Dáil Éireann Debate, Tuesday - 22 November 2016
310. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of women previously in receipt of one-parent family allowance that have experienced a net reduction in their weekly income arising from the changes that have taken place; and if he will make a statement on the matter. [36288/16]
View answerThe final phase of the One-Parent Family Payment (OFP) age reforms were introduced on 2 July, 2015 bringing the maximum age of the youngest child for receipt of OFP to 7 years for all recipients.
Approximately 25,500 customers transitioned from the OFP scheme on that date.
The majority of customers transitioned to the Jobseeker’s Transitional payment (JST), the Jobseeker’s Allowance payment (JA), and the Family Income Supplement (FIS):
- 13,600 (or 54%) of them moved to the Jobseeker’s Transitional Payment (JST);
- 2,500 (or 10%) of them moved to the Jobseeker’s Allowance (JA) scheme, and
- 8,100 (or 32%) of them moved to the Family Income Supplement (FIS) scheme.
The majority of these customers were women given that currently 98% of one-parent family payment recipients are women.
For the customers who transitioned on 2 July, 2015:
Approximately 12,000 (47%) incurred no change in their income;
Approximately 3,000 (12%) became new FIS recipients and saw an increase in their income. These new recipients were also eligible for the Back to Work Family Dividend (BTWFD).
Approximately 4,900 (19%) of the Jobseeker’s Transitional Payment cohort suffered an income loss at the time. However, in Budget 2016 these individuals gained in their overall income when the JST means test was more closely aligned with the OFP means test. Budget 2017 further increased the earnings disregard to €110 per week so that from early January 2017 these individuals will have more income compared with when they were in receipt of OFP.
Approximately 5,700 (22%) of the FIS recipients suffered an income loss. However, this cohort was eligible for the Back to Work Family Dividend, which reduced their loss.
Budget 2017 builds further on Budget 2016 and the following measures will specifically benefit lone parents:
- A €5 increase in the rate of the One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance and the Back to Education Allowance with effect from March 2017;
- A new €500 Cost of Education Allowance per annum for parents, including lone parents, in receipt of Back to Education Allowance;
- Income disregard for parents getting the One-Parent Family Payment and the Jobseeker’s Transitional Payment to be increased from €90 a week to €110 with effect from 5 January 2017;
- A Christmas Bonus of 85% to be paid in early December.
- Also the National Minimum Wage has increased to €9.25 an hour which may benefit some lone parents working outside the home.
The increase to the One-Parent Family Payment and the Jobseeker’s Transitional Payment earnings disregards will benefit approximately 17,500 lone parents.
On foot of the measures for lone parents contained in Budget 2017, a lone parent on the Jobseeker’s Transitional Payment working 15 hours at the national minimum wage will see an increase in their overall income of almost €16 per week (or over €830 per annum) from approximately €334 in 2016 to €350 in 2017. This person will have already gained almost €28 a week as a result of measures in Budget 2016. Since 2015 this lone parent has seen an increase of almost €44 or almost €2,300 per annum between take home pay and State support.
A lone parent on the One-Parent Family Payment working 15 hours at the national minimum wage will see an increase in their overall income of almost €18 per week (or almost €940 per annum) from approximately €348 in 2016 to €366 in 2017.
These increases are as a result of the increase in the National Minimum Wage, the increased disregards on One-Parent Family Payment and the Jobseeker’s Transitional Payment and the rate increase of €5 per week.
Initial indicative data from the latest Quarterly National Household Survey (QNHS) show that there has been a significant increase in the percentage of lone parents in employment in the year to the end of June 2016. The increase of lone parents taking up employment in the 12 month period prior to June 2016 has been four times higher than the equivalent increase in two parent households. This increase relates to all lone parents in the State and reflects the increase in economic and employment growth generally. However, the magnitude of the increase for lone parents (when compared with couples) many of whom would have been affected in July 2015 by the reforms is significant.
