Written answers

Tuesday, 18 September 2018

Department of Employment Affairs and Social Protection

One-Parent Family Payment Eligibility

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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720. To ask the Minister for Employment Affairs and Social Protection if her attention has been drawn to the fact that claimants of the one-parent family payment and rent allowance are only allowed work a certain amount of hours or else they will lose these benefits; her plans to increase the income thresholds allowed to continue to be for eligible for these benefits; and if she will make a statement on the matter. [37104/18]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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There is no hours-based limitation for working recipients of One-parent family payment (OFP). The only limitation to retaining an OFP payment is an upper earnings threshold of €425. If earnings are below this threshold, the OFP recipient can work whatever number of hours suits the family circumstances, and the appropriate rate of OFP, relative to the earnings received, will be paid.

Working Family Payment (WFP) may also be payable, where a minimum of 19 hours per week is worked. Again, there is no upper limit on the hours worked, but an earnings threshold applies (this varies depending on the number of children in the household). It is clear, therefore, that policy is aimed at supporting and encouraging work where this is a viable option for lone parents.

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting 27,400 recipients at a cost of €180 million in 2018.

The rent supplement assessment provides for a gradual withdrawal of payment as hours of employment or income increase. Income from employment and Working Family Payment (WFP) in excess of the standard Supplementary Welfare Allowance (SWA) weekly rate of payment attracts an additional income disregard and the income is assessed as follows; the first €75 of such additional income together with 25% of any additional income above €75 can be disregarded for means assessment purposes. The standard weekly minimum rent contribution for a one parent family is €30 with many recipients paying more than this amount due their assessable means (part-time work etc.), after the appropriate disregards, being above their appropriate SWA rate.

This overarching policy concern of security of tenure is being addressed via the Housing Assistance Payment Scheme (HAP). HAP has been designed to simplify the current system of housing supports, and it allows households that get full-time employment to remain in the new scheme (rent supplement is not generally payable where a person or their spouse or partner is in full-time employment, i.e. for 30 hours or more a week). Under HAP, a ‘differential rent’ based on household weekly income is paid in the same way rents are charged to tenants in local authority housing.

The strategic policy direction of the Department is to return rent supplement to its original purpose, that of a short-term income support, and is being facilitated with the introduction of the HAP. The transfer of long-term recipients of rent supplement to HAP is expected to be completed by 2020 in line with targets set out in Rebuilding Ireland – The Action Plan for Housing and Homelessness.

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