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Select Committee on Social Affairs debate -
Wednesday, 20 Mar 1996

Social Welfare Bill, 1996: Committee Stage.

I welcome the Minister for Social Welfare and thank him for comingbefore the Committee. We will consider the Bill until 1 p.m. at which time we will adjourn for lunch. As already agreed we will resume at 2 p.m. and will adjourn at 3.30 p.m. We will resume tomorrow morning at 10.30 a.m.

The Social Welfare Bill, 1996, provides for improvements in the social welfare area announced in the budget and for a number of other improvements in the code. Part 1 of the Bill contains the usual provisions for short Title and construction.

Part II provides for increases in the rates of social welfare payments. The personal and adult dependant rates of social insurance and social assistance payments are being increased by about 3 per cent from early to mid June. The weekly earning thresholds used to determine entitlement to family income supplement are being increased by £10.

The monthly rate of child benefit is being increased by £2 from September next, and the grant payable on the birth of twins is being increased from £200 to £500. The Bill also provides for an additional grant of £500 which will be payable in respect of twins on reaching the ages of 4 and 12.

Part II of the Bill also provides that increases for dependent children will continue to be paid for up to 13 weeks to unemployed people who take up employment which is expected to last for at least four weeks.

Part III of the Bill provides for changes in the rates of social insurance contributions from 6 April next. Employees insured at class A will not be liable for social insurance contributions in respect of the first £80 of weekly earnings, and self employed contributors will not be liable for contributions on the first £1,040 of annual income.

The earning ceilings up to which social insurance contributions are payable are being increased from £21,500 to £22,300 for employees, and from £25,800 to £26,800 for employers. The weekly earnings threshold below which the reduced rate of employers contribution applies has been increased from £231 to £250, while the reduced and standard rate contributions payable by employers are being reduced from 9 per cent to 8.5 per cent, and from 12.2 per cent to 12 per cent respectively.

Part III of the Bill also provides for the extension of class A PRSI to community employment workers who take up such work on or after 6 April 1996. Community employment sponsors will not be liable for full employers' PRSI but will continue to pay a reduced contribution of 0.5 per cent.

Part IV provides for the introduction of a new disability allowance which will replace the disabled person's maintenance allowance administered by the health boards. Part V provides for a new one parent family payment which will replace the deserted wife's benefit and lone parent allowance.

Part VI provides for reform of unemployment assistance, including provisions for assessing earnings from employment.

Part VII provides for various improvements in relation to pensions including an increase from age 6 to 12 in the qualifying age for a child being cared for under the homemakers provisions, and for an extension of preretirement allowance to separated people aged 55 or over who have not had an attachment to the work force for a prescribed period.

Part VIII provides for regulatory powers under which adverse decisions in relation to supplementary welfare allowance may be appealed to the independent social welfare appeals office. This Part also provides that people who are disqualified from receiving unemployment payments by virtue of their participation in a trade dispute may seek an adjustment from the social welfare tribunal without first having to appeal the deciding officer's decision.

Part IX provides for a number of improvements to the rules governing the assessment of means for social assistance payments and for a number of other miscellaneous improvements and amendments to the social welfare code.

Part X provides for an amendment to the Combat Poverty Agency Act, 1986 under the which the Minister may extend by up to six months the period within which the agency is required to submit its three-year strategic plan.

Finally, Part II of the Bill increases the earnings threshold below which employees and the self-employed are exempt from liability for the health contribution and the employment and training levy.

Section 1 agreed to.
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