Dáil Éireann Debate, Thursday - 9 February 2017
134. Deputy John Brady asked the Minister for Social Protection the actions he will take in response to the survey on income and living conditions 2015 figures released recently, specifically regarding the increase in consistent poverty among lone parent families; and if he will make a statement on the matter. [6427/17]
Amharc ar fhreagraThe latest CSO Survey on Income and Living Conditions for 2015 shows that the consistent poverty rate for lone parent households is 26.2%, up from 25% in 2014. The deprivation rate for lone parent households fell from 58.7% in 2014 to 57.9% in 2015. The at-risk-of-poverty rate for lone parent households is largely unchanged in 2015 at 36.2%, compared to 36.5% in 2014.
The full impact of the recovery is not reflected in these 2015 figures. Macro-economic and labour market indicators have shown continued economic and employment growth since then. Unemployment has fallen from 9.5% in mid-2015 to 7.1% now. The number of people in receipt of working-age income and employment supports continued to fall. The full impact of the reforms to the one-parent family payment (OFP) and the positive impact of recent Budgets on lone parents are also not reflected in these figures.
In Budget 2016 lone parents benefited from a number of measures including increases in child benefit, changes to the means test on the jobseeker’s transitional payment to align it with the more generous means test on the one-parent family payment, and increases in the family income supplement thresholds. In Budget 2017 all lone parents on OFP, the jobseeker’s transitional payment (JST) and jobseeker’s allowance (JA) will benefit from the €5 increase in the weekly rates of payment from March. A new €500 annual Cost of Education Allowance will be made available to Back to Education Allowance participants with children from the next academic year in September. In addition, the income disregards for OFP and JST have risen by €20 from January this year, from €90 to €110 per week, reversing in part previous reductions, to encourage one parent families to stay in, and return to, work. During that time the national minimum wage also increased from €8.65 to €9.25 per hour.
The improvement in the economy combined with these Budget measures is likely to have supported a reduction in poverty since the period in 2015 to which the SILC publication refers. This improvement is expected to continue with further rises in incomes and living standards.
The Department of Social Protection’s social impact assessment of Budget 2017 showed that average household incomes increase by 1%. Non-earning lone parents were the biggest beneficiary of Budget 2017 with gains of 4.5%. Working lone parents also experienced above average gains at almost 1.2%. This represents a cumulative increase across Budgets 2015, 2016 and 2017 of 4% or almost €27 per week for working lone parents and 6.9% or just over €24 per week for lone parents who are not working.
Initial indicative data from the latest Quarterly National Household Survey also shows that there has been a significant increase in the percentage of lone parents in employment in the year since the end of June 2016. This increase relates to all lone parents in the State and reflects the increase in economic and employment growth generally. The magnitude of the increase for lone parents specifically, however, is clearly significant and cannot be dismissed.
We know that social transfers are very effective in reducing poverty and that Eurostat data shows that Ireland performs well in this regard. But we also know that reducing poverty for lone parents is not just about income support. It is also about supporting lone parents to make the transition into employment and assisting these families through the provision of quality services in areas such as activation including education, training and employment supports, and childcare.
As part of the OFP reforms the Department has begun engaging with lone parents whose youngest child is seven years and older, on a proactive and supported basis. To date over 9,000 lone parents, of the 14,500 lone parents who are on the jobseeker’s transitional payment, have been selected for activation. This is a very significant step forward in addressing the poverty rates for these families. Over 6,000 of those 9,000 lone parents have already been selected for activation and have been case managed, are scheduled for an engagement or are awaiting an appointment time. The remaining 3,000 individuals have been fully case managed which means they have met with a case officer, have agreed a personal plan and are progressing with this plan which includes moving into education and training on foot of their engagement. It will take time to see the full impact of these activation engagements as it will take time for lone parents to complete the education, training or employment support programmes.
Continued economic recovery, together with the actions outlined above will support further reductions in poverty over the coming years. The independent review of the one-parent family payment reforms, once completed, will also assist with discussions in my Department on measures for lone parents in Budget 2018.
