Mary Upton (Dublin South Central, Labour)
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Question 165: To ask the Minister for Social and Family Affairs if he is satisfied with the one parent allowance scheme as it operates; the new proposals he has introduced to update this payment; when he expects to introduce such amendments; and if he will make a statement on the matter. [28894/07]

Martin Cullen (Waterford, Fianna Fail)
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The One-Parent Family Payment is a payment for men and women who are bringing up a child without the support of a partner. It is a means tested payment with an earnings disregard to allow for the increased costs involved in returning to the workplace.

Current arrangements allow for a weekly earnings disregard of €146.50, with half of any additional earnings up to a weekly limit of €400 assessed as means for the purposes of calculating entitlement to payment. This upper earnings limit has been increased by €107 per week over the course of the last two budgets. The rate of payment to a qualified child has also increased to €22 per child. This is paid in addition to the personal rate of one parent family payment.

I have previously acknowledged that despite the recent improvements in the scheme, the rate of lone parents at risk of poverty is unacceptable and the best way out of poverty is through quality, sustainable employment. The Government has requested the Senior Officials Group on Social Inclusion to develop a plan to implement the proposals contained in the Government discussion paper "Proposals for Supporting Lone Parents."

The paper puts forward proposals for 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 childcare; improved information services for lone parents and the introduction of a new social assistance payment for low income families with young children. The paper also proposes the abolition of the cohabitation rule as a condition for receipt of the proposed social assistance payment. Steps have been taken in my Department to draft legislation to introduce a new social assistance payment to replace the One Parent Family Payment. However, any proposed new payment can only be introduced when the necessary co-ordinated supports and services are put in place on the ground by other Departments and Agencies.

Discussions are ongoing with the relevant Departments and Agencies on issues including childcare, education, training and activation measures. As part of this process, my Department, with the co-operation of FÁS, the Office of the Minister for Children and the Department of Education and Science, are testing the non-income activation proposals in Coolock, Dublin and in Kilkenny. These tests are focused on identifying and resolving any practical and administrative issues that may arise in advance of the scheme being introduced. The tests are expected to run until the end of the year, with a report then being made to the Cabinet Committee on Social Inclusion. They will allow for operational and logistical co-ordination between the relevant Departments and Agencies to be considered and will facilitate the development of the policy and operational details of the new scheme and accompanying supports. The nationwide roll out of these reforms will follow the completion of the tests.