The Tanaiste Joan Burton is reportedly drawing up plans to introduce a ‘return-to-work dividend’ for low income families in the new budget.

She told the Irish Times that parents who take up a low-income job will be better off than if they are existing on welfare because of new allowances being made for families on rent allowance and social welfare payments.

There are plans to see up to 30 euro per child per week given to those going back to work. Families, along with single parents, can keep some of their social welfare payments which will be known as ‘qualified child increases.’ Those that qualify can claim this payment for up to three years while working.

“In order to make work pay, we know that the biggest difficulties are experienced by those with children,” Ms Burton told The Irish Times. “This will provide a significant additional financial incentive for these families, particularly if a parent is heading into an entry-level job.”

The new proposals, though not yet confirmed, have been drawn up as the new budget begins to intensify this week in the media.

Previously, families were thought to be ‘better off’ in receipt of social welfare because of those on both social welfare and rent supplements. However, with these new changes it is reported that families will be now better off returning to work.

New rent supplements schemes are also being planned that will support families of those returning-to-work by giving them extra allowances for housing.

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For more on social welfare entitlements for children please see our section on back to school.

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