Vol. 481 No. 5
24 Mr. Deasy asked the Minister for Social, Community and Family Affairs if he intends to change the conditions for qualification for the family income supplement scheme to include people who are self-employed on low incomes; and if he will make a statement on the matter. [16422/97]
The family income supplement (FIS) scheme is designed to provide an incentive for low paid workers with families to take up or remain in full-time employment.
In accordance with a commitment given in the Partnership 2000 Agreement and in the context of reducing disincentives to work, FIS is being reformed so as to be calculated on a net income basis, rather than on gross wages, over the lifetime of the agreement. As an initial step in this process, provision was made this year for FIS to be calculated on the basis of gross earnings less any PRSI contributions, levies and pension contributions paid.
Self-employed people whose income falls below the rate of unemployment assistance (UA) appropriate to their family circumstances are entitled to claim UA. The rate of UA payable depends on the person's means. In assessing means, account is taken of the net income which the applicant may reasonably expect to receive in the next year.
It is estimated that the extension of FIS to self-employed people with children would cost in the region of £30 million in a full year. This cost is in addition to the existing expenditure involved in providing unemployment assistance to self-employed people whose income falls below the rate of unemployment assistance appropriate to their family circumstances. In view of the very significant additional costs involved, the question of extending FIS to self-employed people would be a matter for consideration in a budgetary context.
26 Mr. Bell asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that some participants on FÁS schemes who were on long-term unemployment assistance will not qualify for the Christmas bonus and other benefits; the plans, if any, there are in his Department to rectify this matter; and if he will make a statement on the matter. [16418/97]
48 Mr. Timmins asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that persons who participate in community employment schemes lose their secondary benefits under the social welfare system when the scheme ceases. [13823/97]
I propose to take Questions Nos. 26 and 48 together.
The issue raised by the Deputies relates to the position of people who return to the live register after their period of community employment finishes and who, by virtue of having paid Class A PRSI contributions, may qualify or re-qualify for unemployment benefit rather than reverting to long-term unemployment assistance.
The position is that the Social Welfare Act, 1996 provided for the extension of class A PRSI to community employment workers. Class A PRSI provides cover for the full range of benefits and pensions available under the social insurance system including, for example, unemployment benefit, disability benefit, maternity benefit, retirement pension, old age (contributory) pension, widow's (contributory) pension, treatment (dental and optical) benefits and occupational injuries benefit. The purpose of this measure was to enhance the PRSI status of community employment workers and to put them on a par with other Class A workers.
In the case of persons who qualify or re-qualify for unemployment benefit, their earnings in the relevant tax year will determine whether or not they receive a graduated rate or the full rate of unemployment benefit. Persons entitled to a reduced or graduated rate of unemployment benefit are entitled to claim unemployment assistance if it is more beneficial to them. However, long-term unemployment assistance is not payable where the claimant is entitled to full rate unemployment benefit.
I should mention that the social welfare secondary benefits, i.e. free fuel allowance, butter vouchers and the Christmas bonus, can, however, be retained if the person transfers from a community employment scheme to a back-to-work allowance scheme or jobstart etc. As regards income-related secondary benefits such as rent allowance or mortgage supplements and the back to school clothing and footwear allowance available under the supplementary welfare allowance scheme, medical cards and differential rents, the position is that, in the normal course, former community employment workers who are solely dependent on a social welfare payment should continue, where appropriate, to receive these benefits.
The introduction of special concessionary arrangements for former CE workers have both legislative and cost implications. I will keep the issues raised by the Deputies under review.
