Written answers

Tuesday, 4 December 2007

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 90: To ask the Minister for Social and Family Affairs the reforms that will be made to the back to school clothing and footwear allowance scheme for 2007; and if he will commit to amending legislation to disregard income from carer's allowance. [32186/07]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 132: To ask the Minister for Social and Family Affairs if he will review or carry out research into the true cost of sending and maintaining a child in school with a view to increasing the back to school allowances; and if he will make a statement on the matter. [32265/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 90 and 132 together.

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. Separately, the Department of Education and Science operates a book grant scheme for primary and secondary schools which is intended to contribute towards meeting the cost of books only.

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. Budget 2006 also increased the income limits for BSCFA by €50 to €100 above the state pension (contributory) rate. All income is taken into account to ensure that households are treated equitably with eligibility based on the amount of income, not the source of the income. In Budget 2007, the rate of payment of BSCFA was increased by €60 per child for children aged 2 to 11 years old and €95 for children aged 12 to 22 — a 50% increase on the previous allowance. The rates for 2007 are €180 for children aged 2 to 11 years old and €285 for children aged 12 to 22. The annual expenditure on the scheme has increased to over €40m as a result of these measures.

These improvements in BSCFA are very significant when viewed in the context of clothing and footwear price trends. According to the Consumer Price Index for October 2007, the overall cost of clothing and footwear has fallen by 3.5% over the past twelve months. Since December 2001, clothing and footwear costs have decreased by 18.4%.

The primary objective of the carer's allowance is to provide income support to low income carers. Carer's allowance, in line with other social assistance schemes, is means tested. The carer's allowance means test is one of the more flexible tests in terms of the assessment of household incomes. The means test has been significantly eased over the years most notably with regard to spouse's earnings. Budget 2007 provided for an income disregard for a couple of €640 per week. This ensures a couple can earn in the region of €36,000 per annum and still receive the maximum rate of carer's allowance and the associated free travel and household benefits. This measure surpasses the Towards 2016 commitment to ensure those on average industrial earnings continue to qualify for a full carer's allowance.

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. The improvements to the scheme in recent years have provided a major boost to meeting the financial costs associated with return to school for those who most need assistance.

The adequacy of back to school clothing and footwear allowance payments will be kept under review. 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 for improvements in social welfare payments generally.

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 91: To ask the Minister for Social and Family Affairs the position regarding the welfare reforms outlined in the Programme for Government for free travel; and if he will make a statement on the matter. [32282/07]

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 121: To ask the Minister for Social and Family Affairs when he will extend free travel here to Irish citizens residing in the UK; and if he will make a statement on the matter. [32213/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 91 and 121 together.

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 has been extended since 2nd April 2007. Under the new arrangements pensioners over the age of 66 and resident here can travel free of charge on all bus and rail services in Northern Ireland. Likewise, pensioners, aged over 65 in Northern Ireland can travel free of charge on transport services in this State. This extension of the scheme represents a significant expansion in travel opportunities for older people.

There have been a number of requests and enquiries in relation to the extension of entitlement to free travel in Ireland to Irish born people living outside the island of Ireland, or to those in receipt of pensions from my Department, particularly those living in the UK, when they return to Ireland for a visit.

Legal advice indicates that it would not be possible to extend entitlement to free travel simply to Irish born people living abroad as to do so would be contrary to European legislation which prohibits discrimination on the grounds of nationality. More recently, the European Commission has indicated that to extend the scheme to people in receipt of an Irish pension could also be considered discriminatory.

I will keep this issue under review in order to determine how best to advance our Programme for Government commitments.

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