Dáil Éireann Debate, Wednesday - 8 February 2023
260. Deputy Claire Kerrane asked the Minister for Social Protection the number of additional families that will be eligible for the working family payment as a result of the €40 income increase announced in budget 2023; and if she will make a statement on the matter. [5722/23]
Amharc ar fhreagraI am pleased that Budget 2023 included a social welfare package of more than €2.1 billion. This extensive package includes measures in relation to the Working Family Payment. Approximately half of the recipients of Working Family Payment are single adult households so these measures are also of benefit to lone parents.
The Working Family Payment is an in-work support which provides an income top-up for employees on low earnings. The Working Family Payment is designed to prevent in-work poverty for low paid workers with child dependents, and to offer a financial incentive to take-up employment.
In November 2022 I provided for a €500 lump sum payment to families in receipt of Working Family Payment to assist with the cost of living. Approximately, 44,000 families with 97,000 children received this payment at an estimated cost of €23 million.
In addition, I have also provided for a €40 per week increase in the Working Family Payment thresholds for all family sizes. This is the highest ever increase in the Working Family Payment thresholds and it took effect from January at a cost of approximately €16.8 million in 2023. This will ensure that families on low incomes will receive more weekly income from the scheme - up to €24 per week. It will also ensure that the increase of 80 cent per hour in the National Minimum Wage does not negatively impact on people's income from the Working Family Payment.
This change will benefit those already on Working Family Payment but it also means that more people will qualify for the payment. While it is difficult to model with true precision how many new families will enter the scheme, I expect this to be in the region of 1,600 families. It should be noted that this estimate is subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.
I trust this clarifies the matter for the Deputy.
