Written Answers. - NESC Report.
Dick Spring
Question:
53
Mr. Spring
asked the
Minister for Finance
if, in respect of the figures and tables supplied by his Department to NESC which formed the basis of a table entitled The Poverty Trap: Man, Wife, Four Children, 1989/1990, £ per annum, on page 235 of the NESC report A Strategy for the Nineties, he will give details of comparable data in tabular form for the year 1990-1991 and estimated for the year 1991-1992; and if he will make a statement on the matter.
Following, in tabular form, are the data for 1990-91 and 1991-92 requested by the Deputy. They update Table A7.9 on page 235 of the NESC Report entitled A Strategy for the Nine ties.
The updated table for 1991-92 shows that, compared to 1989-90, the net disposable income position at all of the gross pay ranges examined has increased, with particularly significant increases at the lower pay levels. The principal reasons for the increases in net income relative to gross pay have been tax reductions and FIS improvements.
The original table showed that for 1989-90 at gross pay levels between £6,000 and £9,000, net income declined as gross pay increased. The updated table for 1991-92 shows that, while this effect still occurs between £8,000 and £10,000, the range of incomes over which it occurs has been narrowed and has also been moved away from the low pay levels at which it had operated previously.
As regards the impact in practice, the Deputy should note, firstly, that the number of persons involved is small and, secondly, that administrative factors can operate to mitigate the effect. An example of the latter is the fact that although a person's gross income may increase during the course of a year, his FIS entitlement is reviewed only annually.
The Poverty Trap: Man, Wife, Four Children, 1990-91, £ Per Annum.
|
|
|
|
|
Plus
|
|
Less
|
|
Gross Pay
|
Tax
|
PRSI
|
Levies
|
Net Pay
|
FIS
|
Medi-Card Value
|
Net Income
|
LA Rent
|
Travel To Work Costs
|
Net Disposable Income
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
3,000
|
—
|
—
|
—
|
3,000
|
2,704
|
450
|
6,154
|
103
|
550
|
5,501
|
4,000
|
—
|
220
|
—
|
3,780
|
2,704
|
450
|
6,934
|
155
|
550
|
6,229
|
5,000
|
—
|
275
|
—
|
4,725
|
2,704
|
450
|
7,879
|
218
|
550
|
7,111
|
6,000
|
—
|
330
|
—
|
5,670
|
2,421
|
450
|
8,541
|
681
|
550
|
7,310
|
7,000
|
—
|
385
|
—
|
6,615
|
1,821
|
450
|
8,886
|
910
|
550
|
7,426
|
8,000
|
159
|
440
|
—
|
7,401
|
1,221
|
450
|
9,072
|
1,120
|
550
|
7,402
|
9,000
|
689
|
495
|
202
|
7,614
|
621
|
—
|
8,235
|
1,156
|
550
|
6,529
|
10,000
|
1,219
|
550
|
225
|
8,006
|
260
|
—
|
8,266
|
1,221
|
550
|
6,495
|
11,000
|
1,744
|
605
|
247
|
8,404
|
—
|
—
|
8,404
|
1,288
|
550
|
6,566
|
12,000
|
2,044
|
660
|
270
|
9,026
|
—
|
—
|
9,026
|
1,456
|
550
|
7,020
|
13,000
|
2,344
|
715
|
292
|
9,649
|
—
|
—
|
9,649
|
1,555
|
550
|
7,544
|
14,000
|
2,644
|
770
|
315
|
10,271
|
—
|
—
|
10,271
|
1,659
|
550
|
8,062
|
15,000
|
2,944
|
825
|
337
|
10,894
|
—
|
—
|
10,894
|
1,758
|
550
|
8,586
|
The Poverty Trap: Man, Wife, Four Children, 1991-92, £ Per Annum.
|
|
|
|
|
Plus
|
|
Less
|
|
Gross Pay
|
Tax
|
PRSI
|
Levies
|
Net Pay
|
FIS
|
Medi-Card Value
|
Net Income
|
LA Rent
|
Travel To Work Costs
|
Net Disposable Income
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
£
|
3,000
|
—
|
—
|
—
|
3,000
|
4,440
|
463
|
7,903
|
123
|
570
|
7,210
|
4,000
|
—
|
220
|
—
|
3,780
|
3,840
|
463
|
8,083
|
175
|
570
|
7,338
|
5,000
|
—
|
275
|
—
|
4,725
|
3,240
|
463
|
8,428
|
238
|
570
|
7,620
|
6,000
|
—
|
330
|
—
|
5,670
|
2,640
|
463
|
8,773
|
681
|
570
|
7,522
|
7,000
|
—
|
385
|
—
|
6,615
|
2,040
|
463
|
9,118
|
910
|
570
|
7,638
|
8,000
|
—
|
440
|
—
|
7,560
|
1,440
|
463
|
9,463
|
1,120
|
570
|
7,773
|
9,000
|
312
|
495
|
202
|
7,990
|
840
|
—
|
8,830
|
1,156
|
570
|
7,104
|
10,000
|
832
|
550
|
225
|
8,393
|
260
|
—
|
8,653
|
1,221
|
570
|
6,862
|
11,000
|
1,352
|
605
|
247
|
8,795
|
—
|
—
|
8,795
|
1,288
|
570
|
6,937
|
12,000
|
1,872
|
660
|
270
|
9,198
|
—
|
—
|
9,198
|
1,456
|
570
|
7,172
|
13,000
|
2,237
|
715
|
292
|
9,755
|
—
|
—
|
9,755
|
1,555
|
570
|
7,630
|
14,000
|
2,527
|
770
|
315
|
10,387
|
—
|
—
|
10,387
|
1,659
|
570
|
8,158
|
15,000
|
2,824
|
825
|
337
|
11,014
|
—
|
—
|
11,014
|
1,758
|
570
|
8,686
|