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Policy | DSP will Review Changes to One Parent Family Payment

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The Department of Social Protection agreed to review the changes to the One Parent Family Payment (OFP) at Committee stage of the Social Welfare Bill 2016 on Thursday 17 November.

It is essential that review of the OFP reform be carried out urgently, as One Family has consistently called for. A cohesive report on the potential outcomes should have been conducted prior to implementation which could have avoided the negative impacts experienced by a large number of lone parents in part-time work.

Family Income Supplement (FIS) will also be reviewed; a new proposed Working Family Payment was included in the Programme for Government last May.

The analysis of the State’s child poverty rates is immediately necessary. One in nine (11%) children aged 0-17  live in consistent poverty (SILC 2014). Children living in one-parent family households are almost twice as likely to live in poverty than other children, with 23% of children in a one-parent family experiencing deprivation.

The Back to Work Family Dividend (BTWFD) will also be reviewed. This is welcomed as the halving of this payment after one year, and suspension after two years, is clearly causing lone parents to be worse off in work. An improved longer term solution is needed.

1st Amendments:

(5) The Minister shall review the changes introduced to the One-Parent Family Payment in 2012 particularly in light of the report by Dr Millar and Dr Crosse on lone parents and activation and shall bring forward a report to the Committee on Social Protection on same within 3 months of this Bill being enacted.

(6) The Minister shall review the operation of the Family Income Supplement to see how it could be improved to encourage and facilitate people to re(enter) the workforce and shall bring forward a report to the Committee on Social Protection on same within 3 months of this Bill being enacted.

The first list of amendments can be found in full on this link.

2nd Amendments:

(1)Report on One-Parent Family Payment changes. That an independent report shall be conducted on the financial and social effects of the changes to the One-Parent Family Payment since 2015, taking account inter alia of poverty rates among those in receipt of the payment and that the report shall be presented to the Oireachtas Joint Committee on Social Welfare within six months of enactment of this Bill.

(2)That an analysis of the State’s child poverty rates is carried out annually and that an independent report shall be issued to the Minister and the Joint Oireachtas Committee on  Social Protection.

(3)Report on operation of Back to Work Family Dividend 14. That a report shall be issued to the Joint Oireachtas Committee on Social Protection on the effects of the Back to Work Family Dividend to recipients and to include inter alia the poverty rates among those in receipt of this payment.

The second list of amendments can be found in full on this link.

 

Statement | Our Response to Minister Varadkar’s Comments on OFP Reform Today

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Statement

One Family’s Response to Minister Varadkar’s Comments on Reform of the One-Parent Family Payment on RTÉ Radio 1 on 26th September 2016

Today Minister Varadkar, in an interview on Morning Ireland (RTÉ Radio 1), discussed the changes to the One-Parent Family Payment (OFP). The Minister was adamant that there were no cuts made to the payment by the last Government, but rather to the conditionality of the payment. While this may be technically correct, it does not acknowledge the fact that a result of the reform is significant cuts to income for many one-parent families. Both the reform of the OFP and its implementation have been plagued by poor planning and communication, and a lack of joined up thinking on the part of the Department; impacts have included the creation of unnecessary fear and worry, and reduced income for many already vulnerable families. Lone parents already in work and in receipt of Family Income Supplement saw an immediate 40% reduction in their payments as a direct result of the reform. Government policy has not worked. Government has failed these families.

Minister Varadkar also outlined measures being put in place to reduce unemployment figures in line with the most advanced European economies. However, these economies invariably provide state-subsidised, affordable, accessible childcare to support parents to enter work. Ireland must follow suit if it wants to match the employment rate of other European countries. The immense cost of childcare in Ireland was acknowledged during the interview by the Minister who stated that “one of the biggest things” this Government could do is to reduce the cost of childcare. Yet despite this acknowledgment of the lack of affordable, accessible childcare currently available and how immense a barrier this is for parents to work, the Minister was emphatic that no reversal of the reform will be implemented. One Family contends that continuing to enforce the reform with a flawed childcare system in place is senseless.

The Minister further stated that the key to making work pay is to promote not just any job but getting a better quality job. One Family agrees that an investment in education and training supports is imperative in order to achieve this but this is just one essential step that must be taken, and it must be taken now. As outlined in our previous response to Minister Varadkar and in our Pre-Budget Submission there are a number of other steps that the Department could take to remove current educational barriers impacting on one-parent families.

The reform of the One-Parent Family Payment has failed, as evidenced by the already low-income families who have become poorer owing to its impacts. It is disappointing that the Minister, like his predecessor Joan Burton TD, continues to fail to acknowledge this; that Government policies and services that would address the major barriers faced by lone parents trying to access employment and/or education have yet to be proposed or implemented; and that lone parents and their children – 59% (almost three in five families) of whom experience enforced deprivation (SILC 2014) – are suffering the impacts of an intrinsically flawed Government approach.

