Our Submissions

By oneparent | Posted at 12:49 pm on March 16, 2010

2010 submissions here and archive also

Budget 2011 Submission

September 2010

All queries relating to this submission can be directed to:

Frances Byrne

OPEN,

7 Red Cow Lane,

Smithfield,

Dublin 7

fbyrne@oneparent.ie

+ 353 1 814 8860

+ 353 86 814 3297

Introduction

OPEN is the national network of one-parent families. The organisation provides a range of development programmes to build the capacity of our membership; OPEN represents one-parent families and our groups in social partnership and elsewhere. OPEN was established in 1994; member groups now support between 10,000-15,000 one-parent families per year. The organisation is led by a Board made up exclusively of lone parents.

Context

An analysis of poverty statistics during the 2004 to 2007 period undertaken by the ESRI[1] showed an overall decline in both the “at risk of poverty” (from 19 per cent in 2004 to 16 percent in 2007) and consistent poverty rates (from 6.6 per cent in 2004 to 5.1 per cent 2007). There was also a decrease in the depth of poverty experienced that is how far below the 60% median income line people fell). Notwithstanding this, the analysis of trends showed that children were the highest “at risk of poverty group” across the life cycle.

The most recent figures[2] on poverty and social exclusion show the following about one-parent families in Ireland:

Nearly one in five people in lone parent households (17.8%) were in consistent poverty in 2008, the highest rate recorded among household types.

Lone parent households continued to be the household type with the highest ‘at risk of poverty’ rate with a rate of 36.4% being recorded for individuals in these households

Lone parent households reported the highest deprivation levels of any household type with nearly one quarter (24.2%) of individuals in these households experiencing three or more of the eleven deprivation items in 2008.

In addition to these stark poverty figures, research has also shown that a quarter of lone parents have a chronic illness or disability. Moreover there are now 724 one-parent families who live in ‘direct provision’ centres while their application for asylum is processed. Families living in direct provision are provided with room and board they are entitled to a maximum of €19.10 per adult and €9.60 per child, per week. They are not included in the poverty statistics.

It is our sincere hope that this context of poverty, even during boom times, will mean that our government at this unprecedented point, will put significance behind the rhetoric and do their utmost to protect the vulnerable as they have repeatedly promised.

Summary of Recommendations

OPEN is again calling on the Government to retain the current rate of the One-parent Family Payment.

Maintain the real value of the Qualified Child Increase, by adjusting the payment to compensate for any changes to the rate of, or eligibility criteria for, the Child Benefit payment or social welfare payments. This is the key targeted payment for families with children who are dependent on social welfare.

Adjust the eligibility test for Jobseeker’s Allowance to take into account irregular patterns of employment. The social welfare system must be able to respond to trends in patterns of employment, such as the growth in atypical employment.

Scrap the 50 cent co-payment for prescription items for medical card holders.

Adjust the thresholds for Family Income Supplement (FIS) to compensate for any changes in the rate of, or eligibility criteria for, the income tax system or Child Benefit payment.

Recognise that most families have 1-3 children and realign the increases in FIS thresholds towards these families to ensure an effective financial return from work;

Relax the minimum weekly hours requirement for eligibility for FIS for a set period of time in light of the reduction in working hours that many low paid workers now experience.

Promote the increase take up of FIS to ensure eligible families, including the self employed, are adequately supported and protected:

Introduce self assessment for claiming Family Income Supplement.

Use the ‘sign off’ from the Live Register as a trigger for FIS (as recommended by the Expert Group on Integrating Tax and Welfare 1996). For example, the Department of Social Protection could issue an information note to the person explaining how to claim FIS and detailing eligibility criteria etc on signing off from the Live Register.

In order to facilitate and encourage lone parents back to education an element of the Back to Education Initiative should be ring fenced for recipients of the one-parent family payment.

Further research should be undertaken to examine the correlations relating to education and lone motherhood as well as the implications of this.

