Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I support the Government amendment. It is important to remember that in 2011, Ireland was in the midst of an economic recession unprecedented in our history. Deputy Jonathan O'Brien made an offer to Deputy Joe Costello, who has left the House, but I would take him up on his offer if he wants to come canvassing with me in the next general election. I would be happy to explain to people that our mandate was to restore our economic independence, which we have done. I would explain that we exited the troika bailout programme in late 2013 and that by taking painful decisions, we have kept our core welfare payments. I would be happy to stand over that and the Deputy is more than welcome to come door to door with me in Dublin Bay South when I explain this.

Last year the Irish economy was the fastest growing economy in the European Union and we are now seeing real benefits from this growth rate, with an increase of over 80,000 in employment in the past two years. The Deputy can be with me when I explain that also. Unemployment has fallen, from a peak of 15% in early 2012 to under 10% and the live register has fallen by over 100,000 since it peaked in late 2011.

Despite the high levels of investment in the one-parent family payment scheme, it has failed to prevent a cycle of poverty for one-parent families. I strongly agree with the Tánaiste that the single best protection against poverty is decent, secure and fairly paid work. It is imperative that the reforms to the one-parent family payment scheme take place in order to achieve this. The Opposition endorses a view that we should continue to adopt a laissez-faireapproach to one-parent families, but this is not acceptable. To do nothing puts one-parent family recipients and their families at risk of long term welfare dependency. In my constituency, I have seen intergenerational welfare dependency due to poorly designed schemes.

Last night, a number of Opposition Deputies quoted the most recent survey on income and living conditions which stated that 23% of lone parents are at risk of consistent poverty. However, what they failed to say was that if a lone parent is in work, this risk falls to 10% and that if a lone parent is not at work, it rises to 40%. The Government introduced the jobseeker's transitional payment in 2013 to ensure that lone parents whose youngest child is aged between seven and 13 are exempt from the requirements that they must be genuinely seeking and available for full-time work in order to claim a jobseeker's payment.

While a person who is in receipt of the jobseeker's transitional payment does not have to satisfy this condition, they do have to engage with their local Intreo office. This is vital to develop their skills-set, with the aim of securing employment and financial independence. Individuals who were already on family income supplement will, from Thursday, receive an increased payment when they transition from the one-parent family payment. All these individuals will also be able to claim the back to work family dividend and will be better off than they are now. The dividend is worth €1,550 per child in the first year and €775 per child in the second year.

To date, we have 1,250 lone parents claiming FIS for the first time. These individuals will also all qualify for the new back to work family dividend. Without exception, these individuals will be financially better off than had they just remained on the one-parent family payment. After the reforms, a lone parent with one child working 19 hours at minimum wage will receive €235 per week from the Department.

When added to their wages from employment, their weekly income is almost €400. That is a substantially higher income than a single person receives for working more than twice as long, for 39 hours per week, on the minimum wage. I hope the Low Pay Commission will address that issue for people who are working 39 hours for a relatively low income.

It is important to remember that the 19 hours for FIS can be with more than one employer. A case was mentioned yesterday of a person who was working 20 hours a week at €10 an hour. It was stated that the person would lose €86 a week and could not claim the back-to-work family dividend. That is not correct. I presume the person is already claiming family income supplement, but I must stress that he or she is also eligible for the back-to-work family dividend payment. To qualify for the back-to-work family dividend, a lone parent must transition off the one-parent family payment, and provided he or she does not claim another social welfare payment, excluding family income supplement, he or she will also be eligible for the dividend.

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