Pat Breen (Clare, Fine Gael) | Oireachtas source

I thank Deputies Willie O'Dea and John Brady for their contributions.

I do not propose to accept the amendment. Let me state why. In the context of budget 2018, it was decided to redesignate the family income supplement scheme as the working family payment scheme, which will give it more visibility as a payment aimed specifically at working families. The new name better reflects the nature of the payment and the Department of Employment Affairs and Social Protection encourages families to determine whether they are eligible to receive it. The Department has, as part of the process to develop a working family payment, already carried out a comprehensive analysis of the range of supports available to working families with children, including, of course, family income supplement. It established an internal working group and an interdepartmental group, comprising representatives of relevant Departments, and issued an open call for submissions to inform its work. Therefore, a lot of work has been done on this issue. The results of the analysis are confirmed by the ESRI's research into the Department's existing in-work measures. The analysis demonstrates that existing in-work supports are effective and work well in assisting individuals in making the transition from unemployment to employment. The paper that resulted from the analysis of the current system concluded that the ideal approach was the introduction of a package of targeted changes to existing schemes rather than the introduction of a new scheme.

The Minister has stated it is her intention to continually review the package of supports offered to working parents to ensure they are meeting their objectives. In 2018 there will be an increase in the working family payment-family income supplement income thresholds of €10 for families with up to three children. Over 80% of families in receipt of family income supplement have one, two or three children. The name change will come into effect on 1 January 2018. It will be accompanied by a national promotion and information campaign designed to encourage as many eligible families as possible to apply for the working family payment.

While it would be useful to give time to allow for the effects of the promotional campaign to become clear – this is important – I appreciate that Deputy Willie O'Dea has specific concerns about the scheme such as the impact of the hours worked threshold. It is worth mentioning in that regard that the number of hours associated with the working family payment-family income supplement hours worked criterion has been reduced significantly since the introduction of the scheme, from 30 hours per week to the current 19. It is important to state the working family payment must not become a vehicle for subsidising unsustainably low earnings or encouraging and incentivising employers to offer minimal hours of employment. The House will be aware that for low-income workers with less than the minimum hours of employment for family income supplement who work on a casual basis for up to three days a week, the jobseeker's allowance or benefit scheme provides in-work income support through daily disregards and tapered withdrawal of payments.

I always like to end on a good note. The Minister is happy to confirm that she is prepared to bring a paper before the Joint Committee on Employment Affairs and Social Protection within six months that will review the operation of the working family payment and include a detailed consideration of the hours worked criterion of the scheme. She has informed me that she will write to the Chairman in the next day or so to confirm this in writing. Against that background, I hope Deputy Willie O'Dea will not press the amendment because the Minister will carry out a review and notify the committee to that effect in writing.

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