Phil Hogan
Question:6 Mr. Hogan asked the Minister for Social and Family Affairs her plans to amend the payment procedures or the amount of the one parent family allowance; and her plans to make changes to this allowance. [4858/03]
Other Questions. - Social Welfare Benefits.
David Stanton
Question:14 Mr. Stanton asked the Minister for Social and Family Affairs the number of persons in receipt of a one parent family allowance; and the number of such persons who are in employment and receiving full or reduced payments. [4867/03]
I propose to take Questions Nos. 6 and 14 together.
The one parent family payment was introduced in 1997 when it replaced a number of schemes for different categories of lone parent. These schemes included lone parent's allowance, deserted wife's benefit and allowance and the non-contributory widow and widower's pension for those with dependent children. Under the new scheme lone parents are encouraged to maximise their income from different sources and the means test for this scheme makes allowance and provision for the exemption of significant levels of earnings and maintenance payments.
Regarding employment, lone parents may earn up to €146.50 per week without affecting their payments. Earnings above this limit are assessed at 50%, up to a maximum of €293 per week. There are also transitional arrangements in place whereby a lone parent who exceeds the earnings threshold may retain 50% of his or her payment for a further 12 months.
This earnings disregard is designed to assist lone parents to overcome the particular obstacles they may face in taking up employment and training opportunities, and to encourage them to return to employment, instead of remaining dependent on social welfare payments. Lone parents are also eligible to avail of the full range of employment support schemes operated by my Department.
Lone parents are also encouraged to pursue the question of maintenance payments with the other parent. This is achieved by ensuring that there is a clear benefit to lone parents and their children arising from any maintenance payments secured. At present up to 50% of maintenance received may be disregarded under the means test and in addition, allowances are made for up to €95.23 per week of maintenance paid in respect of vouched housing costs.
At the end of January 2003 there were 91,477 unmarried, separated or deserted lone parents receiving one parent family payment or former equivalent schemes. Of these, approximately 20,000 people, 22% of the total, received payment at a reduced rate due to earnings from employment. Further research in this regard is being undertaken by my Department and I will be in touch with the Deputy with more accurate figures as soon as possible However, it is estimated that 60% of one parent family recipients overall are currently in full or part time employment. Some of these recipients are in employment getting a gross wage less than €146.50 per week which entitles them to receive one-parent family payment at the maximum rate without means reduction.
On average, some 350 new claims are received each week, equivalent to about 18,000 per year. As recipients of the one parent family payment are in a relatively young age bracket, they are more likely to move in and out of employment, education or training on a regular basis or to have other changes in their circumstances. Approximately 52,000 existing claims are revised downward or upward each year, mainly for these reasons.
A comprehensive review of the payment arrangements for lone parent's allowance was undertaken by my Department in 2000. Arising from this review a number of changes were introduced, including the changes in relation to maintenance payments which I have already outlined. The review also recommended the localisation of the administration of the scheme to bring lone parents into closer contact with the various support services available in local offices. A successful pilot scheme has operated in my Department's Tallaght office in Dublin since May 2001, and the question of extending this to other offices is being considered.
At present I am satisfied that the social welfare arrangements in place for lone parents are appropriate and support general policy in this area which is to provide income support for lone parents while at the same time encouraging them to consider employment as a realistic alternative to long-term welfare dependency. The position is being kept under review and changes will be considered when necessary.
Can the Minister confirm that lone parents in receipt of FÁS payments will have a substantial cut in their lone parent family allowance? They will get an increase of €10 from FÁS but they will lose €60 from their allowances. Does the Minister think that is fair? Has she approved this? Also, what is she doing regarding the delays in dealing with applications for lone parent's allowance?
As I indicated in my response, lone parents can earn up to €146.50 per week without their payments being affected in any way, while earnings over that are assessed at 50% up to a maximum of €293. I read the article in the newspaper and the €10 is going to bring people up to €293. However, that means people are getting the full benefit and earning €293, which is a considerable amount of money. There are also transitional arrangements available, as I said, where people can retain 50% of their payments for a further 12 months.
This issue refers specifically to the FÁS job initiative scheme, which reduces the rate as a consequence. It is based on the disregards, which are quite substantial compared to many other social welfare payments. There would be an issue of equity if this were changed, as €293 is a considerable amount of money; if one were unemployed one would certainly not be entitled to a benefit, a secondary benefit and be allowed to earn up to €293.
Regarding the issue brought to my attention, I would find it difficult to increase the disregard any more than the present level of €293.
Is it not a fact that the disregard has largely stayed the same since the president of the Labour Party, Proinsias De Rossa, was in the Minister's Department? Almost six years have passed since then but the disregard has not been increased. Every year we have these sorts of anomalies. Last year people lost their medical cards because the health board guidelines for such cards changed and the Department did not liaise with them; this year it is FÁS. When are we going to have joined-up Government? When will the Department of Social and Family Affairs liaise with other organisations in the health and employment fields so that we have coherent Government? The Minister of State at the Department of the Taoiseach, Deputy Hanafin, is supposed to be responsible for e-government but when will we have some form of joined-up Government?
The Ministers' predecessor was always promising fully locally-based administration of the lone parent's scheme and I agree with Deputy Ring in this regard. All we have is a pilot scheme in Tallaght.
A review of lone parent families was published in 2000 which concluded that the current level of disregard was more than adequate.
Ask the lone parents.
There can be anomalies in the system.
Both Deputies referred to the applications process and I appreciate there has been a delay which we are trying to address as quickly as possible. I agree with a localised service and I will be progressing that. Tallaght has been very successful, from what I can ascertain, and it is important to have a local, one to one intervention, through either jobs initiators, jobs facilitators or other local supports for lone parents. I will progress that vigorously because this is a vulnerable group. Those involved are quite young and would have more than adequate opportunities, given the supports that exist, to go into education or full time employment. I am sure the majority would like those opportunities.