Róisín Shortall (Dublin North West, Labour)
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Question 126: To ask the Minister for Social and Family Affairs the way in which the means test for the social assistance payments operates when the recipient in availing of the financial contribution scheme for senior citizens in circumstances where the initial proceeds of the sale are initially above the €190,500 disregard threshold but where in later years this amount, then held in a bank account, dwindles to below this threshold, if in these circumstances the disregard still applies or if a separate means calculation is applied; and if he will make a statement on the matter. [32495/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Financial contribution schemes are operated by local authorities in order to facilitate older people who wish to move from private accommodation, which may be too large for them, into local authority housing as tenants. The issue for my Department is how the proceeds of such a sale are treated in the means test for social assistance payments.

Social assistance payments are designed to provide financial support for people who do not qualify for one of the contributory pension or benefit schemes. Entitlement to these payments is based on a means test which is intended to ensure that available resources are targeted at those who are most in need. Accordingly, any resources that a claimant and his or her spouse or partner may have are assessed. These resources may include cash income, property, or an asset which could bring in money or provide the claimant with an income. The value of a person's primary residence is not taken into account in the means test.

The sale of residence provisions are designed to facilitate certain persons who are in receipt of a means tested payment from this Department in selling their principal residence for the purpose of: buying or renting alternative accommodation which s/he occupies as his/her only or main residence; or moving into a private nursing home which has been registered under Section 4, Health (Nursing Home) Acts, 1990; moving in with their carer who is in receipt of carer's allowance or carer's benefit in respect of them; or moving to sheltered or special housing in the voluntary, co-operative, statutory or private sectors that is funded under the Capital Assistance Scheme operated by the Department of the Environment, Heritage and Local Government.

Where alternative accommodation is being purchased, the difference between the agreed sale price of the former residence and the agreed purchase price of the replacement residence, subject to a maximum of €190,461, is exempt from the means test. Where no alternative accommodation is being purchased, the gross proceeds of the sale are defined as the agreed sale price of the residence and are disregarded in the means test also to a maximum of €190,461.

These provisions apply to people aged over age 66 years who receive a means tested payment from this Department as well as to people aged under 66 who are in receipt of disability allowance or blind person's pension. The purpose of these provisions is to facilitate choice for certain people who might previously have been living alone or in unsuitable accommodation. The disregard of €190,461 will continue to apply to the proceeds of the sale of the residence for the duration of the claim.

Jack Wall (Kildare South, Labour)
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Question 127: To ask the Minister for Social and Family Affairs the mechanism used to determine the income limits for the family income supplement for one child and two children and so on; and if he will make a statement on the matter. [32591/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Family income supplement is designed to provide cash support for employees on low earnings with families. FIS is paid on a weekly basis over a period of 52 weeks, taking into account a family's net earnings and the number of children under age 18 or aged between 18 and 22 years and in full time education.

Subject to a minimum weekly payment of €20, FIS is calculated at 60% of the difference between a person's net family income (i.e. gross pay less tax, PRSI, Health levies, Superannuation), and the income limit applicable to the family size.

The FIS thresholds are normally increased in each Budget to take account of the increases in the job-seekers assistance personal payment rate and in the associated increase for a qualified adult. In Budget 2006, the approach was adjusted to take greater account of family size so that larger families received greater increases.

This has resulted in a more equitable arrangement, where the gap has been reduced between the average FIS weekly payment per child in different sized families.

The tabular statement attached shows the increases in FIS thresholds in Budget 2006 over Budget 2005 and the maximum payment increase for each family.