Bernard Durkan (Kildare North, Fine Gael)
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Question 12: To ask the Minister for Social and Family Affairs when it is intended to update means test thresholds; and if he will make a statement on the matter. [4727/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 135: To ask the Minister for Social and Family Affairs his views on raising means test thresholds further; and if he will make a statement on the matter. [4903/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 12 and 135 together.

I approached the recent budget with a number of key priorities in mind: I wanted to continue to improve the position of our older people; I wanted to take a decisive step forward towards the elimination of poverty, particularly child poverty; to assist in the development of a programme of supports and opportunities for those parenting alone and those with disabilities; to improve income supports to, and in recognition of, carers who perform a valued and valuable service for the whole of society; and to ensure that the budget reflected the evolving new social agenda that has at its core a social welfare support system that is active instead of passive, that assists people to live with dignity and enables them to make a valuable contribution towards society. A key objective of this reform agenda is the removal of employment disincentives and the avoidance of welfare dependency.

The budget has delivered on these objectives. In this context, I was pleased to be able to announce a number of significant and focused improvements to a range of means testing arrangements, as follows: I introduced a tapered withdrawal rate for disability allowance and blind pension recipients who engage in rehabilitative employment or self-employment and have a weekly income over €120 and under €350. This measure which will take effect from next June is specifically designed to incentivise those with a disability to take up employment. The income disregards for the means test for carer's allowance are to be increased from next April to €290 for a single person and €580 for a couple. As a result a couple with two children can earn up to €32,925 and the carer will retain entitlement to the maximum rate of carer's allowance. This increase in the means disregards also fulfills the commitment in the programme for Government to enable all those earning up to average industrial earnings to qualify for carer's allowance. The upper income limit for the one-parent family payment will increase from €293 to €375 per week in June 2006. This substantial increase will encourage employment and ensure financial security for these parents and their children. A 50% tapered withdrawal of earnings between €60 and €90 per week for persons in receipt of rent and mortgage interest supplement was introduced from January last, thereby increasing the incentive to take up employment or training or to pursue maintenance payments. An increase by next September in the spouse's income disregard for entitlement to the qualified adult allowance, QAA, from €88.88 to €100 a week, as well as an increase of €30 per week to €250 for entitlement to a tapered QAA rate. Significant changes were introduced in January last to the family income supplement, FIS, thresholds designed particularly to boost child income support for larger low income families. As a result of these improvements a family with four children has seen its weekly FIS payment rise by up to €64.80 a week while the payment for a family of six children has risen by nearly €117 a week.

I was particularly anxious to improve the financial position of our elderly pensioners. Apart from record increases in the weekly rates of payment, I also announced the establishment, from next September, of a single standard enhanced non-contributory pension scheme with a greatly improved means test, thereby simplifying the labyrinthine structure of supports for older people.

Key features of the new scheme will be a weekly means disregard of €20 per week, up from the €7.60 per week which dates back to the 1970s and an innovative special earnings disregard of €100 per week. This latter measure is intended to facilitate those older people who wish to continue in employment. As a direct result of the enhanced means test arrangements, over 30,000 pensioners will benefit directly from increased payments of up to €12.50 per week and, where a QAA is in payment, by a further €8.30 per week.

I am sure that the Deputy will agree that the measures I have outlined constitute a significant reform of the means assessment arrangements.