Willie O'Dea (Limerick City, Fianna Fail)
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577. To ask the Minister for Employment Affairs and Social Protection if she is no longer planning on introducing a working family payment as committed to in the programme for Government in view of the fact that the Government has retained family income supplement as the working family payment; if so, the rationale behind this; her plans to reform the operation of FIS in terms of the number of hours required to be worked in order to receive this payment; and if she will make a statement on the matter. [43728/17]

Regina Doherty (Meath East, Fine Gael)
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The Department’s approach to developing the working family payment was guided by two principles. First, that it should ensure that work pays, and second, that it should have a positive effect on reducing child poverty. To advance the commitment contained in the Programme for Partnership Government, the Department established an internal working group and an Inter-Departmental Group of the relevant Government Departments to consider proposals.

As part of this process the Department carried out an extensive analysis of its existing range of supports that are aimed at assisting individuals to take up employment. The analysis showed the existing in-work supports are very effective, and work well in assisting individuals make the transition from unemployment into employment.

These findings are confirmed by the ESRI’s research into the Department’s existing in-work measures, and Eurostat figures, which show that the parental in-work poverty rate in Ireland is 5.8%, significantly below the EU 28 average of 11.2%. This is in large part due to the Department’s in-work supports such as Family Income Supplement and the Back to Work Family Dividend.

Consequently, the analysis carried out by the working group did not support the need for the establishment of a new scheme. In the context of Budget 2018 it was decided to re-designate the Family Income Supplement (FIS) scheme as the Working Family Payment (WFP), which will bring it more visibility as a payment aimed specifically at working families. The new name better reflects the nature of the payment and the Department would encourage families to look into seeing if they are eligible for the payment.

In relation to the working hours requirement associated with qualification for payment of the WFP, 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. This “hours worked” eligibility criterion has been reduced significantly since the introduction of the scheme in 1984, from 30 hours per week to 19 hours per week in 1996. It is important, however, to ensure that the WFP does not inadvertently subsidise unsustainably low earnings or encourage employers to offer minimal hours of employment.

For low-income workers with less than the minimum hours of employment for the WFP and working on a casual basis up to and including 3 days per week, the jobseeker’s allowance scheme provide in-work income support through daily disregards and tapered withdrawal of payments. Individuals on jobseeker’s benefit can also work up to 3 days per week. For each day they work they lose a proportionate reduction in their jobseeker’s benefit payment.

If a person cannot meet the 19 hours WFP threshold the Department offers a number of other schemes, which can provide income support that can be combined with earnings from employment, subject to each individual’s circumstances. These include jobseekers allowance and benefit (which permit an element of casual work), disability allowance, carer’s allowance, the one-parent family payment, jobseeker’s transitional payment and the part-time job incentive scheme. Combined, the Department provides an extensive system of social welfare support, which facilitates recipients taking up some employment while maintaining their social welfare payment.

Given all of the above there are no plans to reform the operation of the WFP in terms of the number of hours work required to qualify for payment.