Vol. 728 No. 7
19 Deputy Billy Kelleher asked the Minister for Social Protection if she will elaborate on the commitment in the programme for Government to examine family and child income supports and if all cuts in child benefit are absolutely precluded by the programme. [6052/11]
Family and child income support payments both assist parents in contributing to the costs associated with raising children and play an important role in the objective of reducing child poverty. The Government is conscious that these payments are an important source of income for all families, particularly during a time of recession and unemployment. A value for money review of child income support policies and associated programmes was published by my Department in November 2010. The review covered policy around child benefit, qualified child increases and the family income supplement payments, as well as aspects of some other child-related payments. My Department is also undertaking some follow-up work, including a consultation seminar held yesterday with interest groups on the review which gathered the views of stakeholders as to the future direction of policy on child income supports. Creating jobs and tackling poverty are two of the key challenges we face. It is essential that our tax and social protection systems play their part in addressing these problems. As we stressed in the preamble to our programme for Government, in order to address the very substantial problems that we face, it is essential that new ways, new approaches and new thinking will form the constant backdrop to the work of the Government. For this reason the Government will seek to benefit from the expertise of a commission on tax and social welfare that will consider a number of issues arising out of the operation of the tax and social welfare systems. The Government will consider the scope of the commission's work and the practical arrangements around its operation and an announcement will be made on this as soon as possible.
The Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced, and which recognises the need for social solidarity. In addressing all aspects of the public finances, it will seek to ensure that resources are allocated fairly and that less well-off families are protected in so far as possible. Decisions on the child benefit payment rate are a matter to be decided in a budgetary context.
I wish the Minister well in her new portfolio and know she will embrace the work of the Department as much as she embraced her appointment. Notwithstanding my tongue in cheek, I wish her well.
I welcome the Minister's response. However, will she clarify what is proposed with regard to the commission on social welfare, when it is expected to be established and when it is expected to report? This is a critical part of the overall review of social welfare. Value for money reviews were published last year and these indicated clearly there would be a change in thinking from the Department. During the election, the issue of further reductions, in child benefit in particular, was considered a red line issue. In view of the programme for Government and the negotiations that have taken place since then, is it still the view of the Minister and of the Government that child benefit remains a red letter issue?
The Fine Gael proposals with regard to less waste, lower taxes and stronger Government are expected to deliver savings of approximately €250 million in the area of child benefit by 2014. How does the Minister square that circle in the context of trying to retain dependants' social welfare payments and at the same time achieve the Government target of saving up to a quarter of €1 billion in the area of child benefit? This target suggests there will be some form of reduction in child benefit or the family income supplement. Otherwise, the circle will not be squared.
I thank Deputy Kelleher for his good wishes. I am unsure whether Fianna Fáil has decided on its spokespersons, but I welcome the Deputy here today.
The programme for Government contains a commitment to maintain social welfare rates. I cannot at this time give an explicit commitment on child benefit rates, as specific decisions on payment rates are made in a budgetary context. However, the Government considers it a priority that a more fundamental examination of our system of family and child income supports is required. It is for that reason we will ask the commission on taxation and social welfare, when established, to examine and make recommendations on these payments, with particular emphasis on addressing the cycle of child poverty. These are the commitments in the programme for Government. In the context of the commission on taxation and social welfare, the programme sets out a number of areas which will be examined, including the issue of child and family income supports and the issue of the self-employed and their relationship to the social insurance system.
When does the Minister envisage the establishment of the commission and when does she envisage it reporting? Will the commission operate on a broad consultation basis or on the basis of the expertise of the appointees to it?
The Department and I are currently reviewing the establishment of the commission and I hope to be in a position to make an announcement in the near future. I hope the issue of child and family income supports will be the first matter to be considered. As the Deputy knows, a great deal of work has been done in this area down the years and I hope the commission will be in a position to report within a reasonable timeframe.
20 Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the changes she will make to the operation of the habitual residency rule which is acting as a barrier for many returning emigrants, and family carers in particular, from accessing social welfare and the reason there was no mention of this issue in the programme for Government. [6136/11]
The habitual residence condition applies to social assistance payments and to child benefit. The determination of a person's habitual residence is made in accordance with five factors which are set out in legislation, as follows: the length and continuity of residence in the State or in any other particular country; the length and purpose of any absence from the State; the nature and pattern of the person's employment; the person's main centre of interest; and the future intentions of the person concerned as they appear from all the circumstances. These five factors have been derived from European Court of Justice case law.
