Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

No, I am suggesting that we do not start to implement it until the economy improves, because of the extent of poverty among lone parents in particular. However, if the effect of the amendment is to defer the change, which is better than what was there previously, I will be happy to withdraw it.

I must take issue with the Minister on a number of points. She argues that the spend on lone parents did not yield the desired outcomes. Let us face the fact that this is a cost saving measure. It will save money and the Minister has already stated that. The figures have been given in the budget. The Minister is essentially saying that we will have better outcomes if we spend less, which is a dubious proposition at best.

Let us take the example of a lone parent who is not working and who must transfer from lone parent's allowance to jobseeker's allowance. They are not affected by this change. It is the lone parent who goes out to work who will be affected. The Minister says it is desirable to have an incentive to go out to work. However, if one is reducing the reward a person gets for going out to work, that is a disincentive, the opposite of an incentive. I do not buy this idea that one must force lone parents onto jobseeker's allowance to get them involved in activation measures, education, training and so forth. Surely there can be a provision whereby lone parents in receipt of lone parent allowance can get involved compulsorily with the activation measures that are available. It is not necessary to change the status of the payment they are receiving.

I tried to explain the net result in the case I outlined, and I will give the details to the Minister's officials. Most lone parents are in very low waged employment or they work part-time. Usually, if one adds their net income to their lone parent allowance, they are under the FIS threshold. It is approximately €506 for one child. They are getting some FIS but if one takes away their lone parent allowance, the FIS will increase because the income has dropped. However, FIS is 60% of the difference between the combined income and the target figure which, in the case of one child, is €506. In other words, instead of getting the lone parent allowance, they will now be compensated by an increase in FIS to the extent of 60% of the lone parent allowance they had been receiving.

My point is that this will hit many individuals very hard. It will not encourage them to go out to work and it will not compel or encourage them to get involved in activation, training and so forth. It is just a savage financial blow to a large number of vulnerable people who can ill afford it at this point in time.

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