Press Release | Government Activation Policy Comes into Effect for 30,000 One-Parent Families

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Press Release

Thousands of children are poorer today as government activation policy comes into effect

for 30,000 one-parent families with children aged 7

 

(Dublin, Wednesday 24 June 2015) Thursday 25 June is the last date of payment of the One-Parent Family Payment to over 30,000 families as their youngest child reaches 7 years of age. This is resulting in increased levels of consistent poverty for many vulnerable families. Two national organisations, One Family and the Society of St Vincent de Paul, have again highlighted the lack of supports put in place to minimise the impact on the families affected.

“The Tánaiste must act urgently to put the necessary resources in place to support families during this reform process. Government must ensure that the focus is on ensuring that levels of child poverty do not further rise. As organisations working with one-parent families, we understand the lived realities of these parents and children. We witness their struggle. This reform is failing them. It means that 11,000 families will immediately lose income, resulting in even more children living in poverty,” they say.

One Family and the Society of St Vincent de Paul say that a reform process that was meant to lift lone parents and their children out of poverty is clearly failing. Instead it is resulting in fewer parents being able to enter or stay in education, to up-skill, or to keep the part-time jobs they already have. The supports necessary to enable lone parents to return to education and employment, such as access to affordable, quality childcare, have not been introduced. This is counter-productive to Government’s stated aim to enable these lone parents to move out of the social welfare system.

Stuart Duffin, One Family Director of Policy & Programmes, comments: “Calls to our askonefamily helpline have increased by 50%. We hear from very anxious and worried parents.  They want to work and want to learn.  They are determined to create brighter futures for their children. They are doing their best to overcome systemic barriers but this is not something that can happen within a reform process that penalises so many already in part-time employment.”

John-Mark McCafferty, SVP Head of Social Justice and Policy, further comments: “At any time, half to two thirds of homeless families living in emergency accommodation are one-parent families. Many more of the one-parent families we work with are on the verge of homelessness. Years of cuts have led to one-parent families being those families in Ireland with the highest levels of consistent poverty with 63% of individuals from these households experiencing one or more forms of deprivation (EU-SILC 2013). This reform will lead to even more families experiencing poverty.”

Both One Family and the Society of St Vincent de Paul have consistently argued for a progressive mix of policies and action to support parents to enter and remain in the work place and in education.

“The success of Ireland’s employment strategies is not just about the achievement of current policy and delivery reforms. Ireland has experienced lower unemployment rates without the current reforms. Quality employment opportunities for one-parent families that support parenting choices should be the policy goal,” they say.

Over 30,200 lone parents will receive their last One-Parent Family Payment on 25 June as this reform process first announced in Budget 2012 continues to be phased in, and over 11,000 have already been transitioned. These parents are being moved to different payments; mainly to the newly introduced Job Seekers Transitional Allowance (JSTA) or to Job Seekers Allowance (JSA).

Parents affected by the reform can call askonefamily helpline for information and support on 1890 66 22 12.

FURTHER INFORMATION

Click here for more detailed information and analysis on the One-Parent Family Payment reform and child poverty on the One Family website.

AVAILABLE FOR INTERVIEW

Stuart Duffin, Director of Policy & Programmes, One Family | t: 01 662 9212 or 087 062 2023

John-Mark McCafferty, Head of Social Justice and Policy, Society of St Vincent de Paul | t: 087 236 3995

INFORMATION/SCHEDULING

One Family: Shirley Chance | t: 01 662 9212 or 087 414 8511

St Vincent de Paul:  Jim Walsh | t: 087 254 1700

NOTES FOR EDITORS

Previous cuts that have targeted One-Parent Family Payment recipients since budget 2011 include:

  • Budget 2013
  1. Back to School Clothing & Footwear Allowance (BTSCFA): Reduced from €250 to €200 for children aged 12+, and from €150 down to €100 for 4-11 year olds.
  2. Cost of Education Allowance (paid with Back to Education Allowance, BTEA) cut completely from €300 down to €0 for all new and existing BTEA recipients.
  • Budget 2012
  1. BTSCFA, from €305 reduced to €250 for 12+, and from €200 down to €150 for 4-11 yr olds; age eligibility also increased from 2 to 4 year olds in 2012.
  2. Ongoing cuts to OFP include Income Disregard cut from €146.50 down to €90.
  3. The half rate transition payment of OFP was cut for those who were going into work and stopping payment.
  4. OFP recipients lost access to half rate payment for Illness Benefit and Jobseeker’s Benefit, where applicable.
  5. Fuel Allowance was reduced from 32 weeks to 26 weeks.
  6. Cost of Education Allowance (for BTEA recipients) reduced from €500 to €300.
  7. CE Scheme participants, many of whom were lone parents, had their training and materials grant cut from €1,500 to €500; and new CE participants from 2012 could not get ‘double’ payment, just €20 extra allowance.
  • Budget 2011
  1. Cuts included the main rate of social welfare payments reduced from €196 down to €188.
  2. Child Benefit was reduced by €10 for 1st and 2nd child / €150 to €140; 3rd child / €187 to €167; 4th and subsequent child / reduced to €177.
  3. Christmas Bonus was discontinued (half-rate partial reinstatement for some last year).

