Dáil Éireann debate -
Tuesday, 10 Oct 2000

Vol. 523 No. 4

Written Answers. - Qualified Adult Allowance.

Enda Kenny

Question:

169 Mr. Kenny asked the Minister for Social, Community and Family Affairs the position in so far as spouses of working husbands or wives are concerned as regards the amount of moneys that they can earn on a weekly basis without interference with unemployment assistance, small holders assistance and others payments to the other spouse; the conditions under which this regulation applies; the plans he has with regard to changing this regulation in future; and if he will make a statement on the matter. [21155/00]

Michael Ring

Question:

175 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will outline the regulation whereby the tapered qualified adult allowance arrangements, which relate to the treatment of spouse's earnings per week, are actually confined to £70 per week earned over a four day period or more. [21167/00]

Michael Ring

Question:

176 Mr. Ring asked the Minister for Social, Community and Family Affairs the details of the tapered qualified adult allowance; and the way in which it is calculated. [21168/00]

Michael Ring

Question:

178 Mr. Ring asked the Minister for Social, Community and Family Affairs the way in which many people have been penalised with regard to the tapered qualified adult allowance since its increase in the last budget. [21179/00]

Michael Ring

Question:

179 Mr. Ring asked the Minister for Social, Community and Family Affairs the number of people who currently gain from the tapered qualified adult allowance, giving details of each payment category. [21180/00]

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

I propose to take Questions Nos. 169, 175, 176, 178 and 179 together.

Regulations provide for the tapered withdrawal of the qualified adult allowance for claimants of certain welfare payments where the spouse or partner of the claimant is earning between £70 and £135 per week.

The relevant social welfare payments are unemployment benefit, unemployment assistance, farm assist, disability benefit, disability allowance, pre-retirement allowance, injury benefit, unemployability supplement, invalidity pension, retirement pension and old age contributory pension.

The level of QAA varies from one payment to another. So, in order to phase out the payment over the same income range, £70 to £135, for all payments, the withdrawal rate varies with the level of QAA, as follows:

Payment	QAA rate	Withdrawal rate
Most payments, including UA, UB, DA, DB, PRETA	£47.00	Where earnings are between £70 and £90 per week, QAA is reduced by £2.50 for each additional £5 earned; where earnings are over £90, QAA is reduced by £3.50 for each additional £5 earned.

Invalidity Pension	QAA rate	Withdrawal rate
QAA under 66	£53	QAA reduced by £3.70 for each £5 of earnings
QAA over 66	£58	QAA reduced by £4 for each £5 of earnings

Retirement/Old AgeContributoryPension	QAA rate	Withdrawal rate
QAA under 66	£60.20	QAA reduced by £4.20 for each £5 of earnings
QAA over 66	£64.60	QAA reduced by £4.50 for each £5 of earnings.

In addition, where the payment concerned is a social assistance one, a means-tested payment, the claimant is assessed with the spouse or partner's earnings less allowable deductions. Currently, an income disregard of £30, plus travel costs, applies where the spouse or partner is working three days or less, whereas a disregard of £70, inclusive of travel costs, applies where such employment exceeds three days per week.

Four illustrative examples showing how entitlement to qualified adult allowance is calculated are set out at appendix A. The examples show that the spouse of a claimant of unemployment assistance who works four days per week may earn up to £70 per week without affecting the unemployment assistance payment. The same position applies in relation to other relevant means tested payments. In the case of claimants of the relevant contributory social welfare payments, the earnings of the spouse/partner are not assessable. Consequently, the working spouse may earn up to £70 per week without affecting the entitlement of the claimant irrespective of the number of days worked each week.

As the Deputies are no doubt aware, the tapering arrangements which currently apply were improved substantially as a result of measures introduced following the 2000 budget. These measures were designed to ensure that at the lowest levels of income – where the spouse's earnings are less than £95 – the family is never worse off as a result of an increase in earnings. Additionally, the poverty trap arising from the withdrawal of the qualified adult allowance combined with the assessment of the spouse's earnings in the case of recipients of social assistance payments, was further eased by the increase in the spouse income disregard from £45 to £70.

I will continue to examine the scope for further easing any remaining poverty traps while at the same time ensuring that any new measures introduced do not result in any disincentive to claimants to take up employment.

Details of the number of social welfare claimants who are in receipt of tapered qualified adult allowance is provided in a table at appendix B. Statistics on the numbers of RP and OACP pensioners in receipt of tapered qualified adult allowance could not be compiled in the time available but will be made available to the Deputy as soon as possible.