Working for Work : Chapter 4 : Welfare to Work

One parent families and Work

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The One-Parent Family Payment (OPFP)

This a payment for both men and women who, for a variety of reasons, are bringing up a child, or children, without the support of a spouse or partner. To be eligible for this payment a person must be either:

  • widowed (includes a person divorced from spouse prior to spouse's death and not remarried or person whose civil partnership has been dissolved prior to civil partner's death and who has not registered in a new civil partnership) -
  • separated (or divorced) -
  • unmarried (including one whose marriage has been annulled or civil partnership has been dissolved) or -
  • a prisoner's spouse/civil partner

The One-Parent Family Payment is a means tested payment (see Chapter 1 for details of the means test) made up of a personal rate and payment for qualified children. Unlike Jobseeker's Allowance and Jobseeker's Benefit, persons on the One Parent Family Payment do not have to satisfy the Genuinely Seeking Work condition to qualify for the payment.

Key Points: -

  • You cannot claim the One Parent Family Payment (OPFP) if you are cohabiting. Cohabiting means in a relationship and living with another person of the same or opposite sex.
  • Do not satisfy the Habitual Residence Condition, or
  • Are residing outside of Ireland. -
  • If you earn up to €146.50 from employment it will not affect your One Parent Family payment, but you must inform the Department that you are working.
  • If you earn between €146.50 and €425.00, you may qualify for a reduced payment. If you earn over ?425.00 per week you will continue to receive transitional half-rate payment for 6 months.
  • The first €75 from employment is not counted against your Rent Supplement or Mortgage Interest Supplement. 25% of the balance is not counted. The remainder is counted euro for euro. If you take up full-time work (over 30 hours per week) you may lose your Rent Supplement.
  • A disregard will apply for PRSI, Superannuation, Personal Retirement Savings Accounts (PRSA) together with additional voluntary contributions (AVCs) to PRSA, and trade union subscriptions made by the customer.
  • There is no disregard in respect of the Universal Social Charge.
  • Income from employment may affect your Local Authority Rent.
  • Claimants can receive the One Parent Family Tax Credit, which is double the single person's tax credit.
  • If you take up full-time work (over 30 hours per week) you may be able to retain your Medical Card for up to 3 years.
  • Participating on a Community Employment (CE) Scheme or a FÁS training course will reduce your One Parent Family Payment, but will increase your income. Your Rent Supplement/Mortgage Interest Supplement could also be affected.
  • If you are employed for 19 or more hours per week (or 38 or more hours per fortnight), and your income is below a certain limit for your family size you can apply for the Family Income Supplement (FIS)

Changes to the payment from April 2011

New Applicants

From April 2011 all new applicants for the One Parent Family Payment will only be paid the One Parent Family Payment until the youngest child reaches the age of 14. When the youngest child reaches 14 the One Parent Family Payment will stop completely.

Where the person no longer qualifies for a One Parent Family Payment they may be able to seek an alternative Social Welfare payment, subject to satisfying the qualifying conditions of the particular payment/scheme. If unemployed they can apply for either Jobseeker's Allowance or Jobseeker's Benefit. If unfit for work they can apply for Disability Allowance, Illness Benefit or Invalidity Pension. If providing care they can apply for Carer's Allowance or Carer's Benefit.

Existing Recipients

Those in receipt of the One Parent Family Payment before April 2011, will continue to be paid until the youngest child is 18, or 22 if in full time education.

For those already in receipt of payment before the changes come into effect payment of OPFP will cease when the youngest child reaches the following age:

2012 - payment stops when youngest child reaches 18 2013 - payment stops when youngest child reaches 17 2014 - payment stops when youngest child reaches 16 2015 - payment stops when youngest child reaches 15 2016 - payment stops when youngest child reaches 14 Transition period for existing customers Year 2011 2012 2013 2014 2015 2016 Age of youngest child U-18 U-18 U-17 U-16 U-15 U-14

Those in receipt of payment who have their payment stopped because of finding employment or returning to education under BTEA can return to the payment on the basis of the above age limits.

Special arrangements apply to those in receipt of Domiciliary Care Allowance and to parents who have been recently bereaved.

