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One-Parent Family Payment Expenditure

Dáil Éireann Debate, Tuesday - 23 June 2015

Tuesday, 23 June 2015

Questions (175)

Thomas P. Broughan

Question:

175. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection if she will report on the current status of changes to the one-parent family payment; the number of recipients; the number on transitional payments; her plans to address the lack of affordable child care and other impacts, in relation to family income supplement and rent supplement, arising from the changes; and if she will make a statement on the matter. [24625/15]

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Written answers

Expenditure on the one parent family payment scheme is estimated to be €607 million in 2015 with almost 70,000 recipients.

However, despite considerable investment, the scheme has not succeeded in preventing lone parents from being significantly more at risk of consistent poverty than the population as a whole.

The final phase of the OFP age reforms are due to take place on 2 July 2015 when approximately 29,400 OFP recipients will be transitioning out of the OFP scheme. Approximately 19,800 are expected to transition to the jobseeker’s transitional payment, 4,100 to jobseeker’s allowance (JA) and 5,500 to a re-rated family income supplement (FIS).

The 5,500 customers already on FIS will have their payment automatically increased to take account of the loss of 60% of their OFP income and have received letters to that effect. All remaining customers were invited to attend information sessions in their local Intreo offices where they were advised of the different options available to them when they transition from the OFP scheme. At these information sessions, staff of the Department informed lone parents that the most financially advantageous option available to them was to work a minimum of 19 hours per week and claim FIS.

On foot of these information sessions, estimates suggest that to date over 1,250 of these lone parents have become first time FIS recipients. This means these individuals have either taken up employment or have increased their existing hours of employment to claim FIS.

The 1,250 lone parents who are new FIS recipients are now financially better off than when they were claiming the one-parent family payment. These customers will also qualify for the new back to work family dividend (BTWFD) from 2 July. The Dividend is worth €1,550 per child in the first year and reducing to 50% entitlement worth €775 per child in the second year.

Approximately 5,000 of the customers transitioning from OFP in July are also in receipt of the rent supplement. These customers will be able to have their supplement reviewed on foot of the changes in their overall income. Where a customer has incurred an overall loss this review may result in an increase in their rent supplement and likewise for customers who gain overall their rent supplement may be reduced, assuming their circumstances have not otherwise changed. It is important to note that rent supplement is a means tested payment and is calculated to ensure that the person’s income, after the payment of their rent, is equal to the supplementary welfare allowance (SWA) rate, less a specified weekly minimum contribution. The weekly minimum contribution is €30 for a single adult household.

Child care policy, including the delivery and/or expansion of child care services, is the responsibility of the Department of Children and Youth Affairs (DCYA).

The reforms to the OFP scheme have highlighted the need for child care supports to be available for lone parents who make the transition into employment. My Department in conjunction with the DCYA introduced the after-school child care scheme and the community employment childcare programme in 2013 and 2014 respectively. Both of these schemes were funded by my Department from savings from the child benefit scheme and build on the 25,000 subsidised childcare places provided by the DCYA each year.

The DCYA has also established an inter-Departmental group at senior level to carry out an economic and cost-benefit analysis of policies and future options for increasing the supply, accessibility, and affordability of quality child care, including early years and school-age care. This group is led by the DCYA and includes representatives from a number of Departments including the Department of Social Protection. It is due to report this summer.

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