Written answers

Tuesday, 8 July 2014

Department of Social Protection

One-Parent Family Payments

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
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365. To ask the Minister for Social Protection the cost of reversing reductions in the earnings disregard for the one parent family payment introduced in Budget 2012. [28998/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The one-parent family payment (OFP) has played an important role in providing income support to lone parents since its introduction in 1997. The number of OFP recipients stood at 74,426 in June, 2014, and an estimated €863 million is expected to be spent on the scheme during 2014.

The Social Welfare and Pensions Act, 2012, contains provisions to reduce, on a phased basis, the income disregard of the OFP scheme for both new and existing recipients of the payment. The income disregard was reduced from €146.50 per week to €130 per week in January, 2012, from €130 per week to €110 per week in January, 2013, and from €110 per week to its current limit of €90 per week in January, 2014. It will be further reduced from €90 per week to €75 per week in January, 2015, and from €75 per week to €60 per week in January, 2016.

The savings arising from the full implementation of the reduction of the OFP income disregard as outlined in Budget 2012 are estimated to be approximately €76 million in a full year.

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