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. An integral feature of the scheme is that, once the level of the FIS payment is determined, it continues to be payable at that level for a period of 52 weeks, provided the claimant remains in employment. The only circumstances in which the rate of payment can be amended is where an additional child is born in the course of the 52 weeks.
The purpose of this measure, which is unique to the FIS scheme, is to ensure that claimants can be certain they will receive a guaranteed level of income support throughout the period, regardless of any change in circumstances. This certainty is critical to the success of the scheme in providing an incentive to families to avail of employment opportunities. It is recognised that, as a consequence of this measure, there is no provision to adjust the level of FIS payable upwards to compensate for any reduction in income that may occur in the course of the 52 week period. Conversely, where earnings rise in the course of that period, there is no provision to reduce the amount of FIS payable. After the 52 week period has expired, the rate of FIS payable may be adjusted if warranted by changed circumstances. Any change in the existing arrangements would require legislative change, and given the nature and purpose of the FIS scheme, I am not convinced that such a change would be appropriate.