Vol. 541 No. 2
824 Mr. McGrath asked the Minister for Social, Community and Family Affairs if he will make a statement on the fact that many recipients of maternity leave payment lose out in view of the fact that the amount of maternity leave payment is related to salary in the 'governing tax year' and in view of wage increases in recent times. [22239/01]
The weekly social insurance benefits are, in general, paid on a flat-rate basis and comprise a personal allowance, together with additions for qualified adults and children. However, the maternity benefit scheme differs from other weekly social welfare payments in that it is an earnings-related benefit, but subject to a minimum and maximum payment. The purpose of this payment is to provide women with an adequate income during the maternity leave period.
The level of maternity benefit is set at 70% of the woman's gross weekly earnings in the relevant income tax year, subject to a minimum payment of £98.70 a week and a maximum payment of £183 a week. For current claims the relevant income tax year is 6 April 1999 to 5 April 2000. It should be noted that, unlike other social welfare payments, maternity benefit is not taxable. In addition, if the employer does not pay any wages for the duration of the maternity leave period, then the woman will generally be entitled to an income tax refund for that period. All of these factors combine to produce an income during maternity leave which will broadly equate to the woman's current net weekly earnings, subject to a maximum upper ceiling.
