One-parent and large families the biggest losers

ONE-PARENT and large families will take the biggest hits following the changes to social welfare entitlements, with families with four children losing a minimum of €432 per year.

Under the new arrangements, the extra child benefit paid for third and subsequent children will be reduced to the standard rate of €140 per month currently paid for first and second children.

The reduction will take place in phases over the next two years, cutting €19 per month off the rate paid for a third child and €17 from fourth and subsequent children next year with further cuts of €8 and €20 respectively in 2013.

The higher rate of benefit for children of multiple births is not affected, but the special grant of €635 paid for the children of multiple births at birth and again at four years old and 12 years old is being abolished.

For families on welfare or low incomes, cuts in the back-to-school clothing and footwear allowance will mean a reduction from €200 to €150 for children aged 4 to 11 and from €305 to €250 for children aged 12 and over. The allowance is being abolished for children aged under 4.

Major changes to the one-parent family payment are being introduced so that, in 2012, a new claimant’s youngest child must not be older than 12 years old. That limit is to be further reduced to 10 years old in 2013 and just 7 years old in 2014.

The age limit was already reduced from 18 to 14 for new claimants earlier this year. Existing claimants are subject to the 14-years-old age limit only on a phased basis between 2012 and 2016.

Other big changes for one-parent families include the reduction in the amount they can earn from paid work weekly before losing the welfare payment. The amount is being cut from €146.50 to €130 weekly for both new and existing recipients from January, with the warning that the figure will be reduced further over the following four years.

The temporary half-rate one-parent family payment is being abolished in the case of new claimants where the claimant has earnings from paid work of more than €425 per week. It will continue for the full six months for current recipients.

New claimants for the one-parent family payment will also be automatically excluded from claiming the half-rate jobseekers benefit for which some of them qualify.

Low-income families who receive the family income supplement will no longer be able to exclude income from weekly carer’s payments when being means-tested.

Children’s charity Barnardos warned that the cuts would push more families into poverty and deprivation with cuts to child benefit alone costing a family of four children €432.

Barnardos director of advocacy Norah Gibbons described the measures as mean and short-sighted: “We understand that savings must be made but the combination of changes announced today will haunt families on low incomes for many years to come,” she said.

Minister for Social Protection Joan Burton defended the cuts, calling them “measured”.