I propose to take Questions Nos. 105 and 114 together.
Family income supplement provides cash support for employees on low earnings with families, thereby protecting the incentive to remain in employment.
Certain lone parents who took up employment received a half rate one-parent family payment while they made the transition to work. This was discontinued from 19 January as it was felt that FIS was more appropriate way of providing this support. From 19 January to end January 2003, FIS was awarded to six lone parents for the first time. Three of these cases are receiving one-parent family payment. In the same period FIS was renewed for another 12 months in another nine cases.
There were 12,200 people in receipt of FIS at the end of January 2004 with an average weekly payment of €88.47. Of these 7,172 are single parents with children, of whom 1,813 are also in receipt of one-parent family payment. Expenditure on the FIS scheme for 2003 was €45.3 million.
My Department received 18,213 applications for FIS in 2003. Some 3,232 were not awarded as they did not meet eligibility criteria. This year I provided for further increases in the FIS income limits with effect from January 2004. These increases raised the weekly limit by €28.00 at each point, adding an extra €16.80 to the payments of most existing FIS recipients. I also raised the minimum weekly payment by €7 to €20.
My Department undertakes a number of proactive measures to ensure that one parent family recipients are aware of their entitlement to FIS. Where a person is awarded a one-parent family payment they are directly advised that they may have an entitlement to family income supplement, FIS, and are provided with information on how to apply. Where a claimant's entitlement to one parent family payment ceases due to their earnings exceeding the statutory limit, they are again directly advised that they may have an entitlement to FIS and are provided with information on how to apply.
Under Sustaining Progress the importance of child income support is recognised, with a commitment to examine the effectiveness of the current arrangements including the role of FIS and child dependant allowances. Further improvements to the scheme will be considered in the context of this review and overall budgetary priorities, having regard to available resources.