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Paternity Leave Costs

Dáil Éireann Debate, Tuesday - 30 May 2017

Tuesday, 30 May 2017

Questions (293, 306)

Thomas P. Broughan

Question:

293. Deputy Thomas P. Broughan asked the Minister for Social Protection the first year cost and full year cost of increasing paternity leave by one week, two weeks, three weeks and four weeks, respectively; and if he will make a statement on the matter. [25815/17]

View answer

Willie O'Dea

Question:

306. Deputy Willie O'Dea asked the Minister for Social Protection the estimated full year cost of increasing maternity and paternity benefit by one, two, three, four, five and six weeks, respectively, in tabular form; and if he will make a statement on the matter. [25885/17]

View answer

Written answers

I propose to take Questions Nos. 293 and 306 together.

The estimated additional cost of extending the duration of maternity benefit is approximately €10 million for each extra week. The table estimates the additional cost of increasing the duration of maternity benefit above its current 26 week duration at the current weekly rate of €235.

Estimated annual cost of increasing the duration of maternity benefit based on 2017 rates

Weeks/€

Weeks/€

Weeks/€

Weeks/€

Weeks/€

Weeks/€

No. of additional weeks

1

2

3

4

5

6

Estimated cost (€m)

10

20

30

40

50

60

These estimates are on a full year basis and assume that any increase in duration is implemented at the beginning of the year. It should be noted that this costing is subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2017.

The Paternity Leave and Benefit Act 2016 which was enacted in July 2016 introduced a new scheme of paternity leave and an associated social welfare payment of paternity benefit from 1 September 2016.

Approximately 12,750 paternity benefit claims have been awarded since the commencement of the scheme in September. This would indicate a take up of around approximately 19,000 in a full year. However there were approximately 7,500 paternity benefit claims awarded in the first four months of this year from 1 January 2017 to 26 April 2017. This would indicate a take up of around approximately 22,500 in a full year. However neither figure takes account of the fact that fathers can take their paternity leave up to 6 months after their child is born. For example, fathers whose child was born on 28 February 2017 can take their leave at any time up to 1 September 2017. As such, current figures for paternity benefit claims awarded do not include fathers who will apply and take their leave in the remaining months available to them.

Given the flexibility afforded to fathers and the scheme cycle it will be 18 months from the commencement of the scheme before the department will have an accurate figure for the take-up of paternity benefit in a full year. The estimates below are based on this proviso.

The estimated additional cost of extending the duration of paternity benefit is approximately €5.5 million for each extra week. The table below estimates the additional cost of increasing the duration of paternity benefit above its current two week duration at the current weekly rate of €235.

Estimated annual cost of increasing the duration of paternity benefit based on 2017 rates

Weeks/€

Weeks/€

Weeks/€

Weeks/€

Weeks/€

Weeks/€

No. of additional weeks

1

2

3

4

5

6

Estimated cost (€m)

5.5

11

16.5

22

27.5

33

These estimates are on a full year basis and assume that any increase in duration is implemented at the beginning of the year. It should be noted that this costing is subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2017.

Question No. 294 answered with Question No. 275.
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