Protect early childhood care and education budgets from any cuts;
Ensure that there are sufficient free places are available in all communities

Maintain higher quality standards in early childhood education

One parent families who rely on the private rented sector for accommodation and who are entering / re-entering the labour market should have their rent contribution assessed under the differential rent schemes as used for RAS and local authority tenants. In doing so this will address a key poverty trap for lone parents wishing to return to work.

An Bord Snip referred to the earnings disregard of the One-parent Family Payment as a ‘double payment’ for those on Community Employment. OPEN is opposed to any changes which would jeopardise this vital support for lone parents who deliver vital services at local level.

The Government should establish an inter-departmental group to oversee the implementation of the proposed changes to the One Parent Family Payment. Organisations such as OPEN should be included in the monitoring of these changes to ensure the following:
- Reduction of poverty.
- Provision of supports such as childcare and rural transport.
- Access to appropriate education and training.

The Government must address the negative re-distributional effects of the carbon tax on low-income households. This can be achieved by using funds generated by the tax for a compensatory payment of €3 per adult per week and €1.20 per child per week to energy poor households. This payment should be directed not only to those receiving the fuel allowance but all social welfare recipients and the working poor. As well as investing in domestic energy efficiency measures.

The Government must publish a detailed breakdown of how all revenue raised through the Carbon Tax is being used to tackle energy poverty.

Since the Government has yet to address energy poverty caused by the introduction of the carbon tax, it is essential that the 5% increase in energy prices, due to be introduced in October, be postponed until a comprehensive range of compensatory measures is in place. These measures will prevent people falling into energy poverty following sharp increases in energy prices.

The Government should continue to fund and roll-out the Retrofitting Programmes as a long-term strategy to tackle energy poverty and as a mechanism for creating employment.

Income and other Supports

One-parent Family Payment

According to the latest data available from the Department for Social Protection there are just over 90,000 lone parents in receipt of the One-Parent Family Payment. The majority of these recipients are women (98%). The ESRI (2010) study found that social transfers reduced the poverty risk by half in 2004 and in 2007 the rate was 2.5 times lower. Despite this however, there were strong levels of vulnerability amongst these households. In examining the reduction in poverty rates among one parent families, it was found that both the increased labour market participation rates and the increases in social welfare rates were key factors.

The high number of lone parents in receipt of the one parent family payment suggests that over 40% of lone parents require state support. Research undertaken by OPEN[3] has consistently indicated that one parent families dependent solely on Social Welfare struggle to make ends meet. As previously outlined in this submission households headed by a lone parent are the most likely to experience deprivation.

OPEN is again calling on the Government to retain the current rate of the One Parent Family Payment.

Child Income Supports

Research by Frazer and Marlier (2007)[4] found that children in one parent families in Ireland had one of the highest “at risk of poverty” poverty rates amongst the EU 25. The continuing high concentration of poverty amongst children in one parent families is illustrated by the fact that according to EU-SILC in 2004, of all the children in poverty, 51 per cent were from one parent families while in 2006 this figure rose to 65 per cent.

Along with our colleagues in the End Child Poverty Coalition[5] we are calling on the Minister to:

Maintain the real value of the Qualified Child Increase, by adjusting the payment to compensate for any changes to the rate of, or eligibility criteria for, the Child Benefit payment or social welfare payments. This is the key targeted payment for families with children who are dependent on social welfare.

Adjust the eligibility test for Jobseeker’s Allowance to take into account irregular patterns of employment. The social welfare system must be able to respond to trends in patterns of employment, such as the growth in atypical employment.

Medical Card

The introduction of a 50 cent charge per item for prescribed medicines for medical card holders targets low income families and those with the poorest health. As a member of the End Child Poverty Coalition, OPEN is concerned that prescription fees for medical card holders will have serious consequences for children’s health and put increasing pressure on families to hold off on visiting GPs or buying vital medicines. We therefore recommend:

Scrapping the 50 cent co-payment for prescription items for medical card holders.

Family Income Supplement

Family Income Supplement (FIS) is a payment targeted at low paid families. The payment provides vital support for low income families. In 2009 there were just over 25,000 families in receipt of FIS, 54% (or 14,144) of which were one parent families. Of those one parent families receiving FIS, 85% are earning less than €500 per week thus illustrating the importance of this payment to their family income[6].

