Written answers

Wednesday, 1 July 2009

Department of Social and Family Affairs

Social Welfare Benefits

11:00 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Fianna Fail)
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Question 226: To ask the Minister for Social and Family Affairs the entitlements to jobseeker's supports for people who were formerly self-employed; her plans to improve such entitlements; and if she will make a statement on the matter. [26479/09]

Photo of Mattie McGrathMattie McGrath (Tipperary South, Fianna Fail)
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Question 227: To ask the Minister for Social and Family Affairs her views on improving all social welfare entitlements and services for those who were formerly self-employed and who are now unemployed; and if she will make a statement on the matter. [26480/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 226 and 227 together.

The range of benefits and pensions to which different groups of workers may establish entitlement reflects the risks associated with the nature of their work. This in turn reflects the rate of contribution payable. Self-employed people are liable for PRSI at the Class S rate of 3% and are consequently eligible for a narrower range of benefits than general employees who, together with their employers, pay a total social insurance contribution of 14.05%, excluding levies, under the full-rate PRSI Class A.

Self-employed workers are not insured against short-term benefits such as illness and jobseeker's payments – these are only available to persons covered by PRSI Classes A, E, H and P. This reflects the need for coverage for various contingencies, the rate of contributions that self-employed persons pay, the practicalities of administering and controlling access to short-term payments and the annualised system of contributions that these people enjoy. A system of separate arrangements for employed and self-employed workers within a social insurance context is common in other European social protection systems.

There are no plans to extend cover for short-term benefits to this group of insured workers. Any such measure would have significant financial implications and would have to be considered within a budgetary context. Consideration would also have to be given to an appropriate increase in the rate of the PRSI Class S contribution. Self-employed workers who do not qualify for an insurance-based benefit may establish entitlement to assistance-based payments such as Jobseekers Allowance by satisfying certain conditions including a means test.

Self-employed people can apply for the means-tested Jobseeker's Allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. Their means would be taken as any net profit that they may earn in the coming 12 months. While their income from the previous twelve months is used as an indication in estimating their likely future earnings, it is not simply assumed that the previous year's earnings will be received in the coming year. Instead, account is taken of the potential for significant upward or downward variations in income from one year to the next.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 228: To ask the Minister for Social and Family Affairs her views on changing the allocation of payment days for particular social welfare schemes for post offices; if her attention has been drawn difficulties being experienced by some post offices due to the allocation of payment days; and if she will make a statement on the matter. [26507/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The current range of payment options offered by the Department to customers include payment at a local post office or to a bank or building society account or certain credit unions that have been authorised by the banking and credit union regulators. Other than jobseekers, customers can opt for a payment method having regard to their own personal circumstances.

The Department administers a variety of schemes which have weekly or monthly payment cycles For operational reasons, and to facilitate the distribution of payments through the post office network, each scheme is assigned a day of the week for payment. These measures ensure that payments to be distributed through post offices are spread across the week. A person can collect their payment on the due date or within a number of days thereafter. The management of queues at post offices is kept under review by An Post which is responsible for the post office network, and the operation of individual post offices.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 229: To ask the Minister for Social and Family Affairs if she will review a decision to reduce a rent supplement payment to a person (details supplied) in County Cork; and if she will make a statement on the matter. [26518/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Rent supplement is administered on behalf of the Department by the community welfare division of the Health Service Executive as part of the supplementary welfare allowance scheme. The purpose of the rent supplement scheme is to provide short-term income support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source.

The recent Supplementary Budget provided that the weekly minimum contribution, which a person is required to contribute towards their rent, be increased from €18 to €24 with effect from 1 June 2009 and that payments currently being made to existing rent supplement tenants be reduced by 8% from the same date. These measures account for the reduction in the rent supplement payment of the person concerned.

The most recent data published by the CSO show that rents in the private sector have fallen by almost 11% since November 2008 and by almost 20% in the past year. It is essential that state support for tenants who form a substantial section of the rental market, does not give rise to inflated rental prices. Each existing recipient of rent supplement, including the person concerned, was advised in advance, by letter, of the particular reductions being made to their rent supplement payment from 1 June 2009. This letter also advised that if the recipient wanted to talk to their landlord to seek a reduction in rent, the Department's letter could be shown to a landlord as evidence of their reduced rent supplement payment Each existing recipient of rent supplement, including the person concerned, was advised in advance, by letter, of the particular reductions being made to their rent supplement payment from 1 June 2009. This letter also advised that if the recipient wanted to talk to their landlord to seek a reduction in rent, the Department's letter could be shown to a landlord as evidence of their reduced rent supplement payment.

While he may be contractually obliged to pay the current rent, it is expected that landlords will decrease rents in recognition of the fact that rents have fallen generally and that there are now a large number of vacant rental properties nationally. In the current climate, where there is a large number of vacant rental properties, it is expected that people will be able to get accommodation at the appropriate rental level.

