Seán Ryan
Question:43 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs the proposed disregards for people on rent supplement who take up training and part-time work. [1923/00]
Written Answers. - Social Welfare Benefits.
The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs.
Rent and mortgage interest supplements are normally calculated to ensure that the person, after the payment of rent or the interest portion of the mortgage, has an income equal to the SWA basic weekly payment rate less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.
In addition to the minimum contribution, applicants are required to contribute any assessable means which they have in excess of the appropriate SWA rate. In effect, this means that all of the difference between the relevant SWA rate and the means which a person has goes towards their rent or mortgage, thereby reducing the amount of rent or mortgage interest supplement rate payable.
From 6 April next a disregard of £25 per week will apply in the case of rent or mortgage interest supplement recipients who take up either part time work or participate in an approved training course. The weekly earnings disregard of £25 which is being introduced for part-time workers will apply to the net gain from employment after any adjustments have been made in their primary weekly payment, such as unemployment assistance.
The objective of these changes is to give an incentive to people to take up either part-time employment or an approved training course by disregarding the first £25 per week in additional income from these sources when assessing the amount of SWA rent or mortgage interest supplement payable.
These measures will increase the attractiveness of part-time work and of training courses which will help people to gain the skills necessary to secure future employment. It also means that these groups of people will see a real increase in their income of £25 per week.