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Dáil Éireann díospóireacht -
Thursday, 20 Jun 1996

Vol. 467 No. 3

Written Answers. - Family Income Supplement Scheme.

Kathleen Lynch

Ceist:

36 Kathleen Lynch asked the Minister for Social Welfare the number of children expected to benefit in 1996 following the recent changes to the family income supplement and the child dependant allowance schemes; the plans, if any, he has for addressing the problem of child poverty; and if he will make a statement on the matter. [13042/96]

James McDaid

Ceist:

44 Dr. McDaid asked the Minister for Social Welfare if he will extend the family income supplement scheme to include the self-employed; and if he will make a statement on the matter. [12949/96]

M. J. Nolan

Ceist:

45 Mr. Nolan asked the Minister for Social Welfare in relation to the family income supplement scheme, if he will give an estimate of the cost of the extension of entitlement to community employment workers, the calculation of entitlement to family income supplement on the basis of net income and the extension of payment to the self-employed; and if he will make a statement on the matter. [12939/96]

I propose to take Questions Nos. 36, 44 and 45 together.

Family Income Supplement (FIS) is currently available to employees on low earnings with children. A significant number of improvements to FIS were provided for in the 1996 budget, including an increase of £10 in the weekly income limits used to determine entitlement, thereby ensuring that most recipients will receive an increase of £6 per week. The Social Welfare Act, 1996, also provided for a related improvement, which allows people who have been unemployed for 12 months or more to retain entitlement to increases for children (Child Dependant Allowances) payable at the full rate, for a period of up to 13 weeks on taking up employment which is expected to last for at least four weeks. This improvement will alleviate the difficulties encountered by some families during the period between the termination of their unemployment payment and the award of FIS. This is designed to complement the support provided by FIS for low paid workers. While it is not possible to estimate the number of children who will benefit from this measure, about 35,500 children will benefit as a result of increased FIS payments alone.

The extension of FIS to self-employed people with children was estimated in 1994 to cost in the region of £30 million in a full year. This cost is in addition to the existing cost of providing unemployment assistance to self-employed people whose income falls below the rate of unemployment assistance appropriate to their family circumstances.

It is not possible to estimate the cost of extending FIS to community employment workers as the number of such workers who would qualify is not available.
The cost of basing FIS on net income is estimated to be in the region of £16 million in a full year.
The Government is committed under the Programme of Renewal to enhance the overall child income support system of which the current FIS payment is an important part, in order to combat the incidence of child poverty. Various options for reform have been examined by the Expert Working Group on the Integration of Tax and Social Welfare. The group has completed their final report and this is expected to be available within the next few weeks.
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