It is important to ensure that, in addition to social security programmes being developed in ways that are responsive to the income needs of social welfare recipients, they should also provide opportunities to encourage and assist people to become less dependent on the welfare system. In this context, a number of measures have been introduced to make the social welfare system more employment friendly by removing disincentives to taking up employment.
For example, invalidity pensioners can take up employment or training which is considered to be rehabilitative or therapeutic and retain their pension in full. Under the back to work allowance scheme, invalidity pensioners can take up full-time work and continue to receive their payment on a sliding scale for three years if in employment or four years if self-employed. The family income supplement scheme, which provides financial support to workers with families who are on low incomes, is also available to invalidity pensioners who take up employment.
In addition, measures have been introduced in recent years to mitigate the loss of secondary benefits such as the medical card, fuel allowance, rent and mortgage supplement, etc., by allowing for their retention for a number of years after taking up work or for their withdrawal on a sliding scale. Supports are also available to encourage the spouse-partner of a social welfare recipient to take up employment. One such measure is the tapered withdrawal of adult and child dependent increases as the spouse-partner's earnings from employment increase, that is, the maximum qualified adult dependant increase is payable where the adult dependant's gross weekly earnings do not exceed €88.88. Payment is withdrawn on a gradual, or tapered, basis where the spouse-partner is earning between €88.88 and €210 per week.
Since the Government came into office, a number of changes to these tapered arrangements have been introduced with a view to ensuring 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. First, the range of income over which the qualified adult allowance is withdrawn has been progressively extended. Second, provision has been made for the deferral of the loss of half the child dependant allowance until the earnings of the spouse-partner exceeds the upper bound of the income range. In addition, the weekly rates of qualified adult allowance have been increased annually in successive budgets.
In the case raised by the Deputy, the family income is made up of a weekly invalidity pension of €149.95 a week, family income supplement of €38 a week and weekly income from the spouse's employment of €195, giving a total family income of €382.95. As this figure is substantially in excess of the weekly rate of invalidity pension that would be paid if the spouse was not in employment, there is a clear incentive to move from welfare dependency to work in this case. In addition, the total weekly income is below the current family income threshold for qualification for the back to school clothing and footwear allowance.
In the context of this case, the Deputy has also raised the interaction of benefits provided by my Department with the range of benefits and supports provided by the health boards. It should be noted that, in addition to income maintenance needs, many people with disabilities also have additional needs arising from their disabilities. In examining this issue, the Commission on the Status of People with Disabilities recommended that these additional costs of disability should be catered for separately to income maintenance needs. The commission accordingly recommended the introduction of a variable cost of disability payment, to be administered by the Department of Health and Children. This payment, which would be underpinned by the introduction of a nation-wide needs assessment procedure, would not be subject to tax, nor would it be means-tested.
In the light of the commission's recommendations, a working group was established under the Programme for Prosperity and Fairness to examine the feasibility of introducing a cost of disability payment. This working group, which is chaired by the Department of Health and Children and includes representatives of relevant Departments and agencies, including my Department, is examining the range of complex issues involved in this area. The outcome of this group's deliberations will be important in informing future policy in this area.