Written Answers. - Social Welfare System.
Seamus Kirk
Question:
27
Mr. Kirk
asked the
Minister for Social Welfare
his assessment of the main deficiencies in the current social welfare system; the priorities, if any, he has for dealing with these problems; and the timescale within which each of the main deficiencies may be realistically remedied.
[12935/96]
The Deputy is no doubt aware that the current social welfare system is a very complex and wide-rang-ing system which provides a comprehensive range of services to those in our society who are in need of them.
Having regard to the nature of the services we provide, it is inevitable that the evolution of the social welfare system has been largely on anad hoc basis over a number of decades with new schemes being developed to meet urgent and emerging needs of the day. As a consequence, we now have a system which is, in my view, overly complex and which requires to be reformed and streamlined.
I believe that such reform is necessary for a number of reasons. First, the system must be simplified so that clear and easily understood information on social welfare entitlements is readily available to all our citizens.
Second, we need to tackle the internal inconsistencies which have developed within the social welfare system, and third we need to ensure that the social welfare system interacts more efficiently and more effectively with other areas such as the employment services, taxation, and the health services.
The substantial reform of the social welfare system which is now required is clearly not capable of being achieved overnight. It is necessarily an incremental process but one on which a start has already been made. This year's Social Welfare Act, for instance, provides for the introduction of the new one parent family payment, which will amalgamate the existing lone parent's allowance and deserted wife's benefit and will remove the concept of desertion from the social welfare system.
There are a number of other areas which are receiving priority attention. In the area of income adequacy, the increases provided for in the 1996 budget have enabled us to make real progress towards achieving the main target rate set ten years ago by the Commission on Social Welfare. Contributory pensioners remain well ahead of the main rate while, for the first time, widows, widowers and deserted wives have reached the target rate; carers and invalidity pensioners are now on 99 per cent and 97 per cent of the rate, respectively; and all other groups are either at 92 per cent or 95 per cent of the target rate.
I have also commissioned the ESRI to review the minimum adequate income rates that were recommended by the Commission on Social Welfare and I look forward to receiving their report in the coming months.
Attention has also been directed to the area of supporting those engaged in part-time, casual and low-paid employment. The Social Welfare Act, 1996 provides for radical reform of unemployment assistance which will greatly simplify what is now an extremely complex system and which will make it more attractive for people to avail of parttime and casual work opportunities. It also provides for significant improvements in family income supplement, for substantial pro-employment PRSI changes, and for the retention of child dependant allowances for 13 weeks in the case of people who have been unemployed for over a year and who have secured employment expected to last for at least four weeks.
In addition, the forthcoming publication of the final report of the expert group on the Integration of the Tax and Social Welfare Systems will provide further opportunities for planned and effective reform of the social welfare system.
In relation to child income support, the Deputy will be aware of the very substantial increases provided for in child benefit in 1995 and again this year.
Taking the two years together, a 45 per cent increase has been provided in respect of the first two children and a 36 per cent increase for other children. Child benefit is one of our most effective means of tackling poverty as it channels resources directly to families most in need. It is of particular importance to families on low incomes as it is not taxable, is not withdrawn when an unemployed parent takes up employment and is not assessed as means for other secondary benefits such as differential rents, medical cards, etc.
A further crucial area relates to the issue of funding our pensions system in the future. The National Pensions Board in its final report "Developing the National Pension System" has put forward a range of recommendations which are being examined at present in my Department with a view to bringing forward proposals in a budgetary context.
The priorities for the ongoing programme of social welfare reform are those clearly enunciated in the Programme for a Government of Renewal agreed between the three Government parties and the social welfare commitments in theProgramme for Competitiveness and Work agreed with the social partners. Progress in achieving those objectives must have regard to the availability of resources in the overall budgetary context.
