Written answers

Thursday, 17 December 2015

Department of Social Protection

Family Income Supplement Eligibility

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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89. To ask the Tánaiste and Minister for Social Protection the full-year cost of replacing the 38-hour threshold for family income supplement qualification with a sliding scale system that would reflect the fact that many persons may be working, or wish to work, fewer than 19 hours per week and may be in just as much need as current recipients of this supplement; and if she will make a statement on the matter. [46212/15]

Photo of Joan BurtonJoan 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 in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment. There are over 54,000 families in receipt of FIS, an increase of over 70 per cent since 2011. The estimated spend on FIS this year is approximately €349.2 million, an increase of €50 million on last year.

To qualify for 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 set at 38 hours per fortnight/19 hours per week since 1996. It is not possible to estimate the costs associated with replacing the current thresholds for FIS qualification without specifying a) a new hours threshold and b) the 'sliding scale'.

Reducing the “hours worked” requirement would have implications for existing working age schemes. Under jobseeker's benefit and jobseeker's allowance a person may, subject to scheme criteria, work for up to three days and continue to receive support under the schemes. The proposal set out by the Deputy would be significantly more complex than the present scheme and could require additional resources to administer.

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