asked the Minister for Social Welfare if in view of the variable effect of inflation on living costs, he will introduce an index-linked system for social welfare allowances.

The Government's commitment to maintain the living standards of social welfare recipients and to increase the level of payments at least in line with movements in the cost of living means, in effect, that social welfare payments are related to the consumer price index but with the added possibility of additional increases where circumstances allow.

27.

asked the Minister for Social Welfare if he will introduce a sliding scale to social welfare benefits which have a means tested cut-off point, so that people who have a very small excess of income over the financial limit allowable will not lose all benefits.

Social welfare means tested payments already operate on the basis of statutory sliding scales, which are the subject of review in the context of the annual budget.

Is the Minister satisfied with the position where some benefits may be lost entirely to people because of an increase of £1 or £2? Today I spoke to a gentleman who lost his medical card because he obtained an increase of a couple of pounds per week in his income. Will the Minister review the entire social welfare code with a view to ensuring that people get a graduated amount?

Most social welfare benefits are graduated.

Some are not.

A medical card is a different matter.

I am trying to ensure that people do not lose out substantially.

There should be flexibility in the administration of medical cards. It is meant to be a flexible scheme and the income limits are only guidelines.

That is not the case in Dublin, as the Minister knows from his own clinic experience.