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Budget Measures

Dáil Éireann Debate, Tuesday - 24 October 2017

Tuesday, 24 October 2017

Questions (385)

John Brady

Question:

385. Deputy John Brady asked the Minister for Employment Affairs and Social Protection her plans to change the criteria around the new working family payment; if the criteria will remain the same as it was under family income supplement; and if she will make a statement on the matter. [44635/17]

View answer

Written answers

The qualification criteria for the new Working Family Payment (WFP) will remain the same as the current qualifying criteria under Family Income Supplement (FIS).

The Department’s approach to developing the Working Family Payment was guided by two principles. First, that it should ensure that work pays, and second, that it should have a positive effect on reducing child poverty. To advance the commitment contained in the Programme for Partnership Government, the Department established an internal working group and an Inter-Departmental Group of the relevant Government Departments to consider proposals.

As part of this process the Department carried out an extensive analysis of its existing range of supports that are aimed at assisting individuals to take up employment. The analysis showed the existing in-work supports are very effective, and work well in assisting individuals make the transition from unemployment into employment.

These findings are confirmed by the ESRI’s research into the Department’s existing in-work measures, and Eurostat figures, which show that the parental in-work poverty rate in Ireland, at 5.8%, is significantly below the EU 28 average of 11.2%. This is in large part due to the Department’s in-work supports such as Family Income Supplement and the Back to Work Family Dividend.

Consequently, the analysis carried out by the working group did not support the need for the establishment of a new scheme. In the context of Budget 2018 it was decided to re-designate the FIS scheme as the Working Family Payment, which will bring it more visibility as a payment aimed specifically at working families. The new name better reflects the nature of the payment and the Department would encourage families to look into seeing if they are eligible for the payment.

Given all of the above there are no plans to change the qualification criteria around the Working Family Payment.

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