Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 353: To ask the Minister for Social and Family Affairs if in view of the reduced working hours that many people are now facing she will impose the 38 hour/fortnight limit for family income supplement; and if she will make a statement on the matter. [35780/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Family income supplement (FIS) is designed to provide income for employees, on low earnings, with families. This preserves the incentive to move from welfare to (or 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.

To qualify for payment of FIS a person must be engaged in insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. A couple may combine their hours of employment to meet the qualification criteria. The applicant must also have at least one qualified child who normally resides with them or is supported by them. Furthermore the average family income must be below a specified amount which varies according to the number of qualified children in the family. FIS is then calculated on the basis of 60% of the difference between the income limit for the family size and the net income of the person(s) raising the children.

Once the level of FIS payment is determined, it continues to be payable at that level for a period of 52 weeks provided that the person remains in employment. The rate of payment can be increased if an additional child is born in the course of the 52 weeks. Improvements in recent years to FIS include the change of assessment from a gross income to a net income basis, the increase to €20 per week in the minimum payment and the refocusing of income thresholds to include additional gains for larger families. The working hours requirement to qualify for FIS i.e. a minimum of 19 hours per week/ 38 hours per fortnight already assumes a reduction in hours compared to the standard working week. Any further changes to the hours worked could only be considered in a budgetary context.