We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Ceisteanna—Questions Oral Answers - Old Age Pensioner's Rent Allowance.

Old age pensioner’s rent allowance

Summary

The allowance was discontinued after a review found the couple’s assessed means had risen above the eligibility limit; an appeal upheld the decision. Brady challenged the effect of assessing savings interest, while the Minister said total means had increased by £23.64 a week and the Post Office assessment had only a minor effect.

asked the Minister for Social Welfare the reason a rent allowance payable to an old age pensioner (details supplied) in Dublin 3 has been discontinued, in view of the fact that his only source of income is a pension which has not altered.

Comment on this

At a re-investigation of the claim of the person concerned in January 1986 it was found that his means, consisting of his contributory old age pension in respect of himself and his wife, his occupational pension and the yearly value of capital held by his wife, had increased since the previous investigation and exceeded the upper limit for entitlement to a rent allowance in his case. The upper limit in his case is £110.51 a week.

The rent allowance was accordingly terminated with effect from 16 February 1986.

An appeal was lodged against the decision but the appeals officer upheld the decision of the deciding officer. The person concerned was notified of the appeals officer's decision on 24 April 1986.

Comment on this

I do not normally ask questions of this nature in the House but unfortunately it is necessary on this occasion because of the unsatisfactory replies I have been receiving from the Minister's Department. Is the Minister aware that these two old age pensioners living alone have been paying an additional £19.20 per week since the decontrolling of rents? Until some months ago they had a rent allowance in the region of £6 per week but the Minister's Department apparently decided to do an assessment of income on a post office account belonging to one of these people. Is the Minister aware that the capital in that account is £2,100? What income has been assessed on that and how is income assessed on such a small capital sum?

Comment on this

In December 1985 the Deputy sought to have this case reviewed with a view to a possible increase in the rent allowance. Consequent on the representations of the Deputy a social welfare officer was asked for a report. That report, furnished in January 1986, disclosed that the means of the claimant had increased by £23.64 per week since the previous investigation. Details of income included the old age contributory pension, including an adult dependant allowance, a CIE pension and a small account which was assessed in January 1984 as giving an income of £3.10 per week. In January 1986 that income was assessed at £3.80 per week.

Comment on this

How was that assessed?

Comment on this

The tenants' weekly means were assessed at £116. The maximum allowance payable — the new rent of £20.76 less £3.80, came to £16.95. The reduction on the maximum allowance on account of means is calculated by taking £5 for the first £10 in excess of £90 and £16 for the remaining £16, which gave £21. That was more than the increase in the rent and consequently by the decision of the deciding officer the rent allowance was terminated with effect from 16 February 1986.

Comment on this

I wish to ask a short question in comparison to the long, bureaucratic reply from the Minister which really makes no sense whatever. It is a very simple question which should require a very simple reply. The Minister pointed out there has been an additional assessment of £3.80 per week for this old couple. That is in lieu of interest on Post Office savings of £2,000 and on an income of £3.80 a week additional which meant they were penalised to the extent that they lost their rent allowance which was more than twice the amount they gained in the interest. They were originally receiving £6.75 in rent allowance. That was discontinued completely when the Department assessed this couple's additional income of only £3.80. Is the Minister aware that the rent increase in this instance is £19.20 and we are talking in terms of an additional income of £3.80 in interest on a Post Office savings account? It appears that any old couple with a paltry sum are penalised by the Department and prevented from getting benefits they are entitled to.

Comment on this

As I stated, the total income had increased by £23.64 per week between the time of the previous assessment and the assessment made as a result of the Deputy's representations and the amount of the rent allowance which they were receiving from 7 July 1985 was £8.96 per week. Because of the increase of £23.64 in their income they lost the £8.96 rent allowance.

Comment on this

I have one further supplementary.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

I am sorry, Deputy, I must move on. It is 3.30 and I am moving on to questions nominated for priority.

Comment on this

I shall be advising my constituents in future not to put any money in the Post Office.

Comment on this

I would like to correct the Deputy. The assessment of what was in the Post Office had a very minor effect on the loss of the allowance.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

I am now moving to questions nominated for priority.

Comment on this