Seán Connick (Wexford, Fianna Fail)
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Question 158: To ask the Minister for Social and Family Affairs if cut-off points will be introduced for income earned from leasing farmland for retired farmers applying for the old age pension; and if an old age pension will be granted to a person (details supplied) in County Wexford. [28854/07]

Martin Cullen (Waterford, Fianna Fail)
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A new pension scheme, known as State Pension (Non-Contributory) was introduced in September 2006 and incorporated all means-tested schemes for people aged 66 and over. As part of this reform, the basic income disregard for the purposes of the means test for non-contributory pensions was increased to €20 per week and a new disregard on earnings from employment of €100 per week was introduced to encourage pensioners to continue in, or return to work. Budget 2007 increased the basic means disregard to €30 per week in addition to increasing the earnings disregard to €200 per week.

The earnings disregard of €200 per week does not apply to income from any other source such as self-employment including farming or rents from leasing property. Income from sources other than employment, including pensions and capital, is covered by the enhanced general means disregard of €30 per week. The person concerned was in receipt of a reduced rate State Pension (Non-Contributory) from 1992 until 2002 when his pension was revoked as his means, derived from a farm holding and spouse's employment exceeded the statutory limit. He is currently being paid as a qualified adult on his spouse's State Pension (Contributory) at the rate of €173.00 per week.

Given the improvements in the means assessment that have occurred over the last two years, it is possible that the person concerned could qualify for a State Pension (non-contributory) in his own right. If he wishes to have his eligibility for this pension assessed he should submit an application to the Department's offices in Sligo. If, at the end of the day, payment of the qualified adult increase proves to be more advantageous to the couple, it is open to them to apply to have the pension and the qualified adult increase paid separately so that the person concerned can receive a direct payment.

Mary Upton (Dublin South Central, Labour)
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Question 159: To ask the Minister for Social and Family Affairs his priorities for budget 2008; the services he has prioritised for expansion; the services he has recommended as not urgently requiring an increase; and if he will make a statement on the matter. [28888/07]

Martin Cullen (Waterford, Fianna Fail)
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Improvements in social welfare schemes and services are introduced by way of the Budget. In framing my Budget proposals, I have regard to a wide range of factors. My priority will be to make progress in delivering on the commitments contained in the Agreed Programme for Government, the Social Partnership Agreement Towards 2016 and the National Action Plan for Social Inclusion 2007-2016.

The recently published Pre-Budget Outlook provides for total social welfare expenditure between Vote and Social Insurance Fund of €16.113 billion in 2008. This is a 5.1% increase over the 2007 allocation and reflects the full-year impact of the Budget changes announced last December, as well as forecasted changes in numbers of recipients. The Pre-Budget estimates are on an existing level of service basis. They do not provide for any changes to qualifying conditions or rates of payment which are matters for the forthcoming Budget.

Mary Upton (Dublin South Central, Labour)
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Question 160: To ask the Minister for Social and Family Affairs his view on whether the back to school clothing and footwear allowance is acceptable in view of the fact that the qualifying criteria are so stringent; his views on widening these criteria for 2008 in order as to allow low income families who are not in receipt of social welfare payment other than children's allowance to be applicable; and if he will make a statement on the matter. [28889/07]

Martin 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 to provide assistance towards these costs. A person may qualify for payment of an allowance if they are in receipt of a social welfare or Health Service Executive (HSE) payment, are participating in an approved employment scheme or attending a recognised education and training course and have household income at below standard levels.

Family Income Supplement (FIS) which is a weekly tax-free payment for families, including one-parent families, at work on low pay is also one of the qualifying payments for the purposes of the BSCFA scheme. This enables families, not normally in receipt of a social welfare or HSE payment to avail of the BSCFA scheme. The income limits for the BSCFA scheme for 2007 are based on the maximum rate of state pension (contributory) (under 80), plus the qualified adult allowance, plus €100 in the case of married and cohabiting couples; and the maximum rate of widow's/widower's contributory pension (under 80) plus €100 for Lone Parents, plus child dependant allowance in each case.

Income Limits for 2007 are €470.80 for a couple with one child and €331.30 for a lone parent with one child. The limit is increased by €22.00 for each additional child. The fact that the income limit is aligned to pension payments means that it is automatically indexed upward each year with budget increases.

In line with other secondary benefits, a means test is applied to ensure that limited resources are directed to those in greatest need. Apart from a number of exceptions, all household income, including welfare payments such as Carer's Allowance, 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 rates of BSCFA have been increased significantly in recent years. From June 2006, the allowance was increased by €40 to €120 in respect of qualified children aged from 2 to 11 years and €190 for those aged from 12 to 22 years. In Budget 2007, the rate of payment of BSCFA was increased by €60 to €180 per child for children aged 2 to 11 years old and €95 to €285 for children aged 12 to 22 – a 50% increase on the previous allowance. Budget 2007 also increased the income limits for BSCFA by €50 to €100 above the state pension (contributory) rate.

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 improvements to the scheme in recent years, namely an increase in income limits and an increase in the rates of payment respectively, provide a major boost to meeting the financial costs associated with return to school for those who most need assistance.

Any changes to the structure of the scheme, rates of payment, income limits or amendments to the qualifying criteria would have cost implications and 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.

Mary Upton (Dublin South Central, Labour)
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Question 161: To ask the Minister for Social and Family Affairs the restrictions here to extending the all-Ireland free travel pass scheme to all holders of free travel passes; if he has held talks with his counterpart in the Northern Government with a view towards having this all-Ireland free travel pass extended to all holders of free travel passes north and south; if he will lobby to have this scheme extended to all holders of the free travel pass; and if he will make a statement on the matter. [28890/07]

Martin Cullen (Waterford, Fianna Fail)
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The free travel scheme is available to all people living in the State aged 66 years or over. All carers in receipt of carer's allowance and carers of people in receipt of constant attendance or prescribed relative's allowance, regardless of their age, also receive a free travel pass. It is also available to people under age 66 who are in receipt of certain disability type welfare payments, such as disability allowance, invalidity pension and blind person's pension. People resident in the State who are in receipt of a social security invalidity or disability payment from a country covered by EU Regulations, or from a country with which Ireland has a bilateral social security agreement, and who have been in receipt of this payment for at least 12 months, are also eligible for free travel.

The all Ireland free travel scheme is based on a reciprocal agreement between my Department and the Department for Regional Development in Northern Ireland, which operates the Northern Ireland concessionary fares scheme. Under the scheme, free travel pass holders age 66 or over can travel free on services operating within Northern Ireland and senior smart pass holders from Northern Ireland can travel free on participating services here. Effectively, institutions in this State and in Northern Ireland recognise free travel arrangements for older people in each jurisdiction as equivalent arrangements.

The concessionary fares scheme in Northern Ireland is available only to people aged 65 and over so it is not possible to develop reciprocal arrangements in respect of free travel pass holders aged under 66. Any extension to the scheme would have to be agreed with the Northern authorities.