Written answers

Wednesday, 11 November 2009

Department of Social and Family Affairs

Social Welfare Benefits

9:00 am

Photo of Tom SheahanTom Sheahan (Kerry South, Fine Gael)
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Question 88: To ask the Minister for Social and Family Affairs her plans for carers following the decision not to publish the National Carer's Strategy; and if she will make a statement on the matter. [40661/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The Government is acutely aware and appreciative of the contribution made by carers and has made considerable improvements in services and supports for them in recent years.

The carer's allowance scheme has been significantly improved in recent years and, in budget 2009, I continued this process. The rate of carer's allowance for those aged 66 or over by €7 to €239 per week and for those aged under 66 by €6.50 to €220.50 per week. These increases took effect from January 2009. Recipients of carer's allowance are also eligible for household benefits and free travel and the respite care grant.

Since 1997, weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit, half-rate carer's allowance and the respite care grant have been introduced and extended.

The means test for carer's allowance has been significantly eased over the years, and is now one of the most generous means tests in the social welfare system, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been 332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €37,200 and qualify for the maximum rate of Carer's Allowance as well as the associated free travel and household benefits. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as the associated free travel, household benefits package. These levels surpass the Towards 2016 commitment to ensure those on average industrial earnings continue to qualify for a full carer's allowance.

From June 2005, the annual respite care grant was extended to all carers who are providing full time care to a person who needs such care, regardless of their income. The rate of the respite care grant has also been increased to €1,700 per year in respect of each care recipient since June 2008.

It is estimated that the combined expenditure on carer's allowance, carer's benefit, the respite care grant and half-rate carer's allowance will be €650 million in 2009.

During 2008 an interdepartmental group, chaired by the Department of the Taoiseach, with secretariat support provided by my Department, undertook work, including a public consultation process to develop a National Carers' Strategy. However, because of the prevailing economic situation, it was not possible to set targets or time lines which could be achieved. In that context, rather than publishing a document which did not include any significant plans for the future, the Government decided not to publish a strategy. This position remains unchanged.

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 91: To ask the Minister for Social and Family Affairs her plans to review the mortgage interest supplement scheme; and if she will make a statement on the matter. [40607/09]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 116: To ask the Minister for Social and Family Affairs when she plans to reform mortgage interest supplement. [40705/09]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 211: To ask the Minister for Social and Family Affairs her plans to review the mortgage interest supplement scheme; and if she will make a statement on the matter. [40840/09]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 213: To ask the Minister for Social and Family Affairs the way and when she will reform mortgage interest supplement. [41000/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 91, 116, 211 and 213 together.

The mortgage interest supplement scheme provides support for people who have difficulty meeting their mortgage repayments and whose means are insufficient to meet their needs. The scheme provides a short-term income "safety net" within the overall social welfare system to ensure that people do not suffer hardship due to loss of employment.

A supplement in respect of mortgage interest only may be paid to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence.

There are currently just over 14,500 people in receipt of mortgage interest supplement, an increase of 79% (6,420) over the number in payment at end 2008.

The assessment for the mortgage interest supplement scheme provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment and/or training opportunities can continue to receive mortgage interest supplement subject to their satisfying the standard means assessment rules.

The review of the administration of the mortgage interest scheme is progressing. The main purpose of the review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence.

The review group includes representatives from the department, the Community Welfare Service, the Departments of Finance, Environment, Heritage and Local Government together with a representative from the Office of the Financial Regulator. The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory Code of Practice on Mortgage Arrears on the mortgage interest supplement scheme and legislative and operational issues arising, including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market. The full review should be completed in early 2010.

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