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Press Release | Budget 2018: Much More Needed to Lift One-Parent Families out of Government-created Poverty

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Press Release

Budget 2018: Much More Needed to Lift One-Parent Families out of Government-created Poverty

Indecon Report: Government saves €45m net but parents and children are poorer despite working

(Dublin, Tuesday 10 October 2017) One Family, Ireland’s organisation for people parenting alone, sharing parenting, and separating, acknowledges the announcement of the partial Income Disregard restoration – following previous budget cuts –  from €110 to €130 per week for One Parent Family Payment (OFP) and Jobseeker’s Transition Payment (JST) recipients, the €5 weekly social welfare payment increase, and the household income threshold for FIS increase by €10 for families of up to three children, along with new housing initiatives. However, it is not enough to lift lone parents and their children out of the consistent poverty and deprivation that resulted from previous reform of the One-Parent Family Payment, and to support them in overcoming systemic barriers in accessing education and employment.

Yesterday the Department of Employment & Social Affairs released the Indecon Independent Review of the Amendments to the One-parent Family Payment since January 2012 which should have formed the basis of changes in Budget 2018 for social-welfare dependent one-parent families. Increases should have been targeted and strategic to reach the poorest children and families across the board, following the evidence and Government commitments to lift 100,000 children out of poverty.

Karen Kiernan, One Family CEO, states: “The Indecon Report is absolutely shocking – more parents are off welfare and working saving the state €45m net but more are living in poverty. There is so much work to be done to ensure that the appropriate services are in place to support people parenting alone into sustainable employment but we did not see that today. Of course, the increase to the Income Disregard is to be welcomed and will help some families.  And of course, it is heartening that Government listened to us and the families we work with on this issue. But we must also ask: why have Ministers not taken action on our other recommendations? Following years of ill-advised cuts and reform that targeted lone parents, this must happen now if the poverty experienced by one-parent families in receipt of social welfare payments is to be reversed.

“What lone parents want is a fair chance, and just like all members of our society, they should have one. Lone parents want to work and to learn; they want to have the opportunity to build brighter futures for their families. But the evidence shows that one-parent families are among those who have borne the brunt of years of austerity, that they still experience proportionally higher levels of poverty than any other members of our society today, and that the systemic barriers to employment and education are still not coming down. The recommendations contained in our Pre-Budget Submission, if implemented, will help to create those fair chances.”

Valerie Maher, One Family Policy & Programmes Manager, comments: “Today’s Budget goes a small way towards supporting lone parents and their children, but so much more is needed. It is alarming to see in the Indecon report that even those working full-time following removal from social welfare are living at risk of poverty and in daily deprivation. The Government must also be concerned about these families and not only those on social welfare.

“Currently we see parents in precarious, low paid employment and this is not a victory for Government policy, or a signpost to continue unchanged in this direction, as more children in more one-parent families are living in consistent poverty.”

One Family’s Pre-Budget Submission 2018 included recommendations designed to support lone parents into education and/or employment, while acknowledging their parenting responsibilities. It can be read here.

NOTES FOR EDITORS

  • One Family’s Pre-Budget Submission 2018 can be read here.
  • Our response to the Indecon Report is here.
  • Indecon Independent Review of the Amendments to the One-parent Family Payment since January 2012 is here.
  • 1 in 4 families with children in Ireland is a one-parent family (Census 2016)
  • 356,203 children lived in one parent families, representing more than one in five or 21.2% of all children in family units (Census 2016)
  • The average one parent family is has 1.63 children compared to an average of 1.95 for the population overall (Census 2016)
  • Of the approximately 56,000 lone parents in receipt of One Parent Family Payment (OFP) or Job Seekers Transition Payment (JST), 34,700 are not engaged in employment and so remain below the income poverty threshold (Dept. of Social Protection, January 2017)
  • There are more than 14,000 One-Parent Family Payment (OFP) recipients in employment, and of 14,500 JST recipients, 5,000 recipients work. Family Income Supplement is also an important support for working parents with approximately 27,000 lone parents in receipt of the payment (Dept. of Social Protection, January 2017)
  • Those living in households with one adult and one or more children aged under 18 had the highest deprivation rate in 2015 at 57.9% (Survey on Income and Living Conditions (SILC) 2015)
  • 58% (almost three in five) of lone parent households with one or more children experienced enforced deprivation. This compares to 25% of the general population who experienced deprivation (SILC 2015)
  • People in lone parent households continue to have the lowest disposable income out of all households with children in the State (SILC 2015)
  • Individuals living in households where there was one adult and one or more children aged under 18 had the highest consistent poverty rate at 26.2%, an increase from 25% in 2014. This is compared to a consistent poverty rate of 7.7% for two-parent households (SILC 2015)
  • For further facts and figures, visit onefamily.ie.

