Dáil Éireann Debate, Tuesday - 12 December 2006
386 Dr. Upton asked the Minister for Social and Family Affairs the reason child benefit is not awarded to families who are affected by habitual residence status; and if he will make a statement on the matter. [42888/06]
Amharc ar fhreagraThe requirement to be habitually resident in Ireland was introduced as a qualifying condition for certain social assistance schemes and child benefit with effect from 1 May 2004. It was introduced in the context of the Government's decision to open the Irish labour market to workers from the new EU Member States without the transitional limitations which were being imposed at that time by many of the other Member States.
The effect of the condition is that a person whose habitual residence is elsewhere is not paid social welfare payments on arrival in Ireland. EU Regulations provide that migrant workers who are EEA nationals, i.e. EEA nationals who have been employed since coming to this country, are entitled to payment of family benefits under the same conditions as Irish nationals and the habitual residence condition does not apply in their case. The effect of the condition in relation to child benefit, therefore, is principally in relation to claims by non-EEA nationals. Approximately 15% of such claims, received since the introduction of the condition, were refused on the grounds that the habitual residence condition was not satisfied. Those who are refused are mainly persons whose claim to asylum has not yet been decided, who do not have a work permit or who have a minimal attachment to the workforce in Ireland.
The reason for the introduction of the habitual residence condition in May 2004 — to ensure that persons who have not worked in Ireland or who have not established their habitual residence in Ireland should not avail of assistance schemes or child benefit — continues to be relevant.
387 Mr. S. Ryan asked the Minister for Social and Family Affairs the estimated cost to the insurance fund of removing the earning limits for all recipients of deserted wife’s benefit. [42889/06]
Amharc ar fhreagraThe earnings limits for deserted wives benefit were set in 1992. From 1992 entitlement to benefit at full rate was subject to an earnings limit of £10,000 (approx €12,000) and reduced rates were payable up to an earnings limit £14,000 (approx €17,800) after which there was no entitlement. When the one parent family payment was introduced in 1997, the deserted wives benefit scheme was discontinued for new claims from January that year. Existing recipients could, however, retain their payment subject to continuing to fulfil the qualifying conditions.
From May 2007, under provisions made in the Budget, a new single earnings limit of €20,000 gross earnings will be introduced for recipients of deserted wives benefit. Once claimants' earnings go over this limit, they will be entitled to a new half-rate, transitional payment for 6 months to ease the impact of losing entitlement to the payment. This revised upper limit and new transitional payment bring the payment more into line with the one parent family payment. Over 2,300 deserted wives benefit claimants will benefit from these revisions to the scheme. The estimated cost of this increase in the earnings limit is €0.87million in 2007 and €1.3million for a full year. To remove the earnings limit would cost in the region of €3m to €6m per annum depending on assumptions.
