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Abolition of the One Parent Family Tax Credit

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One Family is extremely concerned by the Budget 2014 announcement of the replacement of the One Parent Family Tax Credit with a Single Person Child Carer Tax Credit as it causes a significant number of problems and possibly unintended outcomes.

The financial impact of abolition of the One Parent Tax Credit for the non-resident parent, as verified by Revenue, is:

Annual wage Difference in tax take per week
€13,500 (minimum wage x 30 hours) No change
€20,000 €13
€30,000 €10
€40,000 €48
€60,000 €47

The Revenue Commissioners estimates that for 2013, 76,800 income earners utilise some or all of the One-Parent Family Tax Credit. The gender breakdown is estimated as follows:

Female    51,224

Male       25,573

Total:    76,797

One Family has written to all Ministers, TDs and Senators to voice these concerns and urges everyone to write to their Representatives as soon as possible to do the same.

A proforma letter with suggested text that individuals can change as required is available to download here: One Parent Family Tax Credit_Letter to Representatives

A list of TDs and Senators including their contact details is available here.

One Family representatives have also participated in a number of press, radio and television interviews on the issue. You can read the press releases issued by One Family below:

17.10.2013 | Attack on Parents Sharing Parenting After Separation is Unjust, Unfair and Underhand

15.10.2013 | Budget 2014 is Anti-family and Anti-parent

Attack on Parents Sharing Parenting After Separation is Unjust, Unfair and Underhand

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Press Release

Attack on Parents Sharing Parenting After Separation

 is Unjust, Unfair and Underhand

(Dublin, Thursday 17 October 2013) One Family, Ireland’s leading organisation for one-parent families, is deeply concerned by the removal of the One Parent Family tax credit and tax free allowance announced on Tuesday as part of Budget 2014 which will have disastrous and far-reaching consequences for separated Fathers and Mothers who share parenting of their children.

Stuart Duffin, Director of Policy and Programmes at One Family states: “Claimants of the One Parent Family tax credit are working Mums and Dads who are committed, responsible parents participating in a successful arrangement with their child’s other parent for the well-being of their child. This is an in-work support and the kind of mechanism that needs to be in place to deliver Pathways to Work, a cornerstone initiative of the Government’s recovery programme. Ultimately it is children who will be impacted with less money to go round in already hard hit families.”

The One Parent Family tax credit of €1,650 was previously available to both working parents sharing parenting after separation. From 2014, it is being replaced by a Single Person’s Child Carer tax credit of €1,650 which will only be available to the parent in receipt of Child Benefit. As the principle carer is usually the child’s Mother, and she may not be working, these changes mean that in many cases neither parent will now meet the specified criteria.  Some parents may be at a loss of over €125 per month as a result of the removal of the one-parent family tax credit and the removal of the one-parent family tax rate.

Duffin continued: “One Family has a received a barrage of calls to the askonefamily helpline, plus emails and Facebook comments from worried parents who are already pushed to their limits. There is a lack of joined up thinking and policy between the Departments of Finance, Social Protection and Children & Youth Affairs as this government is penalising the good practice of shared parenting. One Family is actively calling for clarity and action to ensure that working parents don’t become welfare recipients.”

One Family warns Government that it must address implementation problems, otherwise this is going to create long-term challenges for parents.

Karen Kiernan, CEO of One Family, comments:  “We are calling on Government to reverse this decision and to reinstate the relevant tax credits to ensure that one-parent families who are still coping with the cuts of Budget 2012 are not pushed further into poverty. We are concerned that along with other government measures this will damage the objective of making work pay and more people will end up becoming customers of the Department of Social Protection as many fathers have told us they simply won’t be able to pay as much maintenance as they have been.”

Concerned parents can contact the lo-call askonefamily helpline on 1890 662 9212 and email support@onefamily.ie.

Notes for Editors:

  • 1 in 4 families with children in Ireland is a one-parent family
  • Over half a million people live in one-parent families in Ireland
  • Almost 1 in 5 children (18.3%) live in a one-parent family (Census 2011)
  • There are over 215,000 one-parent families in Ireland today (25.8% of all families with children; Census 2011)
  • 87,586 of those are currently receiving the One-Parent Family Payment
  • Those living in lone parent households continue to experience the highest rates of deprivation with almost 56% of individuals from these households experiencing one or more forms of deprivation (EU-SILC 2011)
  • Operational Challenges for Government to be addressed:
  1. If the principal carer is not working, can the allowance be claimed by the other parent?
  2. If the principal carer is not working and the allowance is claimed by the other parent, what happens when the principal carer returns to work?
  3. What about parents who share care 50/50?
  4. How will this be managed for parents who are already in dispute with each other following separation?
  5. Can clear provisions be made for flexibilities such as splitting the credit between working parents; and making it available to the working parent, usually the Father, who is often classed as ‘secondary carer’.

