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Dáil Éireann díospóireacht -
Wednesday, 18 Feb 1998

Vol. 487 No. 4

Written Answers. - Social Welfare Benefits.

Ivan Yates

Ceist:

160 Mr. Yates asked the Minister for Social, Community and Family Affairs the proposals, if any, there are to review in the near future the external income threshold for adult dependants from the current threshold of £60 per week in view of the fact that it has not been reviewed for some considerable time; and the steps, if any, he will take to increase the threshold. [4311/98]

I introduced regulations with effect from 27 November 1997 which allow tapered withdrawal of the qualified adult allowance for people getting unemployment benefit, unemployment assistance, disability benefit, disability allowance, pre-retirement allowance, injury benefit and unemployability supplement.

Prior to the introduction of these regulations, people in receipt of the payments concerned were not entitled to an increase for their spouse or partner as a dependant if the spouse or partner had income or earnings of more than £60 gross a week. The position now, however, is that if the person getting the social welfare payment is on the maximum rate, and their spouse is earning between £60 and £90, the increase for the adult dependant will be payable as follows:

Spouse's Income

SW Increase

£

Income up to £60

40.00

Income between £60.01 and £65.00

34.00

Income between £65.01 and £70.00

28.00

Income between £70.01 and £75.00

22.00

Income between £75.01 and £80.00

16.00

Income between £80.01 and £85.00

10.00

Income between £85.01 and £90.00

4.00

Income above £90.00

nil

This measure has been introduced to address the poverty trap which existed in the social welfare system, whereby the automatic withdrawal of the qualified adult allowance once the spouses or partners earnings reached £60 acted as a disincentive to such people to earn in excess of that amount or indeed to take up available employment opportunities in the first instance.
It is envisaged that as many as 10,000 families will benefit from the introduction of this measure, which will cost some £9.7 million in a full year. I have no further changes in mind at this time.
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