What does the Budget mean for me?

THE Citizens’ Information Service in Ennis has been helping Clare people with their concerns about this year’s Budget. According to Paul Woulfe, while Budget 2012 may not have been as bad as people expected, callers have been contacting the organisation for advice on how it affects them.
“There are a lot of concerns by people about this year’s Budget with a wide range of people from all over the county contacting us. Right now, people are just reacting to it and absorbing it to see how it will affect them. People were expecting it to be worse but we have had lots of people getting in touch with us to find out how it will affect them. Changes to Job Seeker’s Benefit and Allowance, the cut in fuel allowance, changes to the Household Benefits package for carers and the Back to School Allowance are just some of the items that people have contacted us about. We are available to talk to people about the ways to maximise their income in terms of the various options that are available to them,” he said.
The Citizens’ Information Service in Ennis have outlined the changes to Social Welfare Payment in the Budget which will come into effect throughout 2012. There will be no changes to weekly rates of social welfare payments.

Jobseeker’s Benefit and Allowance
Where a Jobseeker’s Benefit recipient is working for part of a week, the payment entitlement will be based on a five-day week rather than a six-day week. This means that for each day that a person is unemployed, one-fifth of the normal rate of Jobseeker’s Benefit is payable and if they get part-time work for two days, they will get three-fifths of the normal Jobseeker’s Benefit for that week (from July 2012). Sunday working will be taken into account when calculating the amount of Jobseeker’s Benefit or Jobseeker’s Allowance to be paid (from January 2013).
One-Parent Family
Payment
The upper age limit of the youngest child for new claimants will be reduced to 12 years in 2012. (It is currently 14 years for new claimants.) It will be reduced further to seven years on a phased basis in following years. The means test for OPFP is being amended:
• The amount of earnings disregarded in the One-Parent Family Payment means test will be reduced from €146.50 to €130.00 per week in 2012 for new and existing recipients. Further reductions will be introduced over the following four years (from January 2012).
• The temporary payment of half of the rate of One-Parent Family Payment where the recipient’s earnings exceed €425 per week will be discontinued. Existing recipients of the temporary payment will not be affected (from January 2012).
Farm Assist
The rate of payment will not change. The assessment of means from self-employment, including farming, is being raised from 70% to 85% (from January 2012). The deductions from income for children are being halved to €127 per year for each of the first two dependent children and €190.50 per year for each subsequent child (from January 2012).
Back to Education Allowance
The Cost of Education Allowance, the annual grant, which accompanies the Back to Education Allowance, will reduce from €500 to €300 (from 2012).
Child Benefit
Over two years, the rates of payments of child benefit will be standardised for all children. Child Benefit will be maintained at €140 per month for each of the first two children. The rates for the third and subsequent children will be standardised at €140 per child per month over the next two years. The rate for the third child will be €148 and for the fourth and each subsequent child will be €160 (from January 2012).
Back to School Clothing and Footwear Allowance
The age of eligibility for the Back to School Clothing and Footwear Allowance will be raised from two to four years of age (2012). The Back to School Clothing and Footwear Allowance will reduce from €305 to €250 for children aged 12 years or more and from €200 to €150 for children aged four to 11 years (from 2012).
Qualified Child Increases
If a person claiming Invalidity Pension, Carer’s Benefit, State Pension (Contributory or Transition) or Incapacity Supplement has a spouse or partner with income of over €400 a week, payment of the half-rate increase in respect of a qualified child will be discontinued. This will apply to new claimants and is in line with current arrangements for Jobseeker’s Benefit, Illness Benefit and Injury Benefit (from July 2012). Payment of two qualified child increases where the person is on a Community Employment Scheme and One-Parent Family Payment, Deserted Wife’s Allowance/Benefit or Widow(er)’s Pensions will cease for new and existing recipients
Carer’s Allowance