Earnings Disregard from employment

If a person's gross weekly earnings are less than €425 they can make a claim, for the One Parent Family Payment. Deductions are allowed for PRSI, pension payments, and trade union subscriptions. The first €146.50 of weekly income is disregarded and the balance is divided by two. The deciding officer will then compare this figure to a means band chart to get the actual means that will be assessed. The new rate of payment is calculated by using the sliding payment scale as listed in the Department of Social Protection rate book (SW19). Means from all sources including insurable employment are assessed.

If a person has been claiming OPFP for 52 consecutive weeks or more and their earnings increase above €425 a week they may be entitled to half rate OPFP for 26 weeks and then the payment will stop completely.

Revenue Job Assist:

This is an additional tax allowance available for One Parent Families where the claimant is returning to employment. An extra tax allowance can be claimed for each qualifying child. The tax allowance can be claimed for 3 tax years and may begin with either the tax year in which the employment commences or the following tax year. Contact the INOU for further information.

Maintenance:

A person who claims One-Parent Family Payment is required to seek maintenance from her/his spouse or the other parent of the child. Maintenance payments are assessed as means. Vouched housing costs of up to €95.23 per week for rent or mortgage may be offset against maintenance payments. Half of the remaining balance of any maintenance payment will be assessed as means in establishing the rate of One-Parent Family Payment due.

Reduced Hours or Pay:

If you have been working full-time and your employer reduces the number of days you work because of a downturn in business, you may be entitled to an increase in the rate of payment on your One Parent Family Payment. To get an increase in your One-Parent Family Payment send a current payslip (showing your reduced pay) with a letter from your employer, confirming your new work situation, to the Social Welfare Local Office dealing with your claim.

Family Income Supplement (FIS):

If you are employed for 19 or more hours per week (or 38 or more hours per fortnight), and your income is below a certain limit for your family size you can apply for the Family Income Supplement (FIS). Your wages and One Parent Family Payment will be treated as means in deciding if you have any entitlement to FIS.

Medical Card:

You may be able to retain your medical card for up to 3 years if you return to full-time or part-time work while in receipt of the One Parent Family Payment - contact the INOU for more information.

Income from Self-Employment:

If your gross earnings are below €425 per week, minus allowable expenses (PRSI, pension payments, and trade union subscriptions), you will retain some/part of your One Parent Family Payment.

Habitual Residence Condition:

Persons applying for the One Parent Family Payment must satisfy the Habitual Residence Condition. From May 2005, EU citizens, EEA citizens and Swiss nationals who are employed or self-employed in Ireland and paying into the Irish Social Insurance System - or who are claiming Jobseeker's Benefit at the time of making their OPFP claim - will automatically satisfy the habitual residence condition. Contact the INOU on (01) 856 0088 for more information.

 

One Parent Family Payment and Working Jane is a lone parent with one child receiving a One Parent Family Payment of €217.80, who finds work paying €220 per week. Her new rate of One Parent Family Payment is calculated as follows: Jane's gross earnings €220.00 Less disregarded - €146.50 Total €73.50 Divided by 2 €36.75 Jane's weekly OPFP rate ?217.80 Less Means deducted for ?36.75 (valued at ?30) = ?30.00 New weekly rate ?187.80 Jane's gross earnings ?220.00 Plus revised One Parent Family Payment rate + ?187.80 Total household income €407.80

 

Losing your One Parent Family Payment

Employment:

In some instances recipients of the OPFP will no longer qualify for the payment because of the amount of their earnings from employment. If you earn over €425.00 per week you will receive a half-rate payment for 6 months and your payment will stop.

No Qualified Children:

If you do not have at least one qualified child under the age of 18 (unless in full-time education in 2011), or up to age 14 for new claimants from April 2011, you will no longer receive a One Parent Family Payment. There is no 'replacement' payment for the One Parent Family Payment. If you are unemployed you may apply for a Jobseeker's Allowance payment, if you are ill or incapable of work you may apply for Disability Allowance, Illness Benefit or Invalidity Pension subject to meeting other qualifying conditions.

Married or Co-habiting:

You will not qualify for payment of the One Parent Family Payment if you are co-habiting or living as part of a couple of same or opposite sex. Your entitlement to the payment will stop as and from the date of marriage/remarriage or date registered in a civil partnership or date registered of a new civil partnership following dissolution of a civil partnership.

 

 

Last Updated: 31/08/2011 ^ back to top