Willie Penrose (Longford-Westmeath, Labour)
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Question 183: To ask the Minister for Social and Family Affairs the way an entitlement to deserted wife's benefit which was an insurance based benefit could be transformed into a means tested payment; if in view of the fact that there is a small number in receipt of this payment she will explain the motivation for such a significant change whereby people who qualified for same anticipated they would continue on this payment as it was insurance based; and if she will make a statement on the matter. [37715/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Deserted Wife's Benefit scheme was an insurance based scheme for women whose marriage had broken down. In 1992 an earnings limit was brought in for the scheme so that resources would be effectively targeted to those deserted wives who required an additional supplement to their income until they were able to support themselves. The deserted wife's benefit (DWB) scheme was closed to new applications with effect from 2 January 1997, when the one-parent family payment (OFP) was introduced. Thereafter, both lone parents and deserted wives with qualified children are supported under the OFP scheme.

The current income disregard of €20,000 was introduced in Budget 2007 and represented a substantial increase on the previous income disregard whereby recipients earning more than €12,697 per annum received a reduced payment and whereby claimants earning more than €17,776 lost entitlement to the payment. This new arrangement, in effect allows DWB recipients to earn up to €384 per week and still retain full entitlement to benefit of €203.30 per week (€209.80 per week from January 2009). DWB recipients whose income goes over €20,000 per annum are also entitled to a half-rate transitional payment for 6 months. I am satisfied that the conditions for payment are equitable and I have no plans at present to change the earnings disregard.