Extra cash for low-income families

More than 21,000 low-income families are to get extra social welfare cash in 2006 in a bid to tackle child poverty, it emerged today.

Social & Family Affairs Minister Seamus Brennan has approved increases in the weekly income thresholds for the Family Income Supplement (FIS).

The adjustments are part a €150m package on top of the general rises in weekly welfare rates announced in the Budget and the Government’s new childcare provisions.

“The measures are dedicated to measures to alleviate the unacceptable blemish of child poverty in the Ireland of the 21st century,” Mr Brennan said.

He explained the FIS increases have been tailored to target larger families because research shows they are at highest risk of child poverty.

The new increases will directly benefit the over 16,650 families who currently receive the entitlement and an extra 5,000 who now will become eligible.

The increases of between €19 and €282 in the weekly income thresholds will deliver extra weekly income of between €11.40 to €169.20 to all recipients.

Mr Brennan urged all families to check their social welfare entitlements in case they are eligible.

He said there will would be a nationwide public information campaign to promote the FIS entitlements.

“The Family Income Supplement is designed to provide vital cash supports for employees on low earnings with families, while at the same time preserving the incentive to remain in employment,” the minister said.

“Research has shown that poverty is more likely to be concentrated in larger families.

“For this reason the new FIS thresholds that I am introducing significantly increase all payments while concentrating additional resources on larger families.

“I am confident that the improvements will contribute towards targeting resources at households in poverty and in helping them deal with income difficulties.”

Mr Brennan said welfare spending by the Coalition Government increased from €7.8bn in 2001 to €13.5bn in 2006.

FIS is calculated at 60% of the difference between net weekly income and the income limit for the family size.