Under the supplementary welfare allowance, SWA, scheme, a weekly supplement may be paid in respect of rent or the interest element of a mortgage repayment provided a person is not working for more than 30 hours per week. People who have been unemployed for 12 months or more and who take up employment in certain circumstances can retain their SWA housing supplement for three years, subject to a maximum payment of £250 per month, provided their gross household income is less than £250 per week.
A process of consultation has commenced with the social partners in relation to these matters in recent weeks. The purpose of these discussions is not to review SWA housing supplements in general but to consider the extent to which people on SWA housing supplements face unemployment traps, despite the arrangements for retaining these supplements, and to consider the introduction of an appropriate tapering arrangement to alleviate those unemployment traps. This is in line with a commitment in Partnership 2000 to consider arrangements for such a tapering arrangement in consultation with the social partners.
An initial meeting was held with the social partners on 16 April 1999 and a second meeting was held this morning. No definite conclusions have been reached so far and further meetings are planned.