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Social Welfare Code.

Dáil Éireann Debate, Wednesday - 6 October 2004

Wednesday, 6 October 2004

Ceisteanna (61, 62)

Paul Nicholas Gogarty

Ceist:

162 Mr. Gogarty asked the Minister for Social and Family Affairs his views on the opinion of the Irish National Organisation of the Unemployed that welfare rules continue to hinder the transition from unemployment to work for many. [23401/04]

Amharc ar fhreagra

Michael D. Higgins

Ceist:

166 Mr. M. Higgins asked the Minister for Social and Family Affairs if he has plans to raise the weekly household income limit for the retention of secondary benefits; and if he will make a statement on the matter. [23320/04]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 162 and 166 together.

It is important that social welfare programmes are responsive to the needs of those who depend on them while simultaneously providing opportunities to assist people to become more independent. A number of measures have been introduced in recent years to removing disincentives to taking up employment and to helping ease the transition from welfare to work.

These measures include: the introduction of means disregards and tapered withdrawal of benefits as earnings increase; the introduction of employment support schemes such as the back to work programme; and the assignment of job facilitators from my Department's staff to assist with the transition to employment.

The INOU statement of 12 July 2004 referred in particular to the household income limit of €317.43 for retention of secondary benefits for unemployed persons taking up employment on the jobs initiative and other employment support schemes. This income limit applies to people who take up employment under approved employment schemes. Such people are entitled to retain certain social welfare and other benefits, known as secondary benefits, for the duration of the scheme. For most people the most significant secondary benefit is rent or mortgage interest supplement which is paid under the supplementary welfare allowance scheme.

While the absolute level €317.43 income limit has not changed since its introduction, significant changes have been made to the means test. 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.

In effect, this means that people who had been unemployed and who commence employment through the back to work scheme can have a weekly household income significantly in excess of the €317.43 limit in question and still qualify to retain 75% of their rent or mortgage interest supplement. For example, in the first year of their participation in the back to work scheme, a single person can have combined income from the back to work allowance and wages of €418.50, while a couple with two children can have an income of €510.75.

A participant in the back to work scheme can opt to be assessed under either standard rules or under retention rules and will be entitled to receive payment under the more favourable option.

Any further changes to the above initiatives would have to be considered in the light of competing priorities and available resources.

Question No. 163 answered with QuestionNo. 147.
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