Written answers

Tuesday, 12 February 2008

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 375: To ask the Minister for Social and Family Affairs his views on whether the earnings limit which applies to some recipients of deserted wife's benefit is a barrier to full time employment in view of the fact that many of these women will not qualify for a contributory State pension; if he will amend the legislation to allow women who exceed the earnings limit to re-qualify for deserted wife's benefit at age 66 or earlier should their employment cease; and if he will make a statement on the matter. [5116/08]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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Question 376: To ask the Minister for Social and Family Affairs if a recipient of deserted wife's benefit who transfers to one-parent family payment due to the increase in earnings limit on that payment, can re-qualify for deserted wife's benefit if their earnings should drop below €20,000 per annum in the future; and if he will make a statement on the matter. [5117/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 375 and 376 together.

The deserted wife's benefit (DWB) scheme was closed off to new applications with effect from 2 January 1997, when one-parent family payment (OFP) was introduced. Thereafter, both lone parents and deserted wives with qualified children are supported under the OFP, with the resultant increases in income limits being focused on the OFP scheme. Prior to 1992 there was no means test for DWB. One of the main reasons for the introduction of the earnings limit for the scheme was to more effectively target support on those deserted wives who required an additional supplement to their income until they were able to support themselves. This is consistent with other social insurance payments which seek to support claimants during short-term periods of unemployment and or illness.

With the exception of those recipients of DWB who first claimed the payment prior to 31st August 1992, the only social insurance payments which are long-term in nature are to those people who are unable to return to work either through retirement or long-term disability or illness. The current income disregard of €20,000 was introduced in Budget 2007 and represented a substantial increase on the previous income disregard whereby recipients earning more than €12,697 per annum received a reduced payment and whereby claimants earning more than €17,776 lost entitlement to the payment. This new arrangement, in effect allows DWB recipients to earn up to €384 per week and still retain full entitlement to benefit of €197.80 per week.

DWB recipients whose income goes over €20,000 per annum are also entitled to a half-rate transitional payment for 6 months. Once the claimant's income goes over the €20,000 threshold, they can not re-qualify for deserted wife's benefit. However, customers with qualified children who transferred from DWB to the one parent family payment, can revert to DWB when they reach 40 years of age and no longer have qualifying children. It is likely that most DWB recipients who are working would retain eligibility for contributory state pension, based on their social insurance contributions. Those who do not are entitled to apply for the non-contributory state pension.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 377: To ask the Minister for Social and Family Affairs the consideration he has given to raising the amount payable under the living alone increase; when the current rates payable were set; and if he will make a statement on the matter. [5176/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The living alone increase is an additional payment of €7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments and who are living alone. It is also available to people who are under 66 years of age who are living alone and receiving payments under one of a number of invalidity type schemes. This additional payment is intended as a contribution towards the additional costs people face when they live alone. The payment was last increased in 1996.

The policy in relation to support for pensioners has been, for many years, to give priority to increasing the personal rates of pension in addition to enhancing the Household Benefits Package which includes T.V. Licence, Telephone, Electricity/Gas and the Fuel Allowance rather than supplements like the living alone increase. The objective is to use resources to improve the position of all pensioners to the fullest extent possible rather than focusing on particular groups. The results of this policy can be seen in the results from the EU Survey on Income and Living Conditions (SILC) released last November, which showed that the position of older people improved significantly from 2005 to 2006, with the 'at risk of poverty' rate falling from 20.1% to 13.6% and the consistent poverty rate falling from 3.7% to 2.1%. Furthermore, the number of people aged 65 and over 'at risk of poverty' was significantly lower than the figure of 17% for the general population. I will continue to keep the position under review.

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