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]
Written Answers. - Social Welfare Benefits.
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.
The review concluded that the current level of the disregard is adequate at present to support the level and nature of employment, much of which appears to be part-time, being undertaken by lone parents. In the circumstances, I have no plans at present to alter the level of the disregard. However, the situation will be monitored and reviewed as appropriate.