The one-parent family payment of my Department acts as a safety net for people who receive inadequate maintenance, where maintenance payments are irregular or where efforts to secure maintenance in the first place fail. Applicants for one-parent family payment are required to make ongoing efforts to seek adequate maintenance from their former spouses or, in the case of unmarried applicants, the other parent of their child. They must satisfy my Department that they have made reasonable attempts to obtain such maintenance. The one-parent family payment thus guarantees a lone parent a regular weekly income, while placing reasonable onus on both parties concerned to resolve appropriate maintenance support.
Separated OPFP claimants must demonstrate that they have made reasonable efforts to obtain support before their lone parent payment is awarded. Unmarried OPFP claimants must demonstrate similar efforts after their claim is awarded. Normally, this maintenance is obtained by way of negotiation or by court order, though separated couples are increasingly using my Department's family mediation service which is being progressively extended countrywide.
From the introduction of the one-parent family payment in January 1997, all maintenance received by a claimant was regarded as means. Housing costs incurred by a claimant, that is rent or mortgage payments up to a maximum of €95.23 per week were disregarded. From 2001, however, one-parent family payment claimants were allowed to retain 50% of any maintenance received without reduction in their social welfare payment. The housing disregard of up to a maximum of €95.23 also remains in place.
My Department's records indicate that approximately 9,600 one-parent family payment recipients are in receipt of maintenance from their spouse or the other parent of their child/ren. However, many other recipients could be in receipt of maintenance and still qualify for the maximum rate of one-parent family payment as a result of the provision allowing one-parent family payment claimants to retain 50% of any maintenance received.
On the issue of absent parents, legislation provides that where social welfare support is being provided to a one-parent family, the other parent is legally obliged to contribute to the cost of this payment. In every case where a one-parent family payment is awarded, the maintenance recovery unit of my Department seeks to trace the other parent, referred to as the liable relative, to ascertain whether he or she is in a financial position to contribute towards the cost of the one-parent family payment. This follow-up activity takes place within two to three weeks of award of the payment.
All liable relatives assessed with maintenance liability are notified by my Department and they are issued with a determination order setting out the amount of contribution assessed. The amount assessed can be reviewed where new information comes to light about the financial or household circumstances of a liable relative. Decisions on the amounts assessed can be appealed by liable relatives to the social welfare appeals office.
There are currently 1,980 liable relatives contributing directly to my Department. As a result of maintenance recovery unit activity, savings of €8.5 million were achieved in 2002 and €14.2 million in 2003. Savings of €16.6 million were achieved in 2004. These savings are composed of direct cash payments by the liable relative to the Department and of scheme savings. Savings on scheme expenditure arise where maintenance recovery activity leads to the liable relative beginning to pay maintenance in respect of a spouse and/or children leading to a consequent reduction of a one-parent family payment. In 2004, a total of 722 one-parent family payments were cancelled while a further 512 payments were reduced as a result of maintenance recovery activity.
In implementing maintenance recovery provisions to date my Department has concentrated on cases where the liable relatives concerned, being in employment or self employment, would be in a financial position to make a contribution towards the relevant benefit or allowance being paid to their families. My Department also seeks recovery from liable relatives through the courts in appropriate cases. A total of 182 cases has been submitted for court action from 2001 to date. The majority of these cases have resulted either in orders being written against the liable relative in court or alternatively in the liable relative agreeing to pay a contribution to the Department or to the lone parent.