Darragh O'Brien (Fianna Fail)

Section 4(2)(b)(i) amends the 2010 Social Welfare Act by inserting the following subsection (3A):

Subsection (3) shall not apply and no increase of State pension (contributory) payable under subsection (2) in respect of a qualified child who normally resides with the beneficiary and with the spouse, civil partner or cohabitant of the beneficiary shall be payable where the weekly income of that spouse, civil partner or cohabitant, calculated or estimated in the manner that may be prescribed, exceeds the amount that may be prescribed.

A similar amendment is made in the case of disablement pension.

I would like to hear the Minister clarify the position on the qualified child. The section, effectively, introduces means testing of the qualified child payment. There is no entitlement to it should there be an income of €400 a week coming into the household. Is that correct?

In many instances, where a person is in receipt of a State pension and has a dependent child with a disability, the household will have an income of more than €400 a week, as a couple. Therefore, this change is significant. Such a household will have no entitlement to the qualified child additional payment. What savings has the Department projected for this measure? Can there be any leeway if someone is over the €400 limit? What exemptions are envisaged?

Section 4(2)(c)(ii) states no increase will be payable "where the weekly income of that spouse, civil partner or cohabitant, calculated or estimated in the manner that may be prescribed, exceeds the amount that may be prescribed". Am I correct in thinking that where the household income is more than €400 a week, the qualified child payment will not be paid? That is a serious step. It is a significant hit to the income of a household where there is more than one qualified child. Will the Minister explain the Government's rationale for introducing this measure? Will exemptions be allowed for a child or young adult still living with parents who are in receipt of a disablement pension, carer's allowance, contributory or non-contributory State pension, transitionary pension or invalidity pension? This measure is the most significant part of the section and I would like to hear the Minister's views on it.