Eamon Gilmore (Dún Laoghaire, Labour)
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Question 125: To ask the Minister for Social and Family Affairs if he has considered the submissions made by a group (details supplied) regarding the way in which retirement lump sum payments are being treated in the assessment of entitlement to the qualified adult allowance; his proposals to remedy the problem; and if he will make a statement on the matter. [32467/06]

Séamus Brennan (Dublin South, Fianna Fail)
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A qualified adult allowance (QAA) is payable in respect of a spouse or partner who is wholly or mainly maintained by the claimant.

Account is taken of the spouse or partner's income for the purposes of determining entitlement. A spouse or partner's income includes income from capital, including retirement lump sum payments.

Where capital is in the joint names of the claimant and spouse or partner, half the capital is assessed against each.

Prior to Budget 2006, a qualified adult allowance at the maximum rate was payable where the spouse/partner's income was less than €88.89 per week and tapered reduced rates were payable where income was greater than €88.89, up to €220 per week. A QAA was not payable where income exceeded €220 per week. These limits were increased in the Budget to €100 and €250 respectively.

When these improved arrangements are fully in place, and assuming that the spouse/partner has no other means, a full rate QAA will be payable where the spouse has capital of up to €57,000 while capital between €57,000 and up to €95,000 will give entitlement to a reduced rate of QAA. This will mean that a pension or redundancy lump sum, lodged in joint names, would have to be in excess of €114,000 before it would affect entitlement to a full rate qualified adult allowance.

I should also mention that if at any time the amount of capital held by the spouse or partner (either jointly or singly) is reduced, they can request my Department to reassess their entitlement to a QAA payment.

I consider that the provisions I have outlined offer substantial flexibility to couples where a pension or redundancy lump sum is a factor but the matter will be kept under review.