Dáil debates

Tuesday, 5 March 2013

Ceisteanna - Questions - Priority Questions

Social Welfare Code Reform

2:40 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection her views on the future of the one parent family payment; the progress that has been made on her commitments to reform childcare provision before implementing changes to the payment; and if she will make a statement on the matter. [11428/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The number of one-parent family recipients stood at 87,824 in January 2013. The cost of the one-parent family scheme was €1.06 billion in 2012 and it is estimated to cost approximately the same in 2013. The current reforms to the one-parent family payment aim to prevent long-term dependence on social welfare support and to facilitate financial independence among lone parents, to recognise parental choice with regard to the care of young children but with the expectation that parents will not remain outside of the labour force indefinitely and to include an expectation of participation in education, training and employment. The reformed scheme will bring Ireland's support for lone parents in line with international provisions where there is a general movement away from long-term and passive income support and towards helping people to have life chances and choices in respect of education, training and employment with a view to financial independence for themselves and their children.

I am very conscious that the changes to the one-parent family payment scheme highlight the need for additional supports for lone parents that will be affected by these reforms. In particular, there will be a need for additional after-school child care provision so as to assist former one-parent family payment recipients in making their transition into employment or other activation supports.

The joint child care initiative that the Minister for Children and Youth Affairs, Deputy Frances Fitzgerald, and I announced, as part of budget 2013 and funded by my Department is in recognition of the support these individuals will require. This initiative will provide approximately 6,000 after-school child care places for low-income families and social welfare income support recipients who gain employment and who have children of primary school age. Officials from my Department, the Department of Children and Youth Affairs, and the Department of Education and Skills are currently working out the exact parameters of the scheme, which will be launched on a phased basis during 2013, commencing with a pilot in April 2013.

2:50 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I regret to say that the content of the Minister's reply is meaningless when measured against what is happening on the ground. The Minister is aware that on page 22 of the programme for Government there is a statement "The elimination of poverty will be an objective of this Government." She is also aware that lone parents form one of the most vulnerable of groups at risk of poverty. The most obvious way for a lone parent to climb out of poverty is to get a job. When the Minister came into office, a lone parent going out to work could earn €163 per week without affecting the lone parent's allowance. Last year the Minister reduced that sum to €146.50. This year I understand it has been reduced to €130. Will the Minister explain how reducing the amount a lone parent can earn with no effect on the lone parent's allowance creates an incentive to go out to work? Will she also explain how the changes which penalise lone parents who take up community employment schemes will create an incentive for lone parents to go on a community employment scheme to try to better her or himself?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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When compared internationally, our payments to lone parents are extremely generous. The Deputy probably agrees with me that when a parent is alone, it is desirable that, particularly after the child is well settled in school, the parent, especially if he or she is young, should be given every encouragement and support to get back into work or education and, ultimately, employment so that he or she can become financially independent.

The Deputy's references to the current income disregard, the payment a lone parent receives, depends on his or her weekly income. For people with weekly means of less than €110, working and earning up to that amount, the full rate of the one parent family allowance will be paid. Earnings above this limit are assessed at 50% up to a maximum of €425 per week. People whose earnings exceed that sum are no longer entitled to lone parent's allowance. That in effect is a very strong support to give an additional boost to lone parents who go back to work. Many lone parents work on a part-time basis, fewer than 20 hours a week, because of their commitments to family care. This is a very significant support in that regard.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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It may be a significant and strong support but the point I am trying to make is that it is a weaker support than the one that existed when the Minister took office. She says she wants to encourage lone parents to go out to work. To tell a lone parent that he or she could earn less than hitherto without affecting lone parent's allowance creates a barrier and a disincentive to those who want to go out to work.

Community welfare schemes are a similar case.

On 4 July 2013, the lone parents of Ireland will not be celebrating because on that day a change kicks in whereby a lone parent with a child over 12 years of age will no longer be entitled to lone parent's allowance. That is coming down again in 2014. Did the Minister make a statement that she would not impose any changes to lone parent provision, by way of qualification or income disregard, until Ireland had a Scandinavian-type system of child care? Is that true? If so, where is the Scandinavian system?

2:55 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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To correct what the Deputy said, if someone receives a lone parent payment that commenced before 27 April 2011, on 4 July 2013 the age threshold reduces to 17 years of age. On behalf of Fianna Fáil, Deputy O'Dea seems to want lone parents to stay as a special category. I see parents as parents and we should refer to all parents and children, whether parents are in a formal marriage relationship, cohabiting or parenting alone. Fianna Fáil tends to categorise lone parents rather than, as other countries do, enabling lone parents to get back to education and training when their children have settled in school and, thereafter, into employment.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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That is the ultimate logic of where the Minister is going.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Deputy knows many people who have been in this situation and, as the children grow up, people are extremely anxious to get back to well-remunerated employment and to become financially independent. People often say, probably to Deputy O'Dea but certainly to me, that they want to be able to give up their book. I want to see lone parents in this country becoming independent.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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The Minister should encourage them.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The €1 billion we spent helping lone parents, who are doing a great job of raising their children, should help them to get back over a period of time to full financial independence.