Vol. 476 No. 5
222 Mrs. T. Ahearn asked the Minister for Social Welfare the reason participants in the part-time jobs opportunity scheme, CORI, do not qualify for a family income supplement; if he intends to change the eligibility criteria; and if he will make a statement on the matter. [7582/97]
The family income supplement — FIS — scheme is designed to provide an incentive for low paid workers with families to take up or remain in full-time employment.
The part-time job opportunities programme — PTJOP — which is being piloted for a three-year period, is aimed at creating part-time employment opportunities for unemployed people in the voluntary, community and statutory sectors. Participants in this programme are paid at the same level as community employment — CE — participants.
As I have already indicated to the House on many occasions, I do not consider that FIS is an appropriate mechanism for improving the income position of workers participating in either the PTJOP or CE scheme. As a general principle, we should avoid having one Government Department subsidising payments being made by another. The question of the level of allowances paid under the PTJOP is a matter for the Department of Enterprise and Employment.
In the circumstances, I have no plans to review the criteria of entitlement to FIS to include PTJOP participants.
In the context of reducing disincentives to work, my priority is to utilise FIS as a means of increasing the net return from work to families with children. Accordingly, FIS is being reformed so as to be calculated on a net income basis, rather than on gross wages, as at present. This will significantly increase the supplements payable under the scheme, thereby increasing the rewards from work. As a first step, this year's Social Welfare Bill provides that FIS will be calculated on the basis of gross earnings less any PRSI contributions and levies payable, with effect from June. Pension contributions will also be deductible. In addition, I have provided for an increase in the income thresholds governing entitlement to FIS by £10 at each point. This will mean that virtually all current FIS recipients will be better off by at least £6 a week.
