Dáil debates

Wednesday, 30 September 2015

Other Questions

Social Welfare Payments Administration

10:30 am

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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8. To ask the Tánaiste and Minister for Social Protection the number of recipients of the one-parent family payment who have transitioned to jobseeker's payment since the beginning of July 2015; the number of these who are in receipt of family income supplement or the back-to-work family dividend; and if she will make a statement on the matter. [33016/15]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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Following on from Deputy Durkan's question - I think he voted for these changes, while I voted against them - the Tánaiste has mentioned some of the figures. She told colleagues last week that, since July, approximately 96% of the 25,500 affected recipients of the one-parent family payment have transitioned. Of those, however - as she just indicated to Deputy Durkan - only 8,100 transitioned to family income supplement, FIS. The Tánaiste made it a big selling point for these changes that she would be helping people into further economic independence and out of State dependency. However, is it not the reality that there is an urgent need to review the position? Organisations such as the National Women's Council and One Family are calling for a pause, so the Tánaiste will have an opportunity in two weeks' time in the budget to do precisely that and re-examine the matter.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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As the Deputy said, approximately 25,500 lone parents transitioned from the one-parent family payment scheme on 2 July 2015. Approximately 13,600 of lone parents moved to the jobseeker’s transitional payment. In fact, as the Deputy knows, they would have had no change in their income from the lone parent's allowance. However, once a parent's youngest child is seven years old, he or she can become involved in education and training opportunities. That is going extremely well in the Department and has been very well received. Some 2,500 lone parents moved to the jobseeker’s allowance scheme because, presumably, their youngest child was over 14 years of age. Some 8,100 lone parents moved to the family income supplement scheme.

A significant number of lone parents would be full-time homemakers and that has always been the case. We are following the example of Scandinavian countries that the Deputy has often said he admires. In those countries, children are settled in school much younger, at one, two or three years of age. In Britain and the North of Ireland, that occurs at five years of age. At that stage, one gives people an opportunity to get involved again in education, training and work. That has the best outcomes for lone parents and their children.

There are currently 8,800 customers in receipt of the back-to-work family dividend, of which over 6,500 are former one-parent family payment recipients. The back-to-work family dividend allows parents to retain the child portion of their former core social welfare weekly payment, which equals €29.80 per week per child, for two years, with full entitlement in the first year and 50% entitlement in the second year. This equates to €1,550 per child in the first year and €775 per child in the second year.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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I think that is the first time the Tánaiste has mentioned in the House those figures concerning the back-to-work family dividend. Effectively, however, is there not a time limit on that? Obviously, that is useful information but-----

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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The Deputy voted against it.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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-----we still meet a lot of lone parents who find that the system effectively leaves them worse off. Like most of us in the Chamber, the Tánaiste stood on the picket lines with the Dunnes Stores workers. Despite that fact, however, people on 15-hour contracts still find themselves that much worse off. The overall selling point of these major changes was that women would be encouraged into the workforce, yet the figures for August show that women's unemployment is rising in important categories. Is the Department of Social Protection closely tracking and monitoring the impact that this is having on many families? As regards the new changes, we are hearing about people losing money and being caught being between a rock and a hard place concerning their work and family duties. Is this the case? Will the Tánaiste undertake a review of the system and change it significantly in two weeks' time in the budget and in the new social welfare Bill?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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As I have said on a number of occasions, we want to ensure in the forthcoming budget that out of the additional moneys we will be able to spend between €1.2 billion and €1.5 billion. We want to focus in particular on families with children, retired people and those on long-term social welfare payments. The amount of money we have to spend is significant, although it is not as much as I would like. Obviously, we have not yet finalised decisions but that will be the focus of what we will do in the budget.

With the back-to-work family dividend, we are providing an additional support in that transition period when people are returning to work. That is to help them because when people first go back to work they may be in an entry-level employment.

As regards the number of hours, what the Deputy said is very interesting. We have been working with IBEC and other employers' organisations to encourage the development and availability of employment at 19 hours, or above, per week. As the Deputy is probably aware, we have brought in the Low Pay Commission to recommend an increase in the minimum wage from the beginning of next year.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry but we are way over time with this question.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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In fact, therefore, we anticipate that people working on low incomes will receive a considerable boost both through a wage increase and the back-to-work family dividend. That will then set them up to be much better off than they would be by simply living entirely on social welfare.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear. Deputy Broughan should wait for the budget.