Written answers

Tuesday, 25 May 2010

Department of Social and Family Affairs

Social Welfare Code

2:30 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 54: To ask the Minister for Social Protection his plans to assist households who are experiencing higher fuel costs as a result of the introduction of the carbon levy. [21609/10]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 76: To ask the Minister for Social Protection the action he will take to alleviate the impact of the carbon tax on lower income households that are more likely to rely on higher carbon fuels and to live in badly insulated homes; and if he will make a statement on the matter. [21651/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 54 and 76 together.

The Department of Social Protection already assists low income households with heating costs through their basic payments, through the fuel allowance scheme and through the household benefits package of electricity and gas allowances. These schemes have been improved significantly in recent years. The fuel allowance is paid for 32 weeks each year from end September to end April. In the 2009/2010 heating season over 340,000 recipients benefited from the allowance at a cost of over €231million.

Some 376,000 pensioners are receiving the household benefits which provides 2,400 electricity units per annum (or the gas equivalent) over the year and it is estimated that some 140,000 of these households are receiving both fuel allowance and the electricity units /gas allowance under the household benefits to assist with the heating and other energy requirements. The household benefit package cost €184million in 2009.

Proper household insulation is absolutely vital in tacking fuel poverty. Initiatives such as the Warmer Homes Scheme, operated by Sustainable Energy Ireland, under the aegis of the Department of Communications, Energy and Natural Resources have a very valuable role to play in that regard, as does funding from the Department of the Environment, Heritage and Local Government to improve the quality of existing local authority housing and the Housing Adaptation Grants for older people and people with disabilities. Considerable progress has been made in this area in recent years. In his Carbon Budget Statement, the Minister for Environment, Heritage and Local Government, outlined details of €130 million in funding for insulation, €76 million of which will be used to assist low income families.

The Department of Communications, Energy and Natural Resources has overarching responsibility for the energy portfolio and has convened an Inter-Departmental/Agency Group on Affordable Energy to coordinate and drive Government policy in this area. The Inter Departmental/Agency Group has been asked to draw up an Energy Affordability Strategy. This strategy will set out existing and future approaches to addressing energy affordability and will have regard both to the impact of the carbon tax on low income households and the range of supports outlined above in making its recommendations. As part of its work, the Group will make recommendations as to the precise package of measures, including in the area of income support, that should be put in place to assist those at risk of fuel poverty.

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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Question 55: To ask the Minister for Social Protection if he has conducted a review of the one parent family payment; the details of the recommendations of this review; if he will publish this review; and if he will make a statement on the matter. [21626/10]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 58: To ask the Minister for Social Protection his plans to reform the one parent family payment; and if he will make a statement on the matter. [21648/10]

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 73: To ask the Minister for Social Protection his plans in relation to the cohabitation rule for lone parents; and his further plans to introduce a parental allowance. [21605/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 55, 58 and 73 together.

The Government discussion paper, "Proposals for Supporting Lone Parents", was published in 2006 and can be viewed at http://www.welfare.ie/EN/Policy/PolicyPublications/Families/Documents/prop_lp.pdf. It put forward proposals for the expanded availability and range of education and training opportunities for lone parents, the extension of the National Employment Action Plan to focus on lone parents, the focused provision of childcare, improved information services for lone parents and the introduction of a new social assistance payment for low-income families with young children.

The One-Parent Family Payment, by its nature, is not payable where the lone parent is co-habiting with the other parent of the child or with someone else as husband and wife. The discussion paper proposed that the category of lone parenthood would be abolished. Instead, a parental allowance would be made to all parents (living alone or with a partner) with young children on a low income, thus ending the co-habitation rule. It will not be possible for my Department to progress this aspect of the proposal due, in part, to current economic climate. These proposals have, however, informed deliberations regarding the One-Parent Family Payment scheme.

The current duration of the One-Parent Family Payment, which is payable until the youngest child reaches the age of 18 – or 22 if in full-time education – is not in the best interests of the recipient, their children or society. Social welfare supports for lone parents should be designed to:

prevent long-term dependence on welfare and facilitate financial independence; recognise parental choice with regard to care of young children but with the expectation that parents will not remain outside of the labour force indefinitely, and

include an expectation of participation in education, training and employment, with supports provided in this regard.

To meet these social policy objectives, my Department will be introducing changes to the One-Parent Family Payment in the forthcoming Social Welfare (Miscellaneous Provisions) Bill, 2010. For new customers, from April 2011, it is proposed that the One-Parent Family Payment will be paid until the youngest child in the family reaches the age of 13 years. For existing recipients of the payment, there will be a phasing-out period to enable them to access education and training and to prepare them for their return to the labour market.

These changes will bring Ireland's support for lone parents more in line with international provisions, where there is a general movement away from long-term and passive income support. The EU countries that are achieving the best outcomes in terms of tackling child poverty are those that are combining strategies aimed at facilitating access to employment and enabling services (e.g. child care) with income support.

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