Definitely a step in the right direction :)
That scheme has been operating in Northern Ireland for a while and I always make a point of mentioning it when I meet someone with a 'new' dog as many people don't seem to know it is available. There is now no excuse for those on a low income to say that they can't afford to have their dogs neutered. There has been some 'abuse' of the scheme here in that some people who wouldn't qualify are having friends/relative who are in receipt of benefits take in their dog to be 'done' but I, IMO, if it means that a dog gets neutered that wouldn't otherwise, it's an acceptable trade off. Although there is still a HUGE problem here, every little helps :)
The Dogs Trust also run a microchipping scheme in N.Ireland and people on benefits can have their dogs chipped free of charge or £10 for those not in receipt of benefits. In reality, they seem to chip all dogs free of charge as they have refused payment from me on the two occasions that I took my dogs along to be chipped (I made a donation instead).
I can only commend the good work they are doing throughout Ireland
http://www.dogstrust.org.uk/press_office/pressreleases/2006/irelandneuteringcampaign.htm