Dáil Éireann debate -
Wednesday, 17 Nov 1993

Vol. 435 No. 10

Written Answers. - Lone Parent's Allowance Scheme.

Jim Mitchell

Question:

110 Mr. J. Mitchell asked the Minister for Social Welfare if a woman who is in receipt of deserted wife's allowance and takes up employment is only allowed to earn £6 per child, together with any child minding costs she incurs, after which a full pound is reduced from her deserted wife's allowance for every pound she earns; his views on whether this traps those on deserted wife's allowance in poverty and prevents them from taking up part-time employment; if, in the circumstances, he will amend the regulations so as to allow deserted wives in this position to earn at least £12 per week per child and include not only child minding costs, but transport costs to work, and also allow her retain at least 50 pence in every pound for the first £50 over and above this; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

Under the lone parents allowance scheme which applies to deserted wives with children, the first £6 per week of means is disregarded, together with a further £6 in respect of each child. Travel costs to work and childminding expenses are also disregarded. After this, the allowance is reduced by £2 for each £2 of earnings.

A lone parent who works for twenty hours or more per week may also qualify for family income supplement if he or she meets the conditions for eligibility for that scheme.

These arrangements mean that lone parents can take up part-time work and in most cases retain a significant portion of their weekly allowance. Any proposal to increase the present disregards would involve additional costs and could, therefore, only be considered in a budgetary context in the light of available resources.

Under the back-to-work allowance which I introduced recently a lone parent may take up work in indigenous sectors or try out self-employment and retain 75 per cent of weekly payments for the 1st year and 50 per cent for the second year.

My purpose in extending the back-to-work allowance to lone parents is to ensure that they have access to new opportunities to get a foothold in the jobs market again.