Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Written Answers. - Social Welfare Payments.

Pádraic McCormack

Question:

12 Mr. McCormack asked the Minister for Social and Family Affairs her proposals to upgrade the ?95 per week exemption in calculating housing rent or mortgage allowance in the case of separated people which has been in place since 1997; and her plans for updating this allowance to closely match current rents or mortgage rates. [17920/03]

Minister for Social and Family Affairs (Mary Coughlan)

The one-parent family payment is the income support scheme for separated, unmarried and widowed persons and also for prisoners' spouses. It 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/provision for the exemption of significant levels of earnings and maintenance payments.

Lone parents are encouraged to pursue the question of maintenance payments with the other parent. This is achieved by ensuring that there is a clear benefit to them and to their children arising from any maintenance payments secured. Where maintenance is in payment, up to €95.23 per week of this maintenance is not assessed where there are vouched housing costs, that is, rent or mortgage repayments. This is the allowance to which the Deputy refers. In addition, only 50% of the rest of maintenance being received is assessed.

Data provided by the Central Statistics Office show that rent levels in the private sector have been stable for some time and have actually fallen in the period from April 2002. More recent data from the CSO confirm this trend. In the circumstances it would not be appropriate to adjust this disregard in the assessment of maintenance contribution for the purposes of entitlement under the scheme.

In addition to the disregards applying to maintenance payments, there are significant income disregards to assist in overcoming the particular obstacles which lone parents 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 can earn up to €146.50 per week without affecting their payment. Earnings above this limit are assessed at 50%, up to a maximum of €293.00 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.

Those who have difficulty with housing costs are, of course, eligible to apply for rent supplement under the supplementary welfare allowance scheme. At the end of May 2003, there were 11,915 recipients of one-parent family payment in receipt of rent supplement paid under the supplementary welfare allowance scheme. I am satisfied that the present arrangements in place for lone parents are appropriate to address their income support needs and to encourage them to secure maintenance support where this is relevant, and to encourage them to consider employment as a realistic alternative to long-term welfare dependency. It would not be appropriate to increase the disregards for housing costs for the reason already mentioned and I have no proposal to do so.