Séamus Brennan (Dublin South, Fianna Fail)

At the end of December 2005 there were just under 124,000 people in receipt of a widow's or widower's pension. More than 109,000 of these were getting a contributory pension based on social insurance contributions. There is no means test in such cases and therefore the question of earnings or income disregards does not arise.

Of approximately 14,700 persons who get a non-contributory means-tested pension, 12,700 are 65 years of age or more and 2,000 are under 65. As the Deputy has asked me in particular about younger widows, I would point out that fewer than 200 of these are under the age of 50. In addition, there are just under 1,000 widowed people who receive one-parent family payment, 500 of whom are under 50 years of age.

My Department assists and encourages long-term unemployed, and other welfare recipients including persons in receipt of widow's or widower's non-contributory pension, to return to work, training or further education through a range of measures administered by my Department's social and family support service.

One significant measure is the back to work allowance scheme which incentivises and encourages people to return to work by allowing them to retain part of their social welfare payment for a period when they take up employment or self-employment. Widows or widowers who have been in receipt of a non-contributory pension for 15 months may qualify for the back to work scheme when they take up employment. If they are over 50 years of age or if they take up self employment they can qualify after 12 months. Research has shown that up to 80% of participants remain in employment or self-employment following participation.

The Department also administers the back to education allowance programme. This programme provides support to long-term social welfare recipients who need to obtain educational qualifications before re-entering the labour force. A survey in this area has shown that 63% took up employment following participation in the scheme.

In 2005, €2.8 million was accessed through the special projects fund administered by my Department and €2.1 million from the family services project fund to support similar initiatives.

As part of a determined drive to increase opportunities for widows and widowers on means-tested payments, and for lone parents, to engage in employment, the upper earnings income for the one-parent family payment was substantially increased in the recent budget by €82 per week to a new limit of €375. Widows and widowers will be able to maximise their income from different sources as the means test makes provision for the exemption of significant levels of earnings.

On employment, lone parents, including widows and widowers, may earn up to €146.50 per week without it affecting their payment. Above that level, half of any earnings are assessed as means, up to a maximum of €375 per week.

From 30 June 2006, persons whose earnings have risen above €375 per week may be entitled to half of their payment for up to 26 weeks.

Additional information not given on the floor of the House

The increased income limit will allow several thousand people become eligible for a payment for the first time.

While I am satisfied that these improvements constitute a significant support to widows, particularly those who are re-entering the workforce, I will continue to keep the matter under review.

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