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Dáil Éireann debate -
Wednesday, 4 Oct 1995

Vol. 456 No. 4

Written Answers. - Social Welfare Benefits.

Batt O'Keeffe

Question:

32 Mr. B. O'Keeffe asked the Minister for Social Welfare the way in which a spouse's PAYE income is assessed for means testing purposes in the case of applicants for both unemployment assistance and old age pensions; and if he will confirm that the method of assessment is different in both cases. [13956/95]

In the case of unemployment assistance, Rule 1(5) of the Third Schedule, Part 1 to the Social Welfare (Consolidation) Act, 1993 provides for the assessment as means for unemployment assistance purposes of the estimated value to the household deriving from all income earned by the applicant's spouse.

The procedure is to take the net income of the spouse that is net of income tax and PRSI, and disregard reasonable travel to work expenses, if any, and an amount to cover other work-related expenses of the spouse. This amount is currently £45 where the spouse is working four or more days per week and otherwise £30.

Provision for the assessment of spouse's income for old age non-contributory pension is set out under Rule 4(1) in Part II of the Third Schedule to the Social Welfare (Consolidation) Act, 1993. It states that the means of a person shall be one-half of the total means of the couple, where they are living together.

In assessing the earnings of a spouse certain allowances are made when determining the amount assessable as means. These are reasonable travel expenses, union and superannuation deductions and the appropriate rate of PRSI. The means are then assessed at one half of the couple's total means after the allowances are deducted.
While the methods of assessment are different, in the case of a person on unemployment assistance, if his or her spouse was earning over £60 per week no adult dependant allowance would be payable, while in the case of a married old age non-contributory pensioner who satisfies the qualifying means test he or she will automatically be entitled to an adult dependant allowance at the appropriate rate. This is because the spouse's earnings-income will have already been taken into account when assessing the means of the household. If the spouse is over 66 years, he or she would be entitled to an old age non-contributory pension at the appropriate rate in his or her own right.

Éamon Ó Cuív

Question:

33 Éamon Ó Cuív asked the Minister for Social Welfare if the weekly income of a person in receipt of smallholder's unemployment assistance is exactly the same as that of a person solely dependent on social welfare due to the fact that there is a £1 for £1 means assessment in the case of smallholders; and if he will make a statement on the matter. [13025/95]

All persons who claim unemployment assistance, including persons who have no employment, self-employed persons and smallholders, and are assessed with means have their weekly rate of payment reduced by £1 for every £1 of means.

There are presently just over 10,000 smallholders receiving unemployment assistance. The estimated annual cost in 1995 is £35 million — average weekly payment £65.

Unemployment assistance for smallholders and other self-employed persons acts as an income supplement akin to FIS for employees so that their income is at least the minimum social welfare rate.

The weekly income of a smallholder receiving unemployment assistance will consist of income from his holding plus any unemployment assistance payable. In determining the amount of unemployment assistance payable, account is taken of the net income derived from farming i.e. gross income from the farm less the expenses necessarily incurred in producing that income. These expenses include such items as fertiliser, veterinary costs, interest on borrowing for farm purposes, cost of hired labour, repairs to farm building and machinery etc. The balance of gross income over allowed expenses represents means and this is set against the scheduled rate payable on a £1 for £1 basis.
Where other applicants for unemployment assistance are fully unemployed and have no sources of means, both categories of claimant would be in the same net income position.

Ivor Callely

Question:

34 Mr. Callely asked the Minister for Social Welfare whether the traditional Christmas bonus payments will be made to social welfare recipients in December 1995; if so, the categories of recipients that will be paid; the scope, if any, for improvement; and if he will make a statement on the matter. [13922/95]

The payment of a Christmas bonus to recipients of long term social welfare payments has been a feature of the social welfare system since 1980. Traditionally, no provision is made for the cost of the Christmas bonus in either the annual Estimates or at budget time. This arrangement has enabled the Government to determine the level of the bonus and the means of financing it in the light of the emerging budgetary situation during the year. The question will be considered by the Government shortly and I will be in a position to make a statement on the matter in the near future.

Matt Brennan

Question:

36 Mr. M. Brennan asked the Minister for Social Welfare in view of the disastrous situation Irish Press workers found themselves in earlier this summer with regard to welfare entitlements, if he has any plans or proposals available from his Department to ensure that this limbo situation will not recur; and if he will make a statement on the matter. [13933/95]

I reject the Deputy's contention that Irish Press workers were in limbo with regard to social welfare entitlements; 400 of the 600 Irish Press workers received social welfare payments on application. Applications for payments by journalists were refused in accordance with the legislation. This refusal was appealed and the deciding officer's decision was upheld by the appeals officer.

These decisions were based on Social Welfare legislation which provides that persons involved in a trade dispute are not entitled to receive unemployment payments for the duration of the dispute. In such cases, however, their dependants are entitled to apply for supplementary welfare allowance. A number of Irish Press journalists' dependants did so.

Social Welfare legislation also provides that a person involved in a trade dispute who has been disqualified for unemployment benefit in this way may apply for an adjudication on the matter to the Social Welfare Tribunal.

I revived the Social Welfare Tribunal which had not meet since July 1992 on 2 June 1995 as I anticipated that its services would be required in the case of Irish Press journalists.

On 10 July 1995, the journalists in Irish Press applied to the Tribunal for an adjudication on their claim. The Tribunal heard evidence from both parties to the dispute at its hearing of 26 July 1995 and issued its decision on 1 August 1995. It ruled that, on balance, the workers were unreasonably deprived of their employment from 29 May 1995 and were entitled to receive unemployment payments from that date.

The determinations of the deciding officer, the appeals officer and the Tribunal were made expeditiously and I was pleased to receive a letter from the NUJ expressing satisfaction with the way my Department had dealt with their members' claims.
I have asked my Department to examine ways of streamlining the process further in cases of this kind. Preliminary discussions with the social partners on this have taken place and when this examination is complete I will consider the advisability of changing the system which has worked well since its introduction in 1982.
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