Bernard J. Durkan
Ceist:203 Mr. Durkan asked the Minister for Social and Family Affairs if she will consider further increases in child and adult dependent allowances; and if she will make a statement on the matter. [12317/04]
Amharc ar fhreagraWednesday, 28 April 2004
Ceisteanna (171, 172, 173)
Freagraí scríofa
Since 1994, successive Governments have held the rate of child dependant allowances, CDAs, constant while concentrating resources for child income support on the child benefit, CB, scheme. It is important to recognise that over that period, the combined CB/CDA payment has increased by more than double the rate of inflation. Child benefit is neutral vis-à-vis the employment status of the child’s parents and does not contribute to poverty traps, whereas the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities. As a universal payment, which is not taxable and is not assessed as means for other secondary benefits, child benefit is in fact more effective than child dependant allowances as a child income support mechanism when account is taken of these incentive issues.
The Government's commitment to this policy is reflected in the substantial resources we have invested in the child benefit scheme since entering office, including an additional expenditure of €1.27 billion on child benefit when the current programme of multi-annual increases is complete. We will then have moved from a position in 1994 where 70% of child income support for a family claiming social welfare payments was in the form of child dependant allowances, to a position where child dependant allowances will account for less than 33%. The issue of increasing child dependant allowances has been raised on a number of occasions. I believe that the increased investment in the child benefit scheme which the Government has made in recent years has been of major benefit to families and is a most effective use of the resources available for child income support.
In the partnership agreement Sustaining Progress, the importance of child income support arrangements is recognised, with a commitment to examine the effectiveness of current arrangements in tackling child poverty. Budget 2004 provided for increases in the qualified adult allowance ranging from €16.10 per week, invalidity pension where the qualified adult dependant is 66 years of age or over, to €6.60 per week, non-contributory pension, blind pension and short-term schemes.
Legislation currently provides for the gradual reduction of the qualified adult allowance, QAA, for claimants of certain welfare payments, where the qualified adult is earning €88.88 or more up to €210.00 per week, at which point the QAA is fully withdrawn. The initial threshold of €88.88 together with the gradual withdrawal ensure that a spouse is not unduly penalised for taking up employment. A number of changes to these tapered arrangements have been introduced in recent years to ensure that the impact of increases in earnings are not negated for families where the spouse is the sole earner and is in low paid employment. The range of income over which the QAA is withdrawn has been progressively extended. In 1999 the QAA was withdrawn over an income range of €76.18 to €114.28. The current range is €88.88 to €210.00.
Furthermore, whereas prior to March 2000, the child dependant allowance was halved where a tapered rate of QAA was payable, full CDA is now payable in such cases. The question of increasing the QAA and child dependant allowance rates are matters for consideration in a budgetary context and in the context of priorities generally.
Bernard J. Durkan
Ceist:204 Mr. Durkan asked the Minister for Social and Family Affairs the reason an increase in one parent family or widows allowance results in a reduction in rent support for those in private rented accommodation; and if she will make a statement on the matter. [12316/04]
Amharc ar fhreagraRent supplements, which are provided for under the supplementary welfare allowance scheme are subject to a means test and are normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to his or her family circumstances, less a minimum contribution, currently €13 which recipients are required to pay from their own resources.
In addition to the minimum contribution, recipients are also required to contribute towards their rent any additional assessable means that they have over and above the appropriate basic supplementary welfare allowance rate. In effect, this means that the difference between the relevant supplementary welfare allowance rate and the means which a person has also goes towards their rent thereby reducing the amount of rent supplement payable.
Bernard J. Durkan
Ceist:205 Mr. Durkan asked the Minister for Social and Family Affairs when she expects to liberalise means testing for social welfare payments that are subject to such tests; and if she will make a statement on the matter. [12318/04]
Amharc ar fhreagraSocial assistance payments feature a means test which is intended to ensure that available resources are targeted at those most in need.
In recent years, considerable improvements have been made to means tests to allow persons to qualify more easily for payments, to retain more of their income before payments are withdrawn or to withdraw payments more gradually if means exceed a certain level. The improvements included the following. The income disregard for carer's allowance was increased from €191 to €250, single, and from €382 to €500, couple, over budgets 2003 and 2004. This amounts to a €59 increase in the disregard for a single person and a €118 increase in the disregard for a couple. The assessment of benefit and privilege for unemployment assistance recipients aged 29 years or more was abolished from May 2003. In addition, budget 2004 continued this initiative and reduced the maximum age further to 26 years, in respect of persons who are living in the parental home. The past two budgets have also allocated an increase in the income disregard for the family income supplement payment of €45, for all family sizes. In addition, budget 2004 abolished the assessment of rent supplement from the calculation of assessable income for the payment of family income supplement, thus ensuring that people in receipt of FIS and rent supplement retain the full value of their payments.
In line with the current arrangements for one-parent family payment, the treatment of maintenance in the assessment of means for disability allowance, unemployment assistance, farm assist, PRETA, OANCP, widow/widower's pension and blind persons' pension was standardised in budget 2003. Any further changes to means assessment would require the allocation of additional resources and would have to be considered in a budgetary context.