Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 248: To ask the Minister for Finance the approximate amount of the Government's SSIA top-up contribution which will have gone to each income decile of the population when all payout have been made (details supplied). [27559/06]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 249: To ask the Minister for Finance the income distributional impact of SSIA's that is if these schemes resulted in the redistribution of wealth towards lower income or towards higher income households or earners; and if he will make a statement on the matter. [27560/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 248 and 249 together.

It is not possible to give the income decile analysis requested as the scheme has 10 months to run and in that period the data are subject to a number of variables including for example where participants voluntarily withdraw from the scheme or vary their monthly contributions.

I am informed by the Revenue Commissioners that it is not possible to give a definitive answer as to the impact of the SSIA scheme on wealth redistribution. However, some data is available on the income levels of those who are availing of the scheme. The following are the income levels for SSIA holders who were matched with the Revenue income distribution tables, based on the latest information available.

However individuals on social welfare benefit or on pension will not necessarily feature on the tax based income records.

As the Deputy will be aware the specific goal of the scheme is to encourage people to save over a period of at least five years. In order to provide an incentive to save for this period, the Government provides a generous 25% top up on savings, in the form of a tax credit. While it is a tax credit, there is a redistributive element in that it is paid to all participants even where they do not have taxable income.

To ensure that the scheme has a broad appeal and broad benefits, it limits the amount that can be saved per month and provides a standard rate of tax credit so that every person saving the same amount will get the same benefit.