Ivan Yates
Question:99 Mr. Yates asked the Minister for Social Welfare the cost of bringing forward social welfare increases for old age pensioners to 1 February.
Written Answers. - Social Welfare Benefits.
Thomas P. Broughan
Question:100 Mr. Broughan asked the Minister for Social Welfare the amount it would cost in 1994 to bring forward the rises in social welfare as announced in the 1994 budget from late July to April.
It is proposed to take Questions Nos. 99 and 100 together.
This year's budget provides for a 3 per cent increase in all weekly social welfare and health board payments with effect from July. In addition a further 3 per cent increase will be given to all short term weekly payments (i.e. 6 per cent in all), to bring them up to the Commission on Social Welfare's priority rates. The personal rates of disability beefit, unemployment benefit and injury benefit are being given a further special increase of £2.10 per week. Improvements in child benefit were also provided viz. the higher rate of £23 will be increased to £25 and in addition is being applied to the third and subsequent children from September.
The cost of these measures is over £57 million this year and almost £122 million in a full year. It is estimated that it would cost approximately an additional £45 million to bring forward the 1994 rates increases to April.
The rates increases for old age pensioners will cost £12.45 million in 1994 and approximately £30 million in a full year. To bring forward the increases from the end of July to 1 February would cost approximately an additional £13.5 million.
Dermot Ahern
Question:101 Mr. D. Ahern asked the Minister for Social Welfare if his attention has been drawn to the anomaly in the pension scheme for self-employed whereby people who were older than 56 years when this scheme was made compulsory do not qualify for benefits in view of the fact that they will not have been contributing for ten years before reaching 66 years of age, that is, anyone born before 1932 will not qualify; the steps, if any, he will take to allow such people to qualify; and if he will make a statement on the matter.
To qualify for the old age contributory pension, a person must have entered insurance at least ten years before pension age. This condition has been a feature of the scheme since it was introduced in 1961. The purpose of the condition is to link entitlement to the pension with a reasonable level of contributions to the Social Insurance Fund during the course of a person's career. This condition applies to self employed people in the same way as it applies to all insured people. Self employed people who became insured for the first time when social insurance was extended to the self employed in 1988 and who were then aged 56 or over would not, therefore, qualify for the old age contributory pension. They are, however, insured for widows' and orphans pensions.
Self-employed people in that age group who had been insured as employed contributors for any period prior to age 56 could qualify for the old age contributory pension. Such insurance can be combined with insurance as a self employed contributor for old age pension purposes.
Refunds of the old age pension element of the contribution may be made to those who entered social insurance less than ten years before pension age and who fail to qualify for either old age contributory or non-contributory pension.
Costings made in 1989 estimated that the net cost of paying old age contributory pensions to all self employed contributors who were aged between 56 and 66 in April 1988 would amount to £756 million over the lifetime of the group of people concerned. The additional contribution which would need to be paid by self employed contributors generally to finance such an extension would be 2.4 per cent over a 50 year period.
Jim O'Keeffe
Question:102 Mr. J. O'Keeffe asked the Minister for Social Welfare the reason living alone allowance is not payable to a person (details supplied) in County Cork whose pension is paid by the Canadian Government rather than the Irish Government in view of the fact that a reciprocal agreement exists between the two Governments.
The person concerned has benefited from the Irish/Canadian Agreement. She has been awarded free electricity, free television licence and free telephone rental allowances. She also holds a free travel pass. Her application to my Department for a fuel allowance was disallowed recently as her means, based upon the Canadian pension income, exceeded the maximum limit for entitlement to this allowance.
To be eligible for a living alone allowance, a person has first to be qualified for a relevant Irish pension. Under the provisions of the Irish-Canadian Bilateral Social Security Agreement, a person resident in Ireland can be entitled to a pro-rata Irish contributory old age pension based upon Canadian social security contributions and-or periods of residence in Canada after reaching age 18. The person must also have at least 52 weeks of social insurance contributions paid in Ireland since 1953.
People over age 66 who qualify for a pro-rata Irish contributory pension under the Agreement will also qualify for a living alone allowance if they are residing alone. An application for a contributory pension has not been received from the person concerned. My Department will however write to her to determine if she meets the contributory pension conditions.
As soon as inquiries have been completed, she will be notified of the outcome without delay. Her entitlement to a living alone allowance in addition to any Irish pension will be determined then also.