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Dáil Éireann debate -
Wednesday, 10 Nov 2004

Vol. 592 No. 2

Other Questions.

Social Welfare Benefits.

Brian O'Shea

Question:

69 Mr. O’Shea asked the Minister for Social and Family Affairs the number of persons eligible for the family income supplement who are in receipt of the supplement; and if he will make a statement on the matter. [28227/04]

Paul Nicholas Gogarty

Question:

96 Mr. Gogarty asked the Minister for Social and Family Affairs the additional measures he intends to put in place to increase the take-up and use of family income supplement. [28171/04]

I propose to take Questions Nos. 69 and 96 together.

Family income supplement is designed to provide cash support for employees in low-paid employment with children. This preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were claiming other social welfare payments.

The improvements to the family income supplement scheme, including the assessment of family income supplement on the basis of net rather than gross income and the progressive increases in the income limits, have made it easier for lower income households to qualify under the scheme. For example, the budget for 2004 raised the weekly income limits by €28 at each point, adding an extra €16.80 to the payments of most FIS recipients. The minimum weekly FIS payment was increased by €7, from €13 to €20. The number of persons in receipt of family income supplement at the end of October 2004 was 14,303, with an average weekly payment of €74.16.

My Department undertakes a number of proactive measures to ensure people are aware of possible entitlement to FIS. These include advising all newly awarded one parent family payment recipients, advising all employers annually in PRSI mailshots and examining entitlement in all awarded back to work allowance cases. Information on FIS is also contained in all child benefit books and can be accessed on the Department's website.

In addition, the scheme has been extensively advertised through local and national media outlets, including newspapers and radio, as well as through poster campaigns and targeted mailshots. Every effort will continue to be made to publicise family income supplement and to increase awareness of social welfare entitlements generally.

We all agree that FIS is designed to encourage take-up of work by people with families and is calculated against a percentage of the net weekly income. Is it the case that approximately one third of potential beneficiaries who would gain from FIS do not claim? Will the Minister investigate it as it is an issue we raised with his predecessor? At a recent meeting, the Society of St. Vincent de Paul asked if the Minister would consider promoting the scheme through a public awareness campaign adequately funded by his Department. This could well deal with other issues to which the Members on this side of the House referred in previous questions. If we can get the aforementioned aspects working, there might be a significant increase in the take-up of the scheme.

Research undertaken by the ESRI in 1997, based on the results of a survey, suggested that fewer than one in three claimed benefits under the scheme. Since those with a higher entitlement are more likely to avail of the scheme, the take-up was estimated to involve between 35% and 38% of potential expenditure. I will consider stepping up the information campaign on the scheme.

Given that only one third of those entitled to family income supplement avail of it, will the Minister comment on the Combat Poverty Agency's call for an increase in both the rate and take-up of the supplement? The agency said that 17% of those in relative poverty are working and therefore the number of working poor is increasing at an exponential rate. The low take-up of the family income supplement doubles the effect on those who are not afforded the benefits that they are supposedly entitled to receive from the Department.

I am anxious that the take-up increase. I have indicated to Deputy Penrose that I will consider furthering the information and awareness campaign in this area. There is no doubt that poverty as we understand it in this part of the world, which is very often different from poverty in other parts of the world, is not confined to those on benefits. People on very low incomes, particularly those with large families, suffer also — Deputy Boyle used the term "working poor" in this regard.

A number of schemes have been designed to bridge the gap between unemployment and employment and to ensure that one stays in employment. The minimum wage legislation had a great impact in this regard. It ensured that the minimum wage was sufficient to entice one to enter the workforce and remain therein rather than continue to avail of unemployment benefit. Successive Governments have put a lot of time and effort into exploring the relationship between welfare and work. The schemes to allow one enter the workforce and remain therein have resulted in a low level of unemployment nationally. However, I take Deputy Crowe's point that parts of the country have higher levels.

How much has the Minister's Department spent on advertising the family income supplement in different media over the past two years? Would he consider using television as a medium for advertising it? Would he consider allowing people on community employment schemes, who are on very low wages, to avail of the supplement, especially those with children?

