There are 80,928 claimants of the one-parent-family payment of €134.80 a week plus €19.30 per child.

When it was introduced, in 1997, the payment was hailed as progressive, designed to support lone parents, whom it allows to earn a certain amount without losing their payment, so encouraging them back to work. But it has failed on both fronts, says Frances Byrne, director of One Parent Exchange and Network (OPEN), whose study Living On The Book is published today.

"First, we found that lone parents suffer the highest level of consistent levels of poverty among any social-welfare recipients and have fallen further behind over the past 10 years. Most interviewees had barely enough money to cover the basics, with their allowance not supporting their need or wish to stay at home."

Recipients who get jobs are allowed to earn only up to €146.50 a week before losing some allowance, under the earnings-disregard limit; the survey found, unsurprisingly, that this does not keep poverty at bay. "Many lone parents working outside the home still struggled to make ends meet. This is partly because, despite acknowledgment that childcare costs have doubled between 1997 and 2000, the earnings disregard - to facilitate related expenses, such as childcare - has remained the same."

Additionally subsequent changes in the scheme's operation have been regressive, according to OPEN. Traditionally, people earning up to €293 a week could keep half their social-welfare payment for a further year, helping them ease towards independence. Last November this facility was removed. Today any recipient earning €293 - hardly riches - loses the whole payment, plus any secondary benefits, such as the back-to-school clothing grant.

"This is highly regrettable, particularly given government policy to favour work over welfare. It will undoubtedly stop some parents from accessing employment and gives them the message they don't matter. Also, it shows little understanding of the non-financial support needed bymany lone parents considering employment as an alternative to long-term welfare dependency. If you are living in poverty it's a huge step to take yourself off that lifeline, even though somewhere else in the brain you know you're stuck in a trap."

OPEN is calling for an independent review of the one-parent-family payment, a significant increase in the earnings disregard and no more cuts to the community-employment scheme. "Single mothers are still stigmatised as spongers. This comes through in the report and in the many stories we heard. In one midland town, when claiming their payment at the post office, the previously married people have their book handed back to them by the postmistress while the single mothers get theirs thrown back.

"But the system makes it difficult for those struggling with the dual role of breadwinner and sole parent. What came across again and again in the research is the great love single parents have for their kids and how the need for economic independence to benefit their children long term is constantly with them."

• Living On The Book is available from OPEN (01-8320264, enquiries@ oneparent.ie), www.oneparent.ie