Vol. 577 No. 3
599 Mr. Penrose asked the Minister for Social and Family Affairs the disregard available to lone parents, which applies before they lose their lone parents allowance, if they take up employment; if this has been now increased in the budget; and if she will make a statement on the matter. [31092/03]
The one-parent family payment was introduced in 1997 when it replaced a number of schemes for different categories of lone parent, including the 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. The means test for the scheme makes allowance for the exemption of significant levels of earnings and maintenance payments. Lone parents may earn up to €146.50 per week from employment without affecting their payment. Earnings above this limit are assessed at 50%, up to a maximum of €293 per week. These figures were not altered in the recent budget. The earnings disregard is designed to assist in overcoming the 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.
The Abridged Estimates provide for the ending of the transitional payment that applies under the scheme. Lone parents who exceed the upper income limit applying under the one-parent family payment may be eligible for the family income supplement, however. This will mean that lone parents on low income will be treated in the same way as other workers on low earnings with child dependants. The family income supplement, in providing cash support for employees with families on low earnings, preserves the incentive to remain in employment in circumstances where employees might only be marginally better off than if they were claiming other social welfare payments. Lone parents are eligible to avail of the full range of employment support schemes operated by my Department. I am satisfied that the social welfare arrangements in place for lone parents are appropriate and provide a reasonable level of income support for lone parents while at the same time encouraging them to consider employment.
