Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 164: To ask the Minister for Social and Family Affairs her plans to abolish the family income supplement. [34384/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The Family Income Supplement (FIS) is a non taxable payment, introduced in 1984 to provide income support for employees on low earnings with families and thereby preserve the incentive to remain in employment in circumstances where they might otherwise only be marginally better off than if they were fully reliant on social welfare payments.

To qualify for FIS, a family must have at least one qualified child, a combined total of at least 38 hours insurable employment (other than self-employment) per fortnight or 19 hours per week and have earnings below the specified income limits. For FIS purposes, a combination of hours worked by both parents may be used to reach the minimum 19 hours per week/38 per fortnight criterion. FIS is calculated on the basis of 60% of the difference between the income limit for the family size and the assessable income of the person(s) raising the children.

An integral part of the scheme is that once the level of FIS payments is determined, it continues to be payable at that level for a period of 52 weeks provided that the person remains in employment.

Furthermore a NESC research paper in 2007 proposed the abolition of the current FIS and the increases for qualified child – paid as supplements to SW benefits and allowances to benefit families with dependent children - and the introduction of a means tested employment neutral child income support payment. However this proposal raises a number of significant issues which will require a detailed examination by my Department and other agencies.

There are no plans to abolish the Family Income Supplement. However, proposals from the public service numbers and expenditure programmes, regarding social welfare schemes, including the FIS scheme, are being examined as part of the deliberate process for the budget.

Mary Upton (Dublin South Central, Labour)
Link to this: Individually | In context

Question 169: To ask the Minister for Social and Family Affairs when she proposes to introduce changes to the mortgage interest supplement scheme. [34393/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The mortgage interest supplement scheme provides support for people who have difficulty meeting their mortgage repayments and whose means are insufficient to meet their needs. The scheme provides a short-term income "safety net" within the overall social welfare system to ensure that people do not suffer undue hardship as a result of losing their employment. A supplement in respect of mortgage interest only may be paid to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. There are currently over 14,100 people in receipt of mortgage interest supplement, an increase of 244% (10,000) over the number in payment at end 2007.

The assessment for the mortgage interest supplement scheme provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment and/or training opportunities can continue to receive mortgage interest supplement subject to their satisfying the standard means assessment rules.

A review of the administration of the mortgage interest supplement scheme is progressing. The main purpose of the review is to consider how the mortgage interest supplement scheme can best meet its objective of catering for those who require assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence. The review group includes representatives from the Department, the community welfare service, the Department of Finance, the Department of the Environment, Heritage and Local Government and the Financial Regulator's Office. The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory Code of Practice on Mortgage Arrears on the mortgage interest scheme and legislative and other issues arising, including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market. The full review should be complete in early 2010.

Following consultation with the community welfare service, guidelines on specific and immediate operational issues for the community welfare officers operating the scheme, have been recently updated. The guidelines are available on the Department's website www.welfare.ie