Allowance for low-earning spouses
Bell warns that low-earning wives could lose the incentive to work if their earnings reduce family benefits. Hussey says spouses earning £50 or less will still count as adult dependants and will check whether a husband may retain the payment.
There are many women working and earning low levels of income whose husbands are unemployed and receiving a payment in lieu of their wives and children. If the new regulation comes into force without any form of subsidy, the incentive will be for the woman to discontinue working because she could find herself working in tax deducted, PRSI deducted employment virtually for nothing. Is it correct that, when the final regulations come into operation as stated, the woman can opt on a voluntary basis to allow her husband to continue to draw what would be effectively her benefit and the benefit of the children?
Comment on this
In answer to the first part of that question, the fact that we have made special alleviating measures goes some way towards meeting the problem. It is proposed that a working spouse earning £50 a week or less will continue to be regarded as an adult dependant so that there would not be a loss in the case of very low earnings. That is as far as one can go on that aspect. It has been designed to soften the impact of this necessary directive. On the other part of the question the Deputy asked, I cannot give the answer straight away. I will have that conveyed to the Deputy.