Séamus Brennan (Dublin South, Fianna Fail)

I am conscious of the need to facilitate persons in receipt of social welfare payments to take up employment opportunities and to ensure the social welfare supports are structured to support this objective. I am aware of the specific issue raised by the Deputy, which was also raised in the recent discussions at the committee on social affairs that he chairs.

Several measures have been introduced in recent years to remove disincentives to taking up employment and to assist in the transition from welfare to work. These measures include easing of means tests through income disregards, tapered withdrawal of benefits as earnings increase and employment support schemes such as the back to work programme.

The income limit referred to applies to people who take up employment under approved employment schemes, and who, because of their employment, do not qualify for rent supplement under the standard rules of the supplementary welfare allowance scheme or for other secondary benefits. People in those circumstances may be entitled to retain these secondary benefits, in total or in part, for the duration of the scheme, subject to certain conditions.

For most people the most significant secondary benefit is rent or mortgage interest supplement, which is paid under the supplementary welfare allowance scheme. While the income limit of €317.43 per week has not changed for several years, other significant improvements have been made to the means test since then. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are now disregarded in the assessment of the €317.43 limit. PRSI and reasonable travelling expenses are also disregarded.

People who had been unemployed and who commence employment through the back to work scheme can have a weekly household income significantly in excess of the €317.43 weekly limit in question and still qualify to retain 75% of their rent or mortgage interest supplement. For example, in the first year of their participation in the back to work scheme, a single person can have combined income from the back to work allowance and earnings of €429 per week while a couple with two children can have a weekly income of €528.25.

Other improvements have also been made to the retention arrangements. The period for which rent or mortgage interest supplement may be retained has been extended to four years on a tapered basis; 75% in year one, 50% in year two and 25% in years three and four. As a consequence of these improvements many families retain more of their rent or mortgage interest supplement than had been the case.

Additional information not given on the floor of the House.

Participants in the back to work and community employment schemes are assessed under either standard rules or under retention rules and will be entitled to receive payment under the more favourable option. Alternatively, people who do not qualify under these retention arrangements can apply for rent supplement under the standard rules of that scheme. Under these rules, rent or mortgage interest supplements are calculated to ensure that an eligible person, after the payment of rent or mortgage interest, 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.

Family income supplement is now also disregarded in the standard means test. In addition where the employment is part-time, that is, fewer than 30 hours per week, up to €60 is disregarded in the means test thus ensuring that a person is better off as a result of taking up such an opportunity.

I am aware that the income level of single parents who take up community employment places exceeds the €317.43 weekly income limit. However, this does not exclude them from receipt of rent or mortgage interest supplement as they have the option of being assessed under standard supplementary welfare rules. One impact of the changes means that more people qualify for support under the standard rules of the schemes in question and are not subject to the thresholds that apply to the special rules governing retention of secondary benefits. They are also financially better off than they were before taking up the community employment or other opportunity. The arrangements I have outlined are designed to encourage and assist people in the transition from reliance on welfare payments to full-time employment. I will continue to keep all of the employment incentives under review.

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