asked the Minister for Social Welfare if he will consider paying pay-related benefit on the average weekly earnings of an applicant during his period of employment rather than on the average annual weekly earnings.
Ceisteanna—Questions. Oral Answers. - Pay-Related Benefit.
11.
The basis on which pay-related benefit is calculated was carefully considered when the scheme was being drawn up and the system introduced, which takes account of an applicant's earnings over the income tax year, was considered to be the most equitable and suitable arrangement. While I am always ready to consider improvements in the scheme of pay-related benefit I am not satisfied that the arrangement suggested by the Deputy would improve the scheme.
Surely the Parliamentary Secretary is aware that, when Fianna Fáil introduced the scheme of pay-related benefits, the idea behind it was to cushion an employee who, possibly, had hire-purchase commitments, an SDA loan or other financial commitments, but because it is based now on the previous financial year, many a person unemployed today does not qualify for any pay-related benefit whatsoever? He may have been unemployed for part of the year 1973-74; came into employment again early in 1975, finds himself again unemployed and does not qualify for pay-related benefit? If the idea behind the scheme was to cushion an employee against lack of earnings because of either sickness or unemployment, I suggest to the Parliamentary Secretary—as mentioned in my question—that the pay-related benefit be based on the average earnings of the three months prior to a person becoming unemployed.
Several improvements were made by way of regulation under the scheme drawn up by the former Administration, all of which were to the benefit of the recipients. Pay-related benefit is designed to ensure, as far as possible, that a man's normal earnings be maintained, to some extent, during periods of prolonged sickness or unemployment. The operation of the scheme has proved to be of very considerable value to people who avail of it. I do not think that the proposal made by the Deputy would achieve the object of the scheme.
Surely the Parliamentary Secretary will agree that if a person was sick for, say, six months of 1973-74—because it is only on his income tax return to the Revenue Commissioners that pay-related benefit is based—even if his social welfare payments when he was ill in 1973-74 were added to his earnings it would be of some help? But, at present, as the Parliamentary Secretary is well aware——
I have allowed the Deputy a lot of discretion. He may not make another speech.
——the pay-related benefit scheme is not helping those it was intended to help in so far as cushioning their problem when unemployed or sick?
Irrespective of what period one might choose on which to make a judgment, some people would benefit by a particular period and some would lose. Since the introduction of the pay-related benefit scheme, fortunately persons who find themselves in the position the Deputy has described benefit very considerably.
No, they do not.
Question No. 12.
Would the Parliamentary Secretary confirm that there is a very substantial balance in the Fund at present?
I confirm that the Fund is in a healthy state, and I am glad to say so.
Could the Parliamentary Secretary indicate approximately what is the balance at present?
That is a separate matter.
No, I could not indicate that off-hand.
The reason is that people are not getting the benefit from it.
I doubt if the general public would agree with the Deputy.