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Dáil Éireann debate -
Tuesday, 2 Dec 2003

Vol. 576 No. 1

Written Answers. - Social Welfare Code.

Seán Crowe

Question:

346 Mr. Crowe asked the Minister for Social and Family Affairs the number of people availing of the rented accommodation allowance per health board area. [28976/03]

Seán Crowe

Question:

347 Mr. Crowe asked the Minister for Social and Family Affairs the number of single people per health board area availing of the rented accommodation allowance. [28977/03]

Seán Crowe

Question:

348 Mr. Crowe asked the Minister for Social and Family Affairs the number of family units which avail of the allowance for rented accommodation per health board area. [28978/03]

I propose to take Questions Nos. 346 to 348, inclusive, together.

The number of recipients of rent supplements by health board area and family composition is shown in the following tabular statement:

Recipient numbers of rent supplement by family composition and by health board area at 21 November 2003.

Health Board

Single

Couples

Families

Total

ERHA

10,138

1,748

13,348

25,234

SHB

4,372

664

3,857

8,893

WHB

3,303

392

2,773

6,468

SEHB

2,763

418

2,914

6,096

MWHB

2,107

188

2,026

4,320

NEHB

1,149

199

2,014

3,362

NWHB

1,402

152

1,173

2,727

MHB

934

153

1,233

2,320

Total

26,168

3,914

29,338

59,420

For the purpose of this table, single people are households consisting of one adult only, couples are households with two adults only and families are any households with children.
Question No. 349 answered with Question No. 64.

Richard Bruton

Question:

350 Mr. R. Bruton asked the Minister for Social and Family Affairs the impact of the change announced in her Estimates that the earnings threshold for unemployment benefit and disability benefit will be increased from ?88.88 to ?150. [28981/03]

The purpose of the increase in the earnings threshold for unemployment and disability purposes, which was announced as part of the recent Estimates decisions, is to remove a disincentive to employment that has developed in the operation of both of these payments for workers on low earnings.

Following the extension of full social insurance cover to part-time workers earning in excess of €31.17 a week from April 1991, a range of measures was introduced in the case of the short-term disability and unemployment benefit schemes in order to ensure that disincentives to employment were not created. In the absence of these measures, a situation would have existed whereby many workers on low incomes would have had access to weekly social welfare payments which would have greatly exceeded their income from employment. For instance, while someone earning €31.17 a week or more would have been liable for PRSI class A contributions, the maximum personal rates of unemployment and disability benefit available to them from January 1993 was €70.60 a week, that is, the social welfare benefits available would have been more than twice the level of income from employment for some people.

In order to overcome the potential disincentives involved, new arrangements were introduced with effect from January 1993 so as to relate the rate of benefit payable to the level of the claimant's earnings. A new contribution condition was introduced for the purposes of qualification for disability and unemployment benefit which requires claimants to have reckonable earnings in excess of €88.88 a week in the relevant income tax year. Where the reckonable weekly earnings are €88.88 or more, benefit is paid at the full rate. However, where the reckonable weekly earnings are less than €88.88, the personal and qualified adult rates of payment are paid at reduced rates, known as the graduated rates. Paying reduced rates of benefit to people with earnings below the €88.88 threshold therefore, ensures that there is an incentive to return to work following spells of illness or unemployment.
Since 1993, the graduated rates of payment have been uprated annually in line with the general increases in disability and unemployment benefits. However, the €88.88 weekly earnings threshold and the related reduced earnings bands have not been adjusted in the interim. All of the current graduated personal rates of disability and unemployment benefit are now higher than the associated average weekly earnings bands, by between €8.92 and €36.16 a week. At these levels, the current weekly earnings threshold and graduated payment rates represent a serious disincentive to employment.
The increase in the earnings threshold to €150 a week announced in the recent Estimates, together with the related reduced earnings bands, will make substantial progress towards removing these employment disincentives. These measures will only apply to new applicants from January 2004. It is estimated that in any given week approximately 10,300, on average, will be affected across the relevant schemes in 2004. Estimated net savings of €7.4 million, which take account of potential extra spending on unemployment assistance and supplementary welfare allowance will result from this measure in 2004.
Question No. 351 answered with Question No. 77.
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