EU rules prevent discrimination on nationality grounds in relation to social security, so it is not possible to exempt a particular category of Irish citizens, such as returning emigrants, from the habitual residence condition, either in general or for carer's allowance, without extending the same treatment to all EU nationals. However, the guidelines regarding determination of habitual residence address the issue of returning emigrants very specifically. The guidelines state: "A person who had previously been habitually resident in the State and who moved to live and work in another country and then resumes his or her long-term residence in the State may be regarded as being habitually resident immediately on his or her return to the State."
In determining the main centre of interest in the case of returning emigrants, deciding officers take account of the following — the purpose of the return, for example where a foreign residence permit has expired; the applicant's stated intentions as to why he or she is returning; verified arrangements which have been made in regard to returning on a long-term basis, for example, transfer of financial accounts and any other assets; termination of residence based entitlements in the other country; assistance from Safe Home or a similar programme to enable Irish emigrants to return permanently; length and continuity of the previous residence in the State; the record of employment or self employment in another state; and whether he or she has maintained links with the previous residence and can be regarded as resuming his or her previous residence rather than starting a new period of residence. This is generally sufficient to enable the deciding officer to determine whether their present circumstances in Ireland indicate a temporary visit or habitual residence.
Comhghairdeas don Aire as an bpost a fuair sí. Tá súil agam go n-éireoidh go maith linn ar an ghnó rí-thábhachtach seo. More than 650 Irish citizens were refused social welfare payments last year on the grounds of the habitual residency condition. That figure was only for part of the year. In the Labour Party election manifesto, promises were made that the habitual residency condition rule would be reformed to facilitate returning emigrants. When and how will those reforms be brought about? What will the Government do in the interim for those 650 people? Many of them were made destitute by the current rule. Some of those excluded were Irish citizens who never emigrated, as they were from Belfast, Derry and other parts of the Six Counties. Why is there no mention whatsoever of the habitual residency condition in the programme for Government?
The Crosscare Migrant Project has encountered cases of young emigrants who had left Ireland 18 months ago, but who were told on returning that they do not satisfy the conditions. More and more Irish people are emigrating, but does the Minister understand that by failing to alter the habitual residency condition for those Irish emigrants, she is telling them to get out and stay out?
There is one minute left for this question.
When representing the Government in the UK for St. Patrick's Day, I had the opportunity to meet a large number of organisations dealing with Irish emigrants living there, including those who return home and those who intend to return home. All I can say is that fewer than 3% of the applications for carer's allowance are refused on the grounds of habitual residence. The Deputy referred to the number of refusals last year — it was 618 — but I was advised by the Department that a large percentage of those were people who did not have an Irish passport. Two hundred and six of the 618 making an application were international people.
There is an ongoing dialogue between the Department and emigrant organisations dealing with people in the UK. The guidelines are very specific. The main problem relates to this definition of centre of interest, and whether somebody is definitively coming back to Ireland.
To respond to the Deputy's point about people from the Belfast area, there are often queries about persons who may still be claiming entitlements, or have entitlements, under the system in the North. These matters generally can be addressed if the information is given very clearly, and if the centre of interest is defined. Most emigrants who return home really do not encounter much difficulty in respect of the habitual residence condition.
21 Deputy Seamus Healy asked the Minister for Social Protection when she intends to reverse the cuts in carer’s allowance implemented by the previous Government; and if she will make a statement on the matter. [6211/11]
Despite the recent cuts experienced by carers under 66, over the past decade weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit, half-rate carer's allowance and the respite care grant have been introduced and extended. The carer's allowance rate for carers over 66 years of age has not been changed and remains at €239. The rate of carer's allowance for someone under 66 is €204. Recipients of carer's allowance are also eligible for household benefits, free travel and the respite care grant.
The means test for carer's allowance has been significantly eased over the years, and is now one of the most generous means tests in the social welfare system, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €37,200 per year and qualify for the maximum rate of carer's allowance, as well as the associated free travel and household benefits. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as the associated free travel and household benefits package. These levels surpass the Towards 2016 commitment to ensure that those on average industrial earnings continue to qualify for a full carer's allowance.
From June 2005, the annual respite care grant was extended to all carers providing full-time care to a person who needs such care, regardless of their income. The rate of the respite care grant has also been increased to €1,700 per year in respect of each care recipient since June 2008.
The Government is committed to maintaining social welfare rates at their current level. Any changes will be in the context of discussions on the budget.
I concur with previous speakers in congratulating the Minister on her appointment and wishing her well for the future.
If my eyes were closed, I would have thought it was a Minister from the previous Government who was giving the reply to this question. We are dealing with the one of the most vulnerable sections of society. I understood that the Government was going to be fair and balanced in dealing with the recession, and that the less well off were going to be protected. We are dealing with people who are earning at most about €1.20 per hour——
Could the Deputy pose a question please? We have a time limit.
