Dáil debates

Thursday, 6 October 2016

Ceisteanna - Questions - Priority Questions

One-Parent Family Payment

2:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The aim of the reforms to the one-parent family payment is to better engage with lone parents to assist in the transition from welfare into employment. Research shows that being at work reduces the at-risk-of-poverty rate for lone parents by three quarters, highlighting that the best way to tackle poverty among lone parents is to assist them into employment rather than through welfare.

Access to my Department's Intreo service is critical in achieving this outcome. Lone parents who move to jobseeker's transition or jobseeker's allowance have access to a case officer who assists them in producing a personal development plan. This tailored plan helps access appropriate education, training and employment support opportunities based on their individual circumstances and requirements.

I acknowledge that the reforms resulted in a reduction in the payments for some lone parents who were working while receiving benefits. However, the positive outcome of the reforms can be seen from the fact that 3,000 lone parents affected by the July 2015 reforms became new family income supplement, FIS, recipients last year. These lone parents have been lifted out of poverty due to a combination of earnings from work and FIS income support. FIS thresholds are such that it is not possible to be in receipt of FIS and in consistent poverty.

The latest Quarterly National Household Survey for quarter 2 of 2016 contains encouraging information in respect of employment rates by family composition. In the year commencing 1 July 2015, the number of lone parent families who were in employment increased significantly by 3.6 percentage points to 56.4% - a majority of lone parents are now working. This represents four times the increase of all adults with children in employment over the same period. Interestingly, lone parents whose youngest child is aged between six and 11 years experienced the single largest increase in employment. Over the year the percentage of these lone parents in employment increased by 7.5 percentage points to 57.2%.

These increases are based on all lone parents and reflect the increase in economic and employment growth generally. The magnitude of the increase for lone parents specifically, many of whom would have been affected by the changes of July 2015, is clearly significant and cannot be dismissed. It will take several years for the full impact of the reforms to be assessed. This is due to the fact that the various educational, training and other employment supports being taken up by lone parents on foot of the reforms will take time to complete.

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