Brennan rejects SSIA fears

SOCIAL and Family Affairs Minister Seamus Brennan rejected claims yesterday that thousands of welfare recipients would lose their benefits when the Government’s special savings scheme matures.

The claim was made by Labour’s consumer affairs spokeswoman Kathleen Lynch, who said the Minister had confirmed to her that the money saved in the Special Savings Investment Accounts (SSIA) will be treated in the same manner as all other income a social welfare claimant possesses.

Ms Lynch claimed that thousands of social welfare recipients could lose their entitlements when their SSIAs mature in 2006 and 2007 because the money they get from these schemes will be counted as income.

“The Government encouraged everybody to open an account, it is ridiculous that those who need this money most will have their welfare payments affected when their accounts mature,” she said.

But Mr Brennan’s spokesman rejected these claims that thousands will lose their benefits.

He said social welfare recipients are allowed to have €12,697 in savings before it affects their entitlements.

Under the Government’s SSIA scheme, anyone who invested money will get returns of between €4,761 and €19,000.

You had to invest €63 a month to get the minimum return and €253 a month to get the maximum.

But the Minister believes the very few social welfare recipients will be affected by money they hold in the SSIA accounts because the means test allows them to have €12,697.38 in savings before they pay any penalties, his spokesman said.

Mr Brennan has ordered his department to carry out a comprehensive examination to find out how many people will be affected.

“The Minister intends taking the results of that full assessment to Cabinet in the coming weeks with a view to finalising the matter in the near future,” his spokesman said.