Seán Kyne (Galway West, Fine Gael)
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Question 303: To ask the Minister for Social Protection in recognition of the crucial importance of carer's allowance in supporting families, that the proposals to include the payment in the calculation of means for eligibility criteria for the family income supplement be reconsidered; and if she will make a statement on the matter. [15794/12]

Joan Burton (Dublin West, Labour)
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The family income supplement (FIS) payment provides income support for employees on low earnings with children. The payment is designed to preserve the financial incentive to take-up or remain in employment in circumstances where the employee might be marginally better off in employment than on social welfare payments. To qualify for payment of FIS, a person must be engaged in full-time 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.

In assessing weekly family income for FIS purposes, most weekly social welfare payments are taken into account when means are assessed. Budget 2012 contained a measure which provides for the assessment of carer's benefit and carer's allowance payments in determining entitlement to FIS. This measure brings the treatment of these two payments for FIS purposes into line with the treatment of all other primary social welfare payments. It also provides for a more consistent approach to the concurrent payment of FIS with other social welfare payments. Moreover, this measure reduces a person's secondary payment (FIS) without affecting their primary payment, therefore targeting available scarce resources at those in most need.

The measure is being implemented on a phased basis over a three year period. One-third of the carer's benefit or allowance will be assessed from 1 January 2012, two-thirds of the relevant payment will be assessed from 1 January 2013 and the full amount of the carer's benefit or allowance will be assessed from 1 January 2014 onwards. While the measure will affect a relatively small number of people, I recognise that this will mean a significant reduction in the level of FIS payable in some instances. However, the people concerned will continue to receive a higher level of FIS in 2012 and again in 2013 than people with the exact same level of other income where that other income includes a social welfare payment other than carer's allowance or benefit.

The Government recognises that welfare expenditure plays a vital role in protecting the most vulnerable people in Irish society, as well as stabilising the economy generally. Although it has not been possible to exempt income support to families from the general budgetary strategy, given the level of adjustments required, the Government is committed to tackling Ireland's economic crisis in a way that is fair and balanced. In this regard, the Government has endeavoured, insofar as it could, to limit cuts in social welfare to households where there is some additional income over and above the basic social welfare payment.