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Social Welfare Schemes

Dáil Éireann Debate, Tuesday - 22 March 2022

Tuesday, 22 March 2022

Ceisteanna (6)

John Paul Phelan

Ceist:

6. Deputy John Paul Phelan asked the Minister for Social Protection the amount that has been allocated for the working family payment scheme that supports parents at work in 2022; the additional allocated funding as part of cost-of-living measures; and if she will make a statement on the matter. [14663/22]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

I am taking this question and Question No. 8 on behalf of Deputy Phelan. I would like to ask the Minister about the amount made available this year for the working family payment scheme, which, as we know, supports parents who are at work, and the additional funding that will be allocated as part of cost-of-living measures.

I thank the Deputy for raising this issue. The working family payment scheme is a demand-led scheme and is not budget capped. Based on current and projected claim volumes, my Department estimates expenditure of €348.6 million for the scheme in 2022.

In budget 2022, I provided for an increase in €10 per week in the working family payment income thresholds for all families. It is estimated that 45,000 recipients, with 103,000 children, will benefit from this measure. This increase was originally scheduled to come into effect from June 2022. However, as part of the package of measures the Government announced in February to assist families with cost-of-living increases, implementation has been brought forward. The higher income thresholds will now take effect from April. This will cost an additional €4 million. As part of the cost-of-living measures, the electricity costs emergency benefit scheme will support all families at a cost of €400 million.

Increasing the working family payment income thresholds is a targeted measure that is directly linked to household income and, therefore, directly supports low-income working families. Working family payment recipients are low-income families.

In recent years, we have also focused on other improvements for families with children, including increases to qualified child payments and the back-to-school clothing and footwear allowance. These changes help to deliver on the Government's commitment, as set out in the roadmap for social inclusion, published in January 2020, to continue to target a reduction in poverty among children and families on low incomes as part of the annual budget process. I hope this clarifies the matter for the Deputy.

I thank the Minister for her response. The working family payment is a huge asset to many families. Many families on low incomes in my constituency find that the payment goes a long way in helping them to meet the shortfall between their income and expenditure.

I welcome the increase in the payment the Minister outlined and the additional €4 million her Department has allocated to support families who need the payment. There are huge pressures on families right now to make ends meet, put fuel in their cars, heat their homes and put food on the table. The increase in the payment, which the Minister is now bringing forward from 1 June to 1 April, will make a huge difference because families need this extra support now. Families on middle and low incomes are undoubtedly struggling the most. I worry that middle income families who are not captured by this scheme and other schemes may be falling through the cracks. Does the Minister have any plans to further extend the working family payment or increase the qualifying income threshold?

To qualify for the working family payment the average total weekly family income must be below the relevant income threshold for the family's size. The payment is calculated at 60% of the difference between the total family income and the income threshold that applies to the family. The rate of payment for those in receipt of the working family payment varies, depending on the number of children in the family, the level of hourly earnings, the number of hours worked and the level of other welfare payments, if any. The average weekly payment made to families is currently estimated at €140 per week. The legislation also provides for a minimum weekly payment rate of €20 for those who would otherwise qualify for a lower rate. We keep all of these schemes under review and any changes would be part of the normal budgetary process, which is later in the year.

It is encouraging to hear the Minister refer to an average payment of €140 per week for those families who qualify for this payment. It is important that we encourage any family who believe they may be eligible for the working family payment and are not currently in receipt of it to look into the matter and apply for the payment. Does the Minister have any idea of the number of families who would be eligible but may not have applied for the payment? It would be good if the Department were to undertake an information campaign around the working family payment to target information at relevant families. This could be done through GPs, schools and community centres. I am guilty of not realising until recently that someone may qualify for the working family payment if he or she is an apprentice moving between off-the-job training in an education centre and on-the-job training at an employer's workplace. That is great and it is a good support for apprentices who have children. It might be one of the lesser known facts of this scheme that apprentices with younger families might qualify for the payment. I commend the Minister on all the work she is doing in this area. I hope we can encourage more families to avail of this payment.

The Deputy is right that sometimes people are not aware of the many different supports that are available. I believe my Department makes more than 80 different payments, so there are quite a few of them. Citizens Information is a very good organisation and has good information on its website.

To qualify for the working family payment a person must be engaged in paid employment, as an employee, which is expected to last for at least three months, and be working for a minimum of 38 hours per fortnight. A couple may combine the hours of employment to meet the qualification criteria. The applicant must have at least one qualified child who normally resides with him or her or is part of a family supported by him or her. For the purposes of this scheme, a "child" includes those aged between 18 and 22 years of age if in full-time education. The average total weekly family income must be below the relevant income threshold related to the family size. As I said, the payment is calculated at 60% of the difference between the total family income and the income threshold that applies to the family's size.

The Deputy is also right about communicating the scheme. We are publicising through social media and community welfare offices on the supplementary welfare allowance and other payments. We will continue to do so on a rolling basis to make people aware.

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