Dáil Éireann díospóireacht -
Tuesday, 18 Jun 1996

Vol. 467 No. 1

Written Answers. - Means Tested Payments.

Trevor Sargent

Ceist:

280 Mr. Sargent asked the Minister for Social Welfare if he has satisfied himself that the provisions of section 37 of the Social Welfare Act, 1996, are consistent and coherent with the provisions generally applied by his Department to means-tested payments; and if he will make a statement on the matter. [12773/96]

Minister for Social Welfare (Proinsias De Rossa)

Section 37 of the Social Welfare Act, 1996, which amends the Third Schedule to the Social Welfare (Consolidation) Act, 1993, provides for a number of improvements in the provisions relating to the assessment of means for certain social assistance payments. Similar improvements in the case of unemployment assistance and pre-retirement allowance are contained in section 23 of that Act.

These improvements to the disregards in the assessment of means in the case of various social assistance payments include: earnings up to a prescribed amount — which I have set at £34.10 per week — from employment of a rehabilitative nature; allowances paid by a health board in respect of accommodation provided for a child under the supported lodgings scheme; income up to a prescribed amount — which I have set at £2,000 per annum — received under the rural environment protection scheme and moneys received under the farm retirement scheme.

In addition, section 37 also provides for a number of technical amendments to the Third Schedule to the 1993 Act, including deleting obsolete references to the Irish Land Commission. I am satisfied that the provisions of section 37 are consistent and coherent with the provisions generally applied by my Department to means-tested payments.

Trevor Sargent

Ceist:

281 Mr. Sargent asked the Minister for Social Welfare the circumstances under which his Department would consider making full rate means-tested payments, such as unemployment assistance or supplementary welfare allowance, available to a couple with an existing income in excess of £9,000 per annum; and if he will make a statement on the matter. [12774/96]

Minister for Social Welfare (Proinsias De Rossa)

Under existing provisions, a wide variety of earnings and other disregards are applied in the assessment of means for the various social assistance payments. The existing disregards include, in the case of unemployment assistance and pre-retirement allowance, up to £45 together with travel expenses in assessing earnings of a working spouse or partner; in the case of a recipient of unemployment assistance, £15 plus the daily rate of unemployment assistance appropriate to the persons circumstances in respect of each day worked; in the case of carer's allowance, the first £200 per week of the income of their spouses or partner and in the case of lone parents, the first £24 of earnings per week plus child minding expenses, together with half the earnings in excess of this amount.

The Social Welfare Act, 1996, provides for a number of improvements in the provisions for the assessment of means. In the case of unemployment assistance, for example, the 1996 Act provides for a major reform of the provisions for the assessment of earnings from employment. Under these provisions, an unemployed person who works up to three days a week may, subject to the level of his or her earnings, qualify for the full rate of unemployment assistance for that week, including payment in respect of the days in the week on which the person worked. Under the improved arrangements, which are to come into force in October, earnings will be assessed at 60 per cent. Entitlement to the various social assistance payments is based on the needs of the individual and any of his or her dependants and as such are payable subject to a means test. I have no proposals to provide for paying the full rate of mean-tested payments to couples with income in excess of £9,000 per annum.

The primary support mechanism for low paid workers with children is family income supplement (FIS) under which families can have income ranging from £195 per week — £10,140 per annum — for families with one child, to £334 per week — £17,368 per annum — for families with 8 or more children and still qualify for payment.

A number of improvements in FIS were provided for in this years budget. These improvements, which came into force earlier this month, include: a reduction, from six to three months, in the minimum period which the employment is expected to last; a reduction in the number of hours which must be worked in order to qualify for FIS, from 20 hours per week to 38 hours per fortnight; the extension of FIS to job-sharers and increasing the rate of FIS payable on the birth of a child, rather than awaiting the annual review of entitlement.