Mick Barry (Cork North Central, Solidarity)
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33. To ask the Minister for Social Protection further to Parliamentary Question No. 176 of 18 May 2017, the reason for the rise in the number of families in receipt of family income supplement over the past four years; and if he will make a statement on the matter. [25952/17]

Mick Barry (Cork North Central, Solidarity)
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I would like to ask the Minister the reason for and his explanation for the very sharp rise in the number of families that have had to avail of the family income supplement over the last four years.

Leo Varadkar (Dublin West, Fine Gael)
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The family income supplement, FIS, is an in-work support that provides an income top-up for employees on low earnings with children. FIS is designed to prevent in-work poverty for low-paid workers with child dependants and to offer a financial incentive to take up employment. There are currently almost 57,000 families with more than 126,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €422 million.

There has been a steady growth both in the number of families supported by FIS over recent years and associated expenditure, with numbers in receipt of FIS rising from around 32,000 families with more than 73,000 children in 2012 to almost 57,000 families and over 125,000 children by the end of 2016.

Expenditure on FIS has more than doubled from €224 million in 2012 to an estimate of €422 million for this year.

A number of factors have led to the increase, including a substantial increase in the numbers of people in employment, as well as increases in the FIS thresholds in 2016, which made more people eligible for FIS.

For example, the number of people in employment has increased over the past four years from 1.86 million people in 2013 to more than 2 million now. With more jobs, there are more people eligible for FIS.

The Department’s information strategy has also promoted FIS and increased the overall awareness of the scheme. This includes the use of the Department’s better off in work ready reckoner as an effective means of promoting in-work supports such as FIS. Many people who were entitled to FIS may not have known that they were in the past.

Another reason is the transition of people from the one-parent family payment to FIS. Over this period, more than 10,700 lone parents transitioned onto FIS and of these approximately one third were new FIS recipients.

As I mentioned before, budget 2016 increased the income limit thresholds by €5 for families with one child and by €10 for families with two or more children. As the thresholds were increased, the number of families eligible therefore increased.

Mick Barry (Cork North Central, Solidarity)
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The number of people in employment has indeed gone up. While the numbers in employment have gone up, the numbers in receipt of the family income supplement have gone up at a far greater rate. There is a sharp scissors effect there. I believe it is undeniable that it reflects a growth in low-paid employment. I suspect that the Minister has had his own eye on a particular job for a long time now. Presumably, he has been getting up early in the morning in order to get it. Here, we are talking about 57,000 workers who have been getting up early in the morning too. For them, it is for low-paid work. It is so low paid that it has to be topped up by the State in order to take families out of poverty. What practical steps aimed at reversing this trend towards low-paid employment is the Minister prepared to advocate? Will he, for example, join with me in encouraging low-paid workers to take a practical step in challenging low pay? Will he join with me in encouraging low-paid workers to join a trade union?

Leo Varadkar (Dublin West, Fine Gael)
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As I outlined in the answer, the reason is not solely the increase in employment. That is only part of the reason. There are a number of other factors that have given rise to the increase in the number of people in receipt of the family income supplement. The decision made in 2016 to change the thresholds meant that more people were eligible for it, as one would expect. The information campaign and the fact that the lone parent reforms mean fewer people are on one-parent family payment and more people are on FIS. Therefore, there are four reasons. One of them is the increase in employment. It is arguable as to whether an increase in low-paid jobs is a cause. I know that the Deputy believes that, but if one looks at the numbers and statistics, it is questionable. For example, we know from the 2015 CSO survey on income and living conditions that incomes rose by about 5% that year. That is a result of a combination of factors, including pay rises as well as additional employment. There have been three increases in the minimum wage in that period.

Mick Barry (Cork North Central, Solidarity)
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I find it incredible that the Minister is attempting to deny that there has been a sharp increase in low-paid employment. What were the numbers he gave us for FIS? There were 32,000 recipient families in 2012 and 57,000 in 2016. Yet, the numbers in employment have increased from 1.86 million to a little more than 2 million. One is an extremely sharp increase and the other is a not insignificant increase. There is a huge gap between the two. It is undeniable to anyone with eyes and ears that there is a sharp increase in low-paid employment in this country. That the Minister has come to the House today and attempted to deny that is quite incredible. I put it to the Minister to admit to the House that while employment has been going up, there has been a very sharp increase indeed in low-paid employment in this State, something which many facts and figures will back up.

Leo Varadkar (Dublin West, Fine Gael)
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The difficulty in having pre-formed ideas and pre-prepared supplementary questions is that the Deputy then runs into a problem when he does not actually hear or like the answer to the question. We both agree that the fall in unemployment and the rise in employment is not the sole reason why the number of people on FIS has increased. There are other factors. We have changed the qualification limits so that people who were on low pay and did not qualify for FIS in the past now do. That has obviously increased the number of people who are eligible for FIS.

The lone parent reforms have increased the number of people on FIS. People who would previously have been on the one-parent family payment are now in receipt of FIS. Information campaigns are run by my Department. I acknowledge that it is not just down to the increase in employment. I am saying there are four factors, not just the one, and that might explain to a great extent the increase in the numbers of people who are eligible.