Kathleen Lynch (Cork North Central, Labour)

On the ruling out of order of the amendment, I assume the Deputy realises that anything that imposes a charge on the Exchequer cannot be accepted.

The provisions contained in section 11 provide for the disregard of the USC when assessing entitlement to family income supplement and for the deletion of the reference to the now defunct health contribution in regard to the assessment for rent and mortgage interest supplement. Accordingly, they provide for the arrangements which have applied since the introduction of the USC on 1 January last year.

Any loss of benefits to claimants would have applied from 1 January 2011 and are not being brought about by the provisions in this Bill. I am informed that the previous Government did not make a decision to allow the USC to be deductible when determining entitlement to a wide range of social assistance payments such as jobseeker's allowance. It should be noted in that regard that allowing the USC as a deduction would increase social welfare expenditure as the impact of the USC on some individuals would have been compensated through higher welfare entitlements and that no provision for such increased expenditure was made.

I also note that provision for the existing disregard of certain deductions such as social insurance contributions and superannuation contributions is provided for by way of regulation and that provision for the deduction of the USC from the means test has been made by way of amendment to the relevant regulations. No such amendments were made in the period from the beginning of January to the formation of the new Government. The Government is committed in its programme to review the operation of the USC and that review can include any means testing issues that arise. It was a measure introduced by the previous Government but this Government is committed to reviewing it.

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