Written answers

Tuesday, 2 November 2010

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 85: To ask the Minister for Social Protection the outcome of his discussions with insurance companies in respect of the suggestion of changing social welfare legislation to provide for the reimbursement to the Department by insurance companies of social welfare payments deducted from awards of special damages in respect of loss of earnings. [40051/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Social welfare legislation does not currently provide for reimbursement to the Department by insurance companies in cases where adjustments may have been made to special damages awards on foot of social welfare payments received by plaintiffs. Preliminary work has been undertaken by my Department in relation to the issues involved. These issues are complex, not least insofar as there could be consequences for economic competitiveness and negative downstream costs for employers and employees in terms of increased insurance premia in respect of employer liability, public liability and transport cover.

Against that background, the introduction of any changes in this area would necessitate extensive consultations with a wide range of interested parties, including not only representatives of the insurance industry but also the legal profession and employers' representatives amongst others, in order to adequately assess all of the possible implications and to comply with formal Regulatory Impact Assessment requirements. In view of the wider potential implications, I intend to consult with my Government colleagues with a view to securing agreement on the most appropriate course of action in relation to this matter.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 86: To ask the Minister for Social Protection if his attention has been drawn to the fact that the back to school clothing and footwear allowance falls short of the cost associated with returning to school by between €260 and €510 depending on the age of the child and his plans to address this shortfall and make education affordable for families who are struggling. [40071/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The back to school clothing and footwear allowance scheme provides a one-off payment to eligible families to assist with the extra costs when 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. The purpose of the household income limit is to ensure that the allowance is directed at those with the greatest need.

In Budget 2009, the income thresholds for entitlement to back to school clothing and footwear allowance were increased by €50. The rates of back to school clothing and footwear allowance have been increased significantly in recent years. Since 2005, the allowance has increased from €80 to €200 in respect of qualified children aged from 2 to 11 years and from €150 to €305 for those aged 12 to 22. These are increases of 150% and 103% respectively. As a special measure introduced in Budget 2009, an additional allowance of €215 is payable to 18 year olds only in respect of whom compensatory child benefit is in payment. Total payment in respect of children aged 18 is €520.

The number of children benefiting from the allowance increased from 161,000 in 2006 to over 277,000 in 2009. The number of families benefiting has increased from 79,000 in 2006 to almost 140,000 in 2009. Approximately 170,000 families were expected to benefit from the Scheme in 2010 year. At 15 October 2010 in excess 160,444 claims had been paid at a value in excess of €76.5m.

My Department established a Working Group to undertake a review of the back to school clothing and footwear allowance scheme as part of its Expenditure Review Programme. The Working Group published its report in August 2004. In relation to the adequacy of the payment rates of the scheme, the review noted that while the value of the BSCFA had increased by 152% for children under 12 and by 194% for children over 12 since 1990, the Consumer Price Index figure for clothing and footwear dropped by over 24% in the same period. The review concluded that payment rates did not warrant adjustment. Nevertheless, the rates of payment for BSCFA were increased in recent years, including increases in the income limit which have enabled more people to qualify.

The most recent Consumer Price Index figures show that clothing and footwear costs have

Fallen by 7.4% in the last 12 months

Fallen by 27.6% since December 2006

Fallen by 38.1% since December 2001

The adequacy of back to school clothing and footwear allowance payments will be kept under review. Any further changes to the scheme would have to be considered in the context of future Budgets and in the light of the resources available to me for improvements in social welfare generally.

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