Vol. 376 No. 11
asked the Minister for Social Welfare the number of women now able to qualify for maternity allowance in the event of a pregnancy who will be disqualified under the new conditions set out in the Social Welfare (No. 2) Bill; the savings he expects to accrue as a result; and if he will make a statement on the matter.
20.
asked the Minister for Social Welfare the number of women who will be affected by the introduction of three waiting days for transfer from maternity allowance to disability benefit as specified in the Social Welfare (No. 2) Bill, 1987; the average amount of money that each woman affected will lose; the total savings expected to accrue from this change; and if he will make a statement on the matter.
27.
asked the Minister for Social Welfare the plans his Department have to withdraw pay-related benefit from 1 April 1988 to persons in receipt of maternity allowances under the general scheme; and if he will make a statement on the matter.
I propose to take Questions Nos. 18, 20 and 27 together.
There are two schemes of maternity allowance. The old maternity allowance scheme which was introduced under the National Insurance Act, 1911 provided for a payment to insured women for a period of 12 weeks subject to certain contribution conditions being met. The second scheme, the maternity allowance scheme for women in employment, was introduced by me as Minister for Social Welfare in April 1981. This scheme which provides for a period of 14 weeks payment is available to women who are on maternity leave from work under the Maternity (Protection of Employees) Act, 1981, and who are entitled to resume work with the same employer at the end of the period of maternity leave.
The improved scheme for women in employment will continue and women will continue to get 14 weeks payment at 70 per cent of weekly earnings up to the earnings limit prescribed for pay-related benefit purposes, currently £11,000 per annum. The number of women in this scheme is about 11,500 each year.
The changed conditions affect only the old maternity scheme which existed prior to the new one being introduced. The need for the old scheme has to a large extent been superseded by the introduction of the maternity allowance scheme for women in employment.
The changes apply to new claimants only after 4 January.
It is estimated that the requirement under the old general maternity scheme that 13 of the 39 contributions in the governing contribution year must be paid contributions will affect some 3,300 claims and result in savings in 1988 of £2.5 million. The abolition of the payment of pay related benefit under the old maternity scheme with this allowance from April 1988 will affect 3,600 claimants and give rise to savings of £0.3 million in 1988 and £0.4 million in a full year.
A large number of claimants under the old maternity allowance scheme have been signing the live register for credits only and claim on the basis of these credits and they have no real attachment to the workforce. The new requirement of 13 paid contributions in the governing contribution year is considered to be a reasonable condition for obtaining this benefit from the Social Insurance Fund.
The introduction of three waiting days before payment of disability benefit for women who have been receiving a maternity allowance will affect approximately 8,300 women and realise savings of up to £0.5 million in 1988. These waiting days already apply to claimants for disability benefit and unemployment benefit.
These changes are designed to ensure a better targeting of resources and, in particular, to ensure that only women with a recent attachment to the labour force will qualify for a maternity allowance.
