Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The family income supplement, FIS, is an in-work support, which provides an income top-up for employees on low earnings who have dependent children. FIS is designed to prevent in-work poverty for lower paid workers with child dependants and to offer a financial incentive to take up employment. There are in excess of 57,000 families with more than 126,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €422 million.

The programme for Government contains a number of commitments to improve the take-home pay of families on low incomes. One such commitment is the proposed working family payment targeted at low-income families. My Department’s approach to developing the working family payment is being guided by two principles. First, that it should ensure that work pays and that no family is better off on welfare than at work, and second, and equally important, that it should have a positive effect on reducing child poverty.

Family income supplement is one of the in-work supports that contribute to Ireland having one of the lowest at risk of poverty rates for working families among the EU's 28 member states. Recent EUROSTAT data, based on the latest CSO survey on income and living conditions for 2015, show that Ireland has one of the lowest in-work poverty rates among the EU 28 member states. The EU average is 9.5% and Ireland ranks fourth lowest with a rate of 4.8%. I am satisfied that the family income supplement is fulfilling its role in assisting employees to take up employment opportunities and to remain at work but further improvements can be made.

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