Dáil Éireann Debate, Wednesday - 12 July 2017
449. Deputy Thomas P. Broughan asked the Minister for Social Protection the projected funding provided for the family income supplement scheme in 2017; and if she will make a statement on the matter. [33520/17]
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 currently almost 57,000 families with more than 126,000 children in receipt of FIS. The Revised Estimates for Public Services 2017 provides for expenditure of €422.5 million on the Department's Family Income Supplement scheme in 2017.
There has been a steady growth both in the number of families supported by FIS over recent years and in associated expenditure, with numbers in receipt of FIS rising from around 32,000 families with more than 73,000 children in 2012 to almost 57,000 families and over 125,000 children by the end of 2016.
Expenditure on FIS has more than doubled from €224 million in 2012 to an estimate of more than €422 million for this year.
A number of factors have led to the increase in take-up including a substantial increase in the numbers in employment, demographic factors and increases in the FIS thresholds in 2016.
The Department’s information strategy has promoted the benefits of FIS and increased overall awareness of the scheme. This includes the use of the Department’s Better Off in Work ready reckon as an effective means of promoting in work supports such as FIS.
Some of the increase in FIS numbers is also due to transfers from the One-Parent Family Payment arising from the reduction of the age threshold of the youngest child to 7 years, which occurred over the past four years.
Finally substantial improvements in customer service and processing times for FIS customers have also significantly contributed to the increased numbers of FIS recipients.
All the evidence shows that families are better off in work and FIS helps them to continue in work and build towards financial independence.
