Dáil Éireann díospóireacht -
Tuesday, 15 May 2001

Vol. 536 No. 2

Written Answers - Social Welfare Benefits.

Brian O'Shea

Ceist:

356 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals he has to adjust the method of assessment of insurable earnings relating to unemployment assistance in line with inflation; and if he will make a statement on the matter. [13706/01]

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

As in the case of all other social assistance payments, unemployment assistance is subject to a means test. For the purpose of assessing means, account is taken of the claimant's own means and in the case of a couple the joint means are assessed, including income from insurable earnings. In the case of a claimant, any income from insurable earnings is in general assessed at 60% of net income. Where a spouse or partner of a claimant has income from insurable employment, the means test is based on net income less certain disregards depending on the number of days worked:

Working 3 days or less per week – £30 plus appropriate travel costs

Working 4 or more days per week – £70 standard allowance.

Half of the spouse-partner's net income is then assessed as means. In addition, regulations provide for the tapered withdrawal of the qualified adult allowance for claimants of certain social welfare payments, including unemployment assistance, where the spouse or partner is earning between £70 and £145 per week. As unemployment assistance payments are increased at least in line with inflation, any increases in wages in line with inflation will be more than matched by the increases in unemployment assistance rates. For instance, since this Government took up office, long-term unemployment assistance has been increased by 26.7% while the consumer price index has increased by 14.1% in the corresponding period, a real increase of 11.1%.

Regarding any further easing of the disregards, any proposals to alter the current arrangements would have financial implications and would have to be considered in a budgetary context, in the light of available resources and having regard to the Government's other priorities.