Jack Wall (Kildare South, Labour)
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Question 153: To ask the Minister for Social and Family Affairs if his attention has been drawn to the problems that groups seeking to provide job initiatives for one parent families are having in that the benefits of the applicants for such programmes will be affected; and if he will make a statement on the matter. [6198/06]

Séamus Brennan (Dublin South, Fianna Fail)
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It is generally accepted that for all people in working age households, the main route out of poverty is through employment. In the case of lone parents, the income disregards put in place in 1997 allowed for income up to €146.50 to be disregarded as means, with lone parents with income between €146.50 and €293 per week still being eligible for a reduced rate of OFP.

I believe that every support should be given to lone parents to give them an opportunity to continue to increase their earnings in their efforts to improve their own lives and those of their children. That is why I was pleased to significantly increase the upper income limit for the one parent family payment by €82 per week to €375 per week in the recent budget. This measure comes into effect in July. Lone parents working at least 19 hours per week are also eligible to claim family income supplement. The budget also increased the income limit for families with one child to €465 per week, with effect from 5 January 2006.

As a result of taxation measures introduced in the last budget, lone parents will not now become eligible for tax until they earn in excess of €23,000 per annum. These policies will have an immediate positive effect on lone parents already in the work force and those who are considering employment as an option. Furthermore, I can confirm that my Department has conducted a review of the income support arrangements for lone parents which has fed into a wider review by the senior officials group on social inclusion into the obstacles to employment faced by lone parents and parents on low income.

This report, including a number of detailed proposals, is to be published in full shortly with a view to initiating a debate on the main issues. It is my hope that this process will lead to an informed consensus that will inform policy and lead to the development of proposals which will better support all lone parents.

David Stanton (Cork East, Fine Gael)
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Question 154: To ask the Minister for Social and Family Affairs, further to Question No. 129 of 9 February 2006, the conditions under which recipients of the one parent family payment are entitled to retain certain social welfare payments and other secondary benefits in total or in part while they are participating in community employment schemes; the payments and benefits which can be retained; the community employment schemes to which this rule applies; if this rule also applies to community education initiatives; and if he will make a statement on the matter. [6239/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Financial support paid to lone parents is made through my Department's one parent family payment, which was established in 1997 to provide income for lone parents, while allowing substantial income disregards for those lone parents in a position to return to employment. The income disregards currently allow for income up to €146.50 to be disregarded as means, with lone parents having income between €146.50 and €293 per week still being eligible for a reduced rate of OFP.

I was pleased to significantly increase the upper income limit for the one parent family payment by €82 per week to €375 per week in the context of the recent budget. This measure comes into effect in July. These income disregards also apply to OFP recipients on a community employment scheme.

Recipients of the OFP are also allowed retain the secondary benefits — rent or mortgage interest supplement, fuel and smokeless fuel allowance, Christmas bonus and back to school clothing and footwear allowance — on the following education and training programmes: community employment, job initiative, workplace, revenue job assist, back to work schemes, social economy programme, FÁS training, back to education allowance and the vocational training opportunities scheme.

For most people the most significant secondary benefit is rent or mortgage interest supplement, which is paid under the supplementary welfare allowance scheme. An income limit of €317.43 per week applies to the retention of these supplements. However, back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit.

In addition, PRSI, reasonable travelling expenses and a child care allowance payable to certain people participating in approved training courses are also disregarded in the means test. Furthermore, people taking up employment through approved employment schemes or who take up full-time employment after being unemployed for a period of 12 months may retain an element of their rent or mortgage interest supplement on the following tapering basis over four years: 75% in year one; 50% in year two; and 25% in years three and four.

An OFP recipient availing of an employment support scheme may opt to be assessed for rent or mortgage supplement under either standard supplementary welfare allowance rules or under the special retention rules and will be entitled to receive payment under whichever is the more favourable option. A person on a community employment scheme or other back to work scheme whose household income is above the €317.43 weekly limit for retention of secondary benefits may still qualify for rent supplement under the standard rules. For example, an OFP recipient with one child on a community employment scheme is allowed to disregard €60 per week and half of any additional income between €60 and €90 per week in the calculation of the rent supplement; therefore the net income will increase by that amount, €75 where weekly CE earnings are more than €90, on taking up a place on the scheme.

In addition, a special projects fund, administered by my Department's locally based facilitators, provides enhanced support to people who need additional help to progress to further training and employment. The facilitators also operate small scale family services projects in certain areas, which are designed to focus supports towards specific target groups with complex needs, including recipients of OFP, who avail of training programmes under this special projects fund and are entitled to retain their social welfare payment and rent supplement, if applicable, while attending the training course.

As the Deputy is aware, I intend to make public shortly the findings of reports analysing the obstacles to employment faced by lone parents and reviewing the income support arrangements for lone parents. I then intend to engage in a consultation process with interested parties with a view to developing proposals designed to better support and encourage lone parents in achieving a better standard of living, improved employment and education opportunities, a better future for themselves and their children, and a more appropriate social policy in the future.