I do not have a figure concerning the amount we spend advertising the family income supplement. We have a number of awareness campaigns. We have not used television as such because we tend to focus on local radio and newspaper advertising. Some €300,000 to €400,000 has been spent on the advertising of particular schemes on radio and in newspapers. I will try to ascertain for the Deputy how much of this is devoted to the family income supplement, but it might not be possible to get a breakdown because the advertisements are sometimes general in nature and cover a number of schemes. I note the Deputy's view on the matter.

I will examine the implications of the Deputy's second question. As he knows, the scheme is confined to those in employment.

Social Welfare Code.

Emmet Stagg

Question:

70 Mr. Stagg asked the Minister for Social and Family Affairs if he has proposals to increase resources available under the back to school clothing and footwear allowance; the number of recipients of the allowance in 2004; and if he will make a statement on the matter. [28200/04]

The back to school clothing and footwear allowance scheme assists certain families facing extra costs when children start school each autumn. The scheme operates from the beginning of June to the end of September each year and is administered on behalf of my Department by the health boards. A person may qualify for payment of a back to school clothing and footwear allowance if he or she is in receipt of a social welfare or health board payment, is participating in an approved employment scheme or attending a recognised education or training course and has household income at or below certain specified levels.

Under the scheme, an allowance of €80 is payable in respect of qualified children aged from two to 11 years. An allowance of €150 is payable in respect of qualified children aged from 12 to 22 years. A couple with one child whose weekly income is at or below €348.10 may qualify for the allowance. A lone parent with one child could have income of up to €238.90 per week and qualify for a payment. For couples, the income limit is increased by €19.30 for each additional child and for lone parents it is increased by €21.60 for each additional child. This year so far, a total of 75,640 families have received the back to school clothing and footwear allowance. This has benefited 158,000 children.

According to the consumer price index, the cost of clothing and footwear has fallen by 2.6% in the year to June 2004 although the overall consumer price index rose by 2.3% during the same period. In the 15-year period from 1990 to 2004, the cost of clothing and footwear has fallen by 29.5% overall. In the same period, the payment rates under the scheme have increased by 195% in the case of children aged 12 years or more and by 152% in the case of those aged under 12 years. On this basis, there has been a very significant real increase in the value of the assistance available through the scheme in recent years.

As part of the expenditure review programme in my Department, a working group was established to undertake a fundamental examination of all aspects of the scheme, including rates of payment, income limits, the means test, the timing of payments, eligibility criteria and other issues. A report is being finalised and when it is completed I will consider any structural or administrative changes recommended. Any increase in the scheme payment rates would be a matter for consideration in the context of the budget in light of other priorities.

Does the Minister not agree that the level of payment is still totally inadequate? On average, it costs €367 to fit out a third year student in secondary school and €272 to fit out a third class pupil in primary school. The costs depend on the age of the children and schools' individual requirements. Many schools have particular specifications pertaining to uniforms, including blazers and overcoats. In this context, does the Minister not agree that the allowances of €80 in respect of qualifying children aged between two and 11 and €150 in respect of children from 12 to 17, who are generally in secondary school, are inadequate? Will he consider revising upwards the income limits for the back to school clothing and footwear allowance to reflect the current income limits that obtain in respect of the family income supplement? For example, the income limit of a family with two children should be increased to €433 from the current limit of €367.40. Will the Minister consider increasing the rates of the back to school clothing and footwear allowance to €180 for primary school children and €250 for secondary school children? This would cost approximately €25 million but would ease a great headache for many working class people and others on the margins for whom the months of August and September are difficult.

The allowance was first granted in the early 1990s. It was never intended to meet the full cost of school clothing and footwear but was intended to assist in meeting it. As I stated, while the real value of the allowance has increased somewhat over the years, I am acutely aware that people face many extra costs when sending their children back to school each year. I will certainly consider what the Deputy is saying.

Some 75,000 applications were approved under the scheme and approximately 172,000 children benefited. The allocation for 2004 is €19.48 million and the rates will be considered in the context of the budget.

