Written answers

Thursday, 1 December 2005

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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Question 53: To ask the Minister for Social and Family Affairs the number of lone parents who are in receipt of the one parent family payment; the number and percentage of OPFP recipients for whom social welfare payments are their sole income; and if he will make a statement on the matter. [37270/05]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 65: To ask the Minister for Social and Family Affairs the number of parents currently in receipt of the one parent family payment. [37127/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 53 and 65 together.

The number of one-parent family recipients being paid by my Department at the end of September 2005 is 79,937, the latest date for which figures are available. Included in this figure are 906 widowed persons. It is not possible to get exact statistics on the number of one parent family payment recipients for whom social welfare payments are their sole income. However, previous research in this area would indicate that 60% of one-parent family recipients overall are currently in full or part-time employment. Lone parents are encouraged to maximise their income from different sources and the means test for this scheme makes provision for the exemption of significant levels of earnings and maintenance payments.

With regard to employment, lone parents may earn up to €146.50 per week without affecting their payment. Above that level, half of any earnings are assessed, up to a maximum of €293.00 per week. Lone parents may also be eligible to avail of the full range of employment support services operated by the Department.

Lone parents are also encouraged to pursue the question of maintenance payments with the other parent. This is achieved by ensuring that there is a clear benefit to lone parents and their children arising from any maintenance payments secured. At present up to 50% of maintenance received may be disregarded under the means test and, in addition, allowances are made for up to €95.23 per week of maintenance paid in respect of mortgage or rent.

My Department's records indicate that approximately 9,600 one-parent family payment recipients are in receipt of maintenance from their spouse or the other parent of their children. However, many other recipients could be in receipt of maintenance and still qualify for the maximum rate of one parent family payment as a result of the provision allowing one-parent family payment claimants to retain 50% of any maintenance received.

There is no loss of income incurred by one-parent family payment recipients where the Department has to pursue the issue of maintenance with the non-resident parent. Rather, the provision allowing one-parent family payment claimants to retain 50% of any direct maintenance received was established as an incentive to lone parents to seek agreement with the other parent on the level of maintenance to be paid. While there are no plans at present to change this approach it will be the subject of consideration as part of a review of supports to single parents.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 56: To ask the Minister for Social and Family Affairs if his attention has been drawn to recent figures from the EU showing that Ireland spent just 16% of its GDP on social benefits compared to an EU average of 27.7%; his plans to increase social spending towards the EU average; and if he will make a statement on the matter. [37196/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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EUROSTAT, the statistical office of the EU, publishes comparisons of social protection expenditure as a percentage of GDP across the EU. This encompasses not only social welfare expenditure but also expenditure in other areas such as health care, social housing, employment support programmes and other social inclusion programmes. The latest such statistics were released on 20 October 2005 and deal with developments up to and including 2002. No comparable figures are yet available for 2003 or 2004.

When examining such data it is important to remember that gross expenditure measures do not take account of social charges or taxes which may be levied on benefits after they are paid, nor do they include transfers made by means of tax concessions, as opposed to direct cash payments. For example, tax relief on contributions towards occupational and private pensions, which are an important feature of Ireland's pension system, is not counted as expenditure. The EUROSTAT release draws attention to the fact the EU average masks major national differences in the structure of social protection funding, partly related to differing levels of wealth between countries, and also reflect differences in social protection systems, demographic trends, unemployment rates and other social, institutional and economic factors.

The level of expenditure is also significantly influenced by the age profile of the population. Ireland, currently with the youngest population in the EU, needs to spend less on pensions and health care and care of the elderly than most other member states. In 2002, social protection expenditure accounted for 27.7% of GDP in the EU 25 countries, compared to 27.3% in 2001. The corresponding ratio for Ireland was 16% compared to 15.3% in 2001.

Social protection expenditure as a percentage of GDP is crucially dependent on the pace of economic growth and the level of unemployment. The statistics show that for the EU 15 countries, social protection expenditure relative to GDP had fallen from its maximum share of 28.7% in 1993 until 1999, when it accounted for 27.3%. This was due to renewed GDP growth and slower growth in social protection expenditure, particularly related to unemployment benefits. Ireland's position mirrored that of the EU 15, except that the level of economic growth and the decline in unemployment were much greater in Ireland than in most other EU countries and consequently the drop in the percentage of GDP accounted for by social protection expenditure was greater, from 20.2% in 1993 to 14.7% in 1999.

Under this Government there has been a sustained and substantial increase in social protection expenditure. The EUROSTAT report states that the increase in Ireland's per capita expenditure from 1998 to 2002, 8.7% per annum on average and the highest of all EU countries, in comparison to that of the EU as a whole, 2.5% per annum was "particularly pronounced". Moreover, it should be noted that social welfare expenditure will have increased substantially during the three-year period 2002 to 2005, an overall increase of 28%, well ahead of the corresponding projected increases in prices and earnings.

As recently announced in the Estimates, overall spending on social welfare will increase next year to a total of €12.49 billion, an increase of over €200 million from the 2005 figure, even before announcements in the 2006 budget are taken into account. This Government will continue to address the scope for further improvements in Ireland's social protection infrastructure, guided by the national anti-poverty strategy, while at the same time continuing to take the measures necessary to maintain economic growth and competitiveness and thereby generate the resources for further social investment.

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