Dáil Éireann Debate, Thursday - 21 September 2017
222. Deputy Brendan Howlin asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing the family income supplement thresholds by €5, €10, €15 and €20 respectively in 2018; the full year cost of same; and if she will make a statement on the matter. [40032/17]
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 nearly 57,000 families with more than 126,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €422 million.
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 estimated cost of increasing the family income supplement thresholds by €5, €10, €15 and €20 respectively in 2018; and the full year cost of same is as follows:-
|
Increase |
Estimated Additional Amount |
Total Estimated Cost |
|
€5 |
€8.7m |
€404m |
|
€10 |
€17.4m |
€413m |
|
€15 |
€26.2m |
€423m |
|
€20 |
€34.9m |
€430m |
Budget 2016 increased the income thresholds of €5 for families with one child and €10 for families with two or more children. Any changes to the FIS income thresholds would have significant cost implications and would have to be considered in an overall budgetary context.