Is the Minister aware that carers earn about €1.20 per hour and work 168 hours per week? Is she aware that 160,000 carers work about 3.7 million hours per week and save the State about €2.5 billion per year? Is it not reasonable that this section of our community should be exempt from any cutbacks? There is a huge contrast between how carers are being dealt with and how very wealthy people get away with paying no wealth tax, even though the top 5% of the wealthiest people in the country have some €250 billion in assets. Carers have suffered a €16.30 per week cut over the last two budgets, so they should surely be exempt. Would the Minister reconsider reversing these cuts immediately?
The Minister has one minute to reply.
As of 18 March, there were approximately 50,000 people in receipt of carer's allowance, over 21,000 of whom work on the half-rate carer's allowance. The cost of the various payments and income supports that are made to carers comes to approximately €658 million.
The Deputy is right to identify the economic crisis caused by the banks and some very wealthy people in this country, and by the actions of the previous Government. It is our proposal in this Government to get people back to work. We value the work and the contribution of the carers very highly. As we regenerate the economy and get people back to work, we will then be in a position to improve the situation for carers, who do very valuable work in Irish society.
Can I ask a supplementary question?
I am sorry, but the time has expired.
22 Deputy Billy Kelleher asked the Minister for Social Protection her plans in relation to the commitment in the Programme for Government to divert staff from elsewhere in the public service to clear the social welfare appeals backlog; and if she will make a statement on the matter. [6053/11]
The need for additional resources to deal with the significant increase in the number of appeals received by the social welfare appeals office has been recognised by the Department of Social Protection. The annual intake of appeals grew from 14,070 in 2007 to 32,432 in 2010, which was an increase of 18,362 or 130.5%. It appears that some 30,000 appeals will be received in 2011. I am pleased to inform Deputies that nine additional appointments have been made to the office in recent weeks. Three of these appointments are permanent assignments and six are temporary assignments for a period of two years, subject to review. They will augment the three appointments that were made to the office in 2010 and bring the total number of appeals officers serving in the office to 29.
The Social Welfare (Miscellaneous Provisions) Act 2010 facilitated the use of experienced retired former appeals officers, strictly on a temporary basis, to help to bring the backlogs under control. As a result, eight such officers have been employed since July of last year, which represents the equivalent of three additional full-time staff. The quasi-judicial nature and complexity of the work means there can be a relatively long lead-in time before new appeals officers become fully competent to deal with the full range of cases coming to the office. In that regard and to ensure there is no loss of output during the training period of newly appointed officers, the retired former appeals officers will continue to assist in the office until the end of this year.
In line with a commitment in the programme for Government, the matter of providing further additional staff will be kept under continuous review. In conjunction with the provision of extra staff, the chief appeals officer is undertaking a review of the current operating model with a view to achieving a more effective throughput of appeals, while ensuring any progress does not conflict with due process in terms of the rights of people who are appealing and adherence to the requirements of natural justice.
I welcome the decision to continue to avail of the services of retired appeals officers, which is a worthwhile practice. The Minister referred to the quasi-judicial nature and complexity of many of the cases with which the office deals. I understand that training is critical in that context. I am concerned that the proposal in the programme for Government to reduce by 25,000 the number of people employed in the public sector and the Civil Service could affect the increased appointments that will be needed over the next few years. Although the Government has an ambitious programme for getting Ireland back to work, the reality is that many people will continue to appeal social welfare decisions. Every Deputy in this House makes regular representations to appeals officers. The number of such representations will stay at the current high level, at least, for the foreseeable future. Is the Minister satisfied that the office will have an appropriate number of competent staff to deal with an increased number of appeals?
I assure the Deputy that since I took office, I met the staff who deal with social welfare appeals. I did so as a matter of priority in order to examine ways and means of improving the service and the speed of the service. Every Deputy in the House is aware that this is a critical area, particularly for those who have lost jobs or businesses and are looking to the Department of Social Protection for income support. The provision of additional staffing is among the areas at which we are looking. That is now in train. Having spoken to officials in the Department, I am confident that the extra staff will make a significant difference.
In addition, we need to provide for more summary appeals. Deputies will be familiar with this aspect of the matter. Some difficulties arise from a failure to provide the proper documentation, etc., that is required. If we had a better system of monitoring whether application forms are fully completed, it would be possible to undertake a summary examination of each file. Given that 42% of cases are successful on appeal, perhaps this would be the best way of improving the throughput and reducing the backlog.
