Dáil Éireann debate -
Thursday, 9 Apr 1992

Vol. 418 No. 6

Written Answers. - Disposable Income Figures.

Theresa Ahearn

Question:

68 Mrs. T. Ahearn asked the Minister for Finance whether a married man with four children on the average industrial wage has less disposable income than if he were on long term unemployment assistance; if, in both cases, he will give the net amount in hand in each case per week after (a) differential rent or mortgage assistance, (b) PAYE, (c) PRSI, (d) occupational pension contribution, (e) VHI contribution, (f) transport costs to work or the labour exchange and (g) the value as annualised weekly of the free fuel allowance, have been taken into account; if he has any proposals to eliminate this poverty trap; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

In the tax year 1992-93 and on social welfare rates as from July 1992, a married man with four children on the average industrial wage would have net disposable income of £158.05 per week from employment and £125.83 per week if long term unemployed.

These figures are based on an estimated average industrial wage of £13,200 for tax year 1992-93. They take account of items (a), (b), (c), (f) and (g) in the Deputy's question. While it has not been possible to allow for VHI or occupational pension contributions due to the variety of options and schemes involved, this should not significantly affect the net comparison.

The figures indicate that a person in the circumstances outlined has significantly more net disposable income from employment than if long term unemployed and that a poverty trap of the kind envisaged in the question does not arise.