Róisín Shortall (Dublin North West, Labour)
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Question 13: To ask the Minister for Social and Family Affairs the number of recipients in receipt of family income supplement at the latest date for which figures are available; the way in which this figure compares with statistics compiled by the Revenue Commissioners on the number of earners within the income limits; his plans for a campaign to promote greater awareness of the family income supplement; and if he will make a statement on the matter. [37222/05]

Martin Ferris (Kerry North, Sinn Fein)
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Question 25: To ask the Minister for Social and Family Affairs if migrant workers on low pay here will be entitled to family income support. [37302/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 13 and 25 together.

The number of families benefiting from the family income supplement scheme on 18 November 2005 was 16,650. Family income supplement, FIS, is a payment made to low income families with children who are in employment but on low earnings, thereby preserving the incentive to remain in employment in circumstances where they might only be marginally better off than if they were fully reliant on social welfare payments.

Weekly payments of FIS are made to families, including one-parent families, with children, where one or more parent is in full-time remunerative employment of not less than 19 hours per week or 38 hours per fortnight, where the employment is likely to last at least three months, and where the income of the family is less than a prescribed weekly threshold. This threshold varies in line with the number of children in the family. This Government has increased the weekly income thresholds for qualification for a family income supplement payment by €84 since 2002. This has resulted in a net increase in FIS available to low income families of €50.40 per week.

The number of families with incomes below these thresholds who are eligible for family income supplement are not directly comparable with income statistics compiled by the Revenue Commissioners for a number of reasons, including the fact that the Revenue data does not, generally speaking, take into account the number of hours worked, the number of children in a family, nor social welfare income which might not be taxed but would still be taken into account for FIS. Migrant workers in low-income employment may qualify for FIS in the same way as other applicants.

It is not possible to estimate from administrative sources the number of families who would be eligible but do not apply for their entitlements under the family income supplement scheme. 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 was 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, at between 35% and 38% of potential expenditure. It is expected that the ESRI will produce more recent data on family income supplement in the first quarter of 2006.

My Department undertakes a number of proactive measures to ensure that people are aware of possible entitlement to family income supplement. These include advising all newly awarded one parent family payment recipients, advising all employers annually in PRSI mailshots and examining entitlement for all recipients of the back to work scheme.

FIS has also been extensively advertised on local and national press and radio, in poster campaigns and targeted mailshots. Information on all social welfare schemes is also available on the Department's website and from any of the Department's local offices. While there has been extensive publicity, I am concerned that people who may be entitled to FIS are not applying for it and I will continue to review the adequacy of measures to promote greater awareness.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 14: To ask the Minister for Social and Family Affairs the way in which he intends to assist persons who are dependent on social welfare in becoming financially independent; the success of his Department in helping long-term dependants on social welfare to achieve a better standard of income and living; and if he will make a statement on the matter. [37267/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I recently announced that total spending on social welfare will increase in 2006 to a total of €12.49 billion even before announcements of further social welfare spending are made as part of the Government's broader budget package. The vast bulk of this spending meets the costs of payments to persons who through no fault of their own find themselves in circumstances where they need resources to meet the needs of everyday life. These circumstances include unemployment, ill health and old age and many of my Department's payments are explicitly linked to these contingencies.

Such spending has a major impact on the lives of people. Research on who benefits from social welfare spending shows that the bulk of spending goes to meet the needs of those on lowest incomes. This was also borne out in the 2003 EU survey on income and living conditions, or EU-SILC, which showed that social transfers as a percentage of gross income in the lower income group ranged from 94% to 68%.

Clearly, without the supports provided by my Department, such persons would fall way below the level of resources required to sustain an acceptable standard of living and quality of life.

For a considerable number of persons of working age, the need for this assistance is purely temporary and such persons return to financial independence relatively quickly. However for a variety of reasons such as difficulties with employability, long-term illness or disability, it may be difficult for such persons to return to or take up employment. Through a wide range of measures, my Department aims to address these underlying difficulties, thereby allowing the persons to take up work and to reduce or indeed eliminate dependence on the social welfare system. Through the introduction of earnings disregards and tapered withdrawal of payments, many recipients can take up some work without losing out financially.

The principle of progressing from unemployment through appropriate programmes in order to gain employment or improve employability is well accepted in the social welfare system as the best means of tackling social exclusion. In this context, a wide range of employment support programmes is available, playing a vital role in preventing the problems that arise from long periods of unemployment and proactively facilitating those unemployed to seek work.

