Nearly 58,000 employees need income support

There are nearly 58,000 workers being subsidised by the State to the tune of €422m as their incomes are too low to survive on, according to figures from the Department of Social Protection.

During the Tesco strike, there were allegations that management in some Tesco stores had incorrectly warned staff that they would lose these family income supplements (FIS) entitlements because of their industrial action.

Tesco is Ireland’s largest private employer with 11,000 workers. It makes an estimated annual profit of €200m to €250m in this country, yet it’s understood that 10% of its staff receives family income supplement.

Across the country, there were 57,567 people in receipt of FIS at the end of last year. Up to 127,408 children live in homes where the FIS is paid.

These workers are earning less than agreed thresholds of pay while other recipients are only on temporary contracts of up to three months while some are availing of the back to work allowance, job initiative or part-time job incentive.

For instance, a worker with two children who earns less than a total household income of under €612 a week is entitled to FIS. The amount he or she is entitled to is assessed by the department and they are paid 60% of the difference between their family income and the threshold.

Department of Social Protection figures show that families with two children are the most likely to claim this supplement, followed by families of three and four children. There are 13,569 FIS supplements in Dublin, 6,110 in Cork, 2,761 in Galway, 2,463 in Limerick, 1,828 in Waterford and 1,717 in Kerry.

The Department of Social Protection said “case officers in each locality will specifically use FIS as an incentive to move unemployed people from the long-term Live Register to employment”.

It also has a dedicated team of officials who “provide an intensive and tailored service to large employers and work with them in meeting their current needs and future demands and FIS features in this package of supports”.

It describes the payment as part of a “wide range of employment support services provided by the department”.

Former Labour Leader and tánaiste Joan Burton has defended the scheme saying many workers who claim FIS cannot work a full working week due to family obligations. Ms Burton added that FIS is an important incentive for people joining the workplace from unemployment: “Many of these workers are coming from unemployment and it’s better to have some work than no work, all the research nationally and internationally shows.”

She also said supermarket chains like Dunnes Stores and Tesco compare favourably with other employers and have “strong wage agreements in place”.

The strike by Tesco workers was suspended at the end of last month to allow ongoing talks at the Labour Court.