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Departmental Schemes.

Dáil Éireann Debate, Wednesday - 7 July 2004

Wednesday, 7 July 2004

Ceisteanna (324)

Willie Penrose

Ceist:

334 Mr. Penrose asked the Minister for Social and Family Affairs if her attention has been drawn to the fact that if a single parent takes up a community employment scheme he is disqualified immediately from receiving rent allowance if his gross income exceeds €317.43; if her attention has further been drawn to the fact that this acts as a complete disincentive to single parents who wish to take up community employment schemes; if, in this context, she will consider increasing the gross household income limit to €417.43; and if she will make a statement on the matter. [20656/04]

Amharc ar fhreagra

Freagraí scríofa

Lone parents or others who take up a community employment place are not automatically disqualified from receiving rent supplement if the household income exceeds the €317.43 limit referred to by the Deputy. Any participant in community employment has the option of being assessed for rent supplement under the standard supplementary welfare allowance means test.

Under standard assessment rules, rent supplements are calculated to ensure that an eligible 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 of €13 which each recipient is required to pay from his or her own resources. Up to €50 in respect of additional income from part-time employment is disregarded in the means test, thus ensuring that a person is better off as a result of taking up such an opportunity. Community employment is regarded as part-time employment for these purposes.

The amount of rent supplement payable in any given case depends on the particular circumstances of the individual concerned. In most cases, a lone parent with one child living in the Dublin area and participating in a CE scheme would receive €85.90 per week in rent supplement. He or she would have an income of €188.60 per week after paying rent and would be €50 per week better off than a lone parent in similar circumstances who was not participating in a CE scheme.

The limit to which the Deputy refers applies to people in full-time employment. Supplementary welfare allowance is not normally payable to people who are engaged in full-time employment. However, arrangements have been in place for a number of years which allow people to retain a portion of their rent supplement where they take up employment through approved schemes, such as community employment, subject to a weekly household income limit of €317.43. While the €317.43 income limit applicable in these cases has remained static, other improvements have been made. The period for which rent supplement may be retained has been extended to four years on a tapered basis, that is, 75% in year one, 50% in year two and 25% in years three and four. In addition, the upper limit of €317.43 per month on the amount of supplement payable was abolished for people on the approved schemes.

Furthermore, back to work allowance and family income supplement, in cases where one or both of these are in payment, are now disregarded in the assessment of the €317.43 weekly income limit. PRSI and reasonable travelling expenses are also disregarded in the means test. I am aware that the €317.43 income limit affects lone parents who participate in community employment schemes. This is due to the fact they receive one-parent family payment in addition to receiving the appropriate community employment wage. To facilitate people in this position, participants in CE schemes may opt for assessment under the standard SWA means test or under the special means test described above, whichever is the more favourable to them.

Rather than acting as a disincentive to work or training, the arrangements I have outlined are designed to encourage and assist people in the transition from reliance on welfare payments to full-time employment. Any further changes in the qualification criteria for receipt of rent supplement will be considered as part of the review of the supplementary welfare allowance scheme currently under way in my Department.

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