Consideraciones sobre el método de caso extendido

Table 7.5 summarises key features of the income tests operating in social assistance schemes. Most countries appear to provide 'free areas' under which benefits are not reduced, or provide equivalent disregards of income or earnings. The situation is not entirely clear in the case of Iceland, Italy, Japan, Spain, Sweden. Switzerland and Turkey. The rules in Denmark and Finland also appear to allow for some discretion in the provision of disregards, although they are apparently not often applied. Where levels are stated clearly. disregards appear to be lowest in the United States (apart from for Food Stamps), followed by Belgium and the United Kingdom. The disregards seem to be most generous in Ireland. Australia and New Zealand. as well as in Luxembourg. The disregards are set as percentages of earnings in Canada, France and the Netherlands. and as a percentage of the minimum wage in Portugal.

In the majority of countries, social assistance is reduced in relation to net income, although in Australia. Denmark (from 1994). Luxembourg, New Zealand. Portugal and the United States (apart from Food Stamps) it is gross income that is taken into account. Virtually all social assistance schemes operate an income test with a withdrawal rate of 100 per cent. The exceptions are Australia. New Zealand. and Ireland for lone parents since July 1994. Portugal for social pensioners. and the United States, where lower withdrawal rates operate on earnings for SSI and AFDC, and Food Stamps are reduced by only 30 per cent of net income. Clearly.

arrangements in Australia and New Zealand are the most liberal, although this reflects the absence of social insurance benefits. It should also be noted that in these countries the income taken into account is gross and not net of tax. so that the effective withdrawal rate will be increased over income ranges where income is also subject to tax. The income test - or rather the tax surcharge - - is most relaxed in the ease of recipients of superannuation in New Zealand. It can also be noted that the change to unemployment assistance arrangements in Australia from 1995 will dramatically reduce the withdrawal rate at higher levels of earnings. although the disregards will be reduced at the same time.

Table 7.5: Disregards and income tests itr social assistance schemes, 1994 Australia Austria Belgium ('anada Denmark Finland France (iertna€ny Greece Iceland Ireland Italy Japan l.uxembourg Netherlands Disregards

'Free areas' for pensioners of A$44pax for singles. A$76pw for couples, plus ASI2pw for each child. Earnings `credit' of A.$1000 (singles) and A$2000 (couples). For unemployment payments, basic free area of A$30pw , plus earnings disregard of A$30pw for singles and A$25pw for each of couples. Earnings credit of A$500 l'rona 1995, free area. to be reduced to A$30 .... but see changes to withdrawal rate. Also partial individualisation of structure.

Income taken into account Withdrawal rate

Gross 50% for older people. those with disabilities, carers, sole parents. For unemployed, SOY for first $40 per week, and then

100%. From 1995. 50`%, between $30 and $70 per week. and then 30%.

Net 100`%

Not clear 00%

Not clear 100%

Gross from 1994 1O(] Net

Not clear 100%

Net 100%

Net One off payments (100`4,)

Gross 100`%f

_tat

Net for VA. Before ta.x and after social security otherwise.

100.c generally. All UA lost if fourth day worked parents from July 1994.

St1. for lone

Taxable 100%

Net of tax and social security 1110"/

Gross I1)0%

Net 1007t

Work expenses tnay be deducted

Minimex: general disregard of £:17pm (US$27) for families with children, £8 (812) for couples without children, £l4pm ($22) for singles.

Additional earnings disregard of £1O6pm ($168) for first year of claiming, reducing over time.

Partial exemption of earned income

Not legally defined. Some of up to £136 (5216) per month. Local and infrequently applied directives ....i:3€) £50 per month ($47 $79)

.R.MI: Earnings disregard of 50% of wage

30 to 50° of household head rate-i:45--75 per month (871-....5119)

Certain types of expense are disregarded when claiming for the family allowance. These include rent, housing loans and alimony. The rules are imprecise. Different limits are applied to the circumstances of different families.

Municipalities have discretion to disregard some types of income such as the income of a child and training allowances Daily rate of Unemploymen6 Assistance, plus :t:.15 per day worked (£UKI5.45, $23.04). £30 per week forlone parents (£30.90, $46.08).

Not clear Part of earnings

Up to 20% of household benefit rate £88 per month for single person (SI39.90)

25% of net earnings up to 15`1,1, of benefit rate for Al). Extra 15% for lone parents.

Table 7.5: Disregards and income tests in social assistance schemes, 1994 (contd.

Disregards Income taken into account Withdrawal rate

_

New Zealand Income-tested benefits: 550pw or $6€Ipw with children. Gross Income-tested benefits: 30%0 between disregard and S80pw. Extra $2Opw for lone parents with childcare costs. then 70°a Superanniutants: 25'4 above $80pw (single) and $20pw fix earnings for Invalids Benefit. S6Opw for each of couple,

Norway Earnings disregard on Transitional Allowance Net of tax and social 100'6 insurance

Port ugal For an individual the monthly income of the individual must not Gross Ill0'', but 30% forsingle social pension and 50% for social

exceed 40% of the national minimum wage and the average pension couple income of a family must not exceed 80ii. For the integration

benefit it must not exceed 60%

Spain Training allowances and one-off payments from chanties arc Net 100% disregarded

Sweden No earnings disregards Net of tax 100%

Switzerland No formal earnings disregards (though local rules may apply) Assessment of needs l(?tl`;

taaa.

Turkey No earnings disregards Net income l 00`./i

at,ai

United .Kingdom £5pw for singles and each of couple; .f 15pw for lone parents, Net of tax and NI and 1110`;4, couples under 60 on iS for two or mote years, carers. disability half of pension

premium. Special rules for childminders, and income from contributions subtenants and lodgers,

United States 5Si: $20pm. $(i5pm of gross earnings, El l U, and other Generally gross. Net SSE: 1 ariiinu, , other 100°/,. payments. AFDC: $30p n, EPIC, other. FS: $127pm, 20% of for 1-S. AFDC Earn,;; other 1110'/ -