I propose to take Questions Nos. 100 to 102, inclusive, together.
The one-parent family payment (OFP) scheme has played an important role in providing income support to lone parents since its introduction in 1997. The number of OFP recipients stood at 77,209 in May, 2014, and an estimated €863 million is due to be spent on the scheme in 2014. However, despite significant levels of State spending on the OFP scheme, the results have been poor in terms of tackling poverty and social exclusion rates among one-parent families. These families continue to experience higher rates of ‘consistent poverty’ in comparison to the population generally.
The reforms to the OFP scheme aim to assist lone parents escape poverty and joblessness by providing them with enhanced access to the Department’s broad range of activation supports and services. This will assist lone parents increase their skills set and job-readiness and to facilitate their entry into the workforce and hopefully achieving financial independence. The Social Welfare and Pensions Act, 2012, contains provisions to reduce, on a phased basis, the maximum age limit of the youngest child at which an OFP recipient’s payment ceases to 7 years from 2014 for new entrants and from 2015 for existing recipients. This reduction yielded savings of €2 million in 2012 and of €3.94 million in 2013, and will yield estimated savings of €8.85 million in 2014 and €26.85 million in 2015.
The next phase of the OFP reform process will commence on 3 July, 2014, when approximately 5,140 customers are due to exit the OFP scheme. All affected customers have been invited by the Department to attend information sessions, with a view to briefing them on the broad range of Departmental supports that are available. Approximately 850 affected OFP customers who are in receipt of the Family Income Supplement (FIS) will have their FIS payment automatically adjusted to take account of the loss of 60% of their OFP from 3 July. Approximately 186 affected OFP customers who are also in receipt of the half-rate carer’s allowance will have their carer’s allowance claim re-rated to a full-rate carer’s allowance on 3 July when their OFP ceases.
It is expected that approximately 3,600 individuals may apply for the jobseeker’s allowance (JA) payment, with approximately 1,500 of these being eligible for the JA transitional arrangement. This transitional arrangement exempts former OFP recipients whose youngest child is under 14 years of age from having to satisfy the jobseeker conditions of being available for and genuinely seeking full time employment. The JA transitional arrangement allows lone parents with children under 14 years of age to balance their caring responsibilities and reduces significantly their requirement for child care.
Child care policy and the delivery of child care services, is the responsibility for the Department of Children and Youth Affairs. The Department of Children and Youth Affairs estimates that the cost of universal child care provision in Ireland could reach around €1 billion per annum. In light of the current fiscal environment, this level of funding is not available. However, as part of a package of measures in Budget 2013, I along with then Minister for Children and Youth Affairs announced an after-school child care initiative between our two Departments. The purpose of the scheme is to help to offset some of the after-school child care costs that are associated with availing of an employment opportunity in a bid to encourage more individuals to take up employment. The scheme provides 800 subsidised places and is open to both jobseekers and OFP recipients.
By refocusing some of the scheme’s original €14 million budget, both the Minister for Children and Youth Affairs and I were able to introduce the community employment (CE) child care programme. This scheme provides approximately 1,800 child care places to CE participants and was implemented in January 2014.
These two schemes are in addition to the existing supports, which are provided by the Department of Children and Youth Affairs. These supports currently provide subsidised child care to approximately 35,000 children of low income parents. This is a vital support to parents that enables them to avail of employment opportunities, which is clearly the best route out of poverty.
