Dáil Éireann debate -
Tuesday, 29 Feb 2000

Vol. 515 No. 3

Written Answers. - Tax and Social Welfare Codes.

Willie Penrose

Question:

266 Mr. Penrose asked the Minister for Social, Community and Family Affairs the effect on a old age contributory pension adult dependant allowance where the adult dependant has an opportunity of securing part-time employment with an income earning potential of £60 to £95 per week; and if he will make a statement on the matter. [6031/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Currently if the income of the spouse of a claimant of old age, contributory pension – OAP – exceeds £60, the qualified adult allowance – QAA – is withdrawn in full. In cases where a child dependant allowance is in payment, such allowances are halved once the income of the spouse exceeds £60.

I am pleased to say, however, that with effect from April of this year, I am introducing measures which will provide for the tapered withdrawal of the QAA where the income of the spouse of an OAP claimant is between £70 and £135.

The effect of these measures is shown in the following tables:

Table 1

Spouse's income (spouse agedunder 66)	Tapered QAA Rate
	April, 2000	May, 2000
Up to £70	£55.50	£60.20
£70 to £75	£51.50	£56.00
£75 to £80	£47.50	£51.80
£80 to £85	£43.50	£47.60
£85 to £90	£39.50	£43.40
£90 to £95	£35.50	£39.20
£95 to £100	£31.50	£35.00
£100 to £105	£27.50	£30.80
£105 to £110	£23.50	£26.60
£110 to £115	£19.50	£22.40
£115 to £120	£15.50	£18.20
£120 to £125	£11.50	£14.00
£125 to £130	£7.50	£9.80
£130 to £135	£3.50	£5.60
Exceed £135	nil	nil

Table 2

Spouse's income (spouse agedover 66)	Tapered QAA Rate
	April, 2000	May, 2000
Up to £70	£59.90	£64.60
£70 to £75	£55.70	£60.10
£75 to £80	£51.50	£55.60
£80 to £85	£47.30	£51.10
£85 to £90	£43.10	£46.60
£90 to £95	£38.90	£42.10
£95 to £100	£34.70	£37.60
£100 to £105	£30.50	£33.10
£105 to £110	£26.30	£28.60
£110 to £115	£22.10	£24.10
£115 to £120	£17.90	£19.60
£120 to £125	£13.70	£15.10
£125 to £130	£9.50	£10.60
£130 to £135	£5.30	£6.10
Exceed £135	nil	nil

I am also providing that CDA increases will continue to be paid at the full rate until the income of the spouse exceeds £135.

I should mention also that similar tapering arrangements are being introduced from April 2000 in respect of claimants of retirement pension and invalidity pension. As regards other social welfare payments, tapering arrangements already exist in the case of all other relevant schemes.

These measures will have a positive effect on households where the spouse of an OAP claimant wishes to avail of employment opportunities. From May 2000, for instance, in the case of a household comprising an OAP claimant, a spouse aged under 66 and two dependent children, and where the spouse has income of £80 per week, the household income will increase by £67 per week as a result of the measures I am introducing. If the couple had no child dependants, the household income would increase by £51.80 for the same earnings.