The Deputy will be aware that regulations were introduced in November 1997 to provide for the tapered withdrawal of the qualified adult allowance for people claiming unemployment benefit, unemployment assistance, disability benefit, disability allowance, pre-retirement allowance, injury benefit and unemployability supplement.
This represented the first step towards alleviating the poverty trap associated with the complete withdrawal of the qualified adult allowance once the earnings of the spouse or partner of the social welfare claimant exceeded £60 per week. Priority was given to those schemes where disincentives to employment are most prevalent.
Under the revised arrangements, where the spouse or partner is earning between £60 and £90, a reduced rate qualified adult allowance continues to be payable. In the 1999 budget, provision has been made to extend the upper limit of the income range from £90 to £105 from October next, in order to further enhance the incentive for people to avail of employment opportunities. The question of extending these arrangements to cover other categories of welfare claimants, including pensioners, is a matter which will arise for consideration in a budgetary context.