Joe Carey (Clare, Fine Gael)
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594. To ask the Minister for Social Protection if, in the forthcoming budget she will review downwards the qualifying hourly threshold to enable applicants to qualify for family income supplement payments; if she will consider introducing a sliding scale as part of this reform of FIS eligibility as such a measure will facilitate persons to remain in the workforce for longer particularly as many posts are part-time; and if she will make a statement on the matter. [37292/13]

Joan Burton (Dublin West, Labour)
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The family income supplement (FIS) is an in-work support which provides an income top-up for employees on low earnings with children. FIS is designed to prevent child and family poverty and to offer a financial incentive to take-up employment as compared to 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.

The “hours worked” eligibility criterion has been reduced significantly since the introduction of the scheme in 1984. The requirement was initially set at 30 hours per week but was progressively reduced to 19 hours per week in 1996. Further reducing the “hours worked” requirement would have expenditure implications. Therefore, consideration of any change to the hours worked criterion would have to be in a budgetary context. .

Creating jobs and reducing unemployment are key challenges facing the Government. The tax and social protection systems have a part to play in addressing these issues and in ensuring work is remunerative. To this end, I established an Advisory Group on Tax and Social Welfare with the aim of harnessing expert opinion and experience in order to address a number of specific issues. These include making cost-effective proposals for improving employment incentives and achieving better poverty outcomes. The Group is currently examining the issue of working age supports, including in-work supports such as FIS.