Community Welfare Officers have discretion to provide assistance where exceptional circumstances exist in any individual case. Officers have been advised that support, appropriate to the circumstances of any individual case, may be provided to rent supplement tenants for up to two months, while alternative accommodation is being sourced within the existing rent limits.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Fianna Fail)
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Question 230: To ask the Minister for Social and Family Affairs her views in relation to supplementary and extra benefit payments to lone parents being discriminatory to married couples; and if she will make a statement on the matter. [26547/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The one-parent family payment (OFP) is a means tested payment for men and women who are bringing up a child without the support of a partner. The claimant must be widowed, separated or divorced, unmarried or a prisoner's spouse. The person must also have main care and charge of at least one child who is residing with them, not be cohabiting and have made efforts to seek maintenance from the other parent of their child.

By its nature, OFP is not paid to married couples. However, the majority of social welfare payments may be paid to married couples, providing the qualifying conditions are satisfied. Also, in addition to the main claimant's personal payment, an increase for a qualified adult (IQA) may be paid in respect of their spouse or partner. As OFP is designed for those parenting alone, IQAs are not payable with this payment. Most social welfare payments also provide for an increase in respect of qualified children.

There is a range of additional social welfare payments available to which families (including lone parent families) may be entitled, providing they satisfy the relevant qualifying conditions. These payments include child benefit, family income supplement, fuel allowance, and payments under the supplementary welfare allowance scheme, such as rent and mortgage interest supplements and the back to school clothing and footwear allowance.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 231: To ask the Minister for Social and Family Affairs if the guidelines on mortgage interest supplement disallows a claim (details supplied). [26618/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The mortgage interest supplement scheme is designed to help those who have difficulty meeting their mortgage repayment schedule where their means are insufficient to meet their needs. The scheme provides a short-term "safety net" within the overall social welfare scheme to ensure that people do not suffer hardship due to loss of employment. A supplement may be paid in respect of mortgage interest only to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence.

In accordance with the statutory qualifying conditions, mortgage interest supplement is normally calculated to ensure that a person, after the payment of mortgage interest, has an income equal to the rate of supplementary welfare allowance appropriate to their family circumstances less a minimum contribution of €24 a week, which recipients are required to pay from their own resources. Many recipients pay more than €24 a week because they are also required to contribute towards their accommodation costs, any additional assessable means that they have over and above the appropriate basic rate of supplementary welfare allowance.

It is difficult to say whether a couple would have an entitlement to mortgage interest supplement based on the limited information provided by the Deputy. There are a number of other qualifying conditions and factors that impact on entitlement to mortgage interest supplement and the amount of supplement payable in any case, including: the size of the mortgage and the amount of mortgage interest payable; the level of earnings of the spouse and the amount of jobseekers benefit payable in respect of a qualified adult; the number of hours per week worked by the spouse, as mortgage interest supplement is not payable where a claimant and/or spouse works in excess of 29 hours per week; whether the Executive considers the amount of mortgage interest payable to be reasonable having regard to the size of the household. The couple in question should discuss their entitlement to mortgage interest supplement with the community welfare officer at their local Health Centre.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 232: To ask the Minister for Social and Family Affairs when a person (details supplied) in County Mayo will be approved and awarded disability allowance. [26642/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Disability Allowance is a weekly allowance paid to people with a specified disability who are aged over 16 and under 66. The disability must be expected to last for at least one year and the allowance is subject to both a medical assessment and a means test.

The person concerned applied for Disability Allowance on 15 May 2009. His claim was decided on the 23 June 2009 and he was awarded Disability Allowance with effect from the 20 May 2009 at the reduced weekly rate of €92.40 plus a Dependant Child Allowance of €26 which gives a weekly total of €118.40. The person concerned was formally notified of this decision by letter and of his right of appeal to the Social Welfare Appeals Office. His first payment will be in his bank account on 15 July 2009 and arrears due for the period from 20 May to 14 July 2009 will be issued by cheque to the applicant soon after he receives his first Disability Allowance payment. The person concerned was assessed with means from self employment. The weekly rate of Disability Allowance payment depends on the amount of weekly means assessed.

The legislative provisions regarding Disability Allowance state that means will be assessed from all income which the claimant or the claimant's spouse may reasonably expect to receive during the year following the date of their claim with certain exceptions. Income derived from earnings from self employment is not included in these exceptions and is accordingly assessable as means for Disability Allowance.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 233: To ask the Minister for Social and Family Affairs the reason a person (details supplied) in County Mayo has not received jobseeker's allowance payment which has been due to them; and when approval will be awarded. [26643/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The person concerned applied for jobseeker's benefit on 4 May, 2009 and her entitlement in this regard is currently being examined. Her claim is also being examined regarding a possible entitlement to jobseeker's allowance as this payment may be more beneficial. Her Social Welfare Local Office has been in contact with her in this regard. On completion of enquiries decisions will be made on her entitlement and she will be notified of the outcome. Under Social Welfare legislation decisions in relation to claims must be made by Deciding Officers and Appeals Officers. These officers are statutorily appointed and I have no role in regard to making such decisions.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 234: To ask the Minister for Social and Family Affairs when a person (details supplied) in County Mayo will be approved and awarded jobseeker's allowance in view of the fact that they are waiting for a number or weeks. [26644/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The person concerned applied for jobseeker's allowance on 29 May 2009. A decision on his claim will be made as soon as possible and he will be notified of the outcome. Under Social Welfare legislation decisions in relation to claims must be made by Deciding Officers and Appeals Officers. These officers are statutorily appointed and I have no role in regard to making such decisions.

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