to bring the rate of the basic State pension to €200 per week; iii. The lowest rates of social welfare payments increased by €20 per week, or 12.1%. This increase brings the lowest rates of payment to €185.80 per week, thereby ensuring that the Government commitment on the lowest rates of payment is fully achieved.

Recipients with children also benefited from the increase in the child dependant allowances to €22 per week (an increase of up to 23.6% for certain recipients) and the €10 per month increase in Child Benefit rates. In addition, the fuel allowance was increased by €4 per week to €18. This means that this allowance has doubled over the last two Budgets.

By any standards, the levels of increases and other improvements announced in the Budget were exceptional and a further demonstration of this Government's ongoing commitment to the most vulnerable in our society by delivering social welfare increases which are well in excess of inflation.

Bernard Durkan (Kildare North, Fine Gael)
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Question 186: To ask the Minister for Social and Family Affairs his proposals to modify the back to education allowance with a view to ensuring easier access to the scheme; and if he will make a statement on the matter. [15591/07]

Séamus Brennan (Dublin South, Fianna Fail)
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The back to education allowance (BTEA) is a second chance education opportunities scheme 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. It is paid at a standard weekly rate equivalent to the maximum rate of the relevant social welfare payment that qualifies the applicant for participation in the scheme. It essentially replaces their existing social welfare income and in addition an annual €400 cost of education allowance is payable.

To qualify for participation an applicant must, inter alia, be in receipt of a relevant social welfare payment and must be at least 21 years of age prior to commencing an approved course of study. People in receipt of disability related payments may access the scheme at 18 years of age. Similarly, lone parents and people in receipt of unemployment payments can qualify at 18 years of age provided they are out of formal education for at least 2 years.

The current scheme is in place since January 1998 and has been subject to review and modification over the years to ensure it continues to support those people who are most distant from the labour market and whose need is greatest. In the 2005 Budget I reduced the qualifying period for access to the third level option of the scheme from 15 to 12 months and at that time, I also increased the annual cost of education allowance, paid to people on BTEA, from €254 to €400.

Following an undertaking to the Dáil and the Social Affairs Committee, I further reduced the qualifying period for access to the third level option to 9 months. This condition applies to persons who are participating in the National Employment Action Plan (NEAP) process and where a FÁS Employment Services Officer recommends pursuance of a third level course of study as essential to the enhancement of the individuals employment prospects. This new condition also came into effect from 1 September 2005.

In the 2006 Budget, I announced that time spent in receipt of supplementary welfare allowance from the Health Service Executive or the direct provision system operated by the Department of Justice, Equality and Law Reform can count towards the qualifying period for back to education allowance in circumstances where the person establishes an entitlement to a relevant social welfare payment prior to commencing an approved course of study. This provision came into effect from 1 September 2006.

In the most recent Budget, I announced that people who are awarded Statutory Redundancy may access the BTEA scheme immediately provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study. I also reduced the qualifying period for illness benefit recipients from three to two years. These further improvements to the BTEA scheme will come into effect from the beginning of the new academic year, i.e. 1 September 2007.

I will continue to monitor the scheme but I believe that, overall, the current arrangements ensure that my Department's back to education allowance scheme continues to support those people who are most distant from the labour market and whose need is greatest.