Paschal Mooney (Fianna Fail)

Section 4 provides for the discontinuation of the current entitlement to the payment of a half rate qualified child increase where the spouse, civil partner or cohabitant of the beneficiary has weekly income in excess of a prescribed amount. This applies to new claimants and also extends the reference to the spouse of the beneficiary.

I am sure the Minister will clarify or confirm that the reason for the change in language relates to the consequences of the civil partnership Act in which reference is made to a civil partner or a cohabitant. She might remember that I raised an issue before about the ESRI and this new legislation. I am curious to know whether this section will have an impact. The message conveyed by the ESRI report is that those who are cohabiting may not be aware that as a result of these legal changes, they may find themselves in difficulty when it comes to the division of assets. The first part, or core, of the section is about the reduction in entitlement.

I would be grateful to hear the Minister's comments on the suggestion that the abolition of the temporary half rate payment will act as a disincentive for those trying to return to employment. Because there are so many other hits to vulnerable families this seems like another which particularly affects one-parent families in which there may not be sufficient money in the household. I am thinking, for example, of a one-parent family in which the child is currently receiving child care outside the home in order to allow the mother — most lone parents are mothers — to work. She may find herself in difficulty if there is a reduction in the half rate payment and a cap on the entitlement because she will not be able to pay for child care. I am not talking so much about State child care services or a privately run child care facility, rather I am thinking of a person who, perhaps, pays a neighbour a few euro to look after a child for a few hours while she is working. This assumes the lone parent is working. Statistics indicate that unemployment has hit lone parents disproportionately.

What does the Minister see as the impact of this measure? What savings does she expect to make as a result?