Original Death Grant was introduced in 1970 as a PRSI benefit.

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Ceisteanna—Questions. Oral Answers. - Death Grant. Tuesday, 9 May 1995

Mr. J. Walsh asked the Minister for Social Welfare if he intends to increase the death grant from the present maximum of £100 to a more realistic figure. [8282/95]
Dr. O'Hanlon asked the Minister for Social Welfare if he will extend the death grant to include the small number of persons who retired before 1971. [8272/95]

Proinsias De Rossa:

Death grant is a social insurance benefit which is payable, subject to certain PRSI contribution conditions, on the death of an insured person or of their spouse or child under 18. The amount of the grant varies with the contribution record and, in the case of children, with the age of the child.

The purpose of the grant which was introduced with effect from 1 October 1970 was to help with funeral and other post-bereavement costs. While I accept that the value of the grant has fallen having regard to average funeral costs, there are other measures in place which are designed to assist people in the immediate aftermath of bereavement. For example, where a person dies while in receipt of a social welfare payment, the payment usually continues to be paid to his or her adult dependant for six weeks. In addition, payment may also continue for six weeks after the death of an adult or child dependant.

As regards people who retired before the introduction of the death grant, the position is that social insurance contributions paid prior to 1 October 1970 did not contain an element in respect of the cost of the death grant. Consequently, people who ceased to be insurably employed before that date would not have contributed towards the cost of the scheme.

The rate of death grant is reviewed in the context of the budget each year in common with all other social welfare rates of payment. I am currently reviewing the present arrangements in the context of developing improved provision for income support for bereaved persons generally.

Mr. J. Walsh: At least Fianna Fáil cannot be blamed on this occasion. It is a pity that the Minister for Health has left the House. The cost of a funeral is approximately £1,200 and a death grant of £100 is derisory. People who go to community welfare officers and health boards end up paying the cost. Will the Minister have discussions with the Minister for Health to see if the grant of £100 could be increased to a more realistic figure which would give people who are badly off and cannot meet funeral expenses a reasonable grant towards them?

Proinsias De Rossa: The grant was not intended to cover the cost of a funeral but to assist people in the aftermath of a bereavement. Other costs arise following a bereavement which are not directly related to funeral costs. Payments are made by community welfare officers out of money provided by the Department of Social Welfare. It can be argued that that money is more effectively directed towards those in most need of it because there is a means test assessment before payment of assistance in those circumstances whereas the death grant is not means tested.

Mr. J. Walsh: Does the Minister agree that funerals are important and that people like to bury their relatives with dignity? The Minister might give some consolation to people who are unable to provide a decent burial for those belonging to them by increasing the grant to a realistic level.

Proinsias De Rossa: I do not know if the Deputy is listening. I said in my reply that I am currently reviewing the present arrangements in the context of developing improved provisions for income support for bereaved persons generally.

The death grant was introduced from 1 October 1970 as a social insurance benefit. Only those with such benefit will qualify for it in the first instance. Anyone in receipt of a noncontributory pension or assistance payment will not qualify for it. It is likely that such people will go to a community welfare officer. As I said, the Department of Social Welfare provides that money. There is no equivalent grant on the assistance side.

Death grants never made more than a modest contribution towards funeral costs. The margin increased considerably over the years because the rates were revised on four occasions only, the most recent being in 1982. The Deputy's colleagues were in Government from 1987 to December last year and had ample opportunity to consider whether the grant should be increased. Obviously they considered it and decided against it.

In 1986 the Commission on Social Welfare recommended that death grants should not be part of social insurance but should be available on social assistance. If the scheme were to be modified to make a real contribution to funeral costs it would require considerable investment. Assuming a maximum grant of £500 instead of the existing £100 and an annual demand of 15,000 applications [935] the cost would increase from £1 million per year as at present to £7 million per year. The Deputy will appreciate that is considerable expenditure.
 
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