Written answers

Tuesday, 23 November 2010

Department of Social and Family Affairs

Social Welfare Benefits

9:00 am

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 79: To ask the Minister for Social Protection his views on whether it is acceptable to cut jobseeker's payments. [43772/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Budget 2010 provided for a reduction in the rates of payments for jobseekers and other welfare recipients of working age. These reductions were made as part of the overall objective to reduce public expenditure and restore stability to the public finances. In the Supplementary Budget in 2009 and in Budget 2010, changes were also introduced in the level of weekly payments for new recipients of jobseeker's allowance aged under 25. The new reduced rates were introduced in order to incentivise younger jobseekers to avail of education and training opportunities and try to prevent their becoming welfare dependent from a young age.

Affected persons who participate in a FÁS or similar training/education course get the full rate of the relevant payment (e.g. FÁS training allowance, Community Employment rate, Back to Education Allowance), instead of a reduced Jobseekers' Allowance and this provides a major incentive for such participation.

Recipients of jobseekers' payments are obliged to advise my Department of any employment or self-employment they engage in as such participation in the workforce may affect their continuing entitlement to a jobseekers' payment or the level of payment. Failure to report any employment or self-employment is a serious matter and my Department has a range of control measures in place to prevent and detect such abuses of the welfare system.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 80: To ask the Minister for Social Protection his plans to reform the withdrawal rate for rent and mortgage interest supplement. [43854/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs. The supplementary welfare allowance scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department. The purpose of the rent supplement scheme is to provide short-term 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.

Similarly, mortgage interest supplement provides short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only.

Significant improvements to the means test for rent supplement and mortgage interest supplement were implemented in 2007. The assessment of means for these schemes now 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 a rent or mortgage interest supplement subject to their satisfying the standard means assessment rules. Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.

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