Written answers

Wednesday, 25 April 2007

Department of Social and Family Affairs

Social Welfare Benefits

10:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Question 66: To ask the Minister for Social and Family Affairs the details on the uptake of the family income supplement out of the total amount of people eligible. [15246/07]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 67: To ask the Minister for Social and Family Affairs the number of recipients of family income supplement; the initiatives he will take in 2007 to improve uptake of the payment; and if he will make a statement on the matter. [15316/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 66 and 67 together.

The Family Income Supplement (FIS) provides income 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 claiming other social welfare payments. There are currently 20,869 people in receipt of FIS. In Budget 2007, I have continued the re-focusing of income thresholds to include additional gains for larger families.

With regard to the level of uptake, it is not possible to estimate from administrative sources the number of families who would be eligible but do not apply for their FIS entitlements. 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 were actually in receipt of the payment at that time. Since those with a higher entitlement are more likely to avail of the scheme, the uptake in expenditure terms was estimated to be somewhat higher, at close to 40% of potential expenditure. Subsequent studies by the ESRI have arrived at similar estimates of uptake.

The reasons for the perceived lack of uptake of FIS have been the subject of significant Parliamentary and other enquires. In response, my Department undertook a nationwide awareness campaign in March 2006 to promote and encourage increased uptake of the scheme for working families on low incomes. This extensive week-long campaign included advertising on TV, on national and local radio and in the national and regional press. A nation-wide poster campaign was also undertaken. As a result, the uptake of FIS was substantially improved.

The second element to address FIS uptake issues is the proposed commissioning of a specific research project to examine factors behind the level of uptake for the scheme.

Tenders to undertake this work have been received by my Department and these are being evaluated. I expect this process to be concluded shortly and the project to commence in the next few weeks.

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