Written answers

Wednesday, 13 February 2008

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 166: To ask the Minister for Social and Family Affairs his views on easing or improving the means test applied by his Department; and if he will make a statement on the matter. [5226/08]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 278: To ask the Minister for Social and Family Affairs his proposals to revise or liberalise the various means tests operated by his Department; and if he will make a statement on the matter. [5542/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 166 and 278 together.

Last September, I was pleased to introduce two reforms of the social welfare means testing system. The new arrangements enable recipients of Jobseeker's Allowance, as well as their spouses or partners, to retain more of their social welfare payment if either or both engage in employment. The overall aim of these reforms is to encourage spouses and partners to move into employment or to move beyond long-term part-time employment. The new measures are designed to be progressive, particularly for women, who currently are the majority of 'qualified adults' in our social welfare system. Under the previous system there was no incentive for qualified adults to earn more than €100 per week. Under the new arrangements, a qualified adult will always be better off if they choose to earn more.

The second improvement relates to recipients of Jobseeker's Allowance who take up part-time employment, be they single or one of a couple. All part-time workers on Jobseeker's Allowance gained under the new arrangements. Budget 2008 provided for the following improvements to means testing arrangements:

The upper income threshold for One Parent Family Payment will increase by €25 a week to €425 a week in May next.

Also from May 2008, social insurance contributions, Health contributions, superannuation contributions and trade union subscriptions will be disregarded for the purpose of assessment of earnings for One Parent Family Payment. This measure brings the arrangements for One Parent Family payment into line with other social assistance schemes.

In assessing an applicant's means for Jobseeker's Allowance and Supplementary Allowance purposes, account is taken of the value of any benefit and privilege enjoyed, such as that of free board and lodging in the family home. From April 2008, a single reformed method for assessing Benefit and Privilege from parent's income will be introduced, which will ensure that people living in low to middle income families will either no longer be assessed or be assessed at a reduced value.

The upper ceiling for entitlement to tapered Qualified Adult payments for Jobseeker's Benefit, Illness Benefit, Injury Benefit, Health & Safety Benefit, State Pension Contributory, the State Pension Transition and Invalidity Pension was increased by €20, from €280 to €300 per week, with effect from January 2008,

All weekly Family Income Supplement earnings thresholds were increased by amounts varying from €10 per week to €80 per week depending on family size.

From April 2008, the income disregard for Carer's Allowance will be increased by €12.50 per week for a single person and €25 per week for a couple to €332.50 and €665 respectively.

From April 2008, the earnings limit for entitlement to Carer's Benefit will increase by €12.50, from €320 per week to €332.50 per week.

Any further improvements to means testing arrangements would have to be considered in a Budgetary context and in the light of available resources.

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