Shane McEntee (Meath East, Fine Gael)
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Question 117: To ask the Minister for Social and Family Affairs the measures her Department has in place to monitor the operation of its schemes with a view to ensuring that poverty traps and disincentives are removed; and if she will make a statement on the matter. [24746/08]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 142: To ask the Minister for Social and Family Affairs the research or analysis of the removal of poverty traps relating to the policy of phasing and using transition payments for those coming off social welfare payments that has been undertaken by her Department; and if she will make a statement on the matter. [24745/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 117 and 142 together.

There is a constant balance to be maintained in ensuring that social welfare programmes provide an adequate safety net for those who need to avail of them and, at the same time, provide opportunities to assist people to become less welfare dependent. In this context, 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 the easing of means tests through income disregards, tapered withdrawal of benefits as earnings increase and the provision of employment supports. Examples of disregards and the tapered approach include: the weekly cash disregard on one parent family payment (OPFP) and 50% assessment of the balance, with the earnings ceiling increased to €425 from May 2008 and 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.

Important progress in removing poverty and inactivity traps is also shown in two significant reforms which were introduced in September 2007. These improved the method by which a person's earnings from employment, or the earnings of their partner, are means tested and facilitate people 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 improved assessment applies to jobseeker's allowance, disability allowance, farm assist and pre-retirement allowance.

Family income supplement provides support for people in low-income employment with children, even where they have not previously been in receipt of a social welfare payment, preserving the incentive to take up or remain in employment. Farm assist is a weekly means-tested payment for low income farmers, including those who may have off-farm employment or additional self-employment. Recipients of various social welfare schemes may also qualify for a transitional payment under the back to work programme which provides for retention on a phased basis of their social welfare payment when taking up employment or self employment.

It is important to ensure that work pays and a number of policy instruments crossing a range of Government Departments are used as a way of alleviating poverty amongst people in low wage employment. In addition to those already mentioned, these include changes to the taxation system, the introduction of the national minimum wage, provision of training and access to lifelong learning opportunities and assistance with job search.