Seanad debates

Tuesday, 27 March 2007

Social Welfare and Pensions Bill 2007: Second Stage

 

9:00 pm

Photo of Michael KittMichael Kitt (Fianna Fail)

I thank Senator Ormonde and welcome the Minister of State, Deputy Fahey, to the House. The two Bills on social welfare have been welcome. In particular I welcome the point made by the Minister about the contributory pension having doubled since 1997. The State contributory pension has increased to €209 per week and the non-contributory to €200.

I welcome the fact that people in receipt of a small pension can now claim the half-rate carer's allowance, which is very relevant in the case of a widow or widower who is caring for a relative. In the past those people were told they could get only one pension, which was unfair, and the fact that they can claim half-rate carer's allowance is very welcome.

The carer's allowance is a good scheme and the income limits have been changed to allow a person earning €640 per week get the allowance. There is a problem with it, however, that I would like to bring to the Minister's attention. In the case of women, who usually do the caring, they get a letter from the Department every six months — it used to be every year — inquiring about their spouse's income. I am aware of a case where a woman was getting €120 per week carer's allowance, which is a fairly small rate, but following inquiries from the Department about the husband's income, the rate was reduced to €7 per week, which was a miserable rate. From 1 January this year it increased by €20 to €27 but the Department is again inquiring about the spouse's income. I am concerned this person might lose that €27. In such situations it is unfair that the Department is penny-pinching and inquiring about the spouse's income every six months. That aspect could be examined.

Given that people are living and working longer, I welcome the fact that they can now earn more without being taxed. I understand the figure was €20 some years ago but the Minister increased that by five times the amount in the 2006 budget. We are going in the right direction to allow people the freedom to earn additional income without being taxed, and I welcome that.

The increase in the qualified adult dependant allowance is welcome because it is an indication that the payment is being made as of right. The increase has been welcomed by those who in the past were regarded as the dependent spouse or partner. That increase is very much to the credit of the Minister and the Government.

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