The lone parents scheme in common with all others is kept under continual review in the light of changing circumstances.
A significant increase in the number of lone parent households has been occurring in recent years in almost all OECD countries, with the households involved being greatly over represented at the bottom of the economic scale. The trend in Ireland is in line with what is happening elsewhere.
Expenditure on the scheme has increased from approximately £16 million in 1982 to over £79 million in 1991.
If these trends continue, the implications for social welfare expenditure will be very significant, particularly in the light of the increased resources required to cater for other categories of welfare recipients.
One of the issues which has arisen in the context of the ongoing review of the scheme is the desirability of encouraging lone parents back into the labour market. I am examining the general question as to how the social welfare system affects the incentive to work and what measures may need to be taken to increase these incentives. I will be examining the lone parents allowance in this context.
The introduction of the earnings limit for entitlement to deserted wife's benefit was intended to ensure that resources are directed at those most in need. In this regard it was considered reasonable that in future women who earn in excess of £14,000 per annum should not qualify for deserted wife's benefit in addition and that the level of benefit should be reduced by reference to earnings between £10,000 and £14,000. Any change in these arrangements would be a matter for consideration in the context of the budget.