Written answers

Wednesday, 17 October 2007

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 296: To ask the Minister for Social and Family Affairs the justification for including carer's allowance as part of the means test for the back to school clothing and footwear allowance scheme; and if he will commit to amending legislation in the next Social Welfare Act to disregard income from carer's allowance in these circumstances. [24413/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The back to school clothing and footwear allowance (BSCFA) scheme provides a one-off payment to eligible families to assist with the extra costs when their children start school each autumn. The allowance is not intended to meet the full cost of school clothing and footwear but only to provide assistance towards these costs. A person may qualify for payment of an allowance if they are in receipt of a social welfare payment (including family income supplement), or Health Service Executive payment, are participating in an approved employment scheme or attending a recognised education and training course and have household income at or below certain set levels. In 2007, it is estimated that over 170,000 children will benefit from the back to school clothing and footwear allowance scheme at an annual cost in excess of €38 million.

Apart from a number of exceptions, all household income is assessable as means under the BSCFA scheme in accordance with the normal assessment for Supplementary Welfare Allowance. The exceptions to these rules are that any income received in the form of Family Income Supplement (FIS), Higher Level Education grants or the first €120 earnings from employment of a rehabilitative nature is disregarded for the purposes of the BSCFA scheme.

The purpose of the means test is to ensure that limited resources are directed to those in greatest need. I consider the back to school clothing and footwear allowance scheme to be an important support for parents at a time of particular financial strain. I am satisfied that recent improvements to the scheme, namely an increase in income limits and an increase in the rates of payment, provide a major boost to meeting the financial costs associated with return to school for those who most need assistance.

Any further improvements to the scheme, or amendments to the qualifying criteria, would have to be considered in a budgetary context and in the light of resources available to me for improvements in social welfare payments generally.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 297: To ask the Minister for Social and Family Affairs the measures taken by his Department to actively encourage the re-entry of recipients of illness benefit and disability allowance into the workforce; if there is a structured review process that facilitates an assessment of the person's education and training needs, their skills, potential job opportunities and so on; and the policy reforms he will bring to this area. [24414/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Illness benefit is a social insurance payment for people who cannot work due to illness. Continuing entitlement is subject to the beneficiary conforming to certain "Rules of Behaviour" set out in legislation. One of the rules of behaviour states that a person cannot work while receiving illness benefit. However, in order to encourage claimants to take up employment or training opportunities, an exemption to this general rule states that the claimant may engage in employment or training which is part-time (i.e less than 20 hours per week) and of a rehabilitative or therapeutic nature. The claimant must apply to my Department in advance of taking up such employment or training and a decision will be made on whether the employment meets the criteria of part-time and rehabilitative or therapeutic in nature.

Disability allowance is a social assistance payment for people with a disability. A person's disability must be expected to last for at least one year. A person in receipt of disability allowance who engages in employment or training of a rehabilitative nature may avail of a disregard of the first €120 per week of their income for the purpose of assessment of means for the disability allowance scheme.

Prior to June 2006, once a person's earnings exceeded €120 per week, payment of their disability allowance was withdrawn on a euro for euro basis i.e. for every euro earned above €120, the disability allowance was withdrawn by one euro. In order to improve the employment incentives for people of working age, a new withdrawal rate of disability allowance was introduced with effect 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 to €240 per week previously.

In addition people in receipt of both illness benefit and disability allowance can access the back to education allowance scheme. This is an educational opportunities scheme, the objective of which is to enhance the employability skills of vulnerable groups who are distant from the labour market.

In July 2006, my Department launched its Sectoral Plan under the Disability Act 2005, which is aimed at developing services that not only give people with disabilities financial security but also encourage maximum participation in society. Over the period of the Plan my Department will seek to deliver support to people with disabilities which will reduce their risk of dependence. The approach will be to encourage them to meet their income needs largely from employment, as well as achieving other social outcomes, such as further education and developing life skills in a way that will ensure that their contributions to society, talents and aspirations are not overlooked.

Furthermore under the social partnership agreement "Towards 2016" and the National Development Plan 2007-2013 my Department is committed to a programme of activation measures aimed at all people of working age, including people with disabilities. The particular added value that will be provided by my Department is an active outcome-focused individual case management of all social welfare customers of working age who are not progressing into employment or accessing training or education opportunities.

My Department is also commencing an interagency project, under the European Social Fund 2007-2013, to develop and test a comprehensive employment strategy based on individual case management of people on disability welfare payments that will have the capacity to increase their rate of employment. The policy in relation to supporting employment incentives for people with disabilities will continue to be kept under review in my Department.

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