Family income supplement – FIS – is designed to provide cash support for employees on low earnings with families and thereby preserve the incentive to remain in employment.
The 2003 Abridged, or pre-budget, Estimate for FIS is €42.8 million. This sum provides for an average of 12,000 recipients at current weekly income thresholds. These thresholds were increased by €34 from January this year as part of the current year's budget package.
The reduction of 18% in the 2003 FIS Estimate reflects the fact that the number of recipients in 2002 is lower than had been expected. The 2002 Estimate, to which the 2003 Estimate is compared in the Abridged Estimates volume, provided for an increase of 3,900 recipients in the year.
Despite the increase in income thresholds this year, the extra number of recipients failed to materialise. The number of families in receipt of FIS stood at 11,796 at the end of November 2002. This is very similar to the number at this time last year.
As I stated recently in the House, in response to another parliamentary question, it is very difficult to estimate take-up of FIS. The improvements made to the scheme over the years, together with measures taken to increase awareness of it, resulted in a steady increase in the level of take-up during the 1990s – peaking at 14,686 families at the end of 1999. Since then, although income limits have been increased annually, the numbers in receipt of FIS have declined, reflecting the fact that fewer people now require the supplement. This should be viewed as a positive trend which highlights the success of a range of Government measures which have improved net take-home pay for the low paid.