One-Parent Family Payment (OFP) Scheme Age Change - Scenarios


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Notes: These calculations do not take into account tax (PAYE), PRSI or Universal Social Charge deductions. Customers should note that the One-Parent Family Payment is treated as taxable income by the Revenue Commissioners, while Jobseekers Allowance (including the Jobseekers Allowance Transitional (JST) payment) and Family Income Supplement are not.

The Department does have a benefit of work ready reckoner which may be helpful to certain customers in calculating their entitlements. However, customers should be advised that this App was designed for customers who are fully unemployed to give an indication of the financial benefit of returning to work. The App is available at http://bow.welfare.ie/en

An OFP customer working between 19 and 38 hours per fortnight can claim FIS in addition to OFP or close their OFP claim and opt for a higher rate of FIS instead. When the OFP ends the customer will have two choices, if s/he is already in receipt of FIS s/he can remain on FIS, the rate payable will increase or s/he can apply for JST. S/he may also apply for the Back to Work Family Dividend (BTWFD) if remaining on FIS. This lasts for a maximum of 2 years, it will reduce to 50% after the first year. The Fuel Allowance is not paid on FIS.

The following charts list the rates of payment for a customer with one child and a customer with three children both working 10 hours per week. The youngest born child will be 7 years on the 15th of June 2017 in both cases at which time the OFP will stop.  The chart shows what the customer receives on OFP up to the 14th June 2017 and what s/he would receive from 15th June 2017 if s/he was to opt for JST or Family Income Supplement (FIS)  and Back to Work Family Dividend (BTWFD).

 

 

To 14/6/2017
OFP

From 15/6/2017
JST

From 15/6/2017
FIS

 

Customer with one child

Earnings

€200.00

€200.00

€200.00

The first € 110.00 of the earnings is not assessable as means, 50% of the balance is.

OFP/JST

€185.30

€177.80

 

Amount payable on OFP/JST after means from employment is deducted.

FIS

  €75.42

 

€186.60

 FIS is not payable with JST

BTWFD

 

 

  €29.80 (Year 1)

BTWFD is not payable with OFP/JST. It is paid for a maximum of 2 years at a weekly rate of €29.80 per qualified child for the first year. The BTWFD will reduce to 50%, €14.90 per child, in the second year.

Total

€460.72

€377.80

€416.40

 

 

 

To 14/6/2017
OFP

From 15/6/2017
JST

From 15/6/2017
FIS

 

Customer with three children

Earnings

€200.00

€200.00

€200.00

The first € 110.00 of the earnings is not assessable as means, 50% of the balance is.

OFP/JST

€244.90

€237.40

 

Amount payable on OFP/JST after means from employment is deducted.

FIS

€160.86

 

€307.80

 FIS is not payable with JST

BTWFD

 

 

  €89.40 (Year 1)

BTWFD is not payable with OFP/JST. It is paid for a maximum of 2 years at a weekly rate of €29.80 per qualified child for the first year. The BTWFD will reduce to 50%, €14.90 per child, in the second year.

Total

€605.76

€437.40

€597.20

 

 

1. Jean is in receipt of One-Parent Family Payment in respect of one child who will be 7 on the 5th of April 2017. She is currently unemployed.

Her current payment on OFP is €217.80 (€188.00 + €29.80). From the 16th of March it will be €222.80 (€193.00 + €29.80).

Jean's OFP payment will end when her child reaches the age of 7on the 5th of April 2017. Jean will be eligible for the Jobseekers Allowance Transitional (JST) payment.

As Jean has no means assessed against her, the JST rate of payment will be the same as that payable on OFP.

Jean will be required to meet with the Department's activation team to discuss education and training options to increase her prospects of finding employment while she is in receipt of JST.

 

2. Peadar is in receipt of One-Parent Family Payment for two children aged 6 and 15. He is currently working 3 days per week (2 hours each day), he earns €60.00 per week.

His income in January 2017 is €307.60, his income will increase to €312.60 from 16th March 2017 when the rate of OFP increases as follows:

 

To 15/3/17

From 16/3/17

 

Earnings

  €60.00

  €60.00

The First €110.00 is not assessed, the balance is assessed at 50%

OFP

€247.60

€252.60

There is no reduction in the rate of payment as his earnings are less than €110.00. No means are assessed

Total

€307.60

€312.60

 

 Peadar's OFP claim will end when his youngest born child reaches the age of 7. He will be eligible for the Jobseekers Allowance Transitional (JST) payment. As his earnings are below the threshold for the assessment of means his payment will remain the same on JST.  

Peadar will be required to meet with the Department's activation team to discuss education and training options to assist him secure full time employment.

 

3. Claire is in receipt of One-Parent Family Payment (OFP) in respect of 3 children, aged 6, 11 & 15. She works 15 hours per week, over 3 days, she  earns €135.00 per week.

Her income to 15th March 2017 is € 407.40, broken down as follows:

 

To 15/3/17

From 16/3/17

 

Earnings

€135.00

€135.00

The First €110.00 is not assessed, the balance is assessed at 50%

OFP

€272.40

€277.40

A reduced rate of OFP is paid because of her earnings

Total

€407.40

€412.40

 

Claire's OFP will end when her youngest child reaches the age of 7.

Claire will be eligible for the Jobseeker's Allowance Transitional (JST) payment on the 20th of April 2017 when her youngest born child reaches the age of 7. If her circumstances remain the same she will qualify for JST at a rate of €269.90, which will give her a total income of €404.90.

Claire will be required to meet with the Department's activation team to discuss education and training options to assist her secure full time employment.

 

4. Tadhg is in receipt of One-Parent Family Payment for 2 children aged 6 & 16. He works 17 hours per week over 2 days earning €170.00 each week.

