Dáil Éireann debate -
Wednesday, 20 Sep 1995

Vol. 455 No. 8

Written Answers. - Supplementary Welfare Allowance Scheme.

Noel Ahern

Question:

316 Mr. N. Ahern asked the Minister for Social Welfare the plans, if any, he has to alter the current rules for calculation of mortgage subsidy, particularly for those on deserted wife's allowance, in view of the fact that the present rules act as a disincentive to increasing income/earnings. [13140/95]

Minister for Social Welfare (Proinsias De Rossa)

Under the supplementary welfare allowance scheme, a weekly supplement may be paid in respect of the interest element of a mortgage repayment. Entitlement to the supplement is determined by the health board in the light of the circumstances of the case and the payment is normally calculated to ensure that the person, after payment of the mortgage interest, has an income equal to the rate of supplementary welfare allowance appropriate to their circumstances, less £6.00.

The method of calculation is the same for all categories of social welfare payment, including deserted wives allowance.

The Expert Working Group on the Integration of the Tax and Social Welfare Systems is examining disincentives and poverty traps in the current systems, including the disincentives arising from the loss of "secondary benefits" such as rent and mortgage supplements on re-entering or commencing employment. The group is expected to report before the end of the year. In addition, the report of the Review Group on the role of supplementary welfare allowance in relation to housing, is nearing completion. This report will address issues raised by the increased importance of rent and mortgage supplement as a means of housing support in recent years, including the disincentives arising from the loss of supplement on obtaining employment.

I intend awaiting therefore the outcome of the above two reports and will then consider what action, is required.