The purpose of the supplementary welfare allowance scheme is to provide a basic weekly allowance to eligible people who have little or no income. Those eligible for assistance under the SWA scheme would normally be in receipt of a social welfare or health board payment and would have to satisfy a number of criteria, including a means test. In addition, people with low incomes may also qualify for a weekly supplement to meet certain special needs, for example, rent and mortgage interest payments, or a payment to assist with the cost of any exceptional needs they may have.
The legislation governing the payment of SWA precludes any person in full-time employment from receiving a rent supplement under the SWA scheme. A person is regarded as being engaged in remunerative full-time work where he or she is working for not less than 30 hours a week.
Single people on low pay, such as apprentices and trainees who are in full-time employment, do not qualify for a rent supplement and must provide for their own accommodation needs. I am aware that this can act as a disincentive to work for those on low pay, especially where they have significant housing costs. The responsibility for setting rates of payment for apprentices and ensuring that wage levels for all workers are fair and reasonable is a matter for the Minister for Enterprise, Trade and Employment. The introduction of a national minimum wage will help to address this matter.
Between 1989 and 1998 expenditure on rent and mortgage supplements increased from £6 million to £88 million and is expected to rise to more than £100 million in 1999. The extension of the SWA scheme to include the payment of rent supplement to single people in low paid employment, including apprentices and trainees, would involve a significant departure from the scheme as it currently operates and would have major financial implications.
The operation of the rent supplement scheme will be examined shortly in the context of the Government's commitment under Partnership 2000 to consider a tapering arrangement for SWA housing supplements, in consultation with the social partners. In addition, an interdepartmental committee is examining the transfer of the administration of rent and mortgage interest supplements to local authorities. I understand the final report of this committee will be submitted to the Government shortly. The further development of the SWA rent supplement scheme to address this and other issues can be considered in a budgetary context, taking into account the discussions with the social partners and the con clusions reached by the interdepartmental committee.