When does the Minister expect the report to be available and when was it commissioned? Will he consider extending the closing date for the scheme because many people who do not know about it will miss the closing date.

I am not aware of any significant problem but if the Deputy is aware of a problem, I will ask the Department to examine the closing date. The expenditure review is under way but it will be a few weeks before it is available.

Is this another example of where people do not take advantage of the opportunities available to them? Surely it should be easy for the Department to identify the people who are entitled to the back to school allowance. Are there proposals to investigate the matter?

The scheme is administered by the health boards on behalf of the Department, parallel with the supplementary welfare allowance scheme. I do not have statistics on the take-up of the scheme but I will try to get them for the Deputy. The budget allocation this year was €19.4 million, but the amount was a little less in terms of actual payments. This may indicate a difficulty with take-up, which I will examine.

Employment Support Services.

Phil Hogan

Question:

71 Mr. Hogan asked the Minister for Social and Family Affairs the steps his Department has taken to encourage those who have been out of the labour market to avail of appropriate pre-employment training and development and education opportunities; the number of persons who have received such a service for each of the years 2002, 2003 and to date in 2004; and if he will make a statement on the matter. [28161/04]

Gay Mitchell

Question:

80 Mr. G. Mitchell asked the Minister for Social and Family Affairs the number of persons in active age groups who are dependent on State income supports and who have been referred for training or further education in 2002, 2003 and 2004; and if he will make a statement on the matter. [28130/04]

Enda Kenny

Question:

104 Mr. Kenny asked the Minister for Social and Family Affairs the number of persons in active age groups who are dependent on State income supports and who have had their case managed in facilitating their return to work or participation in training or further education in 2002, 2003 and 2004; and if he will make a statement on the matter. [28131/04]

I propose to take Questions Nos. 71, 80 and 104 together.

My Department provides a range of supports to assist and encourage long-term unemployed and other long-term welfare recipients to return to work, training or further education. My Department's primary intervention to assist people on the live register find work, training or further education is the national employment action plan. Under the terms of this plan, people aged 18 to 55 years of age, who are on the live register, are systematically referred to FÁS for guidance, education or training.

In the period from January 2002 to the end of June 2004, a total of 91,324 people were selected for referral to FÁS under this process. Of these, 52,865, or 58%, closed their unemployment claims and left the live register. A total of 18,103 were placed in jobs, FÁS programmes or returned to education, accounting for 20% of those referred. Of these, 10,489 people were placed in jobs, 5,192 were placed in FÁS programmes and 2,422 returned to education or were placed in non-FÁS training courses. In addition, another 14,000 people who were on the live register for more than six months have been referred to FÁS. Some 4,122, or 29%, of these have closed their unemployment claims.

Some people face severe employability issues which are not amenable to resolution within the normal range of interventions available. To assist such people, a high supports process was established in 2003 by the Department of Enterprise, Trade and Employment. As part of this process, local networks of relevant service providers were established in certain areas in conjunction with FÁS and my Department. People identified as suffering severe employability issues are referred to the local networks and appropriate avenues identified to enhance employability.

Another significant measure is the back to work allowance scheme which incentivises and encourages long-term unemployed people, lone parents and certain persons with disabilities to return to work by allowing them to retain part of their social welfare payment when they take up employment or self-employment. Currently there are 12,097 participants in the scheme, over half of whom are engaged in a wide range of self-employment options.

A further measure offered by my Department's employment support service is the back to education allowance programme. This is a second chance educational opportunities programme designed to encourage and facilitate unemployed people, lone parents and people with disabilities to improve their skills and qualifications with a view to returning to the workforce. In the 2003-04 academic year, 7,648 eligible social welfare customers availed of the scheme. A range of other supports is provided by my Department's locally-based facilitators. Their primary role is to assist the long-term unemployed and other long-term welfare dependants back to work, training or further education by providing them on an individual basis with assistance to access the necessary programmes or supports where their circumstances demand. Facilitators have access to additional services and funding to arrange specialised training and supports for those who are distant from the labour market and who need additional help in preparing them for further training and employment. To date this year, 167 projects were supported at a total cost of €2 million.

