State saves €40m forcing absent parents to pay up

THE State has saved almost €40 million in the last three years by forcing thousands of absent parents to contribute to the cost of rearing their children.

Last year alone, 722 One-Parent Family Allowance payments were cancelled and a further 512 payments reduced - resulting in savings of €16.6m - because the Department of Social and Family Affairs chased and ordered absent parents to pay maintenance.

The One-Parent Family Allowance is the department’s mechanism for providing financial support to people who receive little or no maintenance from the other parent.

But by law, where social welfare is being provided to a single parent, the other parent must contribute to its cost.

Therefore, in each case where the One-Parent Family Allowance is awarded, the maintenance recovery unit of the department attempts to trace the other parent, referred to as the “liable relative”.

Absent parents whom the department believes can afford to pay are then issued with a determination order setting out the amount required from them.

Because of maintenance paid by absent parents, the State saved €8.5m in welfare payments in 2002, €14.2m in 2003 and €16.6m last year. There are 1,980 absent parents contributing to the department, according to figures released by Social Affairs Minister Seamus Brennan.

Most absent parents are fathers, as children tend to stay with their mothers when a family breaks up.

Their contributions help reduce the State cost of providing the One-Parent Family Allowance.

The department has also chased absent parents through the courts.

“A total of 182 cases have been submitted for court action from 2001 to date,” Mr Brennan said.

“The majority of these cases have resulted either in orders being written against the liable relative in court or, alternatively, in the liable relative agreeing to pay a contribution to the department or the lone parent.”

However, the State last year paid out almost €19m to people suspected of welfare fraud.

“The total amount of overpayments set up as a result of detected fraud or suspected fraud during 2004 was €18.63m, 50% of which was as a result of customers concurrently working and claiming,” Mr Brennan said.

He said the department’s policy was to “consider all cases of fraud for prosecution”.

Last year, 503 cases were referred to the State Solicitor’s Office to initiate prosecution proceedings, while 282 cases were dealt with by the courts, resulting in 10 people being imprisoned, 26 receiving suspended sentences, 158 being fined, and 43 being put on probation.

The figures were released by Mr Brennan following questions tabled separately in the Dáil by Labour TD Brendan Howlin and Sinn Féin deputy Aengus Ó Snódaigh.