Vol. 415 No. 1
144 Mr. Gregory asked the Minister for Finance if he will examine the position of persons providing a home help service for the health boards on very low payment to see if they might be exempted from liability for PAYE-PRSI (details supplied) as it is becoming increasingly impractical for many women to continue to provide this very necessary service at present.
The area mentioned in the question for which I have direct responsibility is PAYE. Here I would point out that home helpers, like any other taxpayer, are liable to income tax only if their total income exceeds the exemption limit.
For instance, for the tax year 1991-92, a single or widowed person would not have to pay income tax where the total income for the year is not more than £3,400 or about £65 per week. In the case of a married couple the exemption limit is £6,800 or about £131 per week. These amounts are increased by £300 for each of the first two dependent children and by £500 for each subsequent child. A system of marginal relief operates where the total income for the year slightly exceeds the exemption thresholds.
The PRSI situation is a matter primarily within the competence of the Minister for Social Welfare, with whom I have consulted in the preparation of this reply.
The position is that the Programme for Economic and Social Progress, which was agreed between the Government and representatives of employers and trade unions, contained a commitment to extend social insurance cover to part-time workers as a matter of priority. This was implemented in the 1991 budget by bringing part-time workers earning £25 per week or more into social insurance. As a result, it is estimated that up to 27,000 part-time workers will become entitled to a range of social insurance benefits, including disability benefit, unemployment benefit and pensions. It would be inconsistent with the commitment already referred to for exceptions to be made for particular groups within this general extension.
