Dáil Éireann debate -
Wednesday, 16 Jun 1993

Vol. 432 No. 4

Written Answers. - Poverty Trap Removal.

Andrew Boylan

Question:

20 Mr. Boylan asked the Minister for Social Welfare the measures he proposes to take to remove the poverty trap created by allowing for the disregard of long term social welfare payments in the assessment of benefit and privilege, while not allowing a similar disregard in respect of income of the same amount from a different source; and the cost of allowing a general disregard of all income below the appropriate level of unemployment assistance, regardless of source, in assessing benefit and privilege cases.

John Bruton

Question:

26 Mr. J. Bruton asked the Minister for Social Welfare the measures he proposes to take to remove the poverty trap created by allowing for the disregard of long term social welfare payments in the assessment of benefit and privilege, while not allowing a similar disregard in respect of income of the same amount from a different source; and the cost of allowing a general disregard of all income below the appropriate level of unemployment assistance, regardless of source, in assessing benefit and privilege cases.

P. J. Sheehan

Question:

41 Mr. Sheehan asked the Minister for Social Welfare the measures he proposes to take to remove the poverty trap created by allowing for the disregard of long term social welfare payments in the assessment of benefit and privilege, while not allowing a similar disregard in respect of income of the same amount from a different source; and the cost of allowing a general disregard of all income below the appropriate level of unemployment assistance, regardless of source, in assessing benefit and privilege cases.

Liam Burke

Question:

42 Mr. L. Burke asked the Minister for Social Welfare the measures he proposes to take to remove the poverty trap created by allowing for the disregard of long term social welfare payments in the assessment of benefit and privilege, while not allowing a similar disregard in respect of income of the same amount from a different source; and the cost of allowing a general disregard of all income below the appropriate level of unemployment assistance, regardless of source, in assessing benefit and privilege cases.

John Browne

Question:

45 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social Welfare the measures he proposes to take to remove the poverty trap created by allowing for the disregard of long term social welfare payments in the assessment of benefit and privilege, while not allowing a similar disregard in respect of income of the same amount from a different source; and the cost of allowing a general disregard of all income below the appropriate level of unemployment assistance, regardless of source, in assessing benefit and privilege cases.

Minister for Social Welfare (Dr. Woods)

I propose to take Questions Nos. 20, 26, 41, 42 and 45 together.

The assessment of the value of free board and lodging in the case of a young person who is claiming unemployment assistance and living at home is made by reference to the parental income, disregarding a standard amount, as a parental allowance, and dividing the remaining income between the non-earning members of the household. There is also an overall limit on the value of benefit and privilege in any case.

In practice the combination of the disregard of the standard amount and the limit means that claimants living in households with income at or less than the level of unemployment assistance, regardless of the source of that income, would not have any means assessed in respect of benefit and privilege or a very small assessment. As household income rises a benefit and privilege assessment would arise at a gradually increasing level. There is not, therefore, a poverty trap in the sense referred to and the question of disregarding long term social welfare payments does not arise in this case.

I would like to clarify the position in relation to the disregard of social welfare payments which I introduced in this year's Social Welfare Act. This disregard is relevant only in assessing the means of one of a married couple who is claiming unemployment assistance, where the other spouse is already in receipt of a social welfare payment. In that case the overall payment to both is limited to the appropriate married rate. The disregard of social welfare payments provided for in the Act ensures that this overall payment is not further reduced by the underlying entitlement of the spouse who is already receiving a payment.