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Jobseeker's Allowance Eligibility

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Ceisteanna (682)

Paul Connaughton

Ceist:

682. Deputy Paul J. Connaughton asked the Minister for Social Protection if she believes that it is fair that a cohabiting couple's total income before tax is taken into account when assessing for jobseeker's assistance, if each partner will benefit from the other's tax credits; and if she will make a statement on the matter. [37670/12]

Amharc ar fhreagra

Freagraí scríofa

The social welfare and tax systems have evolved over time and in response to a variety of factors, including Constitutional imperatives as interpreted by the Courts, changing social trends and EU Directives.

The EEC Equality Directive 79/9 and the subsequent Supreme Court case (Hyland v Minister for Social Welfare, 1989 ) led to the change in the treatment of non-married cohabiting couples in the social welfare code. The Court ruled that it was unconstitutional for the total income a married couple received in social welfare benefits to be less than the couple would have received if they were unmarried and cohabiting.

The social welfare code recognised the couple status of opposite sex co-habiting couples and treated married and opposite sex co-habiting couples in a similar manner for means testing and other purposes for many years prior to the enactment of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act, 2010. Following the enactment of that Act, further changes in the definition of a couple for social welfare purposes were introduced in the Social Welfare and Pensions Act, 2010. These changes amended the social welfare code to recognise the introduction of civil partnership. In addition, the code was also amended to treat cohabiting same sex couples in the same way as cohabiting opposite sex couples. Consequently, married couples, civil partners, same sex cohabiting couples and opposite sex cohabiting couples are treated in the same manner for means testing purposes for jobseeker’s allowance and other means tested schemes.

For means testing purposes, account is taken of the income and assets of both the claimant and his or her spouse/partner, including the earnings of the claimant and spouse. Where either or both of a couple has earnings from employment, the gross earnings less PRSI contributions, pension contributions and trade union subscriptions are assessed as means. Deductions in respect of income tax are not allowable.

Given the full equality of treatment of couples within the social welfare system as described above, I consider the current arrangements fair. The income tax arrangements and legislation for married couples, civil partners and cohabiting couples generally are a matter for the Minister for Finance.

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