Written answers
Tuesday, 21 February 2006
Department of Social and Family Affairs
Social Welfare Benefits
9:00 pm
Richard Bruton (Dublin North Central, Fine Gael)
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Question 430: To ask the Minister for Social and Family Affairs his views on providing a lump sum, for example a redundancy lump sum, for people who have to cease work due to ill health; and if he will make a statement on the matter. [6421/06]
Séamus Brennan (Dublin South, Fianna Fail)
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There is no provision for a statutory lump sum payment to be made on cessation of employment due to ill health. The Department of Social and Family Affairs operates a number of schemes which provide income support to people who are unfit to work due to illness or disability. The payments include disability benefit and invalidity pension, which are social insurance based schemes. Eligibility for the schemes requires a minimum number of contributions paid and/or credited, as well as the fulfilment of relevant medical certification. The payments, which serve as income transfers in lieu of loss of earnings, are paid from contributions paid into the social insurance fund. As the aim of the schemes is to provide ongoing income support where the need has been demonstrated, it would not be appropriate to pay them in the form of a lump sum and no proposals of this nature are being considered as part of the social welfare system. The social insurance fund finances the statutory redundancy scheme which is under the responsibility of the Minister for Enterprise, Trade and Employment. A redundancy situation arises if an employee's job no longer exists and he or she is not being replaced. However, if a redundancy situation arises when an employee is absent on sick leave, the employee may apply to his or her employer to avail of the redundancy situation and received a statutory redundancy lump sum payment and any other payment provided voluntarily by the employer. In practice many employees make personal provision towards private health insurance plans which provide for lump sum payments. Income tax concessions may be due in respect of contributions paid to the private health protection plans.
Willie Penrose (Westmeath, Labour)
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Question 431: To ask the Minister for Social and Family Affairs if, in view of the budget 2006 announcement, extending the period of the carer's benefit from 15 to 24 months, when this will operate from; if the extended period of nine months will apply to those already in receipt of the carer's benefit; if his Department has not made contact with or finalised it's discussions with the employers involved; if approval for same has been secured; and if he will make a statement on the matter. [6423/06]
Séamus Brennan (Dublin South, Fianna Fail)
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The maximum duration of the carer's benefit scheme is 65 weeks. Provision was made in budget 2006 to extend the duration of the scheme by nine months to two years in respect of each care recipient. To facilitate carers who will exhaust their 65 weeks of carer's benefit, I have made provision in the Social Welfare Law Reform and Pensions Bill 2006 to implement the improvement from 7 December last, which means that the extension in the duration of the carer's benefit scheme will apply to anyone in receipt of carer's benefit on or after 7 December 2005 if they continue to meet the conditions for entitlement. The carer's leave scheme, which allows for the protection of carer's employment rights for the duration of the caring period, will also be extended to two years from the date of enactment of the Bill, which provides for this improvement in respect of employers who commence the leave on or after the date of enactment. The scheme is the responsibility of my colleague, the Minister for Enterprise, Trade and Employment. Any issues relating to it are matters for the Department of Enterprise, Trade and Employment.
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