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<p>The Government has sympathy for the women who suffered by their admission to and
work in the Magdalen institutions. However, payments made under the Republic of Ireland’s
<em>ex gratia</em> scheme do not meet GB legal criteria to be treated as personal
injury payments. The payments are not being made ‘in consequence of any personal injury’,
but are made in consequence of being admitted to a laundry, regardless of the effects.
The amount each woman will receive is dependent on the length of time spent in the
laundries and not on the specific effect that it has had on their health. They are
also being made as part of a broader process of restorative justice by the Republic
of Ireland Government.</p><p> </p><p>The Government has no plans to amend GB income-related
benefit legislation to include specific disregards along the lines of the schemes
mentioned. There is already provision in the benefit system to disregard payments
made in respect of personal injury to avoid the need to disregard specific payments
on an <em>ad hoc</em> basis. To amend legislation as new compensation schemes are
introduced would add complexity to the benefit system and its administration.</p><p>
</p><p>There is already provision in legislation to disregard some elements of the
<em>ex gratia </em>payments. For example, Pension Credit – the income-related benefit
most likely to be claimed - has no capital cut off limit. Where compensation in excess
of the €50,000 lump sum maximum <em>ex gratia</em> award is payable as weekly payments,
these will be disregarded under current Pension Credit and pension age Housing Benefit
legislation.</p><p> </p><p>We understand that as of 6 August 2014 there had been a
total number of approximately 760 applications to the scheme, around 160 of which
were from UK residents. However, neither information regarding the number of UK applicants
who are also in receipt of Pension Credit or other benefits, nor the amount of any
<em>ex gratia</em> payments made is available. We are therefore unable to estimate
the potential cost of a disregard.</p>
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