Michael Brennan (Progressive Democrats)

Deputy Seán Ryan has expressed strong views on this issue in the other House and on Committee Stage. I promised him I would keep it under consideration. It is difficult as the issue goes back to 1992, when an earnings limit was introduced for deserted wife's benefit. Following from this, the one-parent family payment, or the lone parent allowance as it is now called, was introduced in 1997. The deserted wife's scheme was discontinued with effect from 2 January 1997. The scheme was retained to the extent of existing entitlements already acquired in August 1992, when the earnings limit was introduced for new claimants, and in 1997 when the one-parent family payment was introduced. It has been preserved for existing entitlements.

In the 2006 budget, the upper earnings limit to receive benefit for one-parent families was increased to €19,500 of gross earnings per year, an increase of €83 per week. A recipient of deserted wife's benefit with dependent children can transfer, which is an important point. If a person is on the old deserted wife's allowance, that person can transfer to the one-parent family payment if it is beneficial to do so. Such a facility is important.

There are currently approximately 100 recipients of deserted wife's benefit on reduced rates due to earnings, of which 48 would be eligible to transfer to a one-parent family payment. It is an important issue for those people, as stressed by Deputy Seán Ryan. The paper my Department published a few days ago on supports for lone parents gives us a chance to debate these issues. I hope we avail of the opportunity in the Bill to debate these issues. I will keep the matter under review.

Essentially what has occurred is that an old scheme was closed down, a new scheme was initiated, and some people stayed on the old scheme despite having the option to move to the new scheme. They found that their income may have increased and were caught by limits. In most cases, the issue has been that these people got additional earnings above the limit and were therefore not entitled to it. We will keep the matter under review, as we do with all schemes.