Donnchadh Ó Laoghaire
Ceist:361. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated full year cost of raising the earnings disregard for the one parent family payment by €1. [55961/23]
Amharc ar fhreagraThursday, 14 December 2023
Ceisteanna (361, 362)
Donnchadh Ó Laoghaire
Ceist:362. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated full year cost of raising the earnings disregard for the jobseeker’s transitional payment by €1. [55962/23]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 361 and 362 together.
The One-Parent Family Payment is a means tested payment for lone parents, under 66, whose youngest child is under seven. The Jobseekers Transitional Payment is a special arrangement under the means tested Jobseekers’ Allowance for lone parents, under 66, whose youngest child is between 7 and 14 years old.
Resulting from measures introduced in Budget 2024, from January the maximum weekly personal rate of both payments will have increased to €232 per week, with additional increases payable for each Qualified Child of €46 per week in respect of each child aged under 12 and €54 per week in respect of each child aged 12 or over.
The current earnings disregard for One Parent Family Payment and the Jobseeker’s Transitional Payment is €165 per week. In addition, 50% of earnings above this figure is also disregarded in the assessment of means.
Increasing the disregards by €1, to €166 per week, would not have a material effect or cost as such an increase would result in little or no change to the lone parent’s personal rate of payment. This is because, where a person has means their personal rate of payment is determined using the relevant scheme payment rate table, with payment rates grouped into bands. In the case of these payments, these bands are in increments of €2.50.
For example, one of the rate bands is ‘over €90.10 up to €92.60’. Therefore, a person who is assessed as having means of €90.10 per week after all disregards have been applied receives the same personal rate of payment as a person assessed with means of €92.60 per week, after all disregards. In this case, the personal rate of payment is €135 per week. The applicable Increases for a Qualified Child are paid in addition.
The payment rates and bands for all schemes are published in the SW19 booklet ‘Social Welfare Rates of Payment 2023’, which is available on Gov.ie.
I trust this clarifies the position.
Question No. 362 answered with Question No. 361.