The Social Welfare (Preservation of Rights) (No. 2) Regulations, 1986 provided for the introduction of transitional payments, with effect from November, 1986. These transitional payments are introduced so as to avoid a significant reduction in income for married men whose spouses no longer qualified as adult dependants under the revised dependency arrangements introduced at that time.
Married men who lost the adult dependant increase by virtue of the wife being in receipt of a social welfare payment in her own right received a transitional payment of £20 per week. Where the wife had income in excess of £50 per week, the husband lost the Adult Dependant Allowance and half of the increases for children. In these cases, a weekly payment of £10 was made and the full increases for children were restored.
While the transitional payments were originally intended to last for one year only, they were continued on an annual basis by way of regulations. From 1988 to 1991 this was done on the basis of a reduction of £2 and £1 respectively in the level of the payments to coincide with budget increases in rates of payment at the end of July each year.
The dates on which the relevant Regulations were made were as follows: