The low income threshold for the health contribution, below which the levy is not payable, is currently £14,560 per annum or £280 per week, as amended by the Social Welfare Act, 2000. The weekly income threshold will remain unchanged at £280. Arising from the change in the tax year to a calendar year basis, the annual threshold will be £10,775 for the 2001 short tax year, that is 74% of the current threshold of £14,560. There are no proposals at present to increase the weekly threshold. I announced in my budget 2001 speech that all those aged 70 years and over will be entitled to a medical card. Under the current rules, medical card holders are not liable for the health levy contribution and there are no plans to change this position.
I understand from my colleague the Minister for Social, Community and Family Affairs that it is the responsibility of the employer or pension company to establish whether employees or pensioners are medical card holders or recipients of a social welfare widow/er's pension, one parent family payment, deserted wife's benefit, or a widow/er's pension acquired under the social security legislation of a country covered by EC regulations. Such persons are exempt from payment of the health contribution regardless of the level of weekly or annual income.