The national employment action plan is one of my Department's primary interventions to support and encourage unemployed people to progress towards employment. It is particularly focused on early intervention, with all those receiving unemployment payments for six months being referred FÁS for assessment of the progression path most suited to his or her needs. This early intervention helps prevent the drift into long-term unemployment. An integral part of the successful implementation of the NEAP is an offer of work or the availability of a programme suited to the particular needs of the individual. Such programmes raise the educational or training levels of participants, improving the likelihood of employment and prospects of further advancement. The programmes provided by my Department included the back to work allowance and the back to education allowances.

Facilitators were appointed from 1993 to advise and encourage those on social security payments such as unemployed people and lone parents to progress to employment or education/training through the wide range of active labour market programmes available. They also seek out job opportunities, work/skills outlets and other self-development opportunities. Facilitators work closely with FÁS and the education authorities at local level to secure an appropriate outcome for disadvantaged individuals.

It is important that social security programmes are developed in ways that are effective in meeting the needs of the unemployed and other disadvantaged people. Reviews of the back to work and the back to education allowances have shown that the programmes are relatively successful in meeting their objectives. However, the schemes will continue to be monitored and reviewed to ensure that they help recipients avoid long term dependency on social welfare payments and also that they are structured in a way that reflects changing circumstances and aspirations.

Dan Boyle (Cork South Central, Green Party)
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Question 15: To ask the Minister for Social and Family Affairs if he will report on work that has been undertaken between his Department, the Department of Communications, Marine and Natural Resources and the management of An Post to ensure that the necessary technology is made available in every post office in the country to allow for the automated processing of social welfare payments. [37121/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The Government is committed to maintaining a viable network of post offices throughout the country. The development and installation of any new technology which An Post might make available in post offices is a commercial matter for the company and that of my colleague, the Minister for Communications, Marine and Natural Resources, who is the Minister responsible for An Post. I have no role or function in this regard.

In 1992 my Department and An Post entered into a five-year contract for the delivery of social welfare payments. This contract was renewed in 1997 for a further three years to the end of 1999. The Government's decision in 1999 to extend my Department's contractual arrangements with An Post gave rise to a procurement complaint being lodged with the European Commission in 2000. The complaint was subsequently referred to the European Court of Justice by the European Commission. An oral hearing of the European Court of Justice case is expected to take place in 2006. An undertaking given to the European Commission precludes my Department from entering into any arrangement with An Post which would alter the terms of the current payment delivery service.

In the interim, the current arrangements which exist between my Department and An Post for the delivery of social welfare payments will continue. A very good working relationship exists between my Department and An Post and officials from both sides meet on a regular basis to discuss operational and management issues relating to the delivery of social welfare payments.

Currently, 56% of customers receive payment through their local post office, 10% are paid by cheque through the postal system and 34% have chosen to be paid electronically by direct payment to their bank or building society account.

In 2004 over 39 million payments were issued through post offices at a cost of €48.6 million. At present 777,000 customers on long-term schemes are paid by means of a book of personalised payable orders which are encashable each week at a post office designated by the customer. Another 312,000 child benefit customers also receive their payment by personalised payable order books on a monthly basis at post offices. A further 133,000 customers, mainly on unemployment schemes, are paid by means of an electronic or manual postdraft which is issued to the customer's designated post office each week. My objective is to ensure that a wide choice of payment options is available to customers and that service is continually improved by providing access to an increasing range of payment services.

It is also Government policy to facilitate the greater use of electronic payment systems in the economy in the interests of developing a world class payments environment in Ireland. In this context, I have initiated a strategic review of my Department's payment requirements with the aim of identifying a payment solution for the future which will be flexible, cost-effective, customer focused, manageable and accountable. The study, which is ongoing, will take account of current market offerings in the financial services sector and advances in card-based technologies with a view to seeing how future needs might best be met.

An Post and my Department have been partners in the delivery of social welfare payments since the foundation of the State. I am confident that An Post and the other networks of post offices will continue to play a role in the delivery of social welfare payments in the future. I am aware that An Post is conscious of the need to introduce modern payment systems. My expectation is that An Post will respond to developments and product innovation in the money transmission market so that it can maintain its position as a leading player in this area of commercial activity.