Michael Noonan (Limerick East, Fine Gael)
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Question 14: To ask the Minister for Social and Family Affairs if, in relation to unemployment assistance claims by wives who are actively seeking work, he plans to individualise the means assessment process, thus enabling the husbands income to be disregarded; and if he will make a statement on the matter. [17687/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The spouses and partners of workers or those in receipt of social welfare payment may apply for unemployment assistance in their own right provided they fulfil the conditions for such payment. These conditions include being capable of and actively seeking work as well as satisfying a means test. In the latter regard, the means of the other spouse/partner is taken into account. Where the spouse/partner is engaged in employment the first EUR100 per week of earnings is disregarded and half of the balance is assessed as means. This means that an unemployment assistance claimant (with no children) can still qualify for a reduced rate of unemployment assistance where the spouse/partner's earnings are up to EUR431 per week.

Full personal payments within the social welfare system involves separate and independent treatment of persons in relation to means and other conditions of entitlement and separate payments to each. There are no plans, at present, to introduce full such payments in relation to means testing arrangements.

In this regard, the question of personal payments was considered by a Working Group in 1999 which examined the treatment of married, cohabiting and one-parent families under the tax and social welfare codes. The Group examined the social welfare code including the independent treatment of couples for means testing purposes. The Group concluded that personal payments could best be achieved through the expansion of the social insurance system to enable people establish their own direct rights and social welfare entitlement. The Group also concluded that some form of administrative arrangement appeared to be desirable, as it does not involve any change in the rules and conditions of entitlement but provides for arrangements whereby payments, which include increases in respect of a qualified adult, are split in some form between the parties involved.

A Working Group, chaired by my Department, was established in 2002 and recommended proposals for the implementation of a system which would involve the payment of the qualified adult allowance directly to a spouse, on a consensual basis, with both parties agreeing to the splitting of the personal and qualified adult rates. The Group envisaged a phased implementation of this arrangement.

In October 2002, my Department introduced administrative arrangements to provide an option to have the qualified adult allowance paid directly to the spouse for all new applicants to retirement and old age contributory pension (OACP/RP). To last December, some 1,100 couples have indicated their preference to have the qualified adult allowance paid directly to the spouse. This represents about 6.75% of approximately 16,300 OACP/RP pensions awarded with a qualified adult allowance since October 2002.

I am aware of the desire of certain sectors of the community to have full personal payment of the qualified adult payment implemented. I am also conscious of the need to take account of the views of our customers regarding this matter.

Furthermore, there are financial administrative and legislative issues that require further examination before extending or modifying these arrangements. These issues are under active consideration by my Department and I intend to progress the matter in the coming year.