Pat Rabbitte
Question:41 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs his plans in the Social Welfare Bill, 2000, to increase the earnings disregard for the one parent family payment. [29716/00]
Vol. 528 No. 2
41 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs his plans in the Social Welfare Bill, 2000, to increase the earnings disregard for the one parent family payment. [29716/00]
It is generally accepted that the most effective route out of poverty is through paid employment. The earnings disregard is a major feature of the one-parent family payment and is designed to recognise the additional costs which a lone parent may face in moving into employment and to ensure that the financial implications of making such a move are straightforward and easily understandable.
Under the means test associated with the one-parent family payment, a recipient is entitled to earn up to £115.38 without affecting his/her payment. Earnings between £115.38 per week and £230.76 per week are assessed at 50 per cent and the rate of one-parent family payment paid is reduced accordingly. Payment ceases when earnings exceed £230.76 per week. However, there are transitional arrangements in place whereby a recipient of the one-parent family payment who exceeds the upper income limit may retain 50 per cent of his/her entitlement for a further 12 months.
The review of the one-parent family payment, published on 5 September 2000, is the first review of this scheme since it was introduced in January 1997. The review found that about 60 per cent of one-parent family payment recipients have some level of earnings. Of these, approximately 75 per cent have earnings below the £115.38 per week threshold. The level of earnings may indicate a high level of part-time work which often suits parents with young children.