30,000 parents ‘better off not working’

MORE than 30,000 of the country’s estimated 190,000 lone parents would be better off if they didn’t work and just lived off the State instead, the Economic and Social Research Institute said yesterday.

The ESRI said changes to the One-Parent Family Payment over the years have resulted in small income losses of up to 2% for employed lone parents.

This is making employment ‘less attractive’ for about 3,700 lone parents who are currently working.

But when childcare costs are factored into their calculations, the number of lone parents better off unemployed rises to as much as 30,400, or 16% of all lone parents.

‘Without taking childcare costs into account, 2% of lone parents are financially better off not working,’ Claire Keane, ESRI senior research officer, said last night. ‘Once childcare costs are taken into account this figure rises to 16%.

‘Childcare costs remain a significant barrier to employment for lone parents.’

The ESRI examined the impact of changes made to the One-Parent Family Payment between 2011 and 2018. The changes removed entitlement for lone parents with a child over seven to the payment and reduced the amount a lone parent can earn before their payment is reduced.

This fell from €146.50 in 2011 to €130 in 2018. The changes also made lone parent payments for those with children above seven dependent on an individual’s engagement with job search and training services.