I wish to add my voice to the debate on the Social Welfare (Miscellaneous Provisions) Bill 2010. There is no doubt that we are experiencing changed times which naturally triggers a need for changes to our social welfare payments. The economic downturn has left people in situations that they never dreamed possible. Ireland experienced unprecedented levels of employment in recent years, which left us in a situation whereby those on social welfare benefits were truly those that were in need, such as carers, pensioners, people with disabilities and so on.

During those times this Government dramatically increased levels of social welfare payments, a point which was outlined by the Minister and many of my colleagues. Over the past 12 years we have increased unemployment benefits by almost 130%, child benefit by more than 330% and pension rates by approximately 120%. In contrast, the cost of living has increased by about 40% in the same period. The generosity of our welfare system was demonstrated in recent times when many people from Northern Ireland unlawfully claimed welfare in Border counties such as Donegal. I very much welcome the measures introduced by the Minister to clamp down on such activity. It highlighted the enormous variation in welfare payments between here and the United Kingdom.

Many people are now experiencing difficult times for the first time, especially our younger generations. Others are experiencing difficult times for the first time in quite some time. Currently we have a situation whereby many people in receipt of social welfare payments truly want to get back into the workforce or education and training. We have new graduates fresh out of college who cannot obtain work, even though they are eager to put their knowledge to use. There are solicitors, teachers, accountants, architects and many more professional people finding themselves in need of support.

This leaves us in a situation where we not only have to consider those that are unable to participate in employment or education but also those that are willing to do so and fail to secure employment, education and training. We had a situation recently in Letterkenny where a local cafe advertised a job for a dishwasher and received more than 400 applications. That demonstrates the willingness of our people to work and we must assist them effectively.

We are living in difficult times but, given the current signs I am confident of an upturn. Things are progressing. Meanwhile, we must assist those in receipt of social welfare payments to prepare to take advantage of employment opportunities when they arise. Some €20.9 million will be spent by this Government in 2010 on social welfare provision, an increase of €500 million over 2009. While we are under pressure in budgetary terms, we are also conscious of the massive increase in numbers of those in need of help at this time. This Bill is a commendable endeavour to address the requirements of the most needy.

We are also extremely conscious of discouraging long term dependence upon social welfare. This can be a scourge in any country and I commend the Minister's measures to curb it in this Bill. We are not in the business of making any individual or family suffer hardship or poverty, rather, we are ensuring that our social welfare system takes care of those in need while encouraging people to improve their skill set with a view to securing employment at all times. This is where the focus must and should lie.

In terms of jobseekers allowance, reductions were announced in last December's budget for younger members of society. External factors were considered before introducing this measure, such as the comparisons drawn between the rates available here and in other jurisdictions such as Northern Ireland.

This issue is very close to my own constituency in Donegal.

Becoming unemployed can have a negative impact on young people's general outlook on life and it is vital that they are encouraged to stay in the labour market. Idleness among young people is hazardous and for this reason it is credible to increase the financial incentive for participating in education and training. Young people have an enormous ability to learn new skills. This must be encouraged because the labour market demands flexibility and one can never learn enough. Evidence that the reduced rates of social welfare have incentivised young people to participate in education and training vindicates the measures introduced.

The social welfare payments of people in receipt of jobseekers' payments who refuse to participate in activation measures such as education and training will be subject to various financial penalties, with the exception of those who have a plausible reason for not participating. These measures will work in tandem with the integration of FÁS functions into the Department of Social Protection and will actively discourage unnecessary long-term dependence upon unemployment payments. Currently, a full disallowance may be imposed if a recipient is not genuinely seeking work and the Bill strengthens that provision by imposing a full disallowance where a recipient has refused an offer of suitable employment. Only primary payments are affected and rates for child and adult dependants, where applicable, will remain unchanged if a claimant is subject to a penalty rate. Furthermore, these reduced rates will only apply where the primary social welfare payment relates to jobseeking activities.

Significant changes to the one parent family payment are also provided for in this Bill. Considerable thought was given to this issue and it is believed that the availability of the one parent family payment until a child is 18, or 22 if in full-time education, without a requirement on the recipient to engage in employment or education and training is not in the best interest of anybody involved or, indeed, of society. The focus should be on encouraging people into employment or education and training at every available opportunity. Unfortunately, the child of a lone parent is four times more likely to be in consistent poverty than the overall population, in spite of improvements to the one parent family supports available over the years. The current payment also encourages long-term dependence on social welfare for many people who are otherwise capable of participating in employment or education and training.

With this in mind, it is sensible to encourage lone parents to participate in education or training in the event that employment will be available. These new measures aim to improve the economic situation and social well-being of the recipients and their families. This measure has been criticised from across the floor but let us compare our one parent family payments with what is available in other jurisdictions. The Minister is proposing that from 2011 all new customers will receive the one parent family payment until their youngest children reach 13 years of age. Existing customers will enjoy a six year phasing out period to enable them to access education and training with a view to securing employment. In the UK, lone parents are required to seek work when their youngest children reach ten years of age and this limit will be reduced to seven years later this year. Norway, Sweden, Germany and Italy impose a work obligation when the youngest child is three years of age. It is generally believed internationally that the provision of long-term lone parent payments prevents the reduction of child poverty. The countries that are achieving the best outcomes in terms of reducing child poverty are those which combine strategies aimed at facilitating access to employment and enabling services with income support. That is the direction we must take and it is vital that we do not regard this as a measure to force lone parents out to work when their children are still young. This measure will increase income, self-belief and financial independence for many families.

If a lone parent is still in need of income support when his or her child reaches 13 years of age, jobseeker's allowance or other appropriate income supports payment may be made available or, if the individual is in employment, he or she may qualify for a family income supplement. Child care provision may also be an issue for many lone parents.

This Bill is thorough, fair and forward thinking. We are undergoing changing times and it is vital that we adapt our social welfare provisions accordingly. I note the Minister's intention to table a number of amendments on Committee Stage. Among these is the sensible proposal to transfer the rural social scheme and the community services programme to the Department. This measure will provides the Minister with the necessary powers in respect of the employment services and community services programme of FÁS and, subsequently, to transfer the related funding in order to focus more effectively on labour activation measures. I commend the Bill to the House.

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