Dáil Éireann debate -
Thursday, 10 Jul 1997

Vol. 480 No. 3

Written Answers - Social Welfare Benefits.

Ivan Yates

Question:

69 Mr. Yates asked the Minister for Social Welfare the proposals, if any, he has to review the threshold for married spouses in relation to the retention of the adult dependants allowance for partners or spouses; if he will review the matter in the context of the current threshold of £60 in view of the fact that lone parents in similar circumstances are allowed earn £112; and the proposals, if any, he has to give equality to women in similar circumstances. [14121/97]

Minister for Social Welfare (Mr. D. Ahern)

Different categories of social welfare recipients have differing needs. The social welfare system must be flexible enough to respond adequately to these needs. The different methods of assessing earnings as between the various social welfare payment schemes and as between different household situations reflects specific policies which are aimed at targeting particular groups of recipients for special attention.

It should be noted that the two household situations described in the question are not similar. One relates to a household where there is a single earner only, while the other relates to a household where the income is provided by two people.

In relation to the one-parent family payment, which was introduced earlier this year, research carried out by the ESRI has clearly shown that one-parent families are particularly at risk of poverty and social exclusion. Under this scheme, a lone parent can earn up to £6,000 a year without affecting his-her entitlement to payment. This measure is aimed at facilitating lone parents who wish to return to the workforce, by providing positive support so that, over time, they can gain a foothold in the labour market and become less reliant on social welfare for their income needs.

The £60 earnings threshold is one of a number of different methods which are used to determine whether a claimant's spouse is to be regarded a financial dependant for qualified adult allowance purposes. Where the spouse of a claimant is adjudged to be financially dependent, then the allowance, together with full child dependant allowances are paid to the claimant, in addition to his or her personal rate of payment. Where the spouse is not regarded as a dependant, then the allowance is not payable and only half of the child dependant allowances are payable.

However, the sudden withdrawal of the qualified adult allowance and half of the child dependant allowances where the income of the spouse of a claimant exceeds £60 a week creates a sharp poverty trap. The national agreement: "Partnership 2000" provides that "measures to alleviate this poverty trap will be considered, in consultation with the social partners".

As a first step in addressing this problem regulations which will be made later this year, will provide for the introduction of a tapered withdrawal of the qualified adult allowance in the case of recipients of unemployment benefit, unemployment assistance, disability benefit, disability allowance and pre-retirement allowance, with effect from October. Under the new arrangements, where the spouse's weekly income exceeds £60 the allowance will be withdrawn on the basis of £6 for each additional £5 of income, with the allowance being withdrawn completely where the spouse's weekly income exceeds £90. It is estimated that approximately 9,760 families will benefit under this proposal at an annual cost of almost £10 million with an average gains for families amounting to over £19 a week.

In order to ensure fairness in the way that the State supports families, whether the parents concerned are married, cohabiting or parenting alone, a working group has been appointed to identify ways of ensuring consistent and equitable treatment of such households under the social welfare and income tax codes. As part of its remit, the working group has been charged with the task of reviewing the concept of adult dependency, as well as examining the income support arrangements for labour market programmes. The establishment of this group also marks the first stage in meeting the commitment contained in the National Anti-Poverty Strategy to examine individualisation of payments. The group is due to report by March 1998.

Bernard J. Durkan

Question:

70 Mr. Durkan asked the Minister for Social Welfare if a family income supplement is payable in the case of a person (details supplied) in County Kildare for the period June 1995 to January 1996 in view of the particular circumstances; and if he will make a statement on the matter. [14202/97]

Minister for Social Welfare (Mr. D. Ahern)

The person concerned qualified for family income supplement in April 1994 and was paid until April 1995 at a rate of £33 per week. She again applied in September 1995 but the family income, including the income of her husband who had taken up employment in the meantime, exceeded the appropriate limit for entitlement to the supplement and the application was disallowed. The decision to disallow the application was upheld on appeal and there is no claim for payment of the supplement for the period in question.