Written answers

Wednesday, 26 September 2007

Department of Social and Family Affairs

Social Welfare Benefits

10:00 pm

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 131: To ask the Minister for Social and Family Affairs if he will provide the estimated increase in the cost of welfare claims in 2008 arising from the entitlement of EU migrant workers to the new childcare supplement and child benefit; the level of increase in applications for such benefits that has been evident since the beginning of 2007; his views on these increases; and if he will make a statement on the matter. [20736/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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EU migrant workers have an entitlement to Child Benefit and other "Family benefits" including Early Childcare Supplement (ECS) under EU Regulation 1408/71. Where a national of an EU State with a family is working in Ireland, the worker is entitled to payment of such benefits, even if the children are resident in the worker's home country.

Applications for family benefits from EU migrant workers who come to live in Ireland with their families are dealt with under domestic legislation. Entitlement to Child Benefit is based on the applicant satisfying the Habitual Residency condition and the child being ordinarily resident in Ireland.

Currently there are over 43,700 EU nationals in receipt of Child Benefit for 75,400 children who are resident with them in Ireland. Of these recipients, some 17,300 are UK nationals, some 10,100 are from Poland, with a further 11,300 recipients from the other States that joined the EU in 2004.

EU nationals who come to work in Ireland but whose families remain in their home country may have an entitlement to Family Benefits in Ireland under EU Regulation 1408/71. Before payment of Child Benefit is made for non-resident children it is necessary to contact the authorities in the country of residence of the children to confirm details and establish what if any family benefits are payable there. This process can take a number of months to complete and, as a result, the number of claims that has been finalised to date is relatively small. The number of claims to Child Benefit in respect of non resident children of EU nationals averaged 300 per week in 2006 of which some 40% would also have had on entitlement to the Early Childcare Supplement. To date in 2007 the average is 220 per week, with the average over the last 2 months being 160 claims per week.

Child Benefit is currently in payment under EU regulations to 1280 families, in respect of 2985 children resident outside of the Republic of Ireland. Some 45% of these children are resident in UK with a further 40% resident in Poland.

The total child benefit expenditure for EU migrants with non resident children in respect of 2008 based on continuing average intake 220 per week is estimated at €114m or 5.2% of overall child benefit expenditure. The corresponding figures for early childcare supplement in respect of 2008, is €23m.

It is not possible to accurately predict how many of these cases will be put into payment as many of the claimants leave the country before their claims can be processed. The ongoing levels of immigration and the number of workers returning to their countries will impact on the levels of benefit to be paid.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 135: To ask the Minister for Social and Family Affairs his views on whether the State non-contributory pension personal rate of €200 per week is adequate for an adult when taking into account the cost of living. [20691/07]

Photo of Martin CullenMartin Cullen (Waterford, 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 weekly rates of payment for pensioners in relative terms by giving increases which were well in excess of the projected rate of inflation for this year. The State Pension Non-Contributory was increased by €18 per week or 9.9% in the Budget. This level of increase was more than double the expected increase in the cost of living this year. The increase also met the Government's objective of bringing the rate of the basic State pension to €200 per week.

In considering the level of support available for pensioners, account must also be taken of other benefits available for pensioners, including the Household Benefits Package, Fuel Allowances, the Over-80 Allowance and, for pensioners living alone, the Living Alone Allowance.

As and from last January, the number of free units of electricity and gas paid under the Household Benefits Scheme increased by 600 units a year to 2,400 units, thereby protecting pensioners from the impact of increased electricity charges.

Also from January, the fuel allowance was increased by €4 per week to €18. This means that this allowance has doubled since January 2006. By any standards, the levels of increases and other improvements announced in the 2007 Estimates and Budget were exceptional and a further demonstration of this Government's commitment to pensioners in our society by delivering social welfare increases which are well in excess of inflation.

The new Agreed Programme for Government includes a commitment to further enhance income support for pensioners including a commitment to increase the rate of the basic State pension to €300 by 2012. I look forward to progressing this and other commitments for pensioners in a Budgetary context, having regard to available resources and the wider Government agenda.

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