Dáil debates

Thursday, 11 May 2006

4:00 pm

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)

I propose to take Questions Nos. 7, 16, 25, 31, 66, 68, 127 and 128 together.

The family income supplement is designed to provide support for people with families on low earnings to preserve the incentive to remain in employment in circumstances where families might only be marginally better off than if they were claiming other social welfare payments. Family income supplement is a central element of a programme of reforms targeted specifically at addressing child poverty. Currently, just over 18,000 families and more than 35,000 children benefit directly from these weekly top-up payments. Families can get top-up supports of between €20 and €400 per week depending on income and family size. The average weekly payment is €105.

Improvements to the family income supplement scheme, including the new increased income limits announced in the 2006 budget, have made it easier for families to qualify under the scheme. To ensure that families are made aware of these improvements, my Department undertook a nationwide awareness campaign last March to promote and encourage take-up of the family income supplement scheme. This extensive week-long campaign included advertising on television, national and local radio and in the national and regional press. A nationwide poster campaign was also undertaken. During the media campaign, my Department provided a LoCall helpline to answer public inquiries regarding eligibility under the improved scheme. The helpline responded to more than 2,800 calls and the total cost of the advertising campaign was €272,000.

In addition, the scheme was promoted through my Department's network of local offices, citizen's information centres and citizen's information phone services and by Comhairle, the national information support agency. Information was also made available through my Department's website.

I am pleased with the response to the campaign so far. For example, in March and April this year my Department received 3,013 new FIS claims. This compares with 1,337 received in the same two months in 2005. My Department has received 4,880 new claims so far this year compared with 2,590 for the corresponding period in 2005. The general trend for both new claims and renewals is for numbers to continue to rise. The advertising campaign has resulted in a higher than normal number of claims awaiting decision on their entitlement, that is in excess of 2,000, and I would expect a high percentage of these to translate into awards. The full impact of the campaign will not be known until all of these claims have been decided.

My Department has been working closely with the Revenue Commissioners to ensure that families on low incomes are made aware of the availability of FIS. My Department will continue to work with Revenue on other initiatives to ensure that people are made aware of their entitlements in a timely manner. The increase in the numbers of persons receiving FIS is a positive development, reflecting the success of a range of measures which have improved net incomes for the low paid. Efforts are continuing to be made to ensure that families eligible for FIS are encouraged to apply for the scheme and every opportunity is taken by my Department to promote the benefits of the scheme.

The Government is determined to eradicate child poverty and I am confident that improvements to the FIS scheme will contribute to targeting resources at low-income households. It is not possible to estimate from administrative sources the number of families who would be eligible but do not apply for their FIS entitlements. However, research undertaken by the Economic and Social Research Institute, ESRI, in 1997, which was based on the results of the Living in Ireland Survey 1994, suggested that fewer than one in three of potentially eligible claimants were actually in receipt of the payment. Since those with a higher entitlement are more likely to avail of the scheme, the take-up in expenditure terms was estimated to be somewhat higher, between 35% and 38% of potential expenditure.

I am aware of the issues raised by the Society of St. Vincent de Paul regarding obstacles facing people resuming work. I recently met representatives of the Society of St. Vincent de Paul and discussed a wide range of issues of concern to them including FIS. On taking into account the trend towards more forms of atypical work, FIS is currently designed to assist families mainly dependent on full-time low-income employment. In this context, full-time employment is defined as work of as little as 19 hours per week or 38 hours per fortnight, both parents' employment combined, if necessary, and which is expected to last for three months. 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. However, the rate of payment can be amended where an additional child is born in the course of the 52 weeks. A key advantage of this approach, which is unique to the FIS scheme, is that customers can be certain that they will receive a guaranteed level of income support throughout the year. This certainty is important to the success of the scheme in providing a real incentive to workers with families to avail of employment opportunities.

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