I propose to take Questions Nos. 83 and 115 together.
Provisions included in the 2004 Estimates for social welfare spending included the introduction of an upper limit of €300 on weekly earnings by a spouse for entitlement to CDA in respect of all UB claims. CDA is an additional weekly payment made to social welfare recipients, including those on unemployment benefit, in respect of each qualified child dependant. A full CDA rate of €16.80 is payable to recipients of unemployment or disability benefit, together with a qualified adult allowance where the spouse's gross weekly earnings do not exceed €210. The new measure continues to provide for payment of half rate CDA where the gross income of the spouse exceeds €210 but for withdrawal of payment where it exceeds €300 per week. Prior to this, half rate CDA would have continued in payment regardless of the spouse's earnings.
The practice of linking spousal earnings and the withdrawal of increases for dependants has been in place for a number of years in the form of a reduced qualified adult allowance and payment of half rate CDA. This new measure extends the practice by applying, for the first time, an upper income limit for receipt of CDA.
The new measure will only take effect where there is a minimum family income equivalent to €22,600 or more per annum when the social welfare personal rate of €134.80 and earnings are combined. Where there is a non-earning or lower earning spouse, CDA entitlements remain unchanged. As the measure applied from 19 January, people already receiving half rate CDA on that date, with a spouse earning more than €300, are not affected by it while they remain in continuous receipt of the existing payment.
It is estimated that the majority of claimants affected by this measure are those with a spouse or partner in full-time employment and earning considerably in excess of the €300 threshold. The measure enables available resources to be directed towards lower income families.