I propose to take Questions Nos. 201 and 203 together.
Some OFP customers are presently in receipt of both the one-parent family payment (OFP) and the family income supplement (FIS) and will experience a loss when they lose their entitlement to the OFP payment from July, 2013, onwards. An integral part of the FIS scheme is that once the level of payment is determined, it continues to be payable at that rate for a period of 52 weeks, provided that the person remains in full-time employment and the rate of payment will not change if there is an increase or decrease in the recipient's income. In line with this policy, the current Social Welfare legislation generally precludes changing the FIS rate within the 52 week payment period. However, as an exceptional measure, it is proposed to introduce regulations shortly to enable entitlement to FIS to be reviewed during the 52 week period, commencing from July 2013, so that former OFP recipients in receipt of FIS will have it increased in light of the termination of their OFP due to the age of the youngest child. The FIS payment may be increased to compensate for 60% of the loss of the OFP payment.
The following table provides indicative examples of a lone parent, with one child, and with net earnings of €200, €300, €400 per week, who will be transitioning to the FIS scheme after their entitlement to the OFP payment ceases. There is a maximum earnings threshold of €425 for receipt of OFP so for a lone parent earning €500 per week, OFP is not payable.
|
-
|
Net earnings
|
OFP
|
FIS
|
Total OFP income (earnings plus OFP and FIS)
|
Total loss
|
|
Payment with OFP
|
€200.00
|
€180.30
|
€75.42
|
€455.72
|
|
|
Payment without OFP and with FIS re-rated
|
€200.00
|
€0.00
|
€183.60
|
€383.60
|
€72.12
|
|
Payment with OFP
|
€300.00
|
€130.30
|
€45.42
|
€475.72
|
|
|
Payment without OFP and with FIS re-rated
|
€300.00
|
€0.00
|
€123.60
|
€423.60
|
€52.12
|
|
Payment with OFP
|
€400.00
|
€80.30
|
€15.42
|
€495.72
|
|
|
Payment without OFP and with FIS re-rated
|
€400.00
|
€0.00
|
€63.60
|
€463.60
|
€32.12
|
Please not that the earnings threshold allowed for receipt of OFPT is €425 and so in this case OFP would not have been payable
|
Payment with OFP
|
€500.00
|
€0.00
|
€3.60
|
€503.60
|
|
|
Payment without OFP and with FIS re-rated
|
€500.00
|
€0.00
|
€3.60
|
€503.60
|
€0.00
|
The jobseeker's allowance transitional arrangement, I am introducing in the Social Welfare and Pensions (Miscellaneous) Bill 2013, will be available to former OFP recipients who continue to be parenting alone and who have a
youngest child aged under 14 years. The arrangement exempts these customers from the jobseeker's allowance (JA) conditionality that requires them to be available for and genuinely seeking full-time work. I am introducing these arrangements in recognition of the difficulties that these lone parents may face in balancing their caring responsibilities towards their young children with the eligibility requirements of the JA scheme. These arrangements only extend to those continuing to parent alone. Should a former OFP recipient no longer be parenting alone then there would be no rationale for them to benefit from the exemptions to the JA conditionality. In these circumstances they would be treated the same as any other parent, who is in receipt of JA and who is required to meet the full JA conditionality.
