Paudge Connolly (Cavan-Monaghan, Independent)
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Question 406: To ask the Minister for Social and Family Affairs his views on the inability of working parents on the minimum wage to qualify for financial support with average bills of over €1,300 per child for school uniforms, footwear and school books; if the guidelines for the back to school clothing and footwear allowance will be adjusted to enable these parents to meet rising costs; and if he will make a statement on the matter. [30844/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The back to school clothing and footwear allowance scheme (BSCFA) operates from the beginning of June to the end of September each year and is administered on behalf of my Department by the Community Welfare division of the Health Service Executive. Applications for the allowance may be made between the beginning of June and the end of September each year.

The BSCFA scheme provides a one-off payment to eligible families to assist with the extra costs when their children start school each autumn. The allowance is intended as a contribution towards meeting the cost of school clothing and footwear. The issue of school books are a matter for the Department of Education and Science and that Department separately operates a book grant scheme for primary and secondary schools.

In order to qualify for payment of back to school clothing and footwear allowance, a person must be in receipt of a qualifying social welfare or Health Service Executive payment, be participating in an approved employment scheme or attending a recognised education and training course and have household income at or below certain set levels.

Family income supplement is a qualifying payment for these purposes. The amount of FIS paid is not assessed against the applicant in the BSCFA means test. The income limits for a couple with one child is EUR 441.40 per week while for a lone parent with one child is EUR 314.90. A person working a 40 hour week at the national minimum wage would satisfy this means test. It is estimated that some 78,000 families will benefit under the scheme this year at a cost of EUR 25m.

Budget 2006 provided for a number of improvements to the scheme. These include an increase of EUR 40 in the rate payable which means that, from June 2006, an allowance of EUR 120 is payable in respect of qualified children aged from 2 to 11 years and EUR 190 in respect of qualified children aged from 12 to 22 years. This represents an increase of 50% and 26% respectively over the amount paid last year. They also include an extension of entitlement to the back to school clothing and footwear allowance to recipients of guardian's (formerly orphan's) payments for the first time; and an increase in the additional income disregard for entitlement to the scheme from EUR 50 to EUR 100.

The new income limits for the BSCFA scheme for 2006 are based on the maximum rate of state pension (contributory) (under 80) plus EUR 100 in the case of married and cohabiting couples; and the maximum rate of widow's/widower's contributory pension (under 80) plus EUR 100 for lone parents, plus child dependant allowance in each case.

It might be noted that these improvements in BSCFA are very significant when viewed in the context of clothing and footwear price trends. According to the Consumer Price Index for August 2006, the overall cost of clothing and footwear has fallen by 3.6% over the past twelve months. Since December 2001, clothing and footwear costs have decreased by 18.8%.

I consider the back to school clothing and footwear allowance scheme to be an important support for parents at a time of particular financial strain. I am satisfied that the improvements to the scheme for this year provide a major boost to meeting the financial costs associated with return to school for those who most need assistance. Any further improvements to the scheme, including the issue of extending the allowance to employed parents on low income, would have to be considered in the context of the Budget and in the light of resources available to me for improvements in social welfare payments generally.