Dáil Éireann debate -
Tuesday, 30 May 2000

Vol. 520 No. 1

Written Answers. - Social Welfare Benefits.

Paul McGrath

Question:

65 Mr. McGrath asked the Minister for Social, Community and Family Affairs if he has examined the welfare system in the UK whereby self employed people can qualify for the equivalent of family income supplement payments; and the plans if any, he has to introduce a similar system here. [15085/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The family income supplement scheme was introduced in 1984 with the specific purpose of providing an incentive to low-paid employees with families to take up or remain in full-time employment.

The question of extending the scheme to cover the self-employed has been considered on a number of occasions. Such consideration would have regard to a range of factors including the practical difficulties associated with extending the scheme to the self-employed; the arrangements already in place to provide income support to self-employed people on low incomes; and the cost of introducing such a measure in the context of the need to prioritise the use of the limited resources available for the development of the wider social welfare system.

Self-employed people whose income falls below the rate of unemployment assistance appropriate to their family circumstances are entitled to claim UA. The rate of UA payable depends on the person's means. In assessing means, account is taken of the net income which the applicant may reasonably expect to receive in the next year.

I am aware that the family credit scheme, which operates in Northern Ireland and throughout the United Kingdom, includes provision for the self-employed. I should say that the scheme differs significantly from the family income supplement scheme in the manner in which the income supplement is calculated.

It is interesting to note that the UK has recently converted family credit from a social welfare payment to a tax credit. In this regard, the Deputy may be aware that the Programme for Prosperity and Fairness includes a commitment to examine the question of paying FIS through the tax system.