Written answers

Tuesday, 17 November 2009

Department of Social and Family Affairs

Social Welfare Benefits

10:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 369: To ask the Minister for Social and Family Affairs the contractual arrangements in relation to the delivery of social welfare services through An Post; and if she will make a statement on the matter. [41659/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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An Post provides an agency service for the Department for the delivery of payments to customers. The current contract with An Post was renewed in December 2008 for a period of five years ending on 31st December 2013. In 2008 An Post were paid €53.5 million based on transaction volumes of some 37,300,000. In 2009 An Post will receive approximately €52m based on estimated transaction volumes of some 35,800,000. An Post and the Department have been partners in the delivery of social welfare payment and postal services since the foundation of the State and there is no reason to believe that An Post and the network of post offices will not continue to play a significant role in the delivery of social welfare payments in the future.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 370: To ask the Minister for Social and Family Affairs if a further review will be undertaken in the matter of the refusal of rent support in respect of a person (details supplied) in County Dublin; and if she will make a statement on the matter. [41704/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The purpose of the rent supplement scheme is to provide short-term income support to eligible persons living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from another source. The Health Service Executive (HSE) advised that rent supplement was refused on the basis that the person concerned has vacated accommodation provided by a local authority, without good cause. Social Welfare legislation provides that it is a condition of entitlement to rent supplement that a person has not vacated accommodation provided by a housing authority or if s/he has vacated such accommodation the Executive is satisfied that s/he had good cause for so doing. This decision was appealed to a HSE Appeals Officer and the decision to refuse rent supplement was upheld. The person concerned appealed the decision to refuse rent supplement to the Social Welfare Appeals Office. The Social Welfare Appeals Office has advised that it has upheld the decision of the HSE to refuse rent supplement and the person concerned was advised of that decision on 9 October 2009.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 371: To ask the Minister for Social and Family Affairs the number of persons in receipt of the half rate carer's allowance; the annual amount of money involved; her views on whether this represents value for money for the taxpayer in view of the service provided by carers; and if she will support the retention of this allowance in budget 2010. [41761/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Budget 2007 provided for new arrangements whereby people in receipt of a social welfare payment, other than carer's allowance or benefit, who are also providing someone with full-time care and attention, can retain their main welfare payment and receive a half- rate carer's allowance. Similarly, people currently in receipt of a carer's allowance, who may have an underlying eligibility for another social welfare payment, can transfer to that other payment and continue to receive up to a half-rate carer's allowance.

At the end of October 2009, there were 18,903 people in receipt of half-rate carer's allowance in addition to another social welfare payment from the Department. The estimated cost of the half- rate carer's allowance in 2009 is €90 million. The estimated total cost for carer's allowance (including half-rate) is approximately €480 million in 2009. It is expected 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.

The Government is acutely aware and appreciative of the contribution made by carers to people needing ongoing care and support. Considerable improvements have been made in recent years in services and supports for carers. The payment rates for the carer's allowance were increased further in the 2009 Budget by €7 to €239 per week for those aged 66 or over and by €6.50 to €220.50 per week for those aged under 66. Recipients of carer's allowance are also eligible for household benefits, free travel and the respite care grant.

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 package. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as free travel and household benefits. 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 was also increased to €1,700 per year in respect of each care recipient from June 2008.

The Report of the Special Group on Public Service Numbers and Expenditure Programmes made a range of recommendations relating to the Department of Social and Family Affairs including recommendations relating to the half-rate carer's allowance. The Department will consider the Report's recommendations as part of the Estimates and budgetary process for 2010. Decisions on all of the issues arising will be a matter for Government. No decisions have been made in relation to the implementation of any of the McCarthy proposals relevant to this department. Full consideration will of course be given to the impact of all the proposals on the recipients involved. It would not be appropriate for me to comment further on budgetary proposals at this stage pending the outcome of these deliberative processes.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 372: To ask the Minister for Social and Family Affairs the interest limits on the mortgage interest relief as operated by the community welfare officers; the minimum interest payable that the relief covers; and if she will make a statement on the matter. [41892/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The supplementary welfare allowance scheme, which includes mortgage interest supplement, is administered on behalf of the Department by the community welfare division of the Health Service Executive. A mortgage interest 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. Mortgage interest is defined in Section 187 of the Social Welfare Consolidation Act 2005 (as amended). In accordance with this provision, a mortgage interest supplement may be paid on the full amount of interest payable, where the loan has been taken out for the purchase, repair or essential improvement of the sole or main residence of a person or to pay off another loan used for that purpose.

In addition, under Article 10 of the Social Welfare (Consolidated Supplementary Allowance ) Regulations 2007 (S.I. 412 of 2007), a supplement towards mortgage interest may be payable where the Executive is satisfied that the amount of mortgage interest payable by the claimant does not exceed such amount as it considers reasonable to meet his or her residential and other needs and where the Executive considers it is reasonable to award a supplement having regard to the amount of any arrears outstanding on the loan.

When considering if the amount of mortgage interest is reasonable to meet residential need, regard would normally be had to the household composition of the claimant and to the appropriate maximum rent limits in operation in that geographical area. In exceptional circumstances, the Health Service Executive may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Health Service Executive considers reasonable to meet his or her residential needs. Such an exceptional supplement is payable for a maximum of 12 months from the date of the claim. A 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 full review should be completed in early 2010.

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