Finian McGrath (Dublin North Central, Independent)
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Question 796: To ask the Minister for Social and Family Affairs his views on increasing the threshold for family income supplement by an extra €35 a week in order to assist low paid workers; and if he will make a statement on the matter. [1386/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Family Income Supplement, FIS, is designed to provide cash support for employees on low earnings with families. This preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were unemployed and claiming other social welfare payments. FIS is paid on a weekly basis over a period of 52 weeks, taking into account a family's net earnings and the number of children under aged 18 or aged between 18 and 22 years and in full time education.

In Budget 2006, FIS income thresholds were increased by a range of earnings limits, from €19 per week for a one child family to €282 per week for an eight child family. This represents a net increase of between €11.40 per week for a one child family to €169.20 per week for an eight child family, effective from January 2006. A table showing the increases in FIS thresholds from 2005 to 2006 is provided.

Since 2002, FIS thresholds for a one child family have increased by €103 or 28.5%, while thresholds for an eight child family have increased by €366 or 67.9%, providing significant increases to all families while concentrating additional resources on larger families and ensuring that households in poverty are targeted. The estimated cost of the improvement in FIS thresholds is €25 million in a full year. The number of families receiving FIS payments at the end of December 2005 was 17,488 in respect of 33,956 children, the highest in the history of the scheme. This represents an increase of approximately 45% in the past three years.

In a sustained effort to further increase take-up of FIS, my Department is currently preparing an awareness campaign that will include media and promotion initiatives at national and regional level.