Written answers

Wednesday, 13 July 2022

Department of Employment Affairs and Social Protection

Social Welfare Payments

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
Link to this: Individually | In context | Oireachtas source

378. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the jobseeker's allowance for those young persons under 25 years of age who are currently on the weekly rate of €117.70 to the maximum personal rate of €208 for those aged 25; and if she will make a statement on the matter. [38749/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The estimated full year cost of increasing the rate of payment by an additional €90.30, from €117.70 to €208 per week, is €66.8 million. This includes a proportionate increase for qualified adults and those on an age-reduced rate of Supplementary Welfare Allowance.

This costing is based on the estimated average number of recipients in 2022, and is subject to change in light of emerging trends and subsequent revision of the estimated number of recipients.

Any increase in the rate of payment for Jobseeker's Allowance for those aged under 25, and consequential linked increases, would need to be considered in an overall budgetary and policy context.

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
Link to this: Individually | In context | Oireachtas source

379. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the jobseeker's allowance for those young persons under 25 years of age who are currently on the weekly rate of €117.70 by €45.15 per week to €162.85; and if she will make a statement on the matter. [38750/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The estimated full year cost of increasing the rate of payment by an additional €45.15, from €117.70 to €162.85 per week, is €33.4 million. This includes a proportionate increase for qualified adults and those on an age-reduced rate of Supplementary Welfare Allowance.

This costing is based on the estimated average number of recipients in 2022, and is subject to change in light of emerging trends and subsequent revision of the estimated number of recipients.

Any increase in the rate of payment for Jobseeker's Allowance for those aged under 25 would need to be considered in an overall budgetary and policy context.

Photo of Cormac DevlinCormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

380. To ask the Minister for Employment Affairs and Social Protection if she will examine the feasibility of introducing a second band in the fuel allowance payment in Budget 2023 for persons with incomes just above the thresholds for eligibility; and if she will make a statement on the matter. [38767/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Fuel Allowance is a payment of €33 per week for 28 weeks at an estimated cost of €366 million in 2022. It is a targeted payment to people dependent on specified long-term social welfare payments. The purpose of this payment is to assist those households most in need with their energy costs.

The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the fuel allowance payment, a person must satisfy all the qualifying criteria including a means test and the household composition criteria. This ensures that the Fuel Allowance payment is targeted at those who are more vulnerable to fuel poverty including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.

Saying that, I am acutely aware of recent price increases and their impact on households who are dependent on social welfare.

All options, including the suggestion in the question, will be kept under review, together with trends in prices, to inform preparations for the budget later this year. We will, however, have to take account, as always, of the overall budgetary context and the availability of financial resources.

Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.

I hope this clarifies the matter for the Deputy.

Photo of Cormac DevlinCormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

381. To ask the Minister for Employment Affairs and Social Protection if she will examine the feasibility of introducing a second band in the carer's allowance in Budget 2023 for persons with incomes just above the thresholds for eligibility; and if she will make a statement on the matter. [38768/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

My Department provides a range of income supports for full-time carers including Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Combined spending on all these payments to carers in 2022 is estimated to exceed €1.5 billion.

Carer’s Allowance is the primary income support through which the Department supports carers in the community. Carer’s Allowance is a payment to people on low incomes who are caring full-time for a person who needs support because of age, disability or illness, including mental illness. The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and being provided, and that the means test which applies is satisfied.

The conditions attached to payment of Carer’s Allowance are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency, be that illness, disability, unemployment or caring.

The Deputy is aware that in setting income limits, as is necessary with all means-tested payments, there are always people whose incomes will just be above that limit. The creation of a second band, as outlined by the Deputy, would naturally lead to another limit that people will just be above.

In Budget 2022, I announced significant improvements to the means test for Carer's Allowance, in recognition of the vital role that carers play in society. These were the first changes to the means test in 14 years.

- The capital and savings disregard for the Carer’s Allowance means assessment was increased from €20,000 to €50,000, aligning it with that which applies for Disability Allowance.

- For carer’s who work, the weekly income disregard was increased from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner.

The changes outlined came into effect on 2 June and many Carers who up to now did not qualify for a payment due to means will now be brought into the Carers Allowance system for the first time.

The Carer's Allowance disregards are the most generous income disregards in the social welfare system and mean, in the case of a couple, that earnings of up to €39,000 p.a. are disregarded. By comparison, the income disregard applied to Disability Allowance is €140 per week. For Jobseeker's Allowance, it is €20 per day up to a maximum of €60, and the balance is assessed at 60%. For Jobseeker's Transitional Payment, the weekly income disregard is €165 with 50% of the balance assessed as means.

Any additional changes to the Carer’ Allowance means test would have to be considered in an overall policy and Budgetary context.

I trust this clarifies the matter for the Deputy.

Comments

No comments

Log in or join to post a public comment.