My Department’s approach to developing the working family payment is being guided by two principles. First, that it should ensure that work pays, and second, and equally important, that it should have a positive effect on reducing child poverty.
To advance the commitment contained in the Programme for Partnership Government, my Department established an internal working group and an Inter-Departmental Group of the relevant Government Departments. The purpose of these groups is to consider proposals and to ensure that they are consistent with the two guiding principles of making work pay and tackling child poverty.
As part of this process my Department has carried out an extensive analysis of its existing range of supports that are aimed at assisting individuals take up employment. The analysis shows the existing in-work supports are effective, and work well in assisting individuals make the transition from unemployment into employment.
These findings are confirmed by the ESRI’s research into the Department’s existing in-work measures, and Eurostat figures, which show that the parental in-work poverty rate in Ireland is 5.8%, significantly below the EU 28 average of 11.2%. This is in large part due to the Department’s in-work supports such as FIS and the Back to Work Family Dividend.
My Department is working on proposals as to the most appropriate approach to fulfil the requirements of making work pay and tackling child poverty as outlined in the commitment in the Programme for a Partnership Government, whilst building on the effective measures already in place.