Seán Sherlock
Question:759. Deputy Sean Sherlock asked the Minister for Social Protection the projected cost of increasing working family payment thresholds by €20; and if she will make a statement on the matter. [36775/23]
View answerTuesday, 25 July 2023
Questions (759)
Written answers
The Working Family Payment (WFP) is an in-work support which provides an income top-up for employees, with children, on low earnings. The scheme is designed to prevent in-work poverty for low paid workers with child dependents, and to offer a financial incentive to take-up employment.
There are currently approximately 46,000 families in receipt of Working Family Payment, in respect of over 100,000 children. Estimated expenditure on the scheme in 2023 is €363 million.
The full year cost of increasing the Working Family Payment income thresholds for all families by €20 per week is estimated at €32.3 million. It should be noted that this estimate is based on current numbers of recipients and assumes a 10% increase in uptake because of a €20 increase in the thresholds. With reference to the latter assumption, it is important to note that, due to potential behavioural effects, it is difficult to estimate with certainty the impact of such an increase in the thresholds on eligibility and uptake in advance.
I trust this clarifies matters with the Deputy.