Séamus Brennan (Dublin South, Fianna Fail)

I do not propose to accept the amendment. I explained on Committee Stage that I appreciate the amendment is a semi-pro forma one which calls for a report. I confirm that I would have no difficulty in reporting to the House on this subject any time I am called upon to do so. Most Deputies will acknowledge that the pro forma nature of the amendment is to enable us to discuss the matter of earnings disregard. I take note of what Deputies have said. Some measures have been introduced in the social security scheme over the period to help people to return to work. A number of subjects that have been mentioned under this amendment will arise in other amendments as we proceed, but I do not want to stray into those until we get to them.

The first €146.50 weekly earnings of the one-parent family payment, plus 50% of the balance to €293 is disregarded. Deputies will be aware that budget 2005 also provided for a transitional 50% payment for six months after reaching the €293 level and after exceeding it, so that should help a little.

As regards unemployment assistance, 40% of net earnings from part-time work is disregarded. As regards the disability allowance, the first €120 earnings from rehabilitative employment is disregarded. Deputies will be aware that the rent or mortgage supplement and other secondary benefits are being retained on a tapered basis in certain circumstances.

Subject to an income limit of €317 per week, secondary benefits, such as rent, mortgage interest, diet and heating supplements, back to school clothing and footwear allowance and fuel allowances may also be retained in certain circumstances. Rent and mortgage interest may be retained on a tapered basis for up to four years — that is, 75% in year one, 50% in year two and 25% in years three and four.

Back-to-work allowances and family income supplement are disregarded in assessing household income for the purposes of the €317 income limit. From their constituency work, Deputies will also know that in addition to the tapered retention system, participants in the back-to-work, community employment and other approved schemes, who work less than 30 hours per week, have the option of being assessed for rent or mortgage interest supplement under standard social welfare rules. Deputy Seán Ryan mentioned that matter to me and the debate indicates that we must do more of this.

We are gradually drawing together social security payments and other benefits, which are major weapons in helping to ease the transition from welfare to work or education. By designing such a mixture of benefits we will not have any sudden falls or losses in income. All sides of the House are satisfied that is the way to proceed. We are certainly heading that way fairly rapidly.

Deputies also referred to the capital disregard. I remind the House that I have increased that from €12,000 to €20,000, which should certainly help anyone who has an SSIA. We will come to that matter later.

Regarding earnings from part-time employment, Deputy Seán Ryan asked me the amount of additional income over and above the appropriate supplementary welfare allowance rate that can be disregarded in the means test for rent or mortgage interest supplement in respect of earnings. That has been increased to €60 per week. The disregard is not applied for the purpose of assessing the €317 household income limit relating to tapered retention of supplement. As Members are aware, employment scheme participants who work less than 30 hours a week can be regarded as being in part-time employment and therefore they can avail of the disregard when assessed under the standard SWA rules.

Deputy Ring asked me about advertising the family income supplement. He is correct about that; we need more take-up of it. The Department undertakes a number of measures to ensure that people are aware of the FIS which include advising all newly awarded one-parent family payment recipients and employers on an annual basis in PRSI mailshots, and examining entitlement in all awarded back to work allowance cases. Information on FIS is contained in all child benefit books and can be accessed on the Department's website. The scheme has been extensively advertised through local and national media outlets, including newspapers and radio, as well as through poster campaigns and targeted mailshots. I will examine the effectiveness of these measures and see if I can draw further attention to the scheme. I take his point on that matter.

Deputy Boyle referred to welfare traps. I have spoken about the gradual approach to moving from welfare to work. Deputy Finian McGrath referred to the debate on poverty not being over. He said that some people were of the opinion that the debate was over. It is far from over. I acknowledge that completely. The gap has widened and we need to narrow it. The famous rising tide has not lifted all boats. Poverty is not just, as is often thought by some people, a factor in households of unemployed people. There is a new working poor and coping class. That is a real issue. Increasingly, the evidence I have received points to a great deal of child poverty in homes where someone is working, albeit in difficult circumstances and on a very low income. We would be wrong to give the impression that the battle against poverty is over. It is an ongoing effort which we must sustain. Deputy Crowe commented on much the same type of subject.

Deputy McCormack asked me about carers and widows. He is aware that the Oireachtas committee recommended that 50% of the carer's allowance would go to widows when they took up caring duties. We examined that but we did not have a great deal of time to address it this year. We responded with the €1,000 respite grant which, as the Deputy stated, can now be claimed from June. That will help to some degree. It is not an enormous sum but it is recognition of the work many widows do in taking up caring duties. The issue of paying the full allowance or some portion of it is a matter I continue to examine. I will see what is possible. It is a matter which would require considerable financial investment. Having said that we will examine the matter closely. I will refer to other related subjects when we discuss carers later. I thank Deputies for their comments.

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