State to limit welfare for lone parents

THE Government wants to place limits on social welfare payments to lone parents who don’t seek work.

It proposes a gradual reduction of payments from the time children begin school, when parents would have more time to work, train or return to education.

Social Affairs Minister Seamus Brennan yesterday stressed the goal was not to save the State money. Instead, it was to encourage lone parents to move towards financial independence and secure a better future for their children.

Offering payments for an unlimited time simply encouraged long-term dependence, he said.

"Lone parents remain one of the groups who are particularly vulnerable to poverty, with over 30% in consistent poverty in 2004 compared to 7% of the overall population."

Studies had shown employment was the key to reducing poverty, he added.

He outlined his proposals in a discussion paper prepared by senior officials. It proposes a new Parental

Allowance (PA) to replace the lone-parent allowance, properly known as the One-parent Family Payment (OFP).

PA would be paid at the same rate, around €165 a week, and would also be available to families where both parents are present.

However, it would be "time-limited", meaning that once a child reached school-going age, the parent(s) would have to meet with State officials to discuss work or training options.

Parents could earn up to €120 a week without seeing their PA reduced. Those earning above €120 would receive a reduced allowance depending on the amount of hours they worked and how much they were paid.

When the child reached seven or eight, the payment would be stopped completely the idea being that the parent[s] would have found work by that point. If a parent was not employed, they could apply in the normal way for Unemployment Assistance or similar payments.

Introduction of PA would mean an end to the much-criticised "cohabitation rule", which says lone parents cannot receive OFP if living with a partner.

A consultation period has been opened, with a consultative forum set for April 27. After that, the minister's department will firm up the proposals and Mr Brennan will bring them to Cabinet for approval.

The One Parent Exchange and Network (OPEN), which represents more than 80 lone parent groups, welcomed the proposal to end the cohabitation rule. But it said other proposals gave rise to serious concerns.

OPEN Director Frances Byrne said: "The proposals on stimulating access to employment represent a major challenge to a number of Government departments, and based on experience to date, we lack confidence that they will step up to the mark."