PROPOSED CUTS in disability allowance for young people would have saved the exchequer more than €36 million by 2014, according to the comprehensive review of spending in the Department of Social Protection.
The measures, which have been “paused” following opposition from backbenchers and advocacy groups, would have affected 7,750 young people with disabilities when fully implemented.
The “alignment” of payments for new claimants of disability allowance aged under 25 with jobseeker’s allowance payments is included in a menu of “options for change” – savings – in the review.
The changes would have seen new claimants have their payments reduced from €188 a week to €100 for people aged 18-21 and to €144 per week for those aged 22-24.
The review says the projected savings from the change would be €5.9 million next year, €16.9 million in 2013 and €24.7 million in 2014. The numbers affected, as outlined, would be 1,470 people next year, rising to 4,240 in 2013, 6,290 in 2014 and 7,750 in 2015.
It says the measure should be considered with an increase in the age of eligibility for new claimants of disability allowance from 16 to 18 years in line with other welfare payments. This would necessitate a matching increase in the age limit for the domiciliary care allowance, which is paid to the carer rather than the child with a disability.
It cites earlier findings that receipt of social welfare at a very young age is believed to increase the risk of welfare dependency.
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