Back to Work Family Dividend
The Back to Work Family Dividend (BTWFD) scheme aims to help families to move from social welfare into employment. It gives financial support to people with qualified children who are in or take up employment or self-employment and as a result stop claiming a jobseeker's payment or a one-parent family payment on or after 5 January 2015.
If you qualify for the scheme you will get a weekly payment for up to 2 years. You will be paid the equivalent of any Increase for Qualified Children that were being paid on your jobseeker or one-parent family payment (up to a maximum of 4 children) for the first year in employment. Half that amount will be paid weekly for the second year.
To qualify, you and all members of your family (including your adult dependant) must sign off all primary social welfare payments. The Back to Work Family Dividend can be paid with Working Family Payment (formerly Family Income Supplement) and some other non-primary social welfare payments. You can also claim certain short-term illness and injury benefits with BTWFD for up to 36 days (see 'Other payments and BTWFD' below). The habitual residence condition applies to BTWFD.
Budget 2023: changes to the Increase for a Qualified Child
In January 2023, the weekly rate for a qualified child will increase by €2 from €40 to €42 for children under 12 years of age. It will increase by €2 from €48 to €50 for children aged 12 years and over.
You may be eligible for the Back to Work Family Dividend (BTWFD) if you have at least one qualified child and are getting one of the following payments:
- Jobseeker’s Allowance or Jobseeker’s Benefit for at least 12 months (312 days of unemployment) of which at least 6 months (156 days of unemployment) must have been in the last year
- One-Parent Family Payment (OFP)
- Jobseeker’s Transitional payment (paid to people who are not cohabiting with children aged between 7 and 13 years)
You can combine time on a jobseeker’s payment with time spent on a qualifying scheme to meet the eligibility requirements - see 'Qualifying schemes' below. If you went from a qualifying payment to a qualifying scheme and then find work you can go directly onto the BTWFD scheme without having to sign back onto your original payment.
You must exit one of the qualifying payments or schemes to qualify for BTWFD. If you are not already in insurable employment or self-employment you must take up employment within 4 weeks of leaving your original payment or scheme. The employment must be in the State.
Qualifying schemes are:
- Community Employment
- Rural Social Scheme
- Back to Education Allowance
- Job Initiative Scheme
Note that if you were employed or self-employed and were getting OFP and your OFP has stopped because your youngest child has reached the age limit you may be eligible for BTWFD – if you do not sign onto another primary social welfare payment.
The Back to Work Family Dividend can be paid with Working Family Payment (WFP) and is not taken into account in the means test for WFP. It can also be paid if you are getting an Increase for a Qualified Adult on your payment for your spouse, civil partner or cohabitant and they find work (and as a result you sign off your payment). However, you must meet all the conditions above and the Back to Work Family Dividend will be paid to you (as the recipient of the primary social welfare payment).
Other payments and BTWFD
You are not eligible for BTWFD if you or your spouse, civil partner or cohabitant is getting a primary social welfare payment or is on an employment or training scheme. You cannot get BTWFD for a child on whose behalf an IQC or IQA is being paid or who is getting a payment in their own right. BTWFD is not paid together with the Back to Work Enterprise Allowance.
BTWFD can be paid with the following payments (to you or your spouse, civil partner or cohabitant):
- Back to School Clothing and Footwear Allowance
- Child Benefit
- Disablement Benefit and Death Benefit (under the OIB scheme)
- Domiciliary Care Allowance
- Working Family Payment
- Exceptional and Urgent Needs payments under the SWA scheme
- Guardian’s Payment (non-contributory)
- Illness Benefit and Injury Benefit (under the OIB scheme) for 36 days
- Mortgage Interest Supplement
- Rent Supplement
- Widowed or Surviving Civil Partner Grant
BTWFD is not assessed as means for Rent Supplement.
You can claim BTWFD and Illness Benefit or Injury Benefit (under the OIB scheme) for 36 days (6 weeks). Your BTWFD will be suspended after the 36th day of your Illness or Injury Benefit claim.
Duration of the scheme
BTWFD will last for up to 2 years, if you remain in employment. If you claim a primary social welfare payment at any time within the 2-year period, the BTWFD payment will stop. If your spouse, civil partner or cohabitant claims a payment the BTWFD payment will also stop.
If you lose your job and claim a social welfare payment the BTWFD stops but it may restart if you get a new job – to a maximum of 2 restarts per claim.
BTWFD is based on the standard Increase for a Qualified Child (IQC). If you were getting a half-rate IQC with your payment you will get an increase to the standard rate BTWFD.
From January 2022, the BTWFD is €40 for a child aged under 12 and €48 for a child aged 12 and over. It is paid for each child (up to a limit of 4 children) for one year. In the second year, it is reduced to €20 for a child aged under 12 and €24 for a child aged 12 and over.
You will be paid weekly by Electronic Funds Transfer (EFT) in arrears
BTWFD is not taxable.
How to apply
Contact your Intreo Centre or local Social Welfare Branch Office to get more information on the scheme. They will explain how the application process works and give you the application form. You can also get the form online (pdf).
You can appeal a decision on your claim to the Social Welfare Appeals Office.
You are generally paid BTWFD from the date of your claim. Deciding officers can backdate BTWFD for up to 6 months from your claim if there was good cause for the delay.
Where to apply
Send your application for the Back to Work Family Dividend to your Intreo Centre or local Social Welfare Branch Office.