Áine Collins (Cork North West, Fine Gael)
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I thank the Minister of State for taking this issue, which has arisen in my constituency. I am sure the position is the same across the country. It concerns lone parents with a child or children over seven years of age, who may already be working 19 hours per week, and will now be disadvantaged by €80 per week.

The intention has been to ensure that lone parents do not become trapped in a cycle of long-term unemployment. I agree that we should encourage parents to go back to work or education. Having been a lone parent myself for many years, I know the challenges they face. Unfortunately, however, as a result of doing something positive like undertaking training or obtaining work, those parents will now be at a financial disadvantage.

I would like the Minister of State to ask the Tánaiste and Minister for Social Protection to consider a transition period for working lone parents. Those to whom I have spoken are all mothers who are affected by this issue. If they have taken out a loan to get a car or do up a house, they feel they can no longer continue to work because they will be financially disadvantaged through child care costs and other outgoings. Therefore, the loss of €80 per week is a huge issue for them.

We knew this change was coming down the tracks but, like everything else, one only pays attention when it happens. Such lone parents now find themselves in a position whereby they will be seriously disadvantaged. I am suggesting the introduction of a two-year transition period for people who are already working part-time. I agree that we should encourage people to upskill and prevent themselves from falling into the trap of long-term unemployment, which has happened to many people over the years.

I am asking the Minister of State to re-examine this matter because people will be unfairly disadvantaged as a result of the change. A transition period would allow for the payment of the full amount for a year and a half amount later. We have done this for all the other service changes that have been introduced, but the manner of this payment's delivery is a blunt instrument. I am concerned by the negative impact it will have on lone parents, particularly women, and their children.

Ann Phelan (Carlow-Kilkenny, Labour)
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I thank the Deputy for raising this important issue and affording me an opportunity, on behalf of the Tánaiste and Minister for Social Protection, to provide the Dáil with a response.

The jobseeker's allowance, JA, transitional arrangement was introduced in June 2013 in order to support lone parents with young children affected by the age reforms. Customers who have a youngest child aged under 14 years, and who continue to parent alone, are entitled to the jobseeker's allowance transitional arrangement. These customers are exempt from the jobseeker's allowance conditions that require them to be available for, and genuinely seeking, full-time employment. They can work part-time without restrictions - for example, mornings only - and still receive the jobseeker's allowance transitional payment, subject to a means test. They also have access to the Department's Intreo services and to related supports to enable them to become job-ready and-or to find employment.

The jobseeker's allowance transitional arrangement allows this cohort of customers to balance their caring responsibilities and significantly reduces their requirement for child care. The exemptions from the full jobseeker's allowance conditions remain in place until their youngest child reaches 14 years of age, at which point, should they continue to claim the jobseeker's allowance payment, they will be subjected to the full jobseeker's allowance conditions - be unemployed for at least four days in seven, and be available for and genuine seeking full-time employment.

The main barrier to employment for lone parents is access to affordable child care. The JA transitional arrangement takes account of the specific caring responsibilities of these individuals by permitting them to remain at home and to take care of their children, while at the same time also enabling them to work part-time without restrictions - for example, during mornings when their children are at school - subject to a means test. This effectively reduces their child care requirements and offers support to lone parents to remain attached to the labour market, thereby allowing them to maintain their skill levels and improve their chances of eventually moving into full-time employment.

For customers who are in part-time employment of less than 19 hours per week, if they can increase their working hours to a minimum of 19 hours per week, they can apply for the family income supplement, FIS. Once eligible for the FIS payment, they will also become entitled to the recently introduced back to work family dividend. This is the best option financially for these customers. The dividend allows customers to retain the child proportion of their welfare payment, which equals €29.80 per week per child, up to a maximum of €119.20 per week for four children, for two years, with full payment entitlement in the first year totalling €1,550 per child and a 50% entitlement in the second year totalling €775 per child. The dividend thus incentivises customers to move into employment or self-employment.

For customers working part-time whose youngest child is 14 or over they can claim JA subject to full conditionality. If a customer is working more than three days a week and under 19 hours per week, they will not meet the scheme rules for either JA or FIS. The following options are open to them, to increase their hours to a minimum of 19 hours a week to claim FIS; or re-arrange their working hours over three days per week.

If customers are unable to meet either the JA or FIS scheme rules, and if they continue to have an income support need, they may have recourse to the supplementary welfare allowance, SWA, scheme. The Department of Social Protection is actively engaging with lone parents who are affected by the ongoing reforms to the OFP. This means that lone parents who are on a jobseeker's payment can access the full range of employment, educational and training supports available to improve their skillset and move towards sustainable employment.

Áine Collins (Cork North West, Fine Gael)
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I thank the Minister of State for her comprehensive answer. As I said, I welcome these changes which are important for parents, particularly women. I also appreciate that the family income supplement scheme is available.

There seems to be an issue where people have been working all along for 19 hours a week. The difference between their existing entitlements and what the new entitlements allow them is a net effect of €80 per week. That is a lot of money to any home, but particularly where there is only one income and one parent. It is having a detrimental effect on those cases.

We want to make work pay and to ensure that people continue to work, increase their skills and maybe in a few years become able to go into full-time work. What we have done for this cohort of people is drive them out of work because they would be better off on full unemployment benefit than what they are on now with this new scheme. There seems to be a loophole or gap in what we have designed, which I am sure was not the intention. Now that we are made aware of it, I ask the Minister to re-evaluate it.

I can provide some real-life examples to the Minister that will demonstrate that the family income supplement does not cover it. It does not fall under this dividend scheme to which the Minister of State referred. With all due respect to the supplementary welfare officer, nobody wants to be going in every week saying they cannot live. They just want to continue with their commitments where they may have a mortgage, a repair loan or even a car loan. I am concerned that the result of this may be the thing we wanted to prevent in the first place.

Ann Phelan (Carlow-Kilkenny, Labour)
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I note the Deputy's concerns and reiterate that the Department of Social Protection is actively engaging with lone parents who are affected by the ongoing reforms. Lone parents who are on jobseeker's payments can access the full range of employment, educational and training supports available to improve their skill set and move towards sustainable employment. The positive impact of this incentive has been evident from the increase in new applicants for family income supplement, FIS, which we have seen since 2013 when the reforms commenced. On foot of the one-parent family payments which have been implemented to date, many lone parents have increased the number of hours they work in order to qualify for FIS. Individuals who are due to transition off the one-parent family payment scheme from 2 July will now have the additional incentive of the back to work family dividend, which further improves the incentive for the majority of lone parents to avail of employment opportunities. I assure the Deputy that we will ask the Tánaiste to take a look at her examples.