asked the Minister for Social Welfare if he is aware of the fact that a number of recipients of (a) old age pensions and (b) unemployment assistance are having their pensions and unemployment assistance reduced on account of the earnings of their wives and families in cottage industries such as knitting, and that this is discouraging women from working in these industries; and, if so, if he will take immediate steps to ensure that these earnings will not be taken into account in assessing means.
Ceisteanna—Questions. Oral Answers. - Reductions in Old Age Pensions and Unemployment Assistance.
6.
I am not aware of any development in connection with the assessment of means for old age pension or unemployment assistance purposes which is discouraging women from working in cottage industries such as knitting.
As the Deputy is aware the means of recipients of non-contributory old age pensions and unemployment assistance must be reviewed when any change occurs in the circumstances of the recipient; where self-employment is involved the means must also be re-examined periodically.
Under the relevant statutory provisions governing the calculation of means for non-contributory old age pensions purposes a married male pensioner is assessed with one-half of the total means of himself and his wife. All income in cash which either he or his wife may reasonably expect to receive during the year succeeding the date of calculation, must, with certain specified exclusions, be taken into account in the calculation of the total means. Voluntary contributions including those from members of the family are subject to a statutory deduction of £52.5.0 before assessment for old age pension purposes. While I have seen no evidence that earnings from cottage industries such as knitting are causing reductions in pensions, a measure which passed all its stages in this House only last week, makes provision, as the Deputy is no doubt aware, which will enable income such as earnings up to £165 to be disregarded in the calculation of means for old age pension purposes in the case of the older member of a married couple who fulfil certain conditions.
In the case of unemployment assistance the relevant statutory provisions likewise require that all income in cash which an applicant may reasonably expect to receive during the year succeeding the date of calculation must, with certain exclusions, be taken into account. In addition, the actual or estimated amount of income which such person may reasonably expect to receive as head of the household whether as contributions to the expenses of the household or otherwise must be included in the assessment. In practice, the officers of my Department in the course of the discharge of their statutory duties, find generally that earnings of applicants' wives and families in cottage industries such as knitting are not causing increased assessments of means for unemployment assistance purposes and that recipients of unemployment assistance are accordingly not having their assistance reduced by reason of such earnings.