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5 2001

SOCIAL WELFARE ACT, 2001

PART 2

Increases

Social Insurance benefits (new rates).

4. —(1) The Principal Act is amended by the substitution for Parts I to IV (inserted by section 4 of the Act of 2000) of the Second Schedule thereto of the Parts set out in Schedule A to this Act.

(2) This section comes into operation—

(a) in so far as it relates to unemployment benefit, on 29 March 2001,

(b) in so far as it relates to disability benefit, health and safety benefit, injury benefit and disablement gratuity, on 2 April 2001,

(c) in so far as it relates to carer's benefit, retirement pension, invalidity pension and a relevant payment by virtue of section 18(1)(a) of the Act of 1996, on 5 April 2001, and

(d) in so far as it relates to disablement pension, death benefit under section 60, 61 or 62 of the Principal Act, old age (contributory) pension, widow's and widower's (contributory) pension and orphan's (contributory) allowance, on 6 April 2001.

Social assistance payments (new rates).

5. —(1) The Principal Act is amended by the substitution for Parts I, II, IIA, IIB and IIC (inserted by section 5 of the Act of 2000) of the Fourth Schedule thereto of the Parts set out in Schedule B to this Act.

(2) This section comes into operation—

(a) in so far as it relates to unemployment assistance, pre-retirement allowance and farm assist, on 28 March 2001,

(b) in so far as it relates to supplementary welfare allowance, on 2 April 2001,

(c) in so far as it relates to disability allowance, on 4 April 2001,

(d) in so far as it relates to one-parent family payment (other than where payable in respect of a widow or widower), carer's allowance and a relevant payment by virtue of section 18(1)(b) or (c) of the Act of 1996, on 5 April 2001, and

(e) in so far as it relates to old age (non-contributory) pension, blind pension, widow's and widower's (non-contributory) pension, one-parent family payment payable in respect of a widow or widower and orphan's (non-contributory) pension, on 6 April 2001.

Child benefit (new rates).

6. —(1) The Fourth Schedule to the Principal Act is amended by the substitution for Part III (inserted by section 6 of the Act of 2000) of the following Part:

“PART III

Amounts of Child Benefit

Amount for each of first 2 children

Amount for each child in excess of 2

(1)

(2)

£67.50

£86.00

”.

(2) This section comes into operation on 1 June 2001.

Family income supplement (new weekly rates).

7. —(1) The Principal Act is amended by the substitution for section 198 (inserted by section 7(1) of the Act of 2000) of the following section:

“Entitlement to supplement.

198.—Subject to this Act, an allowance (in this Act referred to as ‘family income supplement’) shall be payable out of moneys provided by the Oireachtas in respect of a family where the weekly family income is less than—

(a) in the case of a family which includes only 1 child, £258,

(b) in the case of a family which includes 2 children, £278,

(c) in the case of a family which includes 3 children, £298,

(d) in the case of a family which includes 4 children, £318,

(e) in the case of a family which includes 5 children, £343,

(f) in the case of a family which includes 6 children, £363,

(g) in the case of a family which includes 7 children, £380, or

(h) in the case of a family which includes 8 or more children, £397.”.

(2) This section comes into operation on 5 April 2001.

Employment contributions (new rates of contributions and amendments to earnings ceilings).

8. —(1) Section 2(1) (as amended by section 30 of the Act of 1999) of the Principal Act is amended by the substitution for the definition of “qualifying contribution” of the following definition:

“‘qualifying contribution’ means the appropriate employment contribution or self-employment contribution which was paid or would have been paid but for section 10(1)(c) in respect of any insured person or the appropriate optional contribution which was paid or would have been paid but for section 24B(1)(b);”.

(2) Section 10 of the Principal Act is amended by—

(a) the substitution in subsection (1)(b) (as amended by section 8(1)(b) of the Act of 2000) of “4 per cent.” for “4.5 per cent.”,

(b) the substitution in subsection (1)(c) (inserted by section 8(1)(c) of the Act of 2000) of “£28,250” for “£26,500”,

(c) the substitution in subsection (1)(d) (as amended by section 8(1)(d) of the Act of 2000) for “Subject to paragraphs (e) and (f), subsection” of “Subject to subsection”,

(d) the deletion of subsections (1)(e) and (1)(f), and

(e) the substitution in subsection (2)(a) for “paragraphs (c) and (e)” of “paragraph (c)”.

