Written answers

Wednesday, 30 November 2005

Department of Social and Family Affairs

Tax and Social Welfare Codes

9:00 pm

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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Question 192: To ask the Minister for Social and Family Affairs the changes that have been approved in respect of PRSI contributions which will affect job share and part-time workers; and if he will make a statement on the matter. [37242/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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There have been no recent changes to PRSI which could impact of work-sharing and part-time workers. The most significant changes benefiting these workers were implemented in 1991 when part-time workers were brought into full social insurance coverage subject to a minimum earnings threshold. In 1997, changes were made to the home-maker's scheme to allow for the award of credited contributions where a person who is job-sharing and the week off coincides with the PRSI "contribution week". These credits maintain entitlement to old age contributory pension. The contribution requirements for unemployment, disability and maternity benefit were relaxed in 2001, providing an alternative test to the usual requirement, that is, 39 contributions paid or credited in the relevant tax year. The alternative test requires 26 contributions paid in both the relevant tax year and 26 paid in the previous year also. This easing of the contribution requirements benefited all those work-sharing, working part-time, seasonally or intermittently. The Deputy may be referring to the impact on the liability for and award of PRSI contributions for job-sharers in particular years when the workers pattern of work is aligned with the PRSI "contribution week", that is, each successive seven day period beginning on the first day of the year, as defined in social welfare legislation. This alignment will affect the number of PRSI contributions amassed in any contribution year and may in turn affect entitlement to social welfare benefits. Starting in 2005 and for three years to 2007, the contribution week is aligned to the working week. When this occurs, a person who is job-sharing may accumulate fewer PRSI contributions. Work-sharers who work a split week, for example, Wednesday to Tuesday, can similarly be affected during the years when the contributions year commences on a Wednesday. Depending on the exact work pattern, work-sharers may work 26, 39 or 52 weeks in a year. However, additional contributions may be due on the basis of entitlement to public holiday pay as provided for under the Organisation of Working Time Act 1997.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 193: To ask the Minister for Social and Family Affairs if provision has been made in Estimates 2006 for change in the maximum rent payment which can be considered for supplement for households of different sizes. [37297/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may incur. The limits vary according to geographic location and household size.

My Department completed a review of the rent limits earlier this year in order in determine if the existing maximum rent limits required any adjustments in the light of the market situation in the sector. Following this review, I introduced regulations on 26 July 2005 specifying new maximum rent limits to be applied to the scheme for the period from then to 31 December 2006. These regulations provided for moderate increases in certain rent limits, with no change in others. No rent limit was reduced. Setting maximum rent limits higher than are justified by the open market would have a distorting effect on the rental market, leading to a more general rise in rent levels and in landlord income. This in turn would worsen the affordability of rental accommodation, with particular negative impact for those tenants on lower incomes. The 2006 Abridged Estimates for my Department are based on a continuation of the current statutory position, and contain no provision for further changes in the rent supplement rent limits.

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