Dáil Éireann díospóireacht -
Wednesday, 26 Jan 2000

Vol. 513 No. 1

Written Answers. - Social Welfare Code.

John Bruton

Ceist:

602 Mr. J. Bruton asked the Minister for Social, Community and Family Affairs his views on the individualisation of social welfare entitlements; and the reason this individualisation was not introduced simultaneous with the Government's decision to introduce individualisation of tax bands for high income taxpayers. [1379/00]

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

Individualisation of the social welfare system was considered in the report of the working group examining the treatment of married, cohabiting, and one-parent families under the tax and social welfare codes.

The group noted that individualisation already exists to a certain extent, first, in the social insurance system to the extent that those who meet the contribution conditions receive a payment in their own right; and also in the old age non-contributory pension arrangements whereby in the case of a couple, each over age 66, there is a joint means test and payment is then on an individual basis.

The group considered that individualisation of the system could best be achieved through the expansion of social insurance to enable individ uals to establish their own direct rights and social welfare entitlements. Much has already been achieved in this area over the past 12 years with coverage being extended to the self employed in 1988, part-time workers in 1991 and new civil-public servants in 1995. In addition, measures were introduced in 1994 to protect the insurance records of those who take time out from the paid workforce for caring duties.

The working group also proposed, on foot of research on equivalent scales undertaken by the ESRI for the group, that the qualified adult allowance, QAA, should be increased to 70% of the personal rate. The Government intends to reach this recommended level for the QAA over a period of three budgets and the process was started in the recent budget with increases of between 8% to 17% being provided.

In principle, the QAA rate is set at less than 100% of the personal rate on the basis that there are economies of scale where two people live together in the same household, and that account should be taken of these economies where the second person does not have a direct entitlement to the payment in his-her own right.

The group also considered that a general system of administrative individualisation which, for example, would allow for the payment of the QAA direct to the person concerned should be introduced. The question of making such separate payments in all cases involves some complex social issues which need to be considered carefully. It also raises questions about the position of the qualified adult when the social welfare payment is no longer payable, for example, when the recipient takes up employment. In addition there would be some administrative and cost implications.

The position in relation to individualisation overall in the social welfare code will be kept under review.