 

To 15/3/17

From 16/3/17

 

Earnings

€170 00

€170 00

The First €110.00 is not assessed, the balance is assessed at 50%

OFP

€225.10

€230.10

A reduced rate of OFP is paid because of his earnings

Total

€395.10

€400.10

 

Tadhg's OFP will end when his youngest child reaches the age of 7 on the 15th of June 2017. He will be eligible for the Jobseeker's Allowance Transitional (JST) payment. If his circumstances remain the same he will qualify for JST at a rate of €222.60.

Tadhg will be required to meet with the Department's activation team to discuss education and training options to assist him secure full time employment.

If Tadhg could increase his hours to a minimum of 19 per week or 38 per fortnight, he could close his OFP claim and apply for both the Family Income Supplement (FIS) and the Back to Work Family Dividend (BTWFD).If he was to do this his financial position would be as follows:-

Earnings

€190.00

Presuming  he works 19 hours per week

FIS

€253.20

FIS is payable at a rate of 60% of the difference between his income, €190.00, and the FIS threshold for his family size €612.00

BTFWD

  €59.60 (Year 1)*

€29.80 per week per qualified child

Total

€502.80

  

Tadhg’s income would increase by €107.70 per week for an additional 2 hours of work per week up to 15/3/17 if he was to close his OFP claim and make a claim for FIS.  If Tadhg continued to work 17 hours per week, earning €170.00, he would qualify for a rate of €222.60 on JST, his total weekly income would be €392.60. If he increased his hours by 2 per week and claimed FIS and the BTWFD from 16/6/17 he would be better off by €110.20.

(Note: The Fuel Allowance is not paid on FIS)

* The BTWFD will reduce to 50% i.e. €29.80 for year 2. Entitlement to the BTWFD lasts for a maximum of 2 years at which point Tadhg would continue to receive FIS only, his total income would be €443.20, assuming his earnings and circumstances remain the same.

 

5. Sinead is in receipt of One-Parent Family Payment in respect of one child aged 6. She is also in receipt of the Family Income Supplement (FIS), she works 20 hours per week earning €200.00.

Sinead's current income is made up as follows:-

 

To 15/3/17

From 16/3/17

 

Earnings

€200.00

€200.00

The First €110.00 is not assessed, the balance is assessed at 50%

OFP

€180.30

€185.30

A reduced rate of OFP is paid because of her earnings

FIS

  €78.42

  €75.42

 

Total

€458.72

€460.72

 

Once Sinead's youngest child turns 7 on the 6th of April 2017 she will no longer be entitled to OFP. She has two choices, she can apply for JST or have her FIS payment re-rated to partially make up the loss of her OFP. She will also be eligible for the Back to Work Family Dividend (BTWFD) if in receipt of FIS.

If she were to claim JST she would receive €177.80 making her total weekly income €377.80.

If she opts for an increased rate of FIS she will receive a weekly rate of €186.60, she could claim the BTWFD at a rate of €29.80 leaving her with a total weekly income of €416.40. She will be better off by €38.60 if she takes this option when her OFP ends. The BTWFD will reduce to 50% i.e. €14.90 for year 2 and only lasts for a maximum of 2 years at which point Sinead would continue to receive FIS only (total weekly income €386.60, assuming her earnings and circumstances remain the same). The Fuel Allowance is not paid on FIS but maybe on JST

Sinead would be better off financially claiming FIS when her OFP ends.

 

6. Louise who has 2 children, aged 6 and 10, is in receipt of One-Parent Family Payment. She receives half-rate Carer's Allowance as she is caring for her 10 year old child and is also in receipt of Domiciliary Care Allowance (DCA) for this child. She has no other income.

Louise's income is calculated as follows:-

 

To 15/3/17

From
16/3/17

 

OFP

 €247.60

    €252.60

  

Half-rate carers

 €102.00

    €104.50

  

DCA

   €71.42

      €71.42

Payable at rate of €309.50 per month

Total

 €421.02

    €428.52

  

As Louise is caring for a child for whom she is in receipt of Domiciliary Care Allowance and half rate Carers Allowance, she will retain her OFP payment until the Domiciliary Care Allowance ceases to be paid or the 16th birthday of her youngest born child, while in receipt of Carers Allowance, whichever is the most beneficial to her. Domiciliary Care Allowance maybe paid until the child who is cared for reaches his/her 16th birthday. The OFP payment includes an increase for a qualified child for both of her children (€29.80 each).


7. Pamela is in receipt of One-Parent Family Payment (OFP) in respect of 3 children, aged 6, 14 & 17. She is unemployed and in receipt of maintenance from the children's father of €200.00 per week. Her housing costs are €120.00 per week.

Her income in January 2017 is calculated as follows:-

Maintenance

€200.00

The first €95.23*is not assessed as means to allow for housing costs, the balance is assessed at 50%

OFP

€232.40

A reduced rate of OFP is paid because of the maintenance

Total

€432.40

 

* A maximum of €95.23 per week is allowed for housing costs.

Pamela's OFP will end when her youngest child reaches the age of 7 on the 23rd of February 2017.

Pamela will be eligible for the Jobseeker's Allowance Transitional (JST) payment. She will receive the following:-

 

To 15/3/17

From 16/3/17

 

Maintenance

€200.00

€200.00

The first €95.23*is not assessed as means to allow for housing costs, the balance is assessed at 50%

JST

€225.00

€230.00

A reduced rate of JST is paid because of the    maintenance

Total

€425.00

€430.00

 

There will be an income reduction of €7.40 per week when she moves from OFP to JST.

Pamela will be required to meet with the Department's activation team to discuss education and training options to increase her prospects of finding employment.

Last modified:07/02/2017
 

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