Written answers

Tuesday, 24 May 2016

Department of Social Protection

Social Welfare Code

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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291. To ask the Minister for Social Protection the cost of increasing the family income supplement scheme by 10% for 2017 in tabular form. [11498/16]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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292. To ask the Minister for Social Protection the cost of restoring the Jobseeker's Allowance Scheme for young jobseekers for 2017 in line with those persons over 25 years of age in tabular form. [11499/16]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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293. To ask the Minister for Social Protection the cost of increasing the living alone allowance by €9.50 per month for 2017 in tabular form. [11500/16]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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298. To ask the Minister for Social Protection the cost of restoring the bereavement grant for 2017 in tabular form. [11506/16]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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305. To ask the Minister for Social Protection the cost of increasing the weekly disability allowance by €20 for 2017 in tabular form. [11514/16]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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306. To ask the Minister for Social Protection the cost of increasing the living alone allowance by €9.50 per month for 2017 in tabular form. [11515/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 291 to 293, inclusive, 298, 305 and 306 together.

The information that the Deputy seeks is detailed in the following table:

MeasureCost €million
Increase the Family Income Supplement Scheme by 10% for 2017.41.0
Increase the rate of Jobseeker's Allowance for those aged under 26 years of age to €188.00 per week.148.4
Increase the Living Alone Allowance by €9.50 per month in 2017.22.2
Introduce a Bereavement Grant of €850 in 2017.20.5
Increase Disability Allowance by €20 per week in 2017.131.2

It should be noted that:

1. The 2016 Estimate provides for expenditure of €410.3 million on the Family Income Supplement (FIS) scheme and a 10% increase in 2016 FIS expenditure would cost just over €41 million in 2017.

2. The cost of increasing the rate of Jobseeker’s Allowance, paid to those under 26 years of age, to the maximum rate of €188 per week in 2017 is €148.4 million. This measure involves increasing the €100 rate by €88 per week and the €144 rate by €44 per week. The cost also includes proportionate increases for any qualified adults.

3. The Living Alone Allowance is currently paid at €9 per week to pensioners and people with disabilities who live alone. A €9.50 per month increase equates to a €114 increase per annum, which rounds up to €2.20 per week. The cost of a €2.20 increase in the Living Alone Allowance, from €9 to €11.20 per week, is estimated to cost €22.2 million, based on the estimated number of recipients in 2016.

4. The cost of €20.5 million for the introduction of the Bereavement Grant is based on the most recent CSO Vital Statistics detailing the number of deaths (Quarter 3, 2015 and the preceding year) and assumes a similar take-up rate to that in 2013.

5. Disability Allowance is a means-tested social assistance payment which is paid to persons aged 16 to 66 who are substantially restricted in undertaking suitable employment arising from a medical condition (subject to satisfying the relevant medical criteria). The estimated cost in 2017 (and a full year) of increasing the weekly personal rate of Disability Allowance by €20, from €188 to €208 per week, is €131.2 million. Each €1 increase in the weekly personal rate would cost €6.6 million in 2017 and a full year.

There is an analogous social insurance payment, Invalidity Pension, which is paid to persons who are permanently incapable of work (subject to satisfying the relevant medical criteria and a minimum number - 5 years - of paid Class A PRSI contributions). Each €1 increase in the weekly rate of Invalidity Pension would cost €2.9 million in 2017 and a full year.

In addition, Blind pension is available for those aged 18 to 66 who are blind or visually impaired. The cost of a €1 weekly personal increase in the Blind Pension is €0.07 million in 2017 and a full year.

It should be noted that (i) in the event of the Disability Allowance weekly rate exceeding the Invalidity Pension rate, some Invalidity pensioners (number not determinable) would transfer to the means tested Disability Allowance scheme to avail of the higher rate on that scheme; (ii) the costs shown above do not include the cost of proportionate increases for qualified adults; (iii) any additional costs which might arise as some persons in receipt of other welfare schemes might potentially apply for and qualify for Disability Allowance thereby also benefitting from a higher rate of payment than that which applies to their current scheme or (iv) offsetting savings on the Rent Supplement scheme as the additional weekly increase would reduce the level of entitlement under that scheme.

6. All of the costings above are provisional and may be subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients. The costs outlined above are based on recipient data for 2016.

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