Dáil debates

Thursday, 9 March 2006

Social Welfare Law Reform and Pensions Bill 2006: Report and Final Stages.

 

1:00 pm

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)

I move amendment No. 8:

In page 5, between lines 15 and 16, to insert the following:

"1.—The Minister shall within 6 months from after the passing of this Act prepare and lay before both Houses of the Oireachtas a report on introducing a disregard of income from Family Income Supplement when applying the spouse means test for the Household Benefit Package.".

The Minister was probably surprised that I produced this example. He was probably bored by these types of amendments on Committee Stage. Perhaps if I were in his position, I would go mad as a result of all the amendments being tabled. I assure him that I am not doing so to score points. Our job is to point out where we can improve legislation and improve the availability of benefits for people. Generally, when people reach this stage, they need all the help they can get. If there is a little quirk or anomaly in the system, it is our duty to iron it out because we are sent here as legislators. One might say that some of it is "parish pump" talk, but one often finds the basis for the best legislation at "parish pump" level.

I will use the example of Jack and Jill, a married couple with two children. Jack receives an invalidity pension and his wife works three days a week over 19 hours to supplement the family income. On the other days, she cares for her husband who is ill, which is why he is receiving invalidity pension. She works over 19 hours, therefore, she can apply for FIS. These are the parameters that apply. The family qualifies for the free schemes on the basis of Jack's invalidity pension. As he is an invalid, the household benefits package applies, once his wife's earnings do not exceed €220 a week. Because she worked three days a week for €220 and had two children, she qualified for FIS. However, her income from the family income supplement will be counted as means for the household benefits package. This means she loses the household benefits package. I believe this is an unintended consequence of the scheme.

Someone on invalidity pension who is quite ill will qualify for the household benefits package. If the person's wife works 20 hours a week, say, four hours a day, the family will be entitled to family income supplement because she may be earning €9 an hour, or €118 a week, but the income from family income supplement is thrown into the pot in the assessment for the household benefits package. The fact that the income from FIS denies the family its entitlement to the household benefits package is an oversight which undermines the whole purpose of FIS.

I take this opportunity to congratulate the Minister on the advertising campaign he has undertaken to ensure the FIS mechanism, and the importance of the scheme as a supplementary form of income for many families who have relatively low incomes, is being made known.

I heard Deputy Ring compliment the Minister recently. As it was the first time I heard him pay such a fulsome tribute, perhaps the Minister should be grateful for it.

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