Will the Minister agree that the cutbacks made by his Department and the Government last year acted as a disincentive to people to return to work? The qualifying period for the back to education allowance was increased from six to 15 months. What impact did this have on people wishing to go back to work? What has been the impact of the exclusion from rent supplement while either of a couple is working over 30 hours per weeks, which saved the Minister €1 million, in helping people return to work? What was the impact of the abolition of the crèche supplement? I contend it did not have a positive impact. While the Minister said that 52,865 people closed their files as a result of the referral, what happened to the people who did not close their files? What plans are in place to support these people to get into work or further education or training?

As I explained, I am reviewing the various measures. An impact assessment is part of the process to see how the measures impact on returning to work. The Deputy put his finger on the situation from this point of view. In the period from January 2002 to the end of June 2004, 52,865 people closed their unemployment claims and left the live register. By simply going through the interview process and the referral to FÁS process, 58% of people closed their unemployment claims in a two and a half year period. This was done by way of 18,000 people taking up jobs, 5,000 being placed on FÁS programmes and more than 2,500 returning to education. Obviously the rest remained on benefits because their files were not closed. These figures certainly underline the success of the programme and confirm the need to continue to help people and to have FÁS examine the situation. I am sure people do not abuse the system but we must ensure they have options to take up work or return to education so that they have other alternatives to remaining on unemployment welfare.

Will the Minister supply detailed information on the numbers who applied for back to work and back to education allowances in 2003 and 2004 and those who have been successful in their claims? The criticism from this side of the House is that the qualifying criteria led to a reduced take-up of these schemes. To have the figures would help to prove that case.

I will supply the Deputy with the information. Some 12,097 people are currently in receipt of the allowance. This comprises 7,265 on the self-employment strand of the scheme and 4,832 on the employee strand.

Does this relate to both allowances?

It relates to the back to work allowance. I will get the other figure for the Deputy.

We all accept that the best way to get people out of poverty is to facilitate them back into the workplace. Was it not economic folly to emasculate the back to education and back to work allowance schemes which would have facilitated the objective at the core of Government policy? Will the Minister agree to ensure that the back to education scheme is reviewed in this context?

The labour market is always changing. Employment figures rise and fall. One can never say that a scheme must never change. There will always be need, as the labour market changes and employment opportunities improve or disimprove, to be flexible regarding schemes so that we continue to focus them where they are needed. If we spot abuse of a scheme from time to time or leakage out of the scheme in the sense that it is not focused and is leaking outside the target area, it would be irresponsible not to make the necessary changes to refocus the scheme where it was intended. We must be careful not to get into a position where schemes are so inflexible that they do not take account of people's needs.

I am determined that all the benefits and supports administered by the Department should be client-centred. There is no point in quoting rules and regulations to people. It should be a question of assessing the requirements of an individual and his or her family and then seeing what fits. It is not the case that one size fits all. Rather than adopting a bureaucratic approach, we must ensure that every scheme is client-centred, individual-centred, family-centred and is looked at from the point of view of what helps them through their difficulties and what gives them a chance to re-enter the workforce. That may be more easily said than done but that is the philosophy I hope to bring to the issue.

Why was the qualifying period for the back to education allowance increased from six to 15 months? What impact has this had?

That will be included in the impact assessment I am undertaking. The reason for the decision to increase the qualifying period was to allow a longer period within which to deal with unemployment and get people back to work in a more focused way. We are closely examining the various aspects to see what impact they have had on the lives of the individuals concerned. I give a public commitment to make the necessary amendments if hardship is involved. In some cases which I have examined and on which I have taken independent advice, including the social partnership in some areas, identifying and measuring hardship is not as easy as it sounds. That will be brought to finality soon.

