With your permission, A Cheann Chomhairle, I propose to take Questions Nos. 53, 54 and 55 together, as they raise the same point.
The social welfare increase of 7s 6d per week is being paid in full, without deduction of any kind, to the social welfare recipient. The tax allowance of £60 granted to a taxpayer in respect of a dependent relative who is a social welfare recipient is an entirely separate question.
The position prior to 1963 was that, if a dependent relative had an income not exceeding £120, the taxpayer maintaining him was granted a tax allowance of £60. But if the dependent relative's income was even £1 above the £120 limit, the taxpayer lost the entire £60 tax allowance.
The Finance Act, 1963, relieved this position by providing that, if the dependent relative's income was more than £120 the tax allowance of £60 would be reduced by £1 for every £1 by which the dependent relative's income exceeded £120. Thus, if the dependent relative's income were, say, £150, the tax allowance would be £30.
The Finance Act, 1967, raised the limit of the dependent relative's income from £120 to £140. At present, therefore, if the income is, say, £180, a tax allowance of £20 is granted.
I should like to make it clear that, whereas the dependent relative's social welfare allowance is being increased by 7s 6d a week—or £19 10s 0d in a full year—there would not be a corresponding loss of £19 10s 0d to the taxpayer. At most he would lose seven shillings in the £ on that amount, that is, £6 16s 6d a year or 2s 7d a week.