Written answers

Thursday, 17 December 2015

Department of Social Protection

Farm Assist Scheme Eligibility

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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96. To ask the Tánaiste and Minister for Social Protection the cost of restoring farm assist means-testing rules to pre-budget 2012 levels; and if she will make a statement on the matter. [46300/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The farm assist scheme provides support for farmers on low incomes and is similar to jobseeker's allowance. Farm assist recipients retain the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2015 Revised Estimates for the Department provide for expenditure of almost €89 million on the farm assist scheme.

Changes introduced in Budgets 2012 and 2013 have brought farm assist into closer alignment with the jobseeker's allowance scheme's treatment of self-employed persons. Farm families with the lowest income were least affected by these changes as the headline rates of farm assist were maintained. The changes introduced over these respective Budgets reduced the cost of farm assist by just over €10 million per annum.

The assessment of means for the farm assist scheme is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, farm assist is a flexible payment. Account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. Any farmer experiencing lower levels of income or cash-flow issues can ask their local Intreo office to review the level of means applying to their claim.

Last year, the Christmas Bonus was re-introduced, payable at 25% of the weekly rate. This year I was in a position to provide a 75% Christmas Bonus payment for all long term welfare recipients, including recipients of farm assist. All recipients of farm assist with children are benefiting from the increase in child benefit rates of €5 per month per child announced in Budget 2015. In addition, farm assist recipients eligible for the fuel allowance will gain from the increase in January of €2.50 per week, from €20 to €22.50 per week over the fuel season.

There are no plans to change the current criteria of the farm assist scheme.

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail)
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97. To ask the Tánaiste and Minister for Social Protection the cost of changing farm assist means-testing rules so that irrespective of the source of farm income, the first €3,000 will be disregarded and the balance will be means tested at 50%. [46301/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The farm assist scheme provides support for farmers on low incomes and is similar to jobseeker's allowance. Farm assist recipients retain the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2015 Revised Estimates for the Department provide for expenditure of almost €89 million on the farm assist scheme.

Under the existing Farm Assist scheme rules, a claimant can receive a €60 weekly disregard in relation to any off farm income they may earn. This equates to €3,120 per annum. The balance of any earnings is assessed as means at a rate of 60%. Similarly, a qualified adult dependent of a Farm Assist claimant, who has earnings from employment, can also avail of their own weekly earnings disregard of €60.

The assessment of means for the farm assist scheme is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, farm assist is a flexible payment. Account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. Any farmer experiencing lower levels of income or cash-flow issues can ask their local Intreo office to review the level of means applying to their claim.

It is not possible in the time available to produce a costing of the introduction of a new earnings disregard of €3,000, which would apply to income irrespective of source. Such a costing would have to differentiate between earned income and farm income and would also have to replace the existing earnings disregards, which apply to earned income. This process would require a detailed reassessment of all Farm Assist claims and would be a significant undertaking across all Intreo offices.

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