Dáil Éireann díospóireacht -
Thursday, 27 Nov 1997

Vol. 483 No. 5

Written Answers. - Employment Support Services.

Tony Gregory

Ceist:

135 Mr. Gregory asked the Minister for Social, Community and Family Affairs if persons (details supplied) in Dublin 7 who are currently in receipt of £155 per week on unemployment assistance will only receive £154.80 should one partner take up employment on the community enterprise scheme, earning £90 per week; if this anomaly will be rectified; and if he will make a statement on the matter. [20857/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The couple concerned are currently in receipt of unemployment assistance of £147.10 per week, comprising the personal rate of £67.50, a qualified adult allowance of £40, and three child dependant allowances at the rate of £13.20. In addition, they are in receipt of a free fuel allowance of £8, bringing their total weekly payment to £155.10.

The Deputy may be aware that with effect from today, I have brought into effect legislation which provides for the introduction of a tapered withdrawal of the qualified adult allowance. Briefly, this measure provides that where the spouse or partner of a recipient of certain social welfare payments earns between £60 and £90, the qualified adult allowance will continue to be payable but at a reduced rate. Under the previous arrangements, entitlement to the qualified adult allowance would be automatically lost when the income of the spouse or partner exceeded £60 per week. This represented a major disincentive for such people to take up employment opportunities. The measure being brought into effect today represents the first step towards alleviating this poverty trap.

The measure will have a positive effect on the position of people such as the couple referred to by the Deputy. In their case, if one of the couple takes up employment with a net income of £90 per week, the social welfare claimant will continue to receive a qualified adult allowance of £4 per week and now also retain entitlement to the fuel allowance. The net effect, based on the information available, is that the aggregrate household income would rise to £161.30 per week (comprising income of £90, UA of £63.30 and fuel allowance of £8). The introduction of the tapered qualified adult allowance will cost £9.7 million in a full year. Any further enhancement of the arrangements governing the withdrawal of the qualified adult allowance would have significant cost implications and would have to be considered in that light and in the light of other priorities.