I propose to take Questions Nos. 142 and 143 together.
Family income supplement, FIS, is designed to provide cash support for employees on low earnings with families and thereby preserve the incentive to remain in employment in circumstances where the employee might only be marginally better off than if s/he were claiming other social welfare payments. The range of improvements to the family income supplement scheme instituted in recent years, including the assessment of FIS on the basis of net rather than gross income and the progressive increases in the income limits, have made it easier for lower income households to qualify under the scheme.
Budget 2004 provided for further increases in the FIS income limits with effect from January 2004. These increases raised the weekly income limits by €28 at each point, adding an extra €16.80 to the payments of most existing FIS recipients. The minimum FIS weekly payment was also increased by €7, from €13 to €20. The average weekly payment now stands at €74.16 per week, with a total of 14,303 families — end October 2004 — receiving a supplement under the scheme.
The weekly income thresholds for families with one, two and three children are €407, €433 and €458, respectively. At end December 1999 there were 14,686 FIS recipients compared to 14,303 at end October 2004. To ensure that employment remains an attractive option to people with families, FIS thresholds have been increased in line with increases in the rate of unemployment assistance, UA, relevant to each family size, which have exceeded cost of living increases in recent years.
The following tables demonstrate that the 2004 thresholds compare favourably with the 1999 rates when increase in the consumer price index is taken into account, table 1, and list the numbers of FIS recipients each year from December 1999 to October 2004, table 2. Any decision to increase FIS thresholds will be taken in a budgetary context and in the context of priorities generally, having regard to available resources.
Table 1: FIS Thresholds 1999 and 2004.
Family size
|
1999
|
1999 Updated to 2004 using CPI*
|
2004
|
|
€
|
€
|
€
|
1 Child
|
279.34
|
341.91
|
407
|
2 Children
|
304.73
|
372.98
|
433
|
3 Children
|
330.13
|
404.07
|
458
|
4 Children
|
355.52
|
435.15
|
483
|
5 Children
|
387.27
|
474.01
|
515
|
6 Children
|
412.66
|
505.09
|
541
|
7 Children
|
434.25
|
531.52
|
562
|
8 or more
|
455.83
|
557.93
|
584
|
* Consumer Price Index
Table 2: Number of Recipient Families of Family Income Supplement.
|
Number
|
December 1999
|
14,686
|
December 2000
|
13,181
|
December 2001
|
11,880
|
December 2002
|
12,043
|
December 2003
|
12,317
|
October 2004
|
14,303
|