Séamus Brennan (Dublin South, Fianna Fail)

I acknowledge that anomalies exist throughout the system and we are trying our best to iron them out, within an overall philosophy of supporting people. On the issue of indexation, the consumer price index rose by 34% in the past ten years, gross earnings rose by 65% and social welfare rates increased by 84%. I acknowledge the Deputy's point about disregards is slightly different. Nevertheless, social welfare rates have increased almost three times the rate of inflation and are substantially ahead of gross earnings. Had an indexation clause been in place for the past ten years, it would have cost social welfare recipients dearly and I know that is not what is intended here.

I also acknowledge that the disregard for lone parent's allowance has not changed since 1997 and we have now made a substantial change. It is important to retain the flexibility of being able to move disregards around. It is sometimes good policy not to increase them because it may be preferable to be able to move people in a different direction. The flexibility to move disregards and thresholds around to bring about a better social policy is probably good because it allows us to move people on to better places, as I have often explained to the House.

The increase in the capital disregard was from €12,000 to €20,000. Deputies will be aware of the new disregard of earnings of €100 and the €20 up from €7.60. The income disregard for the means test for carer's allowance has been increased from €290 for a single person and €580 for a couple. This means a couple with two children can earn €32,925. The lone parent's allowance thresholds have increased from €293 to €375 with a tapering relief included. The increase in the spouse's income disregard for entitlement to QAA has increased from €88 to €100. There has been substantial increases in family income supplement. It would not be wise to put indexation into legislation and I do not believe the Deputy is asking for that. Successive Governments in their budgets have done their best to assist vulnerable people and I hope that will continue. I take the point that thresholds and disregards must be reviewed regularly to ensure adequacy, determine whether they keep up with inflation and earnings, and examine how they contribute to moving social policy in a particular direction. I will examine the case mentioned by Deputy Stanton.

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