The back to school clothing and footwear allowance (BSCFA) scheme provides a one off payment to eligible families to assist with the extra costs of clothing and footwear when their children start school each autumn. In order to qualify for payment of the allowance, a person must be in receipt of a qualifying social welfare or Health Service Executive payment, be participating in an approved employment scheme or attending a recognised education and training course and have household income at or below certain set levels. The purpose of the means test is to target the allowance at people on lower incomes.
Budget 2006 provided for a number of improvements to the scheme. These include:
An increase of EUR 40 in the rate payable so that, from June 2006, an allowance of EUR 120 is payable in respect of qualified children aged from 2 to 11 years and EUR 190 in respect of qualified children aged from 12 to 22 years.
Extension of entitlement to the back to school clothing and footwear allowance to recipients of guardian's (formerly orphan's) payments for the first time.
An increase in the additional income disregard for entitlement to the scheme from EUR 50 to EUR 100.
The new income limits for the BSCFA scheme for 2006 are based on the maximum rate of state pension (contributory) (under 80) – including the Qualified Adult Allowance — plus EUR 100 in the case of married and cohabiting couples; and the maximum rate of widow's/widower's contributory pension (under 80) plus EUR 100 for lone parents, plus child dependant allowance in each case.
These extended income limits have enabled more people to become eligible for BSCFA. For example, a lone parent with one child can earn up to EUR 129.80 per week, qualify for a one-parent family payment of EUR 185.10 and be eligible for a once off BSCFA payment of either EUR 120 or EUR 190. If the earnings from employment in such a case are greater than EUR 129.80 per week, then BSCFA is not payable but I do not regard this as a disincentive to take up work at that level of earnings.
I consider the back to school clothing and footwear allowance scheme to be an important support for parents at a time of financial pressure.I consider that the improvements to the scheme for this year provide a major boost to meeting the financial costs associated with return to school for those who most need assistance. I will continue to examine opportunities for further improvements to the scheme, including the extension of income limits, in the context of the Budget and in the light of resources available to me for improvements in social welfare payments and supports generally.