David Stanton (Cork East, Fine Gael)
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Question 132: To ask the Minister for Social and Family Affairs if he has reviewed or intends to review best international practice with regard to delivery systems of the social welfare and benefits system to increase take-up rates of benefits and to improve withdrawal rates as recommended by the Combat Poverty Agency policy statement on child poverty; and if he will make a statement on the matter. [21838/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In its policy statement, Ending Child Poverty, which I launched recently, the Combat Poverty Agency makes recommendations in a number of areas, including the tapered withdrawal of means tested payments and the consideration of delivery mechanisms through the tax system to improve benefit take up.

As I said at its launch, this statement, based on an analysis of income support packages for families in 22 industrialised countries, is a comprehensive, wide-ranging and valuable contribution to the ongoing drive to ending child poverty.

Over the years a number of improvements have been introduced across the social welfare system to make them more employment friendly by removing disincentives associated with loss of benefits on taking up employment. Some current examples are: the one parent family payment — the first €146.50 weekly earnings plus 50% of earnings from €146.51 to €293 are disregarded; unemployment assistance — 40% of net earnings from part-time work are disregarded; farm assist — 30% of earnings from self-employment are disregarded; family income supplement — 40% of net earnings are disregarded; retention of rent-mortgage interest supplement and other secondary benefits on a tapered basis in certain circumstances; and tapered withdrawal of adult and child dependant increases as the spouse-partner's earnings from employment increase.

In the interests of improving take-up, the agency proposes the examination of delivery mechanisms that employ the taxation system as well as the social welfare benefits system. Payment of FIS through the tax system has been considered in this context by a working group including the social partners, the remit of which was to examine the role which refundable tax credits could play in the tax and welfare system.

While the report of the group is awaited, I expect that it will recommend that FIS will continue to be paid by my Department, with a modified system of delivery and sustained efforts to improve take up.

My Department will continue to explore ways in which payment mechanisms can be improved and public awareness of entitlement increased.

The question of further improvements in benefit withdrawal arrangements will be a matter for consideration in a budgetary context and in the context of priorities generally.

David Stanton (Cork East, Fine Gael)
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Question 133: To ask the Minister for Social and Family Affairs his views on the reform of the lone parent payment system; and if he will make a statement on the matter. [21839/05]

Séamus Brennan (Dublin South, Fianna Fail)
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A sub-group of the senior officials group on social inclusion is examining obstacles to employment for lone parent families, with particular emphasis on income supports, employment, education, child care and support programmes and information. This group is scheduled to report to the Cabinet Committee on Social Inclusion by the end of July.

We must also look closely at income supports and at how we can adjust those supports to better address the social problems that can arise for those who receive these payments. In this regard, my Department has established a working group to review the income support arrangements for lone parents. Issues being addressed include the contingency basis of the one parent family payment, cohabitation, individualisation, maintenance and secondary benefits. The findings of this group will feed into the work of the senior officials sub-group.

I am also giving serious consideration to the introduction of a second tier of child income supports, aimed specifically at families in greatest need. A study being carried out at the moment by the National Economic and Social Council is examining the possibility of amalgamating social welfare child dependant allowances with family income supplement payments. The objective is to provide an integrated channel for resources to low income families without creating disincentives to employment.

It is intended that the outcome of these reviews will contribute to final concrete proposals designed to better support and encourage lone parents in achieving a better standard of living, employment and education opportunities, and a better future for themselves and their children. These will be the main criteria against which recommendations in the reports will be judged.

I am committed to reforms that will improve the quality of life for lone parents and their children by offering them respect and support while avoiding poverty traps.