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Updates following Budget 2014

One Family has summarised the announcements of Budget 2014 in relation to a number of areas of relevance to people parenting alone or sharing parenting.

Budget 2014

People parenting alone and sharing parenting

Changes to Social Welfare payments for 2014

Basic rate of payment The weekly rate of payment is staying the same in 2014 for all weekly social welfare payments for those of working age and pensioners. No change.
One Parent Family Payment There will be no change to the rate of payment in 2014.

For those in employment the new rate of income disregard of €90 a week will be introduced in 2014, reduced from €110 in 2013. This means that the first €90 of earnings will be ignored and half of the remainder of earnings will be assessed to give a new rate of One Parent Family Payment.

No change.

 

Income Disregard reduced.

Child Benefit The rate remains at €130 and this will be for each child, as announced in December 2012. No change.
Maternity Benefit The rate of payment will be standardised at €230 for new claimants; this is a change from a maximum payment of €262 and a minimum of €217.80. The change will come into effect from January 2014. Payment standardised.
Fuel Allowance Rate of payment will remain and there is no reduction in the number of weeks. No change.

Secondary Payments

Back to School Clothing and Footwear Allowance Unchanged for all children under 18. In 2014 it will be paid for those aged 18 and over in secondary school but not for those in third level education. No longer payable to children in third level education.
Fuel Allowance It will remain at €20 a week for the 26 weeks. No change.
Rent Supplement No changes announced for single people with children but an increase in contribution for couples, from €35 to €40 weekly. No change for single people with children.
Mortgage Interest Supplement This scheme will be closed to new entrants and will be wound down over a four year period from January 2014 for existing recipients. Closed to new entrants and winding down.

One Parent Families in Work

Family Income Supplement Household income thresholds remain at 2013 levels. No change.
Income Tax, PRSI and Universal Social Charge Unchanged in 2014. No change.
One Parent Family Tax Credit This is being replaced by a Single Person’s Child Carer tax credit of the same value – €1,650 – only available to the principal carer. This tax credit of €1,650 was previously available to both working parents sharing parenting. Now only one parent – the principal carer – can avail of it.

One Family is actively clarifying a number of questions and concerns this change raises and will update in more detail as soon as possible.

Other

GP Visits Free GP care for children aged 5 and under announced. Free GP care for children aged 5 and under announced.
Medical Card Prescription charges increase from €1.50 to €2.50 for medical card holders. Prescription charge increased to €2.50.
Third Level Students The student contribution charge for third-level institutions will increase by €250 to €2,750 – increases by €250 until it reaches €3,000 in 2015. Increased.
Primary School Books A further €5m to be allocated to extend the books-to-rent in primary schools. Increased.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Report on Child and Family Income Support published

The Report on Child and Family Income Support by the Advisory Group on Tax and Social Welfare was published yesterday and has caused considerable concern for parents across Ireland. The report, however, is an advisory report submitted to Government for consideration; Government has not agreed it. No decisions have been made on this and no timeline or plan on operationalisation has been put in place.

One Family will continue to advocate that Family Income Supplement (FIS) be changed from a ‘threshold’ benefit to one that tapers. Thresholds create poverty traps which are discriminatory and should be moved away from as part of a progressive social protection framework.

It was stated yesterday at the report launch that the computer systems of the Department of Social Protection and the Department of Revenue ‘talk to each other’ now and that they can identify 87% of claimants. This would make paying FIS as a taper and through the wage packet a good and efficient option.

Included in our pre-budget submission for 2012 was our recommendation to restructure Child Benefit to ensure that it is tailored to those most in need.

Click here to read the press release issued at the launch of the report, and here to download the report.

Below are links to some of the media coverage in response to the report:

The Irish Times | ‘No decision’ made on child benefit

Irish Examiner | Burton wants social welfare system that encourages people to work

TheJournal.ie | It’s easy for ministers on high salaries to ignore the importance of child benefit

The Irish Times |  Prospect emerges of cutting child poverty while saving public funds

One Family Policy Manager Candy Murphy to speak at Press Conference Thursday 26 November

Invitation

‘1 million reasons to oppose cuts to Child Benefit’

Representing all elements of family life in Ireland today and jointly opposed to any cuts or changes to Child Benefit in Budget 2010; OPEN, One Family, PACUB, the Children’s Rights Alliance and the National Women’s Council of Ireland invite you to a joint Press Conference on Thursday 26th November, 2009.

Speakers:

Frances Byrne, Director, OPEN
Candy Murphy, Policy & Campaigns Manager, One Family
Treasa Dovander, Founder, Protest Against Child Unfriendly Budget (PACUB)
Maria Corbett, Policy Director, Children’s Rights Alliance
Orla O’Connor, Head of Policy, National Women’s Council of Ireland (NWCI) Read more