Dáil debates

Wednesday, 17 January 2018

Other Questions

Working Family Payment

11:40 am

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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9. To ask the Minister for Employment Affairs and Social Protection her plans to improve the operation of family income supplement; and if she will make a statement on the matter. [1966/18]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I apologise. The reference in Question No. 9 to "family income supplement" should read "working family payment".

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I thought the Deputy was taking the mickey out of me - if the cap fits. The working family payment is a working support which provides an income top-up for low-earning employees with children and offers financial incentives to take up employment. The payment benefits more than 57,000 families with almost 130,000 children through an estimated spend this year of €431 million. It is definitely working and doing exactly what it is aimed to do. As part of the process of developing the working family payment, the Department carried out extensive analysis of the range of supports it provides to assist individuals in their attempts to take up employment and move away from welfare dependency. The analysis showed that the existing in-work supports were actually very effective and were working well to assist individuals to make the transition from unemployment to employment, in particular work supports such as the working family payment and the back-to-work family dividend. As I agreed during the debate on the Social Welfare Bill in 2017 which was enacted in December, I am committed to bringing forward a report reviewing the operation of working family payments to the Committee on Employment Affairs and Social Protection. That includes the requirement to work for 19 hours per week or 30 hours per fortnight to qualify for the payment. We are working on that report currently and I will bring it to the committee as soon as it is prepared. I expect that to be a matter of weeks or a short number of months.

The redesignation to "working family payment" provided for in the 2017 Act better reflects the nature of the payments. The Department intends to encourage families to determine whether they are eligible for the payment by carrying out a promotion and information campaign early this year. I am sure there are still considerable numbers of people who do not know they can avail of this payment. We will carry out a proper campaign using national and social media. It is also intended to review continually the package of supports offered to working families to continue to ensure that payments meet the objectives of those they serve. Budget 2018 increased the income thresholds by €10 for families with up to three children, and that change will take effect from 29 March alongside the other changes we made in the Social Welfare Act. The likely result of this increase is that additional families not currently in receipt of the working family payment will become eligible for the scheme.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister for the response. She answered one of the questions I was going to ask in saying the hours would be part of the consideration.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I take on board valuable contributions.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister. She is most kind. Will she tell the House when, approximately, we will be in a position to see the report in order that the committee can discuss it? She said the budget for family income supplement last year was of the order of €430 million. The working family payment will cover a wider area and, as such, the budget will be considerably larger. Does the Minister agree?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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We are working on the report. As it is an in-house report, we are not waiting for external bodies. I would say the maximum period is three months. If I can do it before that, we will talk about it and put it on the schedule for the committee. The Deputy is right. While €431 million is what is budgeted, there is a bit of wriggle room on the basis that it is not what we spent last year. However, this is going to be demand-led. If more is needed, more will be found and that is the end of it. I want to ensure that everyone who should be availing of the scheme does so, not only because of the €10 increase in the threshold but also because some people genuinely do not know about it. They should learn about it, apply for it and get it in order that it can be as effective as it has been for the other families moving from welfare dependency into employment. If we can make those changes around the 19 hours and the 38 hours which are important to Deputy O'Dea to make it more effective and flexible, let us do that. It is taxpayers' money and it is there to help people to move from a culture of dependence on social welfare payments to being wholly independent just by being supported by the State as opposed to being totally supported by the State. Let us do that as soon as we can.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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In addition, the Minister will appreciate that work patterns have changed and that there is now more part-time work, etc. It is only fair and proper that the social welfare system should reflect that.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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People will think I am falling in love with the Deputy because I am agreeing with everything.

Photo of Anne RabbitteAnne Rabbitte (Galway East, Fianna Fail)
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There you are, Willie.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I agree with him that the purpose of the payment is to ensure that we support those who are moving from welfare dependency to employment. What we have done so far works, but it may need some tweaking to get a wider net of people into the working family support. As soon as we can have a look at it properly, let us devise the changes that need to made, if any, to ensure we reach the widest range of people to support that we possibly can.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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Before we move to Question No. 10, I suggest romantic references be left outside.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I will live with that.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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That would be best.

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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There is no fear of me going down that route.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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The irresistible nature of Deputy O'Dea obviously influenced the Minister.