Dáil Éireann debate -
Thursday, 22 Oct 1987

Vol. 374 No. 5

Written Answers. - Means Testing.

32.

Mr. J. Bruton

asked the Minister for Finance if his attention has been drawn to the fact that a British study The Reform of Social Security by Dilnot, Kay and Morris, published by the Institute of Fiscal Studies, page 44, estimated that the administrative cost of operating the means test for supplementary benefit was ten pence for every pound paid out; the calculations, if any, he has done in respect of each of the means tested schemes or income thresholds operated by his Department or by agencies under his aegis; and if he will make a statement on the matter.

33.

Mr. J. Bruton

asked the Minister for Finance if he, or any body under his aegis, operates means tests or income thresholds for any purpose, for example tax exemption, eligibility for charge or benefit; in respect of such means test or income threshold (a) the levels at which they operate and the period over which they are assessed; (b) if account is taken of the income of a spouse, and if so, the way in which this has been done; (c) if account is taken of the income of other household members; and if so, the way in which this has been done; (d) if account is taken of the costs of maintaining dependent children or other dependants; (e) if any income for example social welfare payments, or the imputed value of home ownership is ignored or discounted in any way; (f) if the value of property, real or personal, is included and if so, the basis on which it is included; (g) when the levels were last revised in line with inflation; and (h) if there is a distinction in the way the means test operates between a couple who are married and a couple living together but not married.

Minister for Finance (Mr. MacSharry)

It is proposed to take Questions Nos. 32 and 33 together.

As regards means tests operated by the Department of Finance, the facts are as follows:

1. An income threshold may be applied under section 8 of the Civil Service Regulation Act, 1956 — (retiring age for civil servants)

(a), (h) a maximum income level of £50 a week applies for a person with no dependants plus £23 a week for a spouse;

(b) yes; a spouse's income from all public funds is taken into account;

(c) no;

(d) yes;

(e) the imputed value of home ownership is ignored;

(f) no;

(g) July 1985; the levels are not formally index-linked;

2. Under the Civil Service Spouses' and Children's Pensions Scheme (and corresponding schemes elsewhere in the public sector), a pension may be paid in respect of a child under age 21 who is in full-time instruction or training for a vocation, profession or trade. However eligibility for pension ceases if the child is in receipt of payment from his employer during the training period, sufficient to make him self-supporting. The income limit applied in practice for the purposes of this rule is the maximum personal rate of contributory old age pension (currently £55.10 p.w.).

3. As regards taxation matters, the Revenue Commissioners have advised that, as the provision of the information requested would require detailed examination of a large number of provisions of the various taxing statutes, it would not be feasible in the time available to supply the details sought by the Deputy. If he would repeat the questions in two weeks any available information on the lines requested will be provided.

No other "means test" is administered by the Department or by any of the Offices under the aegis of the Minister for Finance (with the exception of the Office of the Revenue Commissioners as indicated above).