Dáil Éireann debate -
Thursday, 25 Mar 1993

Vol. 428 No. 3

Written Answers. - Social Welfare Benefits.

John Browne

Question:

41 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social Welfare if he will consider changing the family income supplement arrangement whereby, regardless of increases or decreases in income, the payment rate cannot be altered until the book is used.

John Browne

Question:

56 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social Welfare his views on the fact that once a family income supplement award has been made a reduction in a recipients income will not lead to an increase in allowance during the 52 weeks of payment.

Minister for Social Welfare (Dr. Woods)

I propose to take Questions Nos. 41 and 56 together.

The family income supplement scheme provides a weekly supplement to families with children, where one or more parent is in employment for at least twenty hours per week and where the income of the family is less than the prescribed weekly amount. Once entitlement is established, payment in the form of a book of weekly payable orders, continues for 52 weeks while the claimant continues in employment.

All family income supplement claims are re-assessed on expiry of the 52 week period and any changes in the rate of payment normally arise as a result of changes in gross earnings or in the number of eligible children. By guaranteeing the level of payment for a definite period in this way, the scheme aims to provide a degree of stability in the claimant's anticipated income for the 52 week period.

Altering the level of payment during the 52 week period as a result of changes in income, would mean that many claimants would face a reduction in or cessation of, their payment because of increases in income due to, say, overtime or wage increases or a reduction in the number of children.

The fact that the family income supplement is guaranteed at a fixed rate for a period of 52 weeks represents a considerable incentive to work in that recipients can take up work with an assured level of support over an extended period. In practice, of course, the level of their payment will increase during the 52 week payment period, due to the increases in the prescribed weekly amounts which are normally announced in the budget. This year, I have announced changes in the prescribed weekly amounts which will increase the entitlement of recipients by £12 per week on average from July 1993.