Joan Burton (Dublin West, Labour)

The Bill, which has been referred to the Seanad by Dáil Éireann, is very important. As Minister for Social Protection, the needs of the people who depend on social welfare for vital support are foremost in my mind. However, I am also very conscious of the harsh economic environment within which the country now operates. Spending on social protection cannot be viewed in isolation. It takes place in the wider context of overall Government income and expenditure. My Department currently accounts for approximately 40% of all current Government expenditure. This means €4 in every €10 that the Government spends is spent on social protection. Some €20.5 billion will be spent by the Government on social welfare provision in 2012. The adjustment in social protection expenditure this year will be limited to €475 million, or just over 2% of the Department's expenditure.

Balancing the needs of the people dependent on social welfare against the money available is extremely difficult in the current economic environment. However, protecting the most vulnerable people, those in poverty and those at risk of poverty still remains a primary priority of the Government. In addition to supporting the direct recipients and their dependants, social welfare spending sustains economic activity. It benefits workers, businesses, and the overall community. Individuals such as Professor Joseph Stiglitz have long recognised that social welfare expenditure in western Europe is a very important form of economic stimulus in the Keynesian sense.

The Social Welfare Bill will give legislative effect to certain social welfare measures announced in the Budget Statement of December 2011 which are due to come into effect this year, in addition to a number of miscellaneous amendments to the social welfare code. I am introducing a number of amendments to occupational pension provision in this Bill. Encouraging, empowering and enabling people to participate in work is essential if we are to achieve the goal of a more active and inclusive society. The process of moving from welfare dependence to paid employment can be challenging for the persons concerned and their families. Despite this, it is through paid employment that people have the greatest chance of moving out of poverty and providing better lives and opportunities for their children. While remaining dependent on social welfare payments, they will remain at risk of poverty, poor health and reduced life chances.

I was very struck by the ESRI's study, published yesterday by Dorothy Watson, Bertrand Maître and Chris Whelan, that showed the children most at risk are those of lone parents who did not continue in education. It is quite remarkable that where the education level of parents is higher, the economic outcomes for their children and the likelihood of avoiding poverty are much greater. In general, the best route out of poverty is through paid employment. A large proportion of lone-parent families have much higher rates of poverty and a much greater risk thereof than other working-age adults. This was at the core of yesterday's report by the ESRI. This is in spite of significant spending on payments and supports to lone parents. The EU SILC figures of 2011 show that, in 2010, some 9.3% of lone parents in Ireland were experiencing consistent poverty, which is 50% more than the population as a whole. In general, the best route out of poverty is through paid employment. We recognise that work, especially full-time work, may not be an option for parents of very young children, but we believe supporting parents in participating in the labour market once their children have reached an appropriate age will improve their and their families' economic circumstances and well-being.

Changes to the one-parent family payment were introduced in 2010 to make payment until the youngest child reached 14. I am now introducing further changes so that, for new recipients, from May 2012 a one-parent family payment will be made until the youngest child reaches the age of 12. From January 2013, it will be made until the age of ten, and from 2014 it will be made until the age of seven. For existing recipients, there will be a tapered phasing-out period to enable them to gain access to education and training and prepare them for their return to the labour market. The current age is 18 to 22 if the child is in full-time education. Over time that will be reduced when the changes come into effect in 2015 and 2016. If a parent is still in need of income support when the youngest child reaches the age of seven, he or she may be able to claim jobseeker's allowance or another appropriate income support payment, or, if in employment, family income supplement. There are special transitional arrangements for parents with a child with a disability or parents who go back to education or training.

I recognise the possible effects of these changes on the need of parents to access affordable, quality child care facilities where they are required to work to supplement income. I am also aware that many lone parents will need access to education, training and enabling services such as child care provision to acquire the skills they will need to gain employment. A wide range of education and training opportunities are available through my Department and the Department of Education and Skills for lone parents to strengthen their qualifications and skills base and accordingly maximise their chances of gaining employment. I have committed to bringing forward further legislation in a future social welfare Bill to introduce later implementation dates if more time is needed to ensure the required level of services are in place.