Tony Gregory
Question:127 Mr. Gregory asked the Minister for Social Welfare if, with regard to the income limit of £55 for the spouses allowance, there is any appeals procedure available where the income is exceeded by a few pence.
Written Answers. - Adult Dependant Allowance.
Tony Gregory
Question:128 Mr. Gregory asked the Minister for Social Welfare if he has any plans to increase the income limit of £55 for the spouses allowance in view of it having remained at the same level for the past three years.
The Government today accepted my proposal that the weekly earnings limit for entitlement to the adult dependant allowance be increased from £55 to £60 with immediate effect. This increase will benefit many low paid workers and in particular, contract cleaners and other part-time workers. The necessary regulations to give effect to the increase are being drafted for immediate signature by me.
At present, a person can earn up to £55 per week and still qualify as an adult dependant on their spouse's social welfare payment. The earnings limit allows spouses of social welfare recipients to take up part-time employment without suffering a loss in the total household income. The earnings limit was last increased in May 1990 to take account of pay increases for part-time workers, particularly those in the contract cleaning industry. Following a recent increase in hourly rates of pay in accordance with the Programme for Economic and Social Progress, many contract cleaning workers would now exceed the present limit of £55 for their typical working week. Consequently, their spouses on a social welfare payment would lose the adult dependant allowance of £34.30 per week. The increase to £60 will ensure that the situation will be avoided in most cases.
I am examining in the context of next year's budget the question of tapering the earnings limit so that the adult dependant allowance can be reduced gradually as earnings increase, thus avoiding what can be the severe impact of the cut-off point for the allowance at present. This approach is broadly in line with the recommendations of the Review Group on the Treatment of Households and of the Commission on the Status of Women.
Decisions in relation to the application of the earnings limit to individual cases are open to appeal to the independent Social Welfare Appeals Office.