Dáil Éireann debate -
Tuesday, 2 Feb 1999

Vol. 499 No. 3

Written Answers - Social Welfare Benefits.

Billy Timmins

Question:

272 Mr. Timmins asked the Minister for Social, Community and Family Affairs the plans, if any, he has to change the terms of section 200 (1) of the Social Welfare (Consolidation) Act, 1993, (details supplied) in order that a person in receipt of a back to work allowance can be reassessed for family income supplement when this allowance is reduced in order that they do not suffer the loss of income, which happens for several months in some cases, while waiting to be reassessed. [2465/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

The family income supplement, FIS, scheme is designed to provide an incentive for low paid workers with families to take up or remain in full-time employment. As provided for in section 200 (1) of the Social Welfare (Consolidation) Act, 1993, once the level of a claimant's FIS entitlement is determined, it continues to be payable at that rate for a period of 52 weeks provided that the claimant remains in employment. The only circumstances in which the rate of payment can be amended is where an additional child is born in the course of the 52 weeks.

This provision forms an integral part of the FIS scheme and is included specifically to ensure that claimants can have absolute certainty that they will receive a guaranteed level of income support throughout the period. This certainty is critical to the success of the scheme in providing a real incentive to workers with families to avail of employment opportunities. It is recognised that, as a consequence, there is no provision to adjust the level of FIS payable upwards to compensate for any reduction in income that may occur in the course of the 52 week period. Equally, however, where the earnings of a FIS claimant rise in the course of that period, there is no provision either to reduce the amount of FIS payable.

In the circumstances, I am not of the view that an amendment to the legislation along the lines proposed by the Deputy would be appropriate.

Seán Haughey

Question:

273 Mr. Haughey asked the Minister for Social, Community and Family Affairs if he will extend the full range of social welfare benefits, including invalidity pension, to employers who paid a class D stamp; and if he will make a statement on the matter. [2495/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

Pay related social insurance contributions are made by employers, employees and the self employed. The rate of PRSI contribution depends on the class of social insurance applicable which, in turn, determines the range of benefits and pensions to which contributors may, in due course, become entitled.

The majority of PRSI contributors are in the industrial, commercial and services sectors. Employees in these sectors are covered by Class A social insurance and the combined employer and employee rate of PRSI is either 13 per cent of 16.5 per cent depending on the level of weekly income. The employee contributors build up entitlement over time to the full range of benefits and pensions provided under the system, including invalidity pension and all other contributory pensions.

Contributors who pay PRSI at Class D are permanent and pensionable public servants, not including civil servants, who were recruited prior to 6 April 1995. These contributors are covered for widow's/widower's contributory pensions, occupational injuries benefits and orphan's con tributory allowance only. The range of cover provided by Class D PRSI is reflected in the combined rate of employer and employee contribution payable which is 3.25 per cent in total.

Any extension of Class D cover to include the full range of benefits or individual benefits such as invalidity pension would require an increase in the contribution rates payable by both the employer and the employee. It is not proposed, at this stage, to extend the range of benefits provided by Class D cover. However, it should be noted that all employees recruited to the civil and public service subsequent to 5 April, 1995, pay PRSI at Class A and are therefore covered for the full range of social insurance benefits.