Dáil debates

Tuesday, 7 November 2017

Other Questions

Working Family Payment

6:25 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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65. To ask the Minister for Employment Affairs and Social Protection the reason she no longer plans on introducing a new working family payment, as committed to in the programme for Government; and if she will make a statement on the matter. [46857/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Department’s approach, my approach and that of my predecessor to the working family payment is guided by two principles: first, that we have to ensure that work pays and that it is worthwhile for people to go out to work, and, second, that it should have a positive impact on reducing child poverty in the country, which is still far too high. This is of particular importance to me. To advance the commitment contained in the programme for Government, the Department established the working group and an interdepartmental group comprising relevant Departments. We carried out an extensive analysis of the existing range of supports, which demonstrated to us that many in-work supports are effective and work well in assisting families and individuals make the transition from unemployment into employment. These findings were confirmed to us by the ESRI.

It is not for me as simple as changing the name from FIS to working family payment. I am proposing to put FIS under the umbrella of working family payments because we are not done in this regard. There are certainly more enhancements that we will plan and which I will endeavour to bring forward in the future to make sure that people who are either in lower paid jobs or are currently dependent on the social welfare system have the necessary supports under the working family payments scheme, which we will be adding to in the future. This will ensure they understand, appreciate and accept it is far more valuable for them to work than it is to be entirely dependent on the State. Therefore, it is not just a change of the name, although it might have looked like that in the budget. New measures will be introduced under that scheme in the future.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I am not absolutely clear as to what the Minister is saying. Is she saying she is going to allow FIS to remain in place and supplement it with the working family payment, or that she is going to have a working family payment which includes the measures which we know as FIS currently? Does she accept that her party's general election manifesto pointed out that FIS can be very inflexible and is designed in such a way that it sometimes does not achieve its objectives? Is the change to the working family payment going to take out those inflexibilities which are a barrier to people taking up work in some cases although, admittedly, this was unintentional?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Deputy is right that it was unintentional. He is also right in what he heard. FIS is going to stay but it may be that it is modified to take out some of the inflexibilities that currently exist. What I am intent on doing is making sure the payments that will be under the umbrella of the working family payments ensure that people who are transitioning from unemployment into employment, and from under-employment into full employment, receive State supports so they realise the value of work and that work pays. Given the introductions we made in the social welfare budget this year, such as the introduction of extra money for the qualified child payment and the back to work family dividend extension, and the increase of €10 in the threshold for FIS, it is clear certain changes did get made in this year's budget, although it has not yet been passed. These will increase the flexibility of FIS but will also allow us to expand what will be a suite of working family payments to ensure that people, when they leave unemployment or under-employment for full employment, know the value of the work and their worth in society.