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Family Income Supplement Applications

Dáil Éireann Debate, Wednesday - 16 April 2014

Wednesday, 16 April 2014

Questions (35)

John Halligan

Question:

35. Deputy John Halligan asked the Minister for Social Protection her plans to review the family income supplement renewal process (details supplied); and if she will make a statement on the matter. [17576/14]

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Written answers

The family income supplement (FIS) is an in-work support which provides an income top-up for employees on low earnings with children. FIS is designed to prevent child and family poverty and to offer a financial incentive to take-up employment as compared to social welfare payments. Expenditure on FIS for 2014 is estimated to be of the order of €280 million and it is currently paid to some 44,000 families in respect of some 97,000 children. An integral part of the FIS scheme is that once the level of payment is determined, it continues to be payable at that rate for a period of 52 weeks, provided that the person remains in full-time employment.

However, in the following two circumstances, the weekly rate of FIS can be revised during the year: If a claimant starts to care for an additional child in the course of the 52 weeks; If a claimant was getting a one-parent family payment and this payment was stopped because their youngest child reached the relevant age limit, then the FIS rate can be reassessed to take account of the loss of their one-parent family payment.

The rate of payment will not change if there is an increase or decrease in the recipient’s earnings. A key advantage of this approach, which is unique to the FIS scheme, is that claimants can be certain that they will receive a guaranteed level of income support throughout the period. This certainty is important to the success of the scheme as it provides a real incentive to workers with families to avail of employment opportunities. For those who experience a reduction in their income over the course of the year, the rate of payment will be reassessed at the end of the 52 weeks upon renewal of a FIS claim.

Creating jobs and reducing unemployment are key challenges facing the Government. The tax and social protection systems have a part to play by ensuring work is remunerative. I established an Advisory Group on Tax and Social Welfare with the aim of harnessing expert opinion and experience to develop cost-effective proposals for improving employment incentives and achieving better poverty outcomes. The Group is currently examining the issue of working age supports, including in-work supports such as FIS. I expect to receive the report of the Advisory Group in the coming months and look forward to considering its recommendations in relation to FIS and other in-work supports.

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