Written answers

Wednesday, 22 March 2006

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 70: To ask the Minister for Social and Family Affairs the position with regard to his discussions with the European Commission regarding the Government's implementation of the two year habitual residence requirement in regard to qualification for social welfare benefits; if changes to the requirement have been introduced or are planned; if a final response has been received from the Commission on this matter; and if he will make a statement on the matter. [11006/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The requirement to be habitually resident in Ireland was introduced as a qualifying condition for certain social assistance schemes and child benefit with effect from 1 May 2004. It was introduced in the context of the Government's decision to open the Irish labour market to workers from the new EU member states without the transitional limitations which were being imposed at that time by many of the other member states. The effect of the condition is that a person whose habitual residence is elsewhere is not paid certain social welfare payments on arrival in Ireland, regardless of citizenship, nationality, immigration status or any other factor.

The EU Commission wrote to the Government in December 2004 raising a number of issues concerning its compliance with EU law relating to workers and their families. Officials from my Department and the Attorney General's office met with Commission officials subsequently to discuss the issues raised. The operation of the condition is fully in line with the criteria set out in European Court of Justice case law. These are: the length and continuity of residence in a particular country; the length and purpose of absence from Ireland; the nature and pattern of the employment; the applicant's main centre of interest; and the future intention of the applicant concerned as it appears from all the circumstances.

In addition, full consideration is given in the decision making process to the requirements of EU legislation regarding free movement of workers within the European Economic Area. Rules which apply to migrant workers, that is, persons who have taken up employment in Ireland following their arrival here, are strictly observed. The Department's explanation of its practice was confirmed in writing to the EU Commission on 19 July 2005. The formal process of the Commission's examination of the matter is at an advanced stage and it is expected that it will be finalised shortly.

With regard to changes to the requirement, no changes have been introduced to the legislation and none is currently planned. Certain aspects of the implementation of the provision have, however, been clarified from time to time in the operational guidelines. In November 2005, for example, a clarification was issued to community welfare officers explaining that supplementary welfare allowance is considered under EU legislation to be a "social advantage" and therefore should be subject to the principles of equal treatment to all EU workers regardless of nationality. Any EU worker who suffers loss of income because he or she has lost employment through no fault of his or her own or becomes unable to work through illness, is entitled to claim supplementary welfare allowance.

The requirement to be habitually resident in this country has been and continues to be monitored constantly by my Department and a full review of its operation is at present being finalised.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 71: To ask the Minister for Social and Family Affairs the situation with regard to his proposals for the reform of the one-parent family payment system, particularly with a view to making it easier for lone parents to enter or re-enter the workforce; when he intends to bring forward formal proposals in this regard; and if he will make a statement on the matter. [11009/06]

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 94: To ask the Minister for Social and Family Affairs when he expects to publish the findings of the review of lone parents support mechanisms carried out in 2005. [11037/06]

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 116: To ask the Minister for Social and Family Affairs the position regarding the review of the one-parent family allowance scheme; his plans to change this scheme; the numbers currently availing of this scheme on a county basis and the costs to his Department for same, indicating those in receipt of a full rate of one-parent family allowance and those on a reduced rate; and if he will make a statement on the matter. [10927/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 71, 94 and 116 together.

The Government acknowledges that the risk of poverty, especially child poverty, tends to be higher among one-parent families, larger families and those faced by long-term unemployment, due mainly to the direct costs of rearing children, including child care costs, and the opportunity costs related to the reduced earning capacity of parents, arising from their care responsibilities. This applies particularly to one-parent families as the lone parent has to be the main breadwinner and carer at the same time.

The number of one-parent family recipients being paid by my Department at the end of December 2005 is 80,366, the latest date for which figures are available. I allocated €769 million to the one-parent family payment in 2005. It is not possible to get exact statistics on the number of one-parent family payment recipients who are in employment and receiving full or reduced payments. However, there are currently 58,290 claimants in receipt of one-parent family payment at the maximum rate. The latest date for which a county by county breakdown of one-parent family payment recipients is available is the end of 2004 and this breakdown is provided in a tabular statement which will be made available to the Deputy.

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. In recognition of this, 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 will come into effect in July of this year. In addition, as a result of taxation measures introduced in the budget, lone parents will not now become eligible for tax until they earn in excess of €23,000 per annum.

One of the key tasks in the "Ending Child Poverty" initiative under Sustaining Progress is to address obstacles to employment for lone parents. The senior officials group on social inclusion was mandated late in 2004 to examine this issue and report back to the Cabinet committee on social inclusion with specific proposals. A sub-group of the senior officials group has been examining obstacles to employment for lone parent families, with particular emphasis on income supports, employment, education, child care and support programmes and information. 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, a working group established in my Department to review the income support arrangements for lone parents has looked at issues including the contingency basis of the one-parent family payment, cohabitation and the fact that the payment can act as a disincentive to the formation of partnerships and discourage joint parenting. As a result of this process, which included consultation with the social partners, I launched, on Monday of this week, a major Government discussion paper, "Proposals for Supporting Lone Parents", which addresses the social exclusion and risk of poverty faced by many such families and their children.

The report puts forward radical proposals for reform of the income support system for all parents on a low income. The report proposes the expanded availability and range of education and training opportunities for lone parents, the extension of the national employment action plan to focus on lone parents, focused provision of child care, improved information services for lone parents and the introduction of a new parental allowance, PA, for low income families with young children. The Government will listen closely to the views expressed as this report is debated and will give serious consideration to them. As soon as I am convinced that we have reached conclusions that are fully workable and clearly thought out, it will be my intention in the months ahead to take these proposals to Cabinet for discussion and decision.

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