Phil Hogan
Ceist:22 Mr. Hogan asked the Minister for Social, Community and Family Affairs the estimated cost to the Exchequer of introducing individualisation for the social welfare code; and if he will make a statement on the matter. [14174/01]
Written Answers. - Social Welfare Code.
Charles Flanagan
Ceist:24 Mr. Flanagan asked the Minister for Social, Community and Family Affairs the cost involved to the Exchequer in individualising all social welfare payments; and if he will make a statement on the matter. [15160/01]
I propose to take Questions Nos. 22 and 24 together.
There are many different types of individualisation and the cost involved depends on the method and extent of individualisation implemented. The working group examining the treatment of married, co-habiting and one-parent families under the tax and social welfare codes looked at a number of options which range from making payment directly to a qualified adult, setting the QAA rate at the same level as the personal rate, total independent treatment in payment and means testing arrangements and unconditional payment to those without an independent income. While the first mentioned would involve significant additional administration costs, depending on the option chosen others could cost from £200 million to over £1 billion per annum.
The group considered the social insurance system to be the most suitable vehicle for expanding the system of individual rights and entitlements. This would be in keeping with the policies of successive Governments which have sought to expand social insurance coverage so that more people could establish their own individual entitlements. At this stage we have a fairly comprehensive social insurance system with almost all workers and self-employed people contributing.
The expansion of the existing arrangements for separate payments was also recommended so that the qualified adult allowance could be paid direct to a spouse or partner on a more general basis. This system, known as administrative individualisation, is at present being examined by a working group, chaired by my Department, set up under the PPF. The PPF envisages individualisation being progressed in the context of joint assessment of means.
In budget 2001 I gave a commitment to increase the level of the qualified adult allowance for those over 66 years of age to the maximum rate of the old age non contributory pension. Proposals in relation to administrative individualisation will enhance this initiative by facilitating the payment of the increased qualified adult allowance direct to the person involved.