Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 177: To ask the Minister for Social and Family Affairs the progress with the programme for Government commitment to maintain the policy of phasing and using transition payments for those coming off social welfare; and if she will make a statement on the matter. [20125/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I am conscious of the need to facilitate persons in receipt of social welfare payments when taking up employment opportunities. To ensure that supports are structured to support this objective, a number of measures have been introduced in recent years to remove disincentives to taking up employment and to assist in the transition from welfare to work. These include easing of means tests through income disregards, tapered withdrawal of benefits as earnings increase and the provision of employment support schemes such as the back to work programme.

Some examples of disregards and the tapered approach are: the weekly cash disregard on one parent family payment (OPFP) and 50% assessment of the balance, with the earnings ceiling increased to €425 from 8 May 2008; payment of half rate OPFP for 6 months where earnings exceed €425; the earnings disregard which applies to people with disabilities when engaging in work of a rehabilitative nature, and the enhanced disregards of earnings introduced in 2007 in relation to the rent supplement scheme, which complement the rental accommodation scheme that was introduced in 2004.

Significant progress in removing poverty and inactivity traps is also shown in two important reforms which were introduced as recently as September last. These improved the method by which a person's earnings from employment, or the earnings of their partner, are assessed and facilitate persons in increasing their level of employment and income. This means that both adults associated with a jobseeker's allowance claim are now assessed in a similar manner and ensures that the families gain when earnings increase, encouraging qualified adults to move beyond long-term part-time employment. These changes are designed in particular to be progressive for women, who currently make up the majority of qualified adults in the social welfare system. Under the previous assessment procedures a trap existed whereby the loss in benefits to a household could exceed the gain in income attained by an increase in the earnings of a partner.

The changes also removed an anomaly in the assessment of means which discriminated against people with children, through the introduction of a daily earnings disregard of €20, benefiting many part-time workers, but particularly those with children. For example, a couple earning €290 per week over three days with two children gained over €112 per week jobseekers allowance under the new arrangements. In contrast, previous arrangements discouraged all but a small level of attachment to the workforce. The new arrangements also apply to the disability allowance, farm assist and pre-retirement allowance schemes.

The back to work (BTW) allowance scheme is part of the programme of initiatives designed to assist long term unemployed people, lone parents and other social welfare recipients to return to the active labour force. There are currently some 8,900 participants in the scheme of whom over 4,800 (54%) are engaged in self-employment. Participants also retain entitlement to certain secondary benefits. In addition, the in-work income support provided through family income supplement (FIS) provides ongoing income support for people in low-income employment with children. There are in excess of 22,700 people in receipt of FIS, benefiting over 47,600 children (March 2008).

Notwithstanding these improvements, it should be appreciated that poverty traps can feature in any contingency-based system which features income thresholds. However, the measures outlined, including those recently introduced, will have the effect of greatly reducing the incidence and extent of poverty traps and ensure that they will only arise at significantly higher income levels than previously applied. My Department will continue to monitor the operation of its schemes with a view to ensuring that poverty traps and disincentives are removed.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 178: To ask the Minister for Social and Family Affairs the progress with the programme for Government commitment to ensure that women are treated fairly in the social welfare code and examine the proposals in the Green Paper on pensions; and if she will make a statement on the matter. [20126/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The social welfare system has been improved over recent decades to make it easier for people, and women in particular, to qualify for contributory pensions. Social insurance coverage has been extended to include new categories of employment such as part-time workers and qualifying conditions for pensions have been eased. The home-makers scheme was introduced to limit the impact periods spent out of the workforce, on caring duties, on pension entitlements. The effect of these reforms, combined with increased workforce participation, will ensure that, in future, most people will qualify for a contributory pension in their own right.

A qualified adult increase is payable in respect of a spouse or partner who is wholly or mainly maintained by a claimant. Since 2002, pensioner couples have been able to choose to have the qualified adult portion of the pension paid direct to the spouse or partner. Many spouse partners without their own pension entitlement have received a direct payment in this way. These arrangements were further enhanced from last September when direct payment of the qualified adult allowance was made mandatory in respect of all new pension claims. Couples may opt to receive a single payment but only where the qualified adult indicates that she/he does not wish to receive a direct payment.

The Government committed itself to complete the process, begun in Budget 2007, to bring payments to qualified adults up to the level of the state pension (non-contributory) over a period of three years. Budget 2008 included an increase of €27 per week in the rate of the qualified adult increase, bringing it to 94% of the state pension (non contributory). The Programme for Government also includes a commitment to extend payment of the over 80 allowance to qualified adults, which will, when implemented, benefit some 4,500 people who are receiving support as qualified adults on the pension of their spouse or partner.

There are, of course, some older women who, for various reasons, cannot benefit from the many changes already outlined. Their position and that of others not covered by the social welfare pensions system is discussed in the Green Paper on Pensions which was published on 17 October 2007. A consultation process on the Paper will conclude at the end of this month and work on developing the framework for future policy will commence with a view to completing the framework by the end of 2008. The outcome of this process will inform pensions' policies to ensure they reflect the needs of women as well as men.

The Department is also carrying out a technical review of the entire social welfare code to examine its compatibility with the Equal Status Act 2000 (as amended). The review will examine all the schemes and services provided for both in social welfare legislation and the administrative schemes operated by the Department. It will identify any instances of direct or indirect discrimination, on any of the nine grounds under the Act, that are not justified by a legitimate social policy objective or where the means of achieving that objective are either unnecessary or inappropriate. The findings of this review will inform planning and policy making to ensure that the social welfare system reflects the needs and expectations of all citizens and is equitable in meeting those needs.