There are issues associated with both the criteria and implementation of this support payment which need to addressed urgently:

The thresholds for FIS must be adjusted to compensate for any changes in the rate of, or eligibility criteria for, the income tax system or Child Benefit payment. FIS plays a key role in rewarding work and protecting those trying to remain in work but on very low incomes.

Provide more generous increases for small families on Family Income Supplement, and reduce the withdrawal threshold. The increases in FIS thresholds for larger families have been effective in delivering a return from work. However, 87% of families claiming FIS thresholds for such smaller families have been minimal in recent years.

Relax the minimum weekly hours requirement for eligibility for Family Income Supplement, and reduce the withdrawal threshold. The increases in FIS thresholds for larger families have been effective in delivering a return from work. However, 87% of families claiming FIS have 1-3 children and the increases in FIS thresholds for such smaller families have been minimal in recent years.

It is imperative that the take up of FIS is increased to ensure eligible families including self-employed, are adequately supported and protected:
- Introduce self assessment for claiming Family Income Supplement.
- Use the ‘sign off’ from the Live Register as a trigger for FIS (as recommended by the Expert Group in Integrating Tax and Welfare 1996). For Example, the Department of Social Protection could issue an information note to the person explaining how to claim FIS and detailing eligibility criteria etc on signing off from the Live Register.

Education for adults and our children

A recent analysis of the Census data, undertaken by researchers at the ESRI, over the period 1986-2006[7] has shown that there is a strong relationship between educational attainment and likelihood of becoming an unmarried lone mother. Interestingly the research found that one quarter of women with lower second-level qualifications are never married lone mothers by their mid-20s, compared to 3 per cent of women with third-level education. The researchers note that “this partly reflects the effect that motherhood has on the likelihood of completing educational qualifications as well as the impact low education on the likelihood of becoming a lone mother[8]. The importance of education is also emphasized in the ESRI’s Monitoring Poverty Trends Report which noted that while there is a decline in the number of heads of households lacking formal education, those that did accounted for half of the income-poor in 2007[9].

In order to facilitate and encourage lone parents back to education an element of the Back to Education Initiative should be ring fenced for recipients of the one-parent family payment.

Further research should be undertaken to examine the correlations relating to education and lone motherhood as well as the implications of this.

Childhood Care and Education

The provision of quality care and education for young children is of paramount importance to one-parent families, in order to address the other disadvantages experienced by our families and to assist parents to move their families from poverty into education, training and work. OPEN has noted the high take-up of the Free Pre-School Year scheme in its first year (more than 90%). We urge the Government to investigate carefully the factors behind lower take-up in some communities to ensure that a shortage of free places is not acting as a barrier for low income families.

For social and economic reasons, it is imperative that this and related initiatives are strengthened. We urge government to:

Protect early childhood care and education budgets from any cuts.
Ensure that there are sufficient free places are available in all communities.
Maintain higher quality standards in early childhood education.

Housing and Accommodation

The 2005 Assessment of Housing Need found that there were 16,795 one-parent families on the waiting list for social housing. This is equivalent to almost 4 in every 10 households (38%) in need of accommodation. In 2008, the number of one-parent families on the waiting list increased to 20,059. This is an increase of nearly 20%. Contained in these families are just over 30,000 children^[10]. Furthermore, there were 7,773 families in need of housing whose only income came from the One-parent Family Payment.

In 2009, 16,042 lone parents dependent on Social Welfare also relied on Rent Supplement to meet their rental costs, representing almost a fifth (17%) of all Rent Supplement claimants. Almost half (48%) have been claiming Rent Supplement for more than a year^[11].

Census 2006 found that almost 20,000 lone parents – about 1 in every 10 one-parent families – live in multi-family households, for example, with their own parents or other relatives 94% of whom are lone mothers^[12].