(3) The following section is substituted for section 13 of the Principal Act:

“13.—Regulations may provide for the determination of liability for the payment of employment contributions in the case of a person who works under the general control or management of a person who is not his or her immediate employer.”.

(4) This section comes into operation on 6 April 2001.

Self-employment contributions (new rates of contributions and abolition of income ceiling).

9. —(1) Section 18(1) of the Principal Act is amended by—

(a) the substitution for paragraph (a) (as amended by section 9 of the Act of 1996) of the following paragraph:

“(a) Subject to paragraph (b) and (h), where in any contribution year a self-employed contributor has reckonable income there shall be payable by him or her a self-employment contribution which shall be of an amount equal to 3 per cent. of the reckonable income or the amount of £200 whichever is the greater.”,

(b) the substitution for paragraph (c) (as amended by section 9 of the Act of 1996) of the following paragraph:

“(c) Subject to paragraph (h), where in any contribution year a payment is made to a self-employed contributor in respect of reckonable emoluments of that self-employed contributor, there shall be payable by him or her a self-employment contribution which shall be of an amount equal to 3 per cent. of the reckonable emoluments or the amount of £200, whichever is the greater.”,

(c) the deletion of paragraph (d),

(d) the deletion of paragraph (f), and

(e) the substitution in paragraph (h) (as amended by section 9 of the Act of 1996) of “£200” for “£215”.

(2) Section 19 of the Principal Act is amended by—

(a) the substitution in subsection (1) for “Subject to subsection (2), regulations” of “Regulations”, and

(b) the substitution for subsections (2), (3) and (4) of the following subsections:

“(2) The Minister may by regulations specify circumstances in which contributions payable by a self-employed contributor may be treated as paid.

(3) For the purposes of this section ‘contributions’ means employment contributions payable under section 10 and self-employment contributions payable under section 18.”.

(3) Section 4 of the Principal Act is amended by the deletion in subsection (5) (as amended by section 17 of the Act of 2000) of “18(1)(f),”.

(4) This section comes into operation on 6 April 2001.

Optional contributions (new rates of contributions).

10. —(1) Section 24B(1)(b) of the Principal Act (inserted by section 4 of the No. 2 Act of 1993) is amended by the substitution for “the sum specified in section 18(1)(d).” of “£28,250.”.

(2) This section comes into operation on 6 April 2001.

Voluntary contributions (new rates and amounts of contributions).

11. —(1) Section 22(1) of the Principal Act is amended by the substitution for paragraphs (a) and (b) of the following paragraphs:

“(a) Subject to paragraph (c), a contribution (in this Act referred to as a ‘voluntary contribution’), in the case of a person who becomes a voluntary contributor by virtue of paragraph (a) of section 21(1) and who is under pensionable age, shall be payable in each contribution year, at such time or times and in such manner as the Minister shall prescribe, at a percentage rate, as set out in paragraph (b), of the amount of the reckonable income (if any) of the contributor in the preceding contribution year or in an amount (‘minimum annual amount’), as set out in paragraph (b), whichever is the greater.

(b) (i) In the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are not reckonable for the purposes of old age (contributory) pension, the percentage rate shall be 2.6 per cent. and the minimum annual amount shall be £100.

(ii) In the case of a voluntary contributor who, immediately before ceasing to be an employed contributor, was employed in employment in respect of which the employment contributions payable are reckonable for the purposes of old age (contributory) pension, the percentage rate shall be 6.6 per cent. and the minimum annual amount shall be £250.

(iii) In the case of a person to whom subsection (2) applies and who, by virtue of compliance with that subsection, continues to be a voluntary contributor, the percentage rate shall be 4 per cent. and the minimum annual amount shall be £150.”.

(2) Section 23(1) of the Principal Act (as amended by section 11 of the Act of 1996) is amended by the substitution for “£215” of “£200”.

(3) This section comes into operation on 6 April 2001.