Does the Minister accept that appeals officers should be considered as front line staff? In the context of the proposed reductions in the public sector and the Civil Service, will she make the case for appeals officers to be considered as front line staff, like doctors, teachers, nurses and gardaí?
I will make this a priority. I have already held discussions with senior management staff on ways and means of improving the speed with which appeals are handled. As it is a quasi-judicial process, a great deal of care has to be taken when conducting appeals. I am quite confident that the appointment of additional staff and the improvement of procedures, which is being examined by the chief appeals officer at the moment, will result in a reduction of the backlog. I hope that will happen. The backlog has developed in the context of the unfortunate expansion in appeals, which is a consequence of the increase in the levels of unemployment and business losses.
23 Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she will reverse the cut of 4% to the so called working age social welfare rates and the cut to child benefit introduced by the previous Government in budget 2011 and, if so, when. [6137/11]
This Government took office in the context of a profound banking, fiscal and jobs crisis and the decision to seek the external financial assistance that has been provided by the EU and the IMF. The crisis was caused by the reckless mismanagement of the economy by previous Governments and the destruction of significant parts of the Irish banking system. As part of its response to the crisis, the last Government reduced weekly and monthly welfare rates of payment in the last two budgets. The challenge for the new Government is unlike the challenge faced by any previous Government. Many people in society are facing hardship. The Government's priority is to get our economy moving, restore confidence, fix our banking system and support the protection and creation of jobs. The success of our economic plans will lay the foundation for the rest of our agenda for change.
Sustainable public finances are a prerequisite for economic stability and growth. To this end, the State must pursue a determined deficit reduction strategy. If we are to enhance international credibility, it is appropriate to stick to the aggregate adjustment set out in the national recovery plan. Accordingly, appropriate levels of social welfare rates will be considered in the context of budget 2012. The Government is committed to tackling Ireland's economic crisis in a way that is fair and balanced and recognises the need for social solidarity. In this regard, it is important to note that the programme for Government contains a commitment to maintain social welfare rates.
In the meantime, the Government's priority is to develop a strategy to allow job growth and sustainable enterprise. This is central to any recovery strategy. During its first 100 days, the Government will introduce and resource a series of measures designed to reduce unemployment and get Ireland working again. These will include measures to increase significantly the number of training, education and work experience opportunities and wide range of other initiatives. I look forward to developing them with my colleagues over the next few weeks so they can be implemented as quickly as possible.
I do not know whether the Minister remembers the comments made by her colleague, the current Minister of State, Deputy Shortall, in the wake of last year's budget. As her party's then spokesperson on social protection, she said the cuts to social welfare rates, including child benefit, were "a blatant and unjustified attack" on the weakest people in society.
A question, please.
Does the Minister recall that Deputy Shortall also said that "the Government has lost all sense of the fact that carers, widows, people with disabilities, single parents and the unemployed depend on their weekly payments for their very survival", that "the decision to cut these basic rates cannot be defended", that "families who are already struggling to keep their heads above water will undoubtedly go under if the Minister persists with these measures" and that "it is difficult to fathom how these measures will help recovery"? Does she agree with Deputy Shortall's correct assessment of these cuts? If so, will she consider reversing them and when will she do so?
Has the Labour Party, like the previous Government, lost all sense of the fact that people depend on these payments for their survival? According to CSO figures, one quarter of all households are now in arrears on their bills and the consumer price index is up 2.2% on February 2010. Does the Minister agree that the Government must intervene to restore social welfare rates to their 2010 levels at least and seek to increase them according the increase in the CPI?
Let us be clear about the matter. This Government took office almost three years after Ireland's extreme banking crisis began on St. Patrick's Day in 2008, when a collapse in the share price of Anglo Irish Bank signalled the beginning of the economic collapse of this country, the closure of many businesses and the loss of employment for tens of thousands of people. The previous Government's actions generated an unprecedented economic and social crisis and it also reduced social welfare supports.
Both parties in this Government are committed to protecting the vulnerable and forging a new Ireland built on fairness and equal citizenship. Our objective is that by the end of our term Ireland will be recognised as a modern, fair, socially inclusive and equal society supported by a productive and prosperous economy. This Government is determined to pursue a deficit reduction strategy and we have to take into account the overall constraints which result from the agreement the previous Government entered into with the IMF and the EU. Our immediate priority is to introduce a range of job measures designed to reduce reliance on welfare supports. We will investigate social welfare rates later this year in the context of the budget and, unlike the previous Government, we are committed to maintaining payment rates. As the economy begins to grow and we sort out the banking crisis, we will continue to find ways of protecting the most vulnerable and needy in Irish society.