Thus there is an urgent need to support lone parents in moving to independent accommodation which supports their transition from welfare to work, especially in light of the activation of lone parents from 2011. OPEN therefore calls on the government to take urgent action in this regard:

One parent families who rely on the private rented sector for accommodation and who are entering / re-entering the labour market should have their rent contribution assessed under the differential rent schemes as used for RAS and local authority tenants. In doing so this will address a key poverty trap for lone parents wishing to return to work.

Employment

Community Employment (CE)

There are just over 5,000 recipients of the One-parent Family Payment participating in Community Employment. Currently lone parents who are in receipt of social welfare are allowed to retain a portion of their weekly OFP on a pro-rata basis, if they move into work, provided their earnings do not exceed €425 per week. OPEN is concerned that the Government continues to consider part-payment of the OFP to Community Employment workers as a ‘double payment’. In particular we are concerned with Minister Lenihan’s comments in May that these payments will be targeted[13]. Targeting these payments would effectively mean rolling back on the earnings disregard element of the OFP. To remove the earnings disregard from one group of lone parent workers – those participating on CE – while allowing those who work in other low pay sectors would cause a new discrimination between parents. In addition to this OPEN feels that the withdrawal of the earnings disregard to eligible Community Employment participants would mean that lone parents will not apply for such schemes. Therefore a highly motivated group of workers would be lost to organisations in the most disadvantaged communities in Ireland, threatening the provision of vital services in the areas of childcare, youth projects and community development programmes. OPEN is involved in a campaign with SIPTU and others to oppose any such changes.

Activation

In 2006 the Government published a discussion paper on proposals to reform the One Parent Family Payment. At the forefront of these proposals was the objective to move lone parents from welfare dependency into employment through the introduction of a policy of activation. Since the publication of this paper, the issue has remained on the social policy agenda particularly for the subsequent Ministers for Social and Family Affairs (now Minister for Social Protection).

The Social Welfare (Miscellaneous Provisions) Act 2010 introduces a number of changes to the One Parent Family Payment (OPFP). The main changes relate to activation of lone parents to the labour force. Under the Act, from April 2011, new applicants for the payment will only be entitled to the payment until their youngest child reaches 14 years. Once the youngest child reaches 14 or in the case of new applicants who’s youngest child is 14 years and over, the recipient will move on to Job Seekers Allowance^[14].

However, a Special Provision is made for those applicants who are either married or cohabited parents and who have been recently bereaved and the youngest child is over 14 years of age. In this instance, the lone parent will receive the OPFP for two years in order to allow them to come to terms with their changed circumstances. In social policy terms we believe this is a retrograde step.

The Government should establish an inter-departmental group to oversee the implementation of the proposed changes to the One Parent Family Payment. Organisations such as OPEN should be included in the monitoring of these changes to ensure the following:
- Reduction of poverty.
- Provision of supports such as childcare and rural transport.
- Access to appropriate education and training.

Sustainability

A key issue for the national network and its local member groups is ongoing sustainability. OPEN is keenly aware of the potential offered by the ‘Green agenda’ in terms of addressing issues relating to social exclusion.

To this end we have received funding to pursue the development of an innovative labour market model in the area of sustainable development, with an initial focus on progression for lone parents via a qualification in organic horticulture. We welcome the willingness of a number of key government departments to engage with this work and respond to its policy findings on an ongoing basis.

Since completing a piece of research in 2003 on fuel poverty[15], OPEN has been actively involved in campaigning to address the root causes of energy poverty. To this end we have joined with a number of NGOs[16] concerned with this issue to form the Energy Poverty Coalition. Energy Poverty is defined as the inability to meet domestic energy needs including an adequate and safe temperature, due to a combination of lack of income, poor energy inefficiency in the home and energy prices. A significant consequence of this is increased mortality (there are between 1,500 and 2,000 excess winter deaths each year on the island of Ireland) and increased morbidity (poor health or disability).

We recommend:

The Government must address the negative re-distributional effects of the carbon tax on low-income households. This can be achieved by using funds generated by the tax for a compensatory payment of €3 per adult per week and €1.20 per child per week to energy poor households. This payment should be directed not only to those receiving the fuel allowance but all social welfare recipients and the working poor. As well as investing in domestic energy efficiency measures.

