Dáil Éireann Debate, Tuesday - 19 May 2015
75. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection the estimated full year cost of replacing the 38-hour threshold for family income supplement qualification, with a sliding scale system (details supplied) that would reflect the fact that many persons may be working, or wish to work, less than 19 hours per week, and may be in just as much need as current recipients of this supplement. [19564/15]
View answerThe 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 in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment. There are over 50,000 families in receipt of FIS, an increase of 70 per cent since 2011. The estimated spend on FIS this year is approximately €350 million, an increase of €50 on last year. The average FIS payment per family is €118 per week.
To qualify for FIS, a person must be engaged in full-time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. A couple may combine their hours of employment to meet the qualification criteria. The applicant must also have at least one qualified child who normally resides with them or is supported by them. Furthermore, the average family income must be below a specified amount which varies according to the number of qualified children in the family.
The “hours worked” eligibility criterion has been reduced significantly since the introduction of the scheme in 1984, from 30 hours per week to 19 hours per week in 1996. The costs associated with replacing the 38 hour threshold for FIS qualification with a sliding scale system, as outlined, are not available. However, reducing the “hours worked” requirement would have implications for a range of other working age schemes and would have expenditure implications. In addition the proposal set out by the Deputy is significantly more complex than the present scheme and could require additional resources to administer.
Currently, persons subject to the contingency of unemployment may be supported under the jobseeker's schemes. Under jobseeker's benefit and jobseeker's allowance a person may, subject to scheme criteria, work for up to three days and continue to receive support under the schemes.
