Vol. 462 No. 1
7 Mr. Morley asked the Minister for Social Welfare the consideration, if any, he has given to changing the regulations in relation to the income limit for adult dependant allowance which currently stands at £60 per week, to make it more attractive. [4032/96]
Under existing provisions, an increase of weekly social welfare entitlement is payable in respect of a spouse or partner where they are not in receipt of a social welfare payment in their own right and do not have income in excess of £60 per week.
Increasing the present income limit of £60 would not resolve the existing problem whereby a beneficiary loses entitlement to the adult dependant allowance and half of the increase payable for dependent children where the income of the spouse or partner exceeds the income limit. This issue could probably best be addressed by the introduction of a tapered withdrawal of the adult dependant allowance where the income of the spouse or partner is within specified income limits.
A number of options for a tapered withdrawal of the adult dependant allowance were examined by my Department in the context of this year's budget. One such option involved reducing the rate of the allowance by £1 for each £2 of earnings in excess of the £60 income limit and the cost of applying this measure to short-term payments only is estimated at £27 million in a full year.
This measure was not proceeded with, however, in the light of other priorities which will be provided for in the forthcoming Social Welfare Bill, 1996. These priorities include increasing the weekly rates of social welfare payments in real terms thereby bringing the rates closer to those recommended by the Commission on Social Welfare, providing a further increase in the rates of child benefit, the introduction of a new one parent family payment to replace the existing deserted wife's benefit and lone parent's allowance schemes, the introduction of a number of pro-employment measures which will facilitate unemployed people in seeking and taking up employment and a number of improvements for pensioners on low incomes who find themselves just marginally outside the conditions or income limits for various benefits.
Will the Minister agree that the category in question are putting up the greatest struggle against deprivation? They go out to work because they do not have an adequate income, sometimes, regrettably, because their spouse will not hand over sufficient income for the household. In many other cases they are trying to educate their children. We meet some of these people in the mornings, some of whom are part time cleaners. While a tapered withdrawal of the adult dependant allowance is encouraging, at the same time this is the category we wish to help. Will the Minister have a further look at the income limits with a view to helping this category?
As indicated in my reply this is a matter I am concerned to address. The bottom line is that I need resources. It was not possible, in view of the priorities established for the budget, to do so on this occasion. I amended the social welfare legislation last year to enable me to make the changes I would wish to make. It is a matter of the resources being available.
In any scale of prioritisation this category is one of the most deserving of help.
I will not get into the question of prioritising particular individuals or people in relation to how needy they may be. In constructing the budget and changes in the social welfare code, we have to bear in mind that we do not have unlimited resources. Despite the fact that I managed to achieve significant extra resources last year and this year for social welfare we still have to establish some priorities. On this occasion it was not possible to include that priority on the list. It is my intention to do this when I can achieve the necessary resources.
I encourage the Minister to proceed with the tapering withdrawal of the adult dependant allowance. Perhaps he could go some way towards altering the present system. Will the Minister clarify whether the income limit of £60 per week is the equivalent of £3,100 per year? I had a case recently where a lady who was doing some part time catering in a third level establishment was earning £57 per week. She will be laid off for 14 weeks during the summer. She was informed she could not work a few hours overtime and, perhaps, earn £65 per week. Can the amount be balanced over the year? If what this lady has been told is correct, equating the £60 to the £3,100 would help in the knowledge that she will not be working 52 weeks in the year and it would give her the freedom to take work when it was available.
The Deputy is raising a specific case. If he will give me the details of it I will have it examined to see if there is a way of assisting the person concerned.