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One Family Logo_No StraplineAbout One Family One Family was founded in 1972 as Cherish and 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 66 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.

SVP_BLUEAbout the Society of St Vincent de Paul The Society of St Vincent de Paul is the largest voluntary charity in Ireland. It works with a diverse range of people who experience poverty and exclusion. The main recipients of support from  SVP are  households with children with most people requesting assistance are those  in receipt of social welfare payments or on low incomes. With a network of almost 11.000 volunteers home visitation to families, carried out in strict confidence, is the core work of the Society. Through person-to-person contact, the SVP is committed to respecting the dignity of those they assist and fostering self-respect. They assure confidentiality at all times and endeavour to establish relationships based on trust and friendship. SVP believes that it is not enough to provide short term material support. Those the SVP assist are also helped to achieve self-sufficiency in the longer term and the sense of self-worth this provides. When problems are beyond their competence, they enlist the support of specialised help. SVP is also committed to identifying the root causes of poverty and social exclusion in Ireland and, in solidarity with poor and disadvantaged people, to advocate and work for the changes required to create a more just and caring society. Other aspects of the Society’s work include operating  over 150 charity shops; 14 hostels; 15 daycare centres; 10 holiday centres and 66 housing schemes. It also provides exam revision classes, after-school activities, homework clubs and breakfast clubs

Dad and child's hands

One-Parent Family Payment Presentation to Joint Oireachtas Committee on Education and Social Protection

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Press Release

Get It Right for One-Parent Families

One Family Presents to Joint Oireachtas Committee on Education and Social Protection on Impacts of One-Parent Family Payment Changes

– Policy Changes will lead to Increased Poverty

(Dublin, Wednesday 18 February 2015) One Family – Ireland’s organisation for people parenting alone, sharing parenting and separating – today calls on the Joint Oireachtas Committee on Education and Social Protection to petition the Táiniste and the Department of Social Protection to Get it Right (#GetItRightDSP) for one-parent families.

One Family is invited to present to the Committee today and will stress the reality of the impacts of changes to the One-Parent Family Payment (OFP) which will hit one-parent families this year. Almost 39,000 OFP recipients are being moved to the Job Seekers Transition Allowance (JST)on 2 July.

Stuart Duffin, Director of Policy & Programmes, explains: “This is a result of the decision announced in Budget 2012 to restrict eligibility for the OFP to people parenting alone whose youngest child is aged seven or under. However, the supports that should accompany this policy implementation to ensure its success– particuarly the promised accessible, affordable, quality childcare – have not been delivered, while one-parent families continue to suffer the highest rates of poverty and deprivation of any family type in Ireland.”

Stuart continues: “Over 29% of one-parent families are at risk of poverty and 63% of all one-parent households experience deprivation; this is despite the fact that 53% of lone parents are currently in the labour market. We are hearing from many of these working lone parents, who already finely balance household budgets on a knife-edge, that it will no longer be feasible for them to remain in their part-time jobs. These changes will lead to even greater and deeper poverty for one-parent families.”

One Family calls for an integrated and SMART action plan to help ease confusion and stress for those parents who will be moved from OFP to JST in July, and for the creation of a simple customer charter by the Department of Social Protection where claimants are given clear, sensible and correct information.  The Department needs to take responsibility for the impact its policies will have on families who are in need of service from it and other Departments as these changes take effect.

Stuart further comments, “It is absolutely clear that there is growing inequality in  Ireland,  that tackling it must be a national priority and that fixing the administration of  social welfare and its support services will remove a key trigger for deeper deprivation for those parenting alone. Also, it is clear that no child or parent should be going hungry in Ireland today. Low pay, rising housing and energy  costs are key drivers of family poverty, but the missing piece of the puzzle is that for many lone parents ‘work does not pay’ leaving families increasingly exposed to poverty of opportunity. Ireland needs a whole of public service response not a siloed service that leaves families struggling and parents demotivated.”

Lone parents want to work and they want to create the best possible outcomes for their children. With the right policies, the right time-frame, and the right level of political will, choices can be made to enable those thousands of one-parent families suffering deprivation to grow out of poverty and achieve better futures.

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 & Programmes |t: 01 662 9212 or 087 062 2023

 

 

 

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.