Family income supplement
The Minister said the £5 million scheme was intended to help low-income working families caught in a poverty trap, with about 20,000 families expected to benefit. It was planned as a monthly payment from 1 October, subject to legislation and Government approval; eligibility and payment amounts were still being worked out, and the Department aimed to keep administration simple.
asked the Minister for Social Welfare when the family income supplement which was promised in the budget will be introduced.
Comment on this
A sum of £5 million was provided in this year's budget for the purposes of a family income supplement scheme. I will be submitting my proposals on the scheme to the Government shortly and when these have been approved the necessary legislation will be introduced. I intend to bring the scheme into operation later this year.
Comment on this
The £5 million allocated in the Finance Bill has been taken from PRSI allowances. Could the Minister indicate how much will be paid to families who are entitled and how many families are eligible under the scheme? Will the Minister state if it will be a weekly sum, a monthly sum or a lump sum?
Comment on this
About 20,000 families are estimated to benefit from the scheme. I have not calculated as yet the exact amount of benefit but it will be paid on a monthly basis. Work is proceeding in my Department on preparation of the proposed scheme. We are in consultation with other Departments and I hope to have the legislation through the Dáil before the summer recess. The legislation will be introduced to operate from 1 October with an amount of £5 million for the last quarter of the year.
Comment on this
I take it the full £5 million will be available for distribution and that there will not be any administrative costs taken from that amount?
Comment on this
The scheme will have to be administered by the Department of Social Welfare on an ordinary administrative basis. We are examining the basis of administration. I am anxious to keep it as simple as possible because of the enormous pressures on staff at present.
Comment on this
In his budget speech on 9 February the Minister for Finance indicated that a group of workers could be in a poverty trap situation if they were somewhat above the basic level of social welfare but below the lowest level of general wage income. The Minister indicated that people in such a poverty trap situation were suffering. It was intended to introduce the scheme as a supplement for low income families who were in the active labour force.
Comment on this
Legislation will be necessary in this instance and that will afford an opportunity for a long discussion of the matter.
