Darren O'Rourke (Meath East, Sinn Fein)
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1249.To ask the Minister for Employment Affairs and Social Protection the reason, in the case when a widow and-or widower receives a State pension (contributory) and their annual tax cut off is reduced to reflect that pension, they are not then entitled to illness benefit should it be required; if a review of this anomaly will be considered in advance of budget 2025; and if she will make a statement on the matter. [31295/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Illness benefit is the primary short term income support provided by my Department to those who are unable to work due to illness of any type and who are covered by social insurance. Eligibility for illness benefit depends on the person’s PRSI record and class. People must have made the required number of contributions under PRSI classes A, E, H or P to qualify.

Previously, illness benefit was only available to persons under 66. Under legislation that came into effect at the start of 2024, if a person born on or after 1 January 1958 has attained pensionable age of 66 years but has neither attained the age of 70 years nor been awarded a State pension (contributory), they may be entitled to illness benefit, subject to meeting the other conditions of the scheme.

However, there is a general principle of one person, one payment, which applies across the social welfare system. Given the contingency-based nature of this system, it can happen that a person may experience more than one contingency at the same time but, generally, they can receive only one payment. This principle is common to social security systems across the world. Illness benefit and the State pension (contributory) are not payable concurrently.

In the scenario as outlined by the Deputy, the widow or widower is in receipt of the State pension (contributory) and working. The income from employment is taxed under the Pay As You Earn (PAYE) system. State pension (contributory) is a taxable payment. The taxation of income is a matter for the Minister for Finance and the Revenue Commissioners.

My Department provides an additional needs payment under the supplementary welfare allowance scheme to help meet essential expenditure which a person could not reasonably be expected to meet out of their weekly income. This includes exceptional and urgent needs payments, and certain supplements to assist with ongoing or recurring costs that cannot be met from a person’s own resources and are deemed to be necessary.

The payment is available to anyone who needs it and qualifies, whether the person is currently on a social welfare payment or in employment. The payment amount will depend on a person’s weekly household income, their outgoings and the type of assistance needed. Payments are made at the discretion of the Community Welfare Officers administering the scheme, considering all the circumstances of the case.

My Department will continue to keep its range of supports under review to ensure that they meet their overall objectives. Any changes to the current system would need to be considered in an overall policy and budgetary context, and in the context of contribution rates and the overall sustainability of the Social Insurance Fund.

I trust that clarifies the matter for the Deputy.