Joan Burton (Dublin West, Labour) | Oireachtas source

Approximately 5,000 lone parents are in receipt of rent supplement. Where these individuals are in employment and they are transitioning from the one-parent family payment to another social welfare payment, most will opt for the seven-year transition about which I spoke to Deputy O'Dea, in order to take into account the difficulties and responsibilities that lone parents have. The seven-year transition would bring a child from the age of seven up to the age of 14. A lone parent who is working 19 hours per week at the national minimum wage and in receipt of the one-parent family payment, the family income supplement, FIS, and rent supplement, will see very little difference in his or her weekly income. The FIS will be automatically increased and the rent supplement contribution will, due to the loss of the one-parent family payment, decrease by €56 per week. Despite this decrease, the person would be better off. The Deputy can see the figures in the reply.

Additional information not given on the floor of the House

This means that their weekly income following the July reforms rises from €309 to €310. Lone parents who experience a financial loss as a result of the age reforms will be able to have their rent supplement reviewed which may result in a reduction in their rent supplement contribution. This will reduce or even eliminate their financial losses in some cases. The rent supplement assessment provides for a gradual withdrawal of payment as earnings increase. This means that a lone parent affected by the July reforms who is in receipt of the rent supplement and who increases their hours of employment, may see their rent supplement contribution increase as a result of their higher earnings from employment. However, despite this increase, these individuals will still maintain an incentive to increase their hours of employment.

See this speech in context