The Government must publish a detailed breakdown of how all revenue raised through the Carbon Tax is being used to tackle energy poverty.

Since the Government has yet to address energy poverty caused by the introduction of the carbon tax, it is essential that the 5% increase in energy prices, due to be introduced in October, be postponed until a comprehensive range of compensatory measures is in place. These measures will prevent people falling into energy poverty following sharp increases in energy prices.

The Government should continue to fund and roll-out the Retrofitting Programmes as a long-term strategy to tackle energy poverty and as a mechanism for creating employment.

Taxation

As a member of the Community Platform, OPEN fully supports the proposals of the Progressive Tax Reform Campaign:

Reduce tax breaks for the wealthy to EU levels
Introduce a Wealth Tax for high earners with assets worth more than €1million
End Tax Exile loopholes by making citizenship the basis for taxation for high earners
Apply PRSI and income levies to all income, regardless of source

[1] Russell, H., Maitre, B. and Nolan B. (2010) Monitoring Poverty Trends in Ireland 2004-2007: Key Issues for Children, People of Working Age and Older People Dublin: ESRI

[2] Central Statistics Office (2009) Survey of Income and Living Conditions 2008 Dublin: The Stationery Office

[3] OPEN (2004) Living on the Book Dublin OPEN; Loftus, C. (2004) One Size Fits All? Dublin: OPEN

[4] Frazer, H. & Marlier, E. (2007) Tackling child poverty and promoting the social inclusion of children in the EU: Key lessons Synthesis Report European Commission DG Employment, Social Affairs and Equal Opportunities

[5] End Child Poverty Coalition is a partnership of the following organisations: Barnardos, Children’s Rights Alliance, Focus Ireland, National Youth Council of Ireland, OPEN, Pavee Point, Society of St Vincent de Paul and Start Strong.

[6] Department of Social Protection (2010) Statistical Information on Social Welfare Services 2009 Dublin: Department of Social Protection.

[7] Lunn, P., Fahey, T., & Hannan, C (2009) Family Figures: Family Dynamics and Family Types in Ireland, 1986-2006 Dublin: ESRI

[8] Op cit, p.92.

[9] Russell, H., Maitre, B. and Noaln B. (2010) Monitoring Poverty Trends in Ireland 2004-2007: Key Issues for Children, People of Working Age and Older People Dublin: ESRI

[10] Department of the Environment, Heritage and Local Government (2009) Annual Housing Statistics Bulletin 2008 Dublin: Department of the Environment, Heritage and Local Government.

[11] Department of Social Protection (2010) Statistical Information on Social Welfare Services 2009 Dublin: Department of Social Protection.

[12] Central Statistics Office (2007) Census 2006 – Vol. 3: Household Competition Family Units and Fertility Dublin: The Stationery Office

[13] See Smyth, S. (2010) ‘Ministers told to identify €3bn cuts in four weeks’, Irish Independent 24^th May.

[14] If however the customer is in receipt of a Domiciliary Care Allowance for that child, the One-Parent Family payment will continue until the child reaches 16 years of age and claims Disability Allowance in their own right.

[15] Healy, J. (2004) Lone Parent Fuel Poverty in Ireland Dublin: OPEN

[16] The Energy Poverty Coalition is comprised of representatives from The Society of St Vincent de Paul, Age Action Ireland, SIPTU, Focus Ireland, Irish Rural Link, Institute of Public Health, Irish Council for Social Housing, Energy Action, MABS, Threshold, Alone and OPEN.

’1 Million Reasons to Oppose Cuts to Child Benefit’

Frances Byrne, Director of OPEN spoke at a joint Press Conference Thursday 26 November. Other speakers included 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). The conference was chaired by Charlie Weston, Personal Finance Editor, Irish Independent.

This unique joint appeal strongly opposes any cuts or changes to child benefit in Budget 2010. The five groups represent all elements of family life; children, women, parents in Ireland and will highlight the detrimental effect on all families if the Government imposes cuts or changes to this payment in the up-coming budget. Click HERE for Press Statement