Séamus Brennan (Dublin South, Fianna Fail)

In my review of the 2004 provisions, I concluded that some easement of this measure would be appropriate. Therefore, with effect from next January, the transitional half rate one-parent family payment will be made for a period of six months for qualifying recipients. Some 700 one-parent family payment recipients will benefit from this measure. The introduction of the transitional arrangement whereby a lone parent who exceeds the earning threshold receives 50% of his or her previous payment for a further six months will provide support for lone parents as they move off the scheme. Lone parents will, of course, be able to avail of the family income supplement if they comply with its eligibility criteria.

It is important to note that the means test for one-parent family payment makes provision for the exemption of a significant level of earnings and maintenance payment. The first €146.50 of earnings is disregarded and all further earnings up to a maximum threshold of €293 per week are assessed at 50%. This means that a person with earnings of €293 per week still qualifies for a partial one-parent family payment, plus a child dependant payment of €19.30.

The recent OECD report entitled Babies and Bosses states: "The existing system of earning disregards serves largely to encourage lone parents to top up benefit income with small earnings rather than help them back into regular employment." Our objective is to assist lone parents in entering regular employment. It is worth noting that Ireland has the highest percentage of lone parent families within the EU, with more than 11% of households headed by a lone parent. A relatively small number of those parents are in employment compared to the situation in other countries.

When the transitional payment was removed last year, a clause was inserted into the regulation to ensure those claimants already in receipt of the transitional payment would continue to receive it. Therefore, benefits were not taken from anybody in the sense that no payments were not renewed. With effect from next January, the transitional half rate payment will be made for a period of up to six months. This will help people return to employment, which is the focus of departmental policy.