Vol. 513 No. 2
46 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs his views on whether there are measures in the social welfare code which discourage parents of children from living together; if so, if he will give details in this regard; and the possible remedies or proposals to change this situation. [1871/00]
The social welfare system, in general, is contingency based and also assumes that there are economies of scale where two people are married or cohabiting. In the cir cumstances, under the present system, in means tested arrangements a reduction in income is inevitable where a person changes status from being a lone parent or single to one where he/she marries or cohabits. Clearly a payment based on the contingency of lone parenthood cannot continue where the individual decides to marry or cohabit.
The report of the working group examining the treatment of married, cohabiting and one-parent families under the tax and social welfare codes, which was published in August last year, set out the losses which can be experienced by a couple who decide to marry or cohabit where one or both are receiving social welfare payments. Where both are receiving social welfare payments the losses can, to some extent, be eased by the payment of a qualified adult allowance. The position here will be improved by my commitment to increase the level of the QAA to 70% of the personal rate in line with the findings of the research undertaken by the ESRI on behalf of the working group. However, where one or both are working, as can be the case in a lone parent situation because of the more generous means test arrangements, the losses can be significant.
This is an extremely complex and sensitive issue and in considering what, if anything, should be done it is necessary to bear in mind not only the position of people who might be considering marriage or cohabitation but also the need to avoid introducing further anomalies into the system. The working group did not come to any conclusions in this area. However, it did put forward some proposals which are being considered as part of a review of the one-parent family payment. This review is being undertaken by my Department under the expenditure review programme and it is expected that it will be completed in the next few months.
