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Dáil Éireann debate -
Wednesday, 2 Jun 1999

Vol. 505 No. 7

Written Answers. - Social Welfare Benefits.

Brendan Howlin

Question:

33 Mr. Howlin asked the Minister for Social, Community and Family Affairs if he will make a statement on the report, The Disincentive Effects of Secondary Benefits, prepared by consultants (details supplied); the discussions, if any, he has had with the social partners regarding the report; when these will be concluded; and if he will make a statement on the matter. [14591/99]

The report prepared by Goodbody economic consultants which I pub lished in March of this year examines the range of issues associated with the interaction of secondary benefits and the incentive to take up employment and training opportunities.

The report sets out the background to the evolution of arrangements for the retention of secondary benefits by long-term unemployed people who take up work or who engage in certain labour market programmes. It contains a number of recommendations on how these arrangements might be refined to deal with inconsistencies and anomalies which have arisen.

Recommendations relating to issues which are outside the remit of my Department, including those related to medical card and the local authority differential rents scheme, are being pursued by the Departments concerned.

Other wider issues, such as those relating to the question of information provision, will be the considered by the interdepartmental steering group which was established to oversee the study undertaken by Goodbody economic consultants.

The key issue of direct concern to my Department relates to the rent and mortgage interest supplements paid under the supplementary welfare allowance scheme. The Partnership 2000 agreement contains a commitment to consider ways of dealing with the employment trap arising from the withdrawal of these payments once a person takes up full-time work of 30 hours or more per week. Following on the publication of the Goodbody report, my Department has initiated discussions with the social partners on this issue. Two consultative meetings with the social partners have been held and a further meeting will be held tomorrow.

These discussions are aimed at developing cost-effective solutions to the employment trap identified in the Partnership 2000 agreement which can be considered in the context of the next budget.

Michael Ferris

Question:

36 Mr. Ferris asked the Minister for Social, Community and Family Affairs the number of families in receipt of family income supplement; if he has satisfied himself that all families within the requisite earning limits are aware of and claiming the supplement; and if he will make a statement on the matter. [14586/99]

The number of persons claiming family income supplement as at the end of May 1999 was 14,572.

In order to enhance the value of this scheme and in accordance with a commitment given in the Partnership 2000 agreement, I gave priority attention to reforming the scheme on coming into office. This included raising the relevant income thresholds and making provision for the assessment of income for FIS purposes on a net income basis.

This change, which was introduced in October 1998, has already had a very positive effect on the number of families qualifying for this supplement. As indicated, there are now 14,572 FIS recipients, the highest number recorded since the scheme was introduced in 1984. It is envisaged that the numbers in payment will continue to increase in the short to medium term.
My Department continues to take every opportunity to increase awareness of the scheme with a view to increasing the level of take-up. For instance, information on FIS was a key component in the Government's employment action plan, It Pays to Work. Information on FIS is provided on child benefit payable order books and information has been provided by the Revenue Commissioners when they issue tax free allowances certificates. These and other measures ensure that information in relation to the scheme is available in every eligible household in the country. In addition, the scheme is extensively advertised through local and national media outlets, including newspapers, radio, and the Aertel service, as well as through poster campaigns and targeted mailshots.
From tomorrow, 3 June, as announced in the 1999 budget, FIS income limits will increase by £8 resulting in an average increase of £5 per week for each recipient. This should also further enhance take up of the scheme.
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