# Case study 1: Working Family Payment (WFP)

### Case study

Mary has three children. Her youngest two childen are 5 and 7 years old. She is getting a One-Parent Family Payment (OFP) and was recently offered work part-time. If she takes the job, she will work three days each week and earn €300. Mary wants to take the job as all of her children are now in school but she knows her One-Parent Family Payment will be affected.

Would Mary be better off financially if she takes the job offer? She has lived in her home for 20 years and has a small mortgage. She gets a weekly maintenance payment of €80 for her mortgage costs which does not affect her One-Parent Family Payment. Her 18-year-old daughter is a student and has a part-time job in a local shop.

Weekly net income from employment (See note 1) €300

Add Weekly net income from self-employment €0

Add reduced OFP (See note 2) €255

Add Income from occupational pensions €0

Total income €635

The Working Family Payment (WFP) maximum income limit for a family with three children is €733. The difference between €733 and €635 is €98. 60% of the difference (€98) is €58.80

Mary will get a WFP rate of €58.80 each week.

Her current income is €395 (€315 OFP payment for herself and 3 children plus €80 maintenance).

If she takes the job, her total gross income including WFP will be €693.80 (€255 OFP plus €58.80 WFP plus €300 income from work plus €80 from maintenance).

### Note 1

Mary’s net income from employment is assessed for WFP, however her daughter’s income is not assessed because she is under 22 years of age and in full-time education.

### Note 2

If Mary gets €300 from employment, her One-Parent Family Payment will be reduced. (€165 of income from employment is disregarded and 50% of the remaining €135 - which is €67.50 - is assessed as means). A person with means of €67.50 gets an OFP payment of €143. She gets €36 for each child under 12 and €40 for her child 12 and over. So her total payment will be €255 (€143 + €72 + €40 = €255).

Page edited: 20 January 2020