In every case where a one-parent family payment is awarded, the Department seeks to trace the other parent (liable relative) in order to ascertain whether he or she is in a financial position to contribute towards the cost of one-parent family payment.
Part 12 of the Social Welfare Consolidation Act 2005, as amended, sets out the legislative basis for the implementation of the Liability to Maintain Family Provisions. The methods of assessment of the liable relative's ability to pay are specified in detail in Regulations (S.I. 571 of 2006 and S.I. 142 of 2007). The financial and new dependency situation of each liable relative is assessed in detail. The assessment is based on the net weekly income (i.e. income from all sources less income tax and PRSI) with deductions for a personal allowance in respect of personal needs, a child dependant allowance in respect of each child living with the liable relative, and an allowance may also be granted in respect of the liable relative's accommodation costs. Any maintenance currently being paid to the one parent family recipient is also taken into account.
It has been found that, following the assessment based on net income and when the appropriate deductions are made, liable relatives earning less than €18,000 p.a. are not usually liable to make a contribution under the existing Regulations. €18,000 p.a. has therefore been adopted as a guideline for operational purposes. It is not stated in Regulation. It is kept under review by the Department.