Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

The Social Welfare Bill 2017 is concerned with putting into law the measures announced in budget 2018 on 10 October, which are due to come into effect on or after 1 January 2018. These include measures to provide for increases in the maximum payment rate for weekly social welfare payments and with proportional increases for claims of reduced rates and qualified adults with effect from the week commencing on 26 March 2018.

The Bill also provides for increases in the weekly rate for maternity benefit, adoptive benefit and paternity benefit, and also for extension of entitlement to maternity leave and maternity benefit in cases of premature births beyond the 26 weeks already provided for. It will also expand the circumstances in which paternity benefit will be paid to the father of a child whose mother has died. These measures will take effect in respect of babies born on or after 1 October 2017.

The Bill proposes to change the name of the family income supplement to the working family payment, WFP. The working family payment is a weekly payment for people in low-paid employment who have at least one child.

The working family payment is payable to a family where the weekly income is less than a set amount, which varies depending on the family size. This income was designed to incentivise employees to take up or remain in employment when they might have been only marginally better off had they been claiming social welfare benefits. The payment is based on 60% of the shortfall between the net weekly family income and the applicable weekly family income supplement threshold.

The combined income of a couple, married, in a civil partnership or cohabiting, is taken into account. To qualify for the working family payment, a person must be in paid employment which is expected to last for at least three months, work at least 38 hours a fortnight, have at least one child who normally lives with and is supported by him or her, and have an average weekly income below the designated income threshold for the family size.

It was announced in budget 2018 that, from 29 March 2018, the working family payment income thresholds will increase by €10 for families with one, two or three children. This means that in the case of a family which includes only one child, the weekly payment will increase to €521, in the case of a family which includes two children, it will increase to €622, and in the case of a family which includes three children, it will increase to €723.

Maternity benefit will increase by €5 per week to €240, as will adoptive benefit and paternity benefit. The proposed changes in social insurance payments include an increase of €5 per week in the following: the maximum weekly contributory State pension, widow's-widower's-surviving civil partner's contributory pension, deserted wife's benefit, carer's benefit-constant attendance allowance, disablement benefit, jobseeker's benefit, illness or health and safety injury benefit, maternity-adoptive-paternity benefit, and death benefit. There are also proposed changes to the social assistance payment with an increase of €5 per week in the non-contributory State pension, disability allowance, blind pension, widow's-widower's-surviving civil partner non-contributory pension, pre-retirement-deserted wife's allowance, supplementary welfare allowance and farm assist.

There will be changes to the one-parent family payment. This is a weekly payment to men and women aged under 66 who are bringing up children without the support of a partner. To receive this payment, claimants must meet certain conditions and satisfy a means test. The one-family payment is a taxable source of income. To qualify for it, a claimant must satisfy the following conditions: be under 66 years of age, because on reaching 66, a person becomes eligible for a State pension; be a parent, step-parent, adoptive parent or legal guardian of a relevant child, this meaning the child must be under the relevant age limit; and be the main carer of at least one relevant child who must live with the person. The payment is not payable if the parents have joint equal custody of a child or children and have gross earnings from insurable employment or self-employment of €425 or more per week. Furthermore, to qualify for the payment one must not be living with a spouse, civil partner or cohabiting. This payment will increase by €20 to €130 per week from 29 March 2018. Census 2016 shows that 25.4% of all families with children were families headed by one parent. This accounted for 218,817 family units with children of any age and headed by one parent. The census also shows that 356,203 children live in one-parent families, accounting for more than one fifth of children in family units.

In terms of labour market participation, 53.5% of lone parents are not in employment; 23.9% work part-time and 22% are in full-time employment. This is an area that requires more assistance because lone parents generally have lower levels of education when compared with the general population. The level of education attained by parents tends to influence the level of education of their children which, in turn, has an impact on economic outcomes and mental and physical health. In Dundalk, we have the Dundalk Institute of Technology, DkIT. A good feature of it is that 80% of the children who attend the DkIT are from local families. Most of their parents would not have attained third level education. Institutes such as the DkIT are doing a fantastic job.

Child care costs, which is a major issue in Ireland, are among the highest in OECD countries. Lone parents as the sole carers of children are more likely to be affected by child care costs. What is more, the cost of caring for teenagers is higher than that associated with younger children. The one-family payment and related payments end when a child reaches a particular age or finishes education. Low levels of maintenance are also paid to lone parents by their former partners.

The rate of unemployment has fallen from a high of 15% to 6%, which is good news. I come from Dundalk in County Louth. We were very lucky this week as a company has located in Dundalk and created 300 high-spec jobs, which is fantastic. It has enabled people with skills and who were unemployed to remain in the area. Two weeks prior to that, we were very lucky when another high-spec company located in Drogheda in County Louth, and it created another 200 jobs. That is fantastic. We are lucky in that we have highly educated people in County Louth. With all the foreign direct investment in recent years, one in every ten jobs generated by foreign direct investment has come to Dundalk.

The economy is improving. The Minister has done a good job in this her first year as a Minister. She deserves many compliments. I note she gives an answer to any question she is asked, and what I like about her is that she gives an honest answer.

I am glad we will not have a general election before Christmas. Fine Gael and Fianna Fáil should be praised for what they have done to avoid that. I wish the former Minister, Deputy Fitzgerald, the very best. She has done a very honourable thing. It is not very often that one sees a person like her, who has done a fantastic job in recent years, put the country first. Anyone who would make a snide remark against her would be wrong to do so. The last thing this country needs at present is a general election.

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