Written Answers. - Social Welfare Code.
Breeda Moynihan-Cronin
Question:
29
Mrs. B. Moynihan-Cronin
asked the
Minister for Social, Community and Family Affairs
to report on proposals being examined for the individualisation of social welfare payments, including individualisation of old age pensions.
[6162/00]
The question of individualising social welfare payments was considered in the report of the working group examining the treatment of married, cohabiting, and one-parent families under the tax and social welfare codes which was published in August last year.
The group noted that individualisation already exists to a certain extent, first, in the social insurance system in that those who meet the contribution conditions receive a payment in their own right; and also in the old age non-contributory pension arrangements whereby in the case of a couple, each over age 66, there is a joint means test and payment is then on an individual basis.
The group considered that individualisation of the system could best be achieved through the expansion of social insurance to enable individuals to establish their own direct rights and social welfare entitlements. Much has already been achieved in this area over the past 12 years with coverage being extended to the self employed, 1988, part-time workers, 1991 and new civil-public servants, 1995. In addition, measures were introduced in 1994 to protect the insurance records of those who take time out from the paid workforce for caring duties.
The working group also proposed, on foot of research on equivalence scales undertaken by the ESRI for the group, that the qualified adult allowance should be increased to 70% of the personal rate. The Government intends to reach this recommended level for the QAA over a period of three budgets and the process was started in the recent budget with increases of between 8% to 17% being provided.
In principle, the QAA rate is set at less than 100% of the personal rate on the basis that there are economies of scale where two people live together in the same household, and that account should be taken of these economies where the second person does not have a direct entitlement to the payment in his or her own right.
The working group also considered administrative individualisation which, for example, would allow for the payment of the QAA direct to the person concerned. There was general agreement towards extending the administrative arrangements in the area of separate payments.
The question of making such separate payments in all cases involves some complex social issues which need to be considered carefully. It also raises questions about the position of the qualified adult when the social welfare payment is no longer payable, for example, when the recipient takes up employment. In addition there would be some administrative and cost implications.
One of the objectives of the programme for prosperity and fairness is to develop proposals to progress the individualisation of social welfare payments in the context of the continuation of joint assessment of means. In this regard working groups will be established under the programme to produce proposals to progress the implementation of administrative individualisation within the social welfare system, and to produce proposals for the development of a fully inclusive social insurance model which would facilitate combining work and family responsibilities in the context of changing working and social patterns.