Available for Interview

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

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

For Case Studies, Further Information/Scheduling

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

 

Budget 2014 is anti-family and anti-parent

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Press Release

More attacks on working mothers and shared parenting

Budget 2014 is anti-family and anti-parent

(Dublin, Tuesday 15 October 2013) One Family, Ireland’s leading organisation for one-parent families today responds to Budget 2014 noting the removal of the One Parent Family Tax Credit, the cutting of Maternity Benefit at the higher rate and no plans to help lone parents get into work.

Karen Kiernan, CEO of One Family, states: ‘We are extremely disappointed that working parents who share caring and financial responsibility for their children after separation are now to be penalised by the removal of the One Parent Family Tax Credit for one parent. We should be supporting both parents to cooperate and share responsibility for their children following relationship breakdown instead of penalising them. In addition, the adjusted Maternity Benefit payments, following on last year’s taxation of the Benefit, will negatively impact on thousands of working mothers.’

The One Parent Family Tax Credit has been available to both people sharing parenting of their children where they are not cohabiting and their child lives with them for part of the year. It was worth €1,650 per year in addition to the normal tax credit.

Stuart Duffin, Director of Policy and Programmes at One Family states: ‘We have been concerned for some time by incidences of social welfare inspectors investigating families because the parents after separating are sharing parenting of their children. One Family works to ensure that parents do their best for their children as they move through separation and into the often challenging landscape of shared parenting. This cut is retrograde. It ignores the reality of the collaborative approach many people can take to sharing responsibility and penalises families who have separated.’

Kiernan concludes: ‘One Family finds the ongoing negative approach to parents and families by this government to be alarming. People need support to balance their working and parenting responsibilities. It costs people more money to live apart and share parenting of their children than if they were living together and the removal of this Tax Credit will cause conflict in separated one-parent families.’

Notes for Editors:

  • 1 in 4 families with children in Ireland is a one-parent family
  • Over half a million people live in one-parent families in Ireland
  • Almost 1 in 5 children (18.3%) live in a one-parent family (Census 2011)
  • There are over 215,000 one-parent families in Ireland today (25.8% of all families with children; Census 2011)
  • 87,586 of those are currently receiving the One-Parent Family Payment
  • Those living in lone parent households continue to experience the highest rates of deprivation with almost 56% of individuals from these households experiencing one or more forms of deprivation (EU-SILC 2011)

Available for Interview

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

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

Further Information/Scheduling

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

One Family welcomes research which indicates that focusing on family type as a predictor for child well-being is irrelevant

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One Family today welcomes research from UCD analysing 9 year olds in the Growing Up in Ireland data which strongly indicates that focusing on family type as a predictor for child well-being is irrelevant.

One Family Director Karen Kiernan welcomed the report saying: “This research confirms what we have seen for 40 years in One Family; that lone parents are doing the very best they can in difficult circumstances to raise their children well. We have always found the argument about married families being better to be ridiculous, especially given that so many one-parent families are created through the dissolution of marriage, but this is a clear message to policy makers that education of mothers is important for the well-being of their children.”

Kiernan continued: “The research indicates that never-married lone mothers have far fewer children than average, are more likely to have their child at a young age and to have lower education levels and this is the most vulnerable family form in Ireland at the moment. This type of parent is also less likely to form a second union during the child’s younger life.”

The extent and nature of shared parenting between parents who do not live together was also looked at in the research and moderately high levels of contact between children and their non-resident parent were found. Karen Kiernan commented on this: “One Family has been working to promote positive and constructive shared parenting in one-parent families for many years and we are pleased to finally see some statistics on the extent of this in Ireland. Whilst shared parenting is not the majority practice, daily or weekly contact between children and their non-resident parent is very common and this is good news.”

Quotes from the study press release:

“It shows that family type is not the over-riding influence on the well-being of a child,” said lead author Dr Tony Fahey, of the UCD School of Applied Social Science.

“Our findings show only a slight, or, in many cases, a complete absence of differences in the indicators of child well-being between children of two-parent married families, co-habiting families, step-families, and one-parent families.”

“The single most important mechanism that public policy can use to combat family problems is to tackle educational disadvantage.”

Full research report here.

For more information, contact:

Karen Kiernan, Director, One Family 01 662 9212 or 086 850 9191.