Seanad debates

Wednesday, 15 July 2015

One-Parent Family Payment: Motion

 

10:30 am

Photo of Marie MoloneyMarie Moloney (Labour) | Oireachtas source

In 2004, the personal rate for the lone parents' payment was €134.80. When we came into Government, it was €188 - a difference of €46.80 per week. Senator Byrne said this cannot be done to vulnerable people but the Fianna Fáil Government obviously seemed to think that it could be done.

I wish to refer to the loss of €108 for a lone payment on the minimum wage and working 20 hours. I have made some calculations based on the details given in the motion. For a person who works 20 hours earning the minimum wage, under the newer arrangements, he or she will get FIS amounting to €200 per week, have an income of €173 and will also receive the back to work family dividend of €29.80 which amounts to a little over €400. Under the arrangement for lone parents that was in place, that person would receive €444 which means there is a loss of over €40. In my opinion, the financial loss is still too high and nobody should lose €40 but the loss is not €108.

I have received written confirmation that customers who move from the one-parent family payment to the jobseeker's transitional payment or jobseeker's allowance will retain an entitlement to a fuel allowance. That is another thing which we were told was not going to happen.

As I have already said, I fully support reform. However, we must find a mechanism that ensures nobody loses money in the name of reform. I know the argument can be made that lone parents have found themselves in the same position for years, since the introduction of the one-parent family payment, when their youngest child reached the age of 22 or earlier if they were not in full-time education.

I had a meeting with the Minister of State, the Minister and officials. I raised concerns and put forward proposals that may help avoid or at least reduce income reductions for lone parents on low wages, in particular. I want to ensure no lone parent on jobseeker's transitional allowance, who chooses to return to education, would lose entitlement to the SUSI maintenance grant. This matter has been dealt with since I raised it and I thank the Minister of State for sorting the matter out.

I want the JobsPlus extended to lone parents in receipt of the jobseeker's transitional allowance. I would like a payment akin to JobsPlus introduced, such as an employers' support package, which will target the employment of lone parents but provide flexi-hours. I would like such criteria applied to employers in terms of this payment. I want an increase in the disregard for people in receipt of jobseeker's transitional allowance. I want the back to work family dividend scheme extended to people who work fewer than 19 hours. I also seek an impact report on welfare allowances, especially covering the period of the past two years since these arrangements were introduced. Lone parents are being encouraged to retrain or upskill and I would like courses to work around school hours because a start time of 9 a.m. and finish time of 4 p.m. is not an option for lone parents.

I fully support the concept that the only way out of consistent poverty is through work. I am also aware consultation has taken place with stakeholders and of the establishment of the Labour Market Council by the Minister, which is supportive of reform.

There has been a significant level of investment, which amounted to in excess of €1 billion per annum from 2008 to 2012. Such investment has not proved successful in preventing lone parents from being significantly more at risk of consistent poverty compared with the population as a whole. Therefore, reform must take place. We must bring lone parents to a better place. I hope, in the long term, that reform of the scheme will eliminate long-term welfare dependency experienced by some parents. I hope that the Government will put in place services that will lone parents to become financially independent.

While I appreciate that it is highly likely we will lose this motion tonight, I ask all concerned not to go back to where we were but to move forward in a constructive manner.Also, I ask that the Minister would review the matter with a view to helping those who have been negatively affected by a loss of income following these changes.

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