This is one of the new schemes that will be introduced under the Bill. The section provides for the insertion of new sections 157 to 162 in the Social Welfare (Consolidation) Act, 1993, which provide for the introduction of the one-parent family payment which will replace deserted wife's benefit and lone parent's allowance. It also provides for the definition of weekly means and that means will be assessed in accordance with the rules contained in Part II of the Third Schedule to the consolidation Act.
The section also provides that for the purposes of one parent family payment, a widow or widower who remarries shall not be regarded as the widow or widower of his or her former spouse. It defines "a qualified parent" as including a widow, widower, separated spouse, unmarried person or a person whose spouse has been imprisoned for not less than six months who has at least one qualified child normally residing with them. It provides that a one parent family payment will be paid to a qualified parent and that payment will cease if the parent marries or remarries. It provides that a qualified parent with annual earnings in excess of £12,000 will not be entitled to one parent family payment. It contains regulatory powers under which a reduced rate payment may be made for a prescribed period to a qualified parent who ceases to be entitled to one parent family payment by virtue of his or her earnings exceeding £12,000. It provides for the weekly rate of one parent family payment, including increases for dependent children.
The section also provides that the payment will be made at the maximum rate where the weekly means of the qualified parent are less than £6 and in the case of a qualified parent whose weekly means are £6 or more, the payment would be reduced by £2 for each £2 of means in excess of £6.
It provides that a qualified parent cohabiting with someone will be disqualified from receipt of the one parent family payment and that a parent who qualifies for this payment by virtue of his or her spouse being in prison will continue to receive it for a period of four weeks after the release of the spouse. It contains general regulatory powers, including powers to specify the circumstances in which a person will be regarded as being a separated person or an unmarried person for the purposes of the one parent family payment.
It contains provisions relating to the assessment of means for the one parent family payment and, under these provisions, annual earnings of £6,000 with one half of the earnings, if any, in excess of this amount will be disregarded in assessing earnings from employment and self-employment. In the case of a qualified parent in receipt of maintenance from his or her spouse a disregard equivalent to the rent or mortgage repayments payable by the qualified parent up to a prescribed amount will also be disregarded. The manner in which means derived from capital will be assessed are the same as those provided for in the case of disability allowance. The first £2,000 of capital will be disregarded, the next £20,000 will be assessed at 7.5 per cent and capital in excess of £22,000, if any, will be assessed at 15 per cent. It provides for regulatory powers to exempt a social welfare recipient from the obligation to transfer in full to the Department, or health board in the case of supplementary welfare allowance, any maintenance payments received from a liable relative within the meaning of the Social Welfare Acts. These powers are being taken as a consequence of the arrangements being introduced by way of section 17(2) whereby a prescribed amount of maintenance payments will be disregarded in the assessment of costs.
It provides that a person in receipt of a lone parent's allowance immediately before the introduction of the one parent family payment will qualify for the new payment at a rate not less than the rate of the lone parent's allowance previously payable. It provides that a decision made by a deciding officer to award lone parent's allowance will be deemed to be a decision to award the one parent family payment and that an application for a lone parent's allowance made, but not determined, prior to the introduction of the one parent family payment will be deemed to be an application for this payment.
It provides that the provisions relating to the one parent family payment will not result in a reduction in the entitlement of a person in receipt of the lone parent's allowance or, in the case of a lone parent whose claim has not been determined before the introduction of the new arrangements, will not result in their qualifying for the one parent family payment at a rate less than the rate of the lone parent's allowance to which they would otherwise have been entitled.
This is a comprehensive scheme which has many purposes. It will abolish the concept of desertion which women primarily had to prove to qualify for the deserted wife's benefit or the deserted wife's allowance. It is important to bear in mind that this concept is abolished in relation to the allowance and the benefit. It also ensures that parents raising a child or children on their own will be entitled to support regardless of whether they are alone because they are unmarried, separated or divorced. This is an important advance in the social welfare code.
Yesterday we agreed in principle that we should abolish the notion of an adult dependant as it was demeaning of women. Equally, the concept of desertion is demeaning of women. In recent times a number of men have qualified for a deserted spouse or lone parent's allowance and presumably they had to prove desertion. This scheme will apply equally to men and women regardless of the reason they are on their own and it will phase out the deserted wife's benefit.
The scheme will be introduced in January next year and all current recipients will continue to receive the deserted wife's benefit as long as they are eligible under the existing terms. In other words, existing recipients and those who qualify for the deserted wife's benefit before the end of December will be entitled to remain on it. The deserted wife's benefit will no longer be available for new applicants after 1 January next year. The allowance we are putting in place is generous and provides for a new capital assessment process and a range of other benefits which will be welcomed by men and women who are raising a child or children on their own. I have no hesitation in asking the House to support this provision.