I propose to take Questions Nos. 415 and 416 together.
The supplementary welfare allowance scheme, which includes rent supplement, is administered on my behalf by the community welfare division of the Health Service Executive.
The purpose of the scheme is to provide short-term income support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. My Department does not have any function in relation to decisions on individual claims.
Under the rules of the scheme, 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.
The regulations governing rent supplement stipulate that 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. The assessment of additional income of participants on a training course has always been a feature of the SWA scheme.
The Department is very conscious of the need to facilitate persons in receipt of social welfare payments to take up employment and training opportunities and to ensure that the social welfare supports are structured to support this objective.
A number of measures have been introduced in recent years to remove disincentives to taking up employment and training opportunities and to assist in the transition from welfare to work. These measures include easing of means tests through income disregards and the tapered withdrawal of benefits as earnings increase.
Budget 2006 provided for an increase in the additional income disregards applicable to a person in part-time employment, and participants on certain employment and training courses. Where a person has an additional income as a result of participation on a training course the means test now provides for a weekly disregard of up to €60 per week plus an additional disregard of half of any additional income between €60 and €90.
The measure in budget 2006 to disregard half of any additional income between €60 and €90 is worth €15 per week to a person on one-parent family payment who has a full training allowance and for that reason, the €10 increase in training allowances referred to by the Deputy is not in fact negated. For those participating in approved training courses, any lunch or travel allowances that are paid may also be disregarded.
In addition, certain training courses now provide a child care allowance to participants on certain courses. Budget 2006 provided that these child care allowances are to be treated in the same manner as a lunch or travel allowance and disregarded.
Overall, I consider that the current rent supplement additional income disregards ensure that people have a financial incentive to take up training opportunities, and the position is being kept under continuous review.