John Deasy

Question:

72 Mr. Deasy asked the Minister for Social and Family Affairs the work his Department has carried out with the Department of Justice, Equality and Law Reform, the probation and welfare service, the Irish Prison Service, health boards and other agencies since June 2002 to develop more responsive social welfare services to meet the needs of ex-prisoners; and if he will make a statement on the matter. [28126/04]

Olivia Mitchell

Question:

84 Ms O. Mitchell asked the Minister for Social and Family Affairs if he will report on the involvement of his Department with the Irish Prison Service in providing advice and support to offenders in integrating or reintegrating into the labour market; the number of cases that have been dealt with in 2002, 2003 and 2004; and if he will make a statement on the matter. [28153/04]

I propose to take Questions Nos. 72 and 84 together.

My Department assists and encourages long-term unemployed and other groups who are distant from the labour market, including ex-prisoners, to return to work, training or further education through a range of measures administered by the Department's employment support service. The measures offered include the back to work allowance and the back to education allowance.

Periods spent in prison count towards the required qualification period for these payments. Other supports are provided by the Department's locally based facilitators who provide ex-prisoners and others with assistance to access the necessary programmes or supports which their circumstances demand. Facilitators have access to funding to arrange specialised training and supports for those who are distant from the labour market and who need additional help in preparing them for further training and employment. Other supports targeted specifically at the long term unemployed include the operation of the employment action plan under which customers on the live register are systematically referred to FÁS for guidance, intervention or placement.

Ex-prisoners in common with certain other categories, can face severe employability issues not amenable to resolution within the normal range of interventions available through the EAP. To assist people in this situation a high supports process was established in 2003 by the Department of Enterprise, Trade and Employment. In conjunction with FÁS and my Department's facilitators, local networks of relevant service providers are being established in certain areas. People identified as suffering severe employability issues will be referred to these networks and appropriate avenues will be identified to enhance their employability. A special fund is available to purchase specialist training or interventions that may be required to assist an individual.

My Department has been in discussion with the Irish Prison Service to explore mechanisms of referral which will best serve the needs of ex-offenders. A pilot programme is being developed in conjunction with FÁS in the Cork area which will specifically serve the needs of ex-offenders. This programme will provide an opportunity to learn which approach best meets the needs of ex-offenders and which can thereafter be applied to other areas in the State.

My Department has been proactive in addressing the information needs of ex-prisoners through the publication in 2003 of an information booklet specifically targeted at people leaving prison. The booklet contains information on social welfare payments, accommodation, financial, education, health, training and legal matters. Facilitators provide information and advice on employment supports to ex-prisoners and they also work closely with the probation and welfare service and arrange visits to prisons to provide outreach services.

Customer information held in my Department is maintained for the purpose of generating the appropriate social welfare payment and does not contain data on socio-economic or other groupings. For that reason, information on the number of prisoners who have been assisted is not readily available.

I intended to ask how many people availed of the back to education and back to work allowances, but it seems from what the Minister said that such information is not available. Is the Minister aware that many prisoners leave prison on a Friday evening when services are closed? At that stage they have no identification, address, bank account or proof of identity in the form of utility bills and so on and therefore have severe difficulty in accessing social welfare services. Will Minister ensure that when prisoners leave prison, they get more than merely a letter stating that they are ex-prisoners and that they are given some form of identification so that they can access services?

Does the Minister agree that much more needs to be done to solve the problem of homelessness among ex-prisoners? Often they have nowhere to go on leaving prison other than to a shelter for the homeless, which may lead them back into the spiral of crime. Will the Minister give a commitment to explore this area further as a matter of urgency, because there is much that needs to be done?

We could do much more. The Department has been active in trying to address what might be called the Friday syndrome. An information booklet is made available to those leaving prison. It contains accommodation details and possibilities for financial education, health training and legal matters. A fair amount of information is provided to assist prisoners. I said that facilitators are available to arrange for specialised training and support for those involved.

There are employability issues involved which are not amenable to resolution within the normal range of interventions. For that reason we have the high supports process in the Department of Enterprise, Trade and Employment. There is also a special fund to help to integrate prisoners into society. In addition, a pilot programme is being developed in Cork which will particularly meet needs in that regard. There are employability issues and I have outlined the efforts that are being made to address them.

