Written answers
Tuesday, 10 July 2018
Department of Employment Affairs and Social Protection
Working Family Payment
John Brady (Wicklow, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
895. To ask the Minister for Employment Affairs and Social Protection if the working family payment, formerly FIS, has been reviewed since its introduction. [30842/18]
Regina Doherty (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source
The Working Family Payment (formerly FIS) was introduced in 1984 and is an in-work support that provides an income top-up for employees on low earnings. WFP is designed to prevent in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment.
My Department regularly reviews its schemes to ensure that they continue to meet their policy objectives. There have been a number of changes to the WFP Scheme since its introduction in 1984, which are summarised in the following table: these have included changes to the hours-worked eligibility criteria, increases in the income thresholds and a reduction in the WFP multiplier.
Specific reviews are as follows:
- A policy and value for money Review of Child Income Support and associated spending programmes, including WFP, was published in 2010.
- The Advisory Group on Tax and Social Welfare was established in June 2011, harnessing expert opinion and experience to examine a number of specific issues relating to the tax and welfare systems. The Group produced a number of reports over the 2011-2013 period, and made proposals for improving employment incentives and achieving better poverty outcomes, particularly child poverty outcomes.
- In 2017 as part of the initial process of developing the Working Family Payment (WFP), the Department carried out an extensive analysis of the range of supports it provides, including the Working Family Payment, to assist individuals to take up and remain in employment. This analysis showed that existing in-work supports are very effective and work well in assisting individuals to make the transition from unemployment into employment.
- Finally, the Social Welfare Act 2017 provides for a review of the operation of the Working Family Payment, including the requirement to work at least 19 hours per week, or 38 hours per fortnight, to be submitted to the Social Protection Committee.
WFP Developments 1984 – to date
| Year | Development |
|---|---|
| 1984 | Scheme introduced to provide income support for employees on low earnings with children. |
| 1986 | Reduction in the minimum number of hours worked per week from 30 to 24. |
| 1989 | An increase in the multiplier from 50% to 60% of the gap between actual income and ceiling. Reduction in the number of minimum hours worked per week from 24 to 20. |
| 1991 | Extension of WFP to families with children ages 18-21 in full-time education. Scheme extended to co-habiting couples with children. |
| 1996 | A reduction in the minimum hours required to work from 20 a week to 38 a fortnight. Qualifying employment period reduced from 6 to 3 months. |
| 1997 | Method of calculating amount of WFP changed from gross income to net of PRSI contributions and health and employment levies. |
| 1998 | Method of calculating amount of WFP changed to net income pay after tax, levies and superannuation. |
| 2006 | Refocusing of income thresholds to include additional gains for larger families. Prior to 2006, weekly income thresholds were increased by a fixed amount regardless of family size. This led to a bias in favour of smaller families. Budget 2006 and subsequent budgets concentrated additional resources on larger families. |
| 2012 | Budget 2012 provided for the inclusion of income from weekly carers payments for the purposes of calculating entitlement to WFP in line with other welfare payments (introduced over a three year period). Budget 2012 also provided for the inclusion of income from employment as a home help in the WFP income assessment. |
| 2013 | Social Welfare legislation generally precludes changing the WFP rate within the 52 week payment period, except in the case of an increase for an additional child. However in light of the changes to the One-parent Family Payment (OFP) regulations were introduced in July 2013 as an exceptional measure, to enable entitlement to WFP to be reviewed so that former OFP recipients in receipt of FIS will have their WFP payment increased in light of the termination of their OFP due to the age of the youngest child. The WFP payment will be adjusted solely to take account of the loss of OFP income and other changes in income will not affect the rate of WFP within the original 52 week award period. |
| 2016 | Budget 2016 increased the Working Family Payment income thresholds by €5 for families with one child and €10 for families with two or more children. |
| 2018 | Budget 2018 increased the Working Family Payment earnings thresholds by €10 per week for families with up to three children. The name of the Family Income Supplement was also changed to the Working Family Payment to better reflect the nature of the payment |
No comments