Irish Independent, 03/10/2002

Lone parents set to suffer most over work scheme cuts
LONE parents could be the worst affected by moves to cut 10,000 places next year from the Community Employment (CE) scheme, according to a confidential report to be presented to a FÁS board meeting today.

At present, lone parents make up one in five users of the CE scheme and any attempt to cut the overall number of places on the scheme will only add to the Government's difficulties, political sources said last night.

The report, which has been seen by the Irish Independent, spells out starkly the likely impact of such a cut, particularly for lone parents.

"The reduction in places for this group will result in a decrease in their family income with the loss of their CE allowance, and given the difficulties in accessing childcare at an affordable cost to them, their potential to progress into paid work will be severely curtailed," the report warns.

Lone parents get €143.20 per week at the top rate, plus €16.80 for each dependent child.

At present, there are around 5,700 lone parents on CE schemes where they can usually avail of child care arrangements.

Other groups that could be seriously hit by a cut in places include long-term jobless, older disadvantaged especially in rural isolated areas, widows/widowers and people with drug problems.

The proposed reduction of 10,000 is on top of the 5,000 places already being shed this year.

In January this year, there were more than 30,000 people on CE schemes and some further reduction has been under discussion for some time.

The report says that "in the ongoing budgetary discussions, the possibility has been raised that it might be necessary to implement even greater reductions in CE than has already been considered".

Such a move would cause a "major crisis" at individual and community level, says the report.

It predicts that most of the 10,000 would return to the Live Register, which would minimise any financial savings to the Exchequer. Community Employment provides eligible unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a temporary basis.

The report, prepared by an internal FÁS review group, says that a cut of 10,000 in one year could seriously damage the credibility of FÁS and the broader public administration in the eyes of the various client groups who have a legitimate need for the services. It says that the cuts already under way this year are very difficult to manage at community level by FÁS staff.

The reductions this year are being carried out in any environment where a significant proportion of the places are 'ring-fenced' - drugs taskforce and child care places, and where RAPID areas have been given priority.

It says that the Department of Justice, Equality and Law Reform would be unable to deliver its childcare policy in disadvantaged areas without the CE scheme.

The report says a preferred option to a 10,000 cut would be a reduction of 6,000 over two years. This would allow for the scheme to become more labour market-focused and to implement additional training and support initiatives that would assist the individual moving off the Live Register.