New applicants for Carer’s Allowance, who are not living with the person for whom they are providing care, will not be entitled to the Household Benefits package. The person receiving care may be entitled to the Household Benefits package in their own right (from April 2012). Carer’s Allowance weekly rates of payment will not change. The half-rate Carer’s Allowance will continue to be paid to people who are full-time carers and who are getting another welfare payment. The extra payment for caring for more than one person is retained. Carers will continue to get the annual Respite Care Grant of €1,700 for each care recipient.
Rent Supplement
The minimum contribution by single tenants towards rent for the purposes of the Rent Supplement scheme will increase by €6 to €30 per week (from €24 per week). The minimum contribution payable by couples will be €35 per week (from January 2012). Rent limits will be reviewed. (2012)
Mortgage Interest Supplement
The minimum contribution for the purposes of the Mortgage Interest Supplement scheme will increase by €6 to €30 per week for a single person (from €24 per week). The minimum contribution payable by couples will be €35 per week (from January 2012). Payment of Mortgage Interest Supplement will be deferred for 12 months, while the person engages with the Mortgage Arrears Resolution Process. This approach is consistent with the reports of the Mortgage Arrears and Personal Debt Group and the Inter-Departmental Working Group on Mortgage Arrears. (2012)
Fuel Allowance
The Fuel Allowance season will be reduced by six weeks from 32 weeks to 26 weeks for all recipients (It will now be paid for six months from mid-October to mid-April).
Treatment Benefit Scheme
The frequency of the grant for hearing aids will change from two years to four years (from January 2012). The maximum grant available for one hearing aid will change from €760 to €500 and from €1,520 to €1,000 for two hearing aids (from January 2012).
Older people
There will be no change in the rates of State pensions or other payments for those aged over 66, for example, Living Alone Allowance, Household Benefits Scheme and Fuel Allowance.
Changes to contributory State Pensions
Currently a person with an average of 20-47 PRSI contributions per year over their working life receives a weekly State Pension of €4.50 less than a person with a yearly average of 48 or more PRSI contributions. A lower pension will be payable to new applicants for State Pension who have a yearly average of less than 48 PRSI contributions (from September 2012). Currently, late claims for certain contributory pensions can be backdated on a reducing scale for up to five years. This backdating period will be reduced to a maximum of six months. This applies to State Pension (Contributory and Transition), Surviving Civil Partner’s Contributory Pension and Widow(er)’s Contributory Pension (April 2012).
Widow(er)’s Contributory Pension and Surviving Civil Partner’s Contributory Pension
The total number of paid PRSI contributions needed to qualify for Widow(er)’s Contributory Pension and Surviving Civil Partner’s Contributory Pension will increase from 156 to 520 contributions (July 2013).
Half-rate payments
People getting Widow(er)’s Pension, Surviving Civil Partner’s Pension or One-Parent Family Payment can get half-rate Jobseeker’s Benefit, Illness Benefit or Incapacity Supplement if they satisfy the qualifying conditions. These half-rate payments will cease for applicants for Jobseeker’s Benefit, Illness Benefit and Incapacity Supplement (January 2012).

Means testing for social assistance payments
For new and existing claimants, income from employment as a home help funded by the HSE will be assessed in means tests for social assistance schemes. The existing earnings disregards in line with all other employees will apply (January 2012). Income from weekly Carer’s Benefit and Carer’s Allowances will be included when calculating entitlement to Family Income Supplement in line with other welfare payments (January 2012 for new applicants and on renewal for all others). The amount of earnings disregarded for the purposes of the One-Parent Family Payment means test will be reduced from €146.50 to €130.00 per week in 2012 for new and existing recipients. Further reductions will be introduced over the following four years (from January 2012). The temporary payment of half of the rate of One-Parent Family Payment where the recipient’s earnings exceed €425 per week will be discontinued. Existing recipients of the temporary payment will not be affected (from January 2012)
For further information on how the Budget affects you, contact Ennis Citizens’ Information Centre, which provides a free and confidential information, advice and advocacy service at 0761 075260 or drop in at Bindon lane Bank Place Ennis, Monday to Friday form 9.30am – 5pm. The Citizens’ Information Phone Service locall operates Monday-Friday, 9am-9pm You can also log on to up-to-date details on the Budget at www.citizensinformation.ie.