Dáil Éireann debate -
Tuesday, 16 Oct 2001

Vol. 542 No. 2

Written Answers. - Social Welfare Benefits.

John McGuinness

Question:

403 Mr. McGuinness asked the Minister for Social, Community and Family Affairs if a full rent allowance will be granted to a person (details supplied) in County Kilkenny; the reason this person was offered only £15.00 per week; and the changes which were introduced in Budget 2001 which restrict his Department from assisting single men with an employment profile such as this person's profile. [23777/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The supplementary welfare allowance, SWA, scheme is administered on behalf of my Department by the health boards and neither I nor my Department has any function in deciding entitlement in individual cases. Under the terms of the SWA scheme payment of a weekly or monthly supplement may be made in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs.

Supplementary welfare allowance is subject to a means test. Rent supplements are normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to his or her family circumstances, less £6, 7.62. This £6, 7.62, represents the minimum contribution which recipients are required to pay from their own resources. Most recipients pay more than £6, 7.62, towards their rent because applicants are required to contribute any additional assessable means that they have over and above the appropriate basic supplementary welfare allowance rate towards their rent.

Supplementary welfare allowance is not normally payable to people in full time employment. However, special arrangements have been in place for a number of years now which allow people on approved schemes such as community employment, CE, to retain part of their rent or mortgage interest supplement, subject to a gross household income limit of £250, 317.43, per week and certain other conditions. Following discussions with the social partners under Partnership 2000 substantial improvements in the conditions relating to the retention of rent and mortgage interest supplements were introduced from 6 April 2000.

The £250 per month limit on the amount of rent supplement payable was abolished and the sharp withdrawal of support at the end of the third year was removed, the supplement now being withdrawn on a tapered basis over a four year period, that is, 75% in year one, 50% in year two, 25% in year three and 25% in year four. As a result, many participants in CE schemes now retain a greater amount of rent supplement than they would have done under the earlier arrangements. This is particularly the case for families.

In no circumstances do the new rules result in a lower rate of rent supplement than is payable under the standard rules of supplementary welfare allowance. All CE recipients are entitled to either the gradually reducing amount that can be retained under the transitional arrangements described above or the amount that is normally paid under the standard rules of supplementary welfare allowance described earlier, whichever is the greater.

The South-Eastern Health Board was contacted on behalf of the person in question and has advised that he applied for rent supplement on 27 September 2001. Its decision was to award rent supplement of £15.62, 19.83, per week. The board is now re-examining that decision, taking into account all of the available information regarding the person's earnings, hours of employment and so on. If a different amount is found to be payable, then the necessary adjustment will be made immediately.

Andrew Boylan

Question:

404 Mr. Boylan asked the Minister for Social, Community and Family Affairs the reason widows and widowers under 66 years of age living alone and totally dependant on social welfare payments are not considered for payment of the free schemes; if he will favourably consider their inclusion; and if he will make a statement on the matter. [23783/01]

Richard Bruton

Question:

409 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if he will make arrangements whereby a person who is in receipt of deserted wife's benefit can qualify for free travel on the grounds of disability without giving up an insurance-based payment and switching to disability allowance. [24015/01]

Róisín Shortall

Question:

410 Ms Shortall asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the concern among some older persons that they may lose out under his proposal to amalgamate the free schemes into one house hold benefit if the price per unit of electricity or gas is raised; the steps he is taking to prevent this happening; if he will link the new payment to fuel price inflation rather than the overall consumer price index; and if he will make a statement on the matter. [24021/01]

Michael Ring

Question:

411 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will consider including widowed persons for free schemes; and the amount this would cost. [24044/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

It is proposed to take Questions Nos. 404, 409, 410 and 411 together.

The free schemes, including the free electricity-gas allowance, free telephone rental allowance and free television licence schemes, are generally available to people living in the State, aged 66 years or over, who are in receipt of a social welfare type payment or who fulfil a means test. They are also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments.

Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the free schemes retain that entitlement to ensure that households do not suffer a loss of entitlements following the death of a spouse.

The free schemes share a common set of objectives in the area of social inclusion. These are defined as: to provide assistance to those living alone by targeting them with specific benefits providing both income and social inclusion gains; to support older people and people with disabilities in their wish to remain in the community as opposed to institutional care; and to support Government policy which seeks to acknowledge the value of older people in society.

The many demands to extend the free schemes to other groups, including widows and widowers have been examined using social inclusion objectives as the criteria for decision. The schemes as currently constituted provide a basic package that ensures a limited standard of comfort or well-being to a particular targeted group, that is based on age or receipt of a disability related payment. Persons who are under the qualifying age or who are not in receipt of a disability related payment may not qualify for the free schemes. However, depending on the person's particular circumstances, it might be more advantageous for that person to transfer to disability allowance. If the Deputy has a particular person in mind, I would be glad to examine the entitlement to one of my Department's disability related payments.

Widows-widowers who are living alone may experience social exclusion, but they are not necessarily groups in need of community care support nor do they experience the same physical risks of isolation as older people and people with disabilities.

Where payment levels are adequate, any extension of the free schemes should be based solely on increased social benefits that are over and above those which can be purchased by increased income.

The cost of extending the free schemes to all widows, regardless of age, income and household composition, would be in the region of £28 million. It estimated that the cost of extending the free schemes to widows over the age of 60 would be in the region of £20 million. However, neither of these groups could be considered to have the type of needs that require the same type of targeting as older people or people with disabilities.

The free travel scheme is available to all people living in the State aged 66 years or over. It is also available to carers and people with disabilities who are in receipt of certain welfare type payments.

The purpose of this scheme is to encourage older people and people with disabilities to remain independent and active within the community, thereby reducing the need for institutional care. Thus, the scheme is available to people in receipt of disability allowance, invalidity pension and blind person's pension. Extending the scheme to people under age 66 who are not in receipt of a disability related payment is outside the scope and objective of the scheme.

With regard to the proposed price increases in electricity and gas, the objective of the free electricity-gas allowance is to provide for a basic standard of electricity or gas usage. The main advantage of free electricity-gas allowance is that it is based on a unit allowance and, therefore, automatically keeps pace with electricity or gas price increases. For example, the free electricity allowance covers 1,500 units each year, 200 units per billing period in the summer and 300 units per billing period in the winter, in addition to the normal standing charges. VAT due on this standard allowance is also covered. The value of the allowance, if fully taken up, is £156.57, 198.80, per annum. Proposals being considered in relation to a household benefit involve standardising the qualifying conditions and basis of assessment for the free schemes, particularly those relating to the free telephone and the free electricity scheme, so that people who qualify will receive the full package of schemes. It is not intended to replace the schemes with a single cash payment as suggested.

The current arrangements for the free schemes will be kept under review in the context of the forthcoming budget.