Budget 2012 – easy to read points on how it might affect you

One Parent Family Payment

 The rate of payment for the One Parent Family Payment will remain at €188 for the adult and €29.80 per child, per week.

The upper age limit of the youngest child for new claimants of the One-Parent Family Payment will be reduced to 7 years on a phased basis. It will be reduced to 12 years with effect from 2012, then age 10 in 2013 to age 7 in 2014.

There is a reduction in the amount of income disregard for One Parent Family Payment from €146.50 a week to €130 per week.  Further reductions will follow in the next four years.

The transitional payment of half of the rate of One-Parent Family Payment will be discontinued when the recipient’s earnings exceed €425 per week. Existing recipients of the transitional payment will not be affected.

Child Benefit

The amount of child benefit will remain at €140 a month for the first two children, then €148 for the third child and €160 for the fourth child and subsequent children.  Over two years the rate will be standardized for all children.

Multiple Births

The grant of €635 paid at birth on all multiple births and further grants of €635 paid when the children are 4 years of age and 12 years of age will be discontinued from January.

Back to School Clothing & Footwear Allowance

A reduction in the rates of payment from €305 to €250 for a child aged 12 or over and a reduction from €200 to €150 for children aged 4 to 11.

The age of eligibility for the allowance will increase from 2 to 4 years of age.

Fuel Allowance

The payment of €20 per week during the winter months will decrease from 32 weeks payment to 26 weeks payment.  Payment will be made until mid-April.

Rent Supplement

The minimum contribution towards rent for the purposes of the Rent Supplement scheme will increase by €6 to €30 per week.

Mortgage Interest Supplement

The minimum contribution towards rent for the purposes of the Mortgage Interest Supplement scheme will increase by €6 to €30 per week.

Community Employment Schemes

The payment of two qualified child increases where the person is on a Community Employment Scheme and One Parent Family Payment, Deserted Wife’s Allowance/Benefit or Widow(er)’s Pension will be discontinued with a loss of €29.80 per child per week.

New CE scheme applicants will no longer able to retain the One Parent Family Payment (or other social welfare payment) and CE scheme income.

For existing CE scheme participants the entitlement to a Community Employment payment and another Department of Social Protection payment, such as One Parent Family Payment, at the same time will be phased out over 3 years.

Back to Education Allowance

The Cost of Education Allowance will decrease from €500 to €300.

Family Income Supplement

The household income limits will remain at 2011 levels, €506 for one child, €602 for two children, €703 for 3 children and €824 for 4 children.

Carer’s Allowance

The half-rate Carer’s Allowance will continue to be paid to people who are full-time carers and who are getting another welfare payment, such as One Parent Family Payment.

Domiciliary Care Allowance

The age of entitlement for Domiciliary Care Allowance will be extended from 16 years to 18 years of age.

Half-rate payments

People getting One-Parent Family Payment, Widow(er)’s Pension, Surviving Civil Partner’s Pension or can get half-rate Jobseeker’s Benefit, Illness Benefit or Incapacity Supplement if they satisfy the qualifying conditions. These half-rate payments will cease for applicants for Jobseeker’s Benefit, Illness Benefit and Incapacity Supplement from 2012.

One Parent Family Tax Credit

There is no change to the tax credits rates or income tax bands.  The One Parent Family Tax credit remains at €1650.

Universal Social Charge

People with an income of less than €10,036 will no longer pay the Universal Social Charge.