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About One Family

One Family, founded in 1972 as Cherish, celebrates 45 years of supporting one-parent families in Ireland in 2017. It is Ireland’s leading organisation for one-parent families and people sharing parenting, or separating, offering support, information and services to all members of all one-parent families, to those sharing parenting, to those experiencing an unplanned pregnancy and to professionals working with one-parent families. Children are at the centre of One Family’s work and the organisation helps all the adults in their lives, including mums, dads, grandparents, step-parents, new partners and other siblings, offering a holistic model of specialist family support services. These services include the lo-call askonefamily national helpline on 1890 662212, counselling, and provision of training courses for parents and for professionals. One Family also promotes Family Day and presents the Family Day Festival every May, an annual celebration of the diversity of families in Ireland today (www.familyday.ie). For further information, visit www.onefamily.ie.

Available for Interview:

Karen Kiernan, One Family CEO | t: 086 850 9191

Valerie Maher, One Family Policy & Programmes Manager | t: 086 084 6826

Further Information or to arrange an interview:

Shirley Chance, Director of Communications | t: 01 662 9212 or 087 414 8511
 

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Planned Income Disregard Cuts Will Not Be Implemented

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Press Release

Small Step to Make Work Pay:

One-Parent Family Payment and Income Disregard

www.onefamily.ie

(Dublin, Wednesday 5 November 2014) One Family – Ireland’s organisation for people parenting alone and sharing parenting – welcomes Tánaiste Joan Burton’s announcement that she will retain the level of the income disregard at €90 for those parents in work and in receipt of the One-Parent Family Payment (OFP), responding positively to One Family’s vociferous calls for its retention following a series of cuts impacting lone parents on social welfare in Budget 2012.

Stuart Duffin, One Family Director of Policy & Programmes, states: “This is a modest investment in poor working parents, helping to make work pay and helping to reduce child poverty. This responsive action by the Tánaiste recognises that many families require two salaries to meet expensive childcare and accommodation costs, something which a family on one income finds extremely difficult to do.”

He continues, “This small step can have a big impact as it will allow parents to stay in part-time work thus keeping their connection with the labour market and making it more likely that s/he will be able to progress to full-time employment when family life permits. We have seen parents have to leave part-time work since the income disregard was cut as work just didn’t pay for them anymore. Keeping the income disregard at this modest level will assist government policy of activating OFP recipients into the labour market.”

Karen Kiernan, One Family CEO explains, “Prior to Budget 2012, 60% of those on the OFP were in work and today that has halved to around 33%. This is a reality which One Family does not want to see perpetuated. To maintain the income disregard at the €90 level will cost €8.3m in 2015 and approximately €15m in 2016 which is a small sum given what has been cut from individual one-parent families’ incomes over the past few years.

She continues, “Income disregards offer an immediate incentive and instant return for parents. However, this is just the first step in economic and social policy working together. More needs to be done to deliver high quality employment, affordable part-time education and appropriate training for those parenting alone so they can move out of consistent poverty. We look forward to working with the Department and the Tánaiste to ensure that the 39,000 parents coming off the OFP in July 2015 have access to quality information, advice, supports and opportunities tailored to their needs so that government policy will be a success instead of a failure.”

Note on Income Disregard

Parents can work and receive the One-Parent Family Payment. The amount of this payment depends on their weekly means. Currently the first €90 of parents gross weekly earnings is not taken into account (or disregarded). This means that parents can earn up to €90 per week and qualify for the full One-Parent Family Payment. Half the remainder of a parent’s gross earnings up to €425 per week is assessed as means. If parents  earn between €90 and €425 per week they may qualify for a reduced payment. SW 19 Social Welfare Rates of Payment booklet shows the amount of OPF payable with a parent’s means. Social insurance contributions, superannuation/PRSA contributions and trade union subscriptions are not taken into account in the assessment of earnings. However, gross earnings must be below €425 before any deductions are allowed.

