David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 206: To ask the Minister for Social and Family Affairs the current disability allowance disregard; when the disregard was last increased; if his attention has been drawn to the fact that the current income disregard means that if a person with a disability works sixteen hours or more per week, his or her disability allowance will be reduced; if his attention has further been drawn to the FÁS criterion that the optimum minimum hours to be worked is 18 hours per week; his views on whether the current situation is acting as a disincentive for persons with disabilities to take up employment; the actions he will take as a result of same; and if he will make a statement on the matter. [31158/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The earnings disregard for those in receipt of disability allowance who engage in rehabilitative employment has been increased on an number of occasions since the transfer of the then disabled persons maintenance allowance, DPMA, from the health boards to my Department as disability allowance in 1996. At that time the disregard was £35.20, equivalent to €44.69 and was increased to £36.30 or €46.09 on 4 June 1997 and to £50 or €63.49 on 3 June 1998. It was then increased to £75 of €95.23 on 5 April 2000 and extended to earnings from self-employment. It reached its current level of €120 in April 2000.

The earnings disregard provides an initial incentive for recipients of disability allowance to take up employment opportunities but once in employment, the incentive to increase existing earnings above this limit is affected by the fact that all additional earnings will be assessed on a euro for euro basis. The increase in the minimum wage level has also had an impact on the incentive for people to increase their employment beyond the level of the current disregard.

A recent review of the illness and disability schemes carried out by my Department suggested that continually increasing the income disregard level can lead to difficulties for persons who wish to increase their employment level. The review group favoured a mechanism to allow for the more gradual withdrawal of social welfare benefits as earnings increase to ensure that people who increase their earnings or employment potential will also increase their overall income level.

My Department is currently examining ways to make it easier for people with disabilities to take up work and to address any disincentives within the schemes to do so. Any changes to the disability allowance scheme in this regard will be considered in a budgetary context.