Will the Minister expand on the information relating to the pilot project in Cork? How long has it been in progress? When is it intended it will come to a conclusion? Is it the Minister's intention to mainstream such a project, given that pilot schemes are usually left to terminate naturally or are left in some kind of administrative limbo? This project has much going for it that could translate on a nationwide basis.

The Cork project is being developed with FÁS and is specifically targeted at ex-offenders. The objective is to provide FÁS with the opportunity to learn which approach best meets the needs of ex-offenders so that this approach can be applied elsewhere. It is very much a pilot project to determine what will work in this regard. If any more information is available on the Cork situation, I will forward it to Deputy Boyle.

Can the Minister tell us when the Cork project began and the number of ex-offenders involved?

The only information I have on the Cork project is that it is being developed in conjunction with FÁS and is specifically targeted at meeting the needs of ex-offenders. The objective is to see what can be learned from it. The involvement of FÁS is intended to make an urgent link to employment and FÁS will be proactive in assisting ex-offenders in seeking employment as soon as possible, and in identifying the factors that will make them more employable. I am not sure how advanced this pilot project is. It is being developed as we speak and I will get more information about it for Deputy Stanton.

Services for People with Disabilities.

Dinny McGinley

Question:

73 Mr. McGinley asked the Minister for Social and Family Affairs the range of options he has identified to assist persons with disabilities who are in receipt of social welfare payments, to take up employment; and if he will make a statement on the matter. [28151/04]

My Department operates a number of schemes which provide income support to persons who are unfit to work because of illness, or who are "substantially handicapped" from doing work which would otherwise be suitable for a person of that age, experience and qualifications. These payments include, for instance, the contributory disability benefit and invalidity pension schemes and the means-tested disability allowance and blind person's pension schemes. In addition, there is a further range of benefits available under the occupational injury benefits scheme for people who have been disabled as a result of an accident at work.

There is also a number of employment and training incentives available within the social welfare system to encourage and facilitate people with disabilities to take up available employment and training options. In recent years, the range of employment supports has been widened considerably and now includes the back to work allowance, exemptions from the general "no work" conditions for contributory illness and disability payments, income disregards in the case of means-tested payments, family income supplement, the job facilitator network, and exemptions from liability for employer and employee social security contributions.

As part of the Government's expenditure review initiative, a working group established by my Department reviewed the illness and disability schemes provided by the Department and by the Department of Health and Children. The review identified a number of areas where employment support could be strengthened within the social welfare system and across Departments generally. The review considered that there is no single option which offers a total solution to all these problems. Rather, a combination of measures is required.

There should be a recognition that some people's medical and other circumstances may mean that they have some capacity for work, but may never achieve full-time work. The review mentioned the importance of ensuring that whatever employment support measures are adopted do not act as a disincentive for people with disabilities and long-term illnesses in maximising their employment and earnings potential. Another recommendation is to retain a range of employment supports for different client groups, and to ensure that clients are referred to the most suitable option, having regard to the nature of their illness or disability, age, social circumstances and so on. The review also recommended the introduction of early intervention measures which are aimed at re-integrating people who sustain serious illnesses, injuries and disabilities back into the workforce before they become dependent in the long term on social welfare payments.

The review also stresses the importance of meeting the additional costs of disability in ways that are less dependent on labour force status, if people with disabilities are to be given the opportunity of participating in the workforce. The review sets out a strategic direction for policy with regard to these schemes in the future and its recommendations will be taken on board in the context of the future development of the scheme.

It is appalling that the Minister has not identified a single measure specifically designed to help people with disabilities to return to employment. Has the Minister considered the Disability Bill 2004, which is a disgrace and does nothing to assist disabled persons in gaining employment? Can the Minister name one measure, the specific objective of which is to assist those with disabilities who want and are able to work but are barred from doing so because of the barriers that exist?

I have outlined a number of measures in this regard. I will continue in the context of the upcoming Comhairle Bill to provide further information on this issue.

Written Answers follow Adjournment Debate.

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