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About One Family

One Family was founded in 1972 as Cherish and is Ireland’s leading organisation for one-parent families offering support, information and services to all members of all one-parent families, to those sharing parenting, to those experiencing an unplanned pregnancy and to professionals working with one-parent families. Children are at the centre of One Family’s work and the organisation helps all the adults in their lives, including mums, dads, grandparents, step-parents, new partners and other siblings, offering a holistic model of specialist family support services. These services include the lo-call askonefamily national helpline on 1890 62 22 12, counselling, and provision of training courses for parents and for professionals. One Family also promotes Family Day and presents the Family Day Festival every May, an annual celebration of the diversity of families in Ireland today (www.familyday.ie). For further information, visit www.onefamily.ie.

Available for Interview

Stuart Duffin, Director of Policy and Programmes | t: 01 662 9212 or 087 0622023

Karen Kiernan, CEO | t: 01 662 9212 or 086 850 9191

 

 

 

Survey on Income Disregards

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Would you like to contribute to our Budget 2015 submission? It’s easy – simply take our anonymous 3 question survey. Each short monthly survey has a focus on a different budget submission topic.

This month’s survey is on changes to the One-Parent Family Payment (OFP) and income disregards introduced on 2nd January 2014.

Take the survey and know that your voice is heard.

If you would like to view the results of previous surveys, they are available here.

One-Parent Family Payment Income Disregard Change

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Later this week, the Department of Social Protection will be issuing letters to affected One-Parent Family Payment (OFP) recipients informing them that, from 1 January 2014, the OFP scheme’s income disregard will be reduced from its current amount of €110 per week to €90 per week for the duration of 2014.

In Budget 2012, it was announced that there would be a gradual reduction in the amount of earnings from employment that would be ignored (disregarded) when calculating the rate of OFP paid and that this change would come in over a number of years.

In 2012 the amount ignored was €130; in 2013 it is €110; in 2014 it will be €90; and it will decrease further to €75 in 2015 and €60 in 2016.

From 1 January 2014, you can have earnings of €90 without it affecting the rate of payment of OFP and so if your earnings are greater than €90 per week, then your rate of OFP will be changed to take this new rate into account.

It is important to note that if there has been any change in your circumstances which may affect your entitlement to One-Parent Family Payment, including a change in your weekly earnings, then you should notify your local social welfare office so that a review of your entitlement can be carried out, and if you have moved recently and not informed them of your new address yet, it is important to do so.

How might this change affect you? We have included a Q&A below based on commonly occurring situations.

askonefamily Questions:

Q. I have a letter to say that my One-Parent Family Payment will change in 2014 because I am working and earning €150 a week. Do I have to do anything?

A. No, the adjustment to your rate of payment will happen automatically; however if there are any changes in your circumstance such as a change of income then you should contact your local social welfare office to let them know of this.

Q. I earn €110 a week at the moment and still get the full payment for myself and my daughter. Does this change mean I will lose some of my payment next year?

A. Yes, the reduction from €110 to €90 means that you will now be means-tested as having €10 a week. You are only means tested on half of the difference, so for your earnings of €110 as the disregard will be €90 this leave €20 in the difference and you will then be means tested on half of this, which is €10 per week. This will mean a small reduction in your One Parent Family Payment. If your earnings from work are your only additional income you would expect to see a reduction in payment of €2.50 a week.

Q. I am working part time and earning €120 a week. Up until now this has been my only income apart from One-Parent Family Payment but my son’s Dad has got a job and is now going to be paying maintenance of €30 a week.  What should I do?

A. As your income will increase once you start receiving maintenance because this is a change in your circumstances, you will need to let your local social welfare office know.  Up to the first €95.23 of maintenance maybe disregarded if you have rent or housing costs. 

If you would like any additional information about how your circumstances may be affected, please call our askonefamily national helpline on lo-call 1890 662 212 or email support@onefamily.ie.