Bernard Durkan (Kildare North, Fine Gael)
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170. To ask the Tánaiste and Minister for Social Protection the extent to which recipients of the one-parent family allowance who have had any reductions in income arising from changes to the qualification criteria have had such shortfalls met by way of the family income supplement or other payment; and if she will make a statement on the matter. [40582/15]

Joan Burton (Dublin West, Labour)
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The one-parent family payment (OFP) reforms were introduced in order to address long-term social welfare dependency and poverty levels among lone parents.

Approximately 25,500 customers transitioned from the OFP scheme on 2 July, 2015, when the final phase of the reforms was implemented. These customers transitioned to alternative social welfare income support payments, including the jobseeker’s transitional payment, the jobseeker’s allowance, and the family income supplement (FIS).

Approximately 12,000 of these customers incurred no change in their income after their entitlement to the OFP ceased.

The majority of affected customers applied for the jobseeker’s transitional payment. Of these approximately 4,900 customers suffered an income loss. These customers will, however, gain when the jobseeker’s transitional payment means test is more closely aligned with the more generous OFP means test from 7 January, 2016, onwards.

Approximately 2,400 lone parents joined the FIS scheme for the first time when their entitlement to the OFP ceased. FIS recipients can also claim the back to work family dividend. These 2,400 customers experienced an increase in their income.

Approximately 5,700 who were in receipt of both OFP and FIS payments transitioned to a re-rated FIS payment and suffered an income loss. However, these customers are now eligible for the back to work family dividend.

Budget 2016 will also increase the financial support that is available to lone parents, as follows:

- the jobseeker’s transitional payment means test will be aligned with the more generous OFP means test, resulting in an increase in income for jobseeker’s transitional payment customers who are earning more than €60 per week;

- the FIS income thresholds will be increased by €5 per week for families with one child and by €10 per week for families with two or more children;

- child benefit will be increased from €135 to €140 per month;

- the fuel allowance will be increased from €20 to €22.50 per week, and

- a 75% Christmas bonus will be paid to recipients of a long-term social welfare payment, including to recipients of the OFP, the jobseeker’s transitional payment, and back to work family dividend, in December, 2015.

As a result of these measures, and as outlined in the Department’s social impact assessment of the welfare and income tax measures in Budget 2016, one of the biggest beneficiaries of the Budget are earning lone parents, with average income gains of 2%.