People with disabilities

Budget 2007 funding on services to people with disabilities are made in the context of the National Disability Strategy which promotes greater co-operation between departments in the planning and delivery of services.

Social Welfare payments

• From January 2007, there will be an increase of €20 from €165.80 to €185.80 at the maximum personal weekly rate for Disability Allowance and Blind Person’s Pension recipients.
• Invalidity Pension increased by €20 from €171.30 to €191.30 at the maximum personal weekly rate for recipients aged under 65. This payment increased by €16 for recipients aged over 65 (January 2007).
• People living in institutions who qualify for disability allowance are now entitled to the full rate of this payment (January 2007).
• The assessment of spouse’s earnings will be reformed for Disability Allowance recipients in order to reward work (September 2007).
• The amount of capital disregarded from the means test for Disability Allowance increases from by €30,000 from €20,000 to €50,000 (June 2007).
• Telephone allowance scheme will be extended to include mobile phones (April 2007).

Comhairle and Department of Social and Family Affairs

€1.9m was given to Comhairle for the development of personal advocacy service for people with disabilities and for the implementation of the Department of Social and Family Affairs’ Disability Sectoral Plan.

Health Service Executive

There is a 10% rise in funding allocated for estimates for services for persons with a disability under the National Disability Strategy. The majority of this funding is allocated to the health sector. The Budget also allocated €100 million for health-related disability and mental health services to provide additional residential, respite and day places, and other service improvements. This funding will also assist with the introduction of Part 2 of the Disability Act 2005, which offers assessments of need and service statements for people with disabilities that will start for children aged under 5 years from 1 June 2007. Budget 2007 also provides for home support and personal assistance services to be expanded.

Children with vision impairments

There was an increase from January 2007 in domiciliary care allowance payable by the Health Service Executive. Incapacitated Child Tax Credit increases from €1,500 to €3,000 from January 2007.

Older People

Social welfare payments

• The non-contributory old age pension increases by €18 at the maximum personal weekly rate from January 2007. The employment earnings disregard for non-contributory old age pension will increase from €100 to €200 per week. There is also an increased means disregard for non-contributory old age pension by €10 to €30 per week.
• From January 2007, contributory old age pension increases by €16 at the maximum personal weekly rate and for people aged 65 receiving Invalidity pension.
• The Qualified Adult Allowance for people aged over 66 has increased and will be paid directly to the qualified adult.
• The health service executive has been allocated funding to expand home help service and improvements to palliative care services, day centres and day care and respite care services.
• From January 2007, people aged 66 to 74 are not entitled to a companion free travel pass, if they are certified medically unfit to travel alone.
• The Telephone Allowance Scheme will be extended to include mobile phones.

Tax

Blind Persons Tax Credits

Blind persons tax credit has increased from €1,500 to €1,760 for a single person or where one spouse is vision impaired and from €3,000 to 3,520 where both spouses are vision impaired.

Age Tax credits

There is an increase in the age tax credits from €250 to €275 for a single or widowed person and from €500 to €550 for a married couple.

Administrative changes to help taxpayers claim tax relief

Where possible, all age related tax credits will be credited automatically to the taxpayer if a verified date of birth is established through revenue and social welfare records. Similar procedures will be applied to nursing home and other medical expenses that may qualify for tax relief.

DIRT Administration Change

DIRT free savings accounts will be established for people aged over 65. At present, DIRT can be refunded if a person is exempt from income tax if they or their spouse is over 65 or has a permanent disability. Budget 2007 changed the rules relating to this exemption so that in future the person may notify their financial institution of their status and receive the interest without deduction of DIRT. These changes will be included in the 2007 Finance bill.

Carers

• From June 2007, respite care grant will increase by €300 to €1,500.
• Carers allowance increases by €18 to €218 at the maximum personal weekly rate for recipient’s aged 66 and over and an increase of €20 to €200 at the maximum personal weekly rate for recipients aged under 66 (January 2007).
• The weekly income disregard for carers allowance increases by €30 to €320 (single) or €60 to €640 (couple) (April 2007).
• There is an increased earnings threshold for entitlement to carer’s benefit by €30 to €320 per week (April 2007).
• The budget 2007 has eased the means test for carer’s allowance. A new additional means-tested payment equivalent to up to half of the carer’s allowance rate for certain people with another social welfare entitlement will be introduced in September 2007.
• From May 2007, recipients of carer’s allowance or carer’s benefit who previously received Illness or Jobseeker’s Benefit can revert back to that payment at the same rate as previously paid if more beneficial to them.
• Tax relief for employing a carer has not changed.

Fuel

• The rate of the National Fuel Allowance increases by €4 to €18 per week (January 2007).
• The income threshold for eligibility to Fuel Allowance increases from €51 to €100 per week.
• There will be a reduction in excise duty for Home Heating Oils (Kerosene & LPG). From 1 January 2007, the excise duty on Kerosene is being reduced from €16 per 1,000 litres to zero. The excise duty on LPG is being reduced from €10 per 1,000 litres to zero.

When will these increases occur

Recipients of certain long-term payments such as Carers allowance and Invalidity pension will receive their increase in mid-February backdated to January along with their new payable order books. Increases for other long-term payments such as the contributory and non contributory old age pensions and disability allowance will be paid by a special once-off payment in mid-February to cover 12 weeks payment to end March when new payable order books will be issued.