Joan Collins
Question:86. Deputy Joan Collins asked the Minister for Social Protection if she is satisfied with the processing times for current social welfare payments that require a medical assessment. [24201/14]
Other Questions
Social Welfare Benefits Applications
Aengus Ó Snodaigh
Question:123. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the current waiting times for carer's allowance applications; the reason for the delays; if she is concerned by the distress and hardship these delays give rise to; and the further steps she will take to speed up processing times. [24119/14]
The Minister is probably aware of the long period of time it takes for the processing of claims for social welfare payments, particularly for people seeking a disability or invalidity allowance, whether they are agreed or refused. Almost everybody who comes to my office in regard to this problem has been waiting six, seven, eight or nine months or even longer for the claim to be dealt with. The complicated nature of the application is causing major problems for people submitting their information. What does the Minister plan to do to address this?
I propose to take Questions Nos. 86 and 123 together.
I assure the Deputies that provision of good customer service is paramount to the Department and there is a good understanding and awareness of the importance of medical-related schemes to customers. A total of €3.4 billion was spent on illness, disability and caring schemes in 2013, including a total of €2.5 billion on the four main schemes involving a medical assessment - namely, disability allowance, invalidity pension, carer’s allowance and domiciliary care allowance.
The current processing times for the main illness and caring schemes are as follows.
|
Scheme |
30/4/14 Average weeks to decide |
|
Disability Allowance |
11 |
|
Carers Allowance |
12 |
|
Invalidity Pension |
9 |
|
Domiciliary Care |
10 |
These processing times are a significant improvement over previous processing times and the numbers of people awaiting a decision at the time when I came into office. The average number of weeks to decide on a new carer's allowance application has decreased from approximately 26 weeks at that time to a current average of 12 weeks. I compliment the staff in the Department of Social Protection who have worked with all their might and main to overhaul the system I found in place when I became Minister and to produce these improvements. On the question of whether there is room for more improvement, we are working on that constantly.
There are currently approximately 3,500 carer's allowance applications awaiting decision. The equivalent number in 2012 was 11,600. I know the Deputies value public service staff, but in this case I believe the staff of the Department should be recognised for the hard work they have done to slash waiting times for all of these allowances.
The Minister may be satisfied that she has cut the processing times down from what they were two years ago, but there are still people coming to my office who have been waiting longer than that. This happens in particular when the Department comes back to the person seeking another letter from the doctor or more medical evidence in regard to the claim and application. Recently, we found we had to ring from the Oireachtas line in regard to a case from November 2013, but the office was unable to tell us when that claim would be processed.
Several things would facilitate a quicker turnaround of claims, one of which would be simpler application forms. Another would be if someone were to sit down with people and tell them exactly what was required from their doctor in terms of medical evidence. When a doctor writes to the panel and verifies that a person is disabled, very ill and that his or her condition will not improve, the panel should accept this, rather than refusing the application.
If departmental staff were to do that, they would end up before the Committee of Public Accounts facing complaints. When people are given allowances, there are procedures which must be followed, otherwise the Deputy's colleagues on the Committee of Public Accounts would be complaining. There is a procedure in place, but one of the good things about the Irish system, unlike that in other countries, is that we allow people to constantly submit new information. If, when they apply initially, they do not submit all of the necessary information or if their doctor writes a less than clear letter, we allow them to provide further evidence or an explanation.
On the issue of the design of the forms used, I must agree with the Deputy. In fact, when it came to the revision of the domiciliary care allowance forms, we brought in the National Adult Literacy Agency, NALA, to help us to redesign them, taking into account the fact that some people might not be as strong in reading forms as others. We are in the process of redesigning the forms, but if the Deputy has specific suggestions to make, I would be delighted to hear them because I am anxious to facilitate people in obtaining their entitlements. That is what the schemes are for.
I acknowledge that the changes made in recent years have been beneficial, in the main, in that people are not waiting as long as in the past. However, it is still very frustrating for those who make an application for carer's allowance or another allowance and who, on inquiring about their application, are told that processing has not even begun and or that it will take a number of months. Flowing from this, one of the problems identified last year was that wrong decisions were being made and many applications ended up in the social welfare appeals office. Following the changes in the assessment of applications, has the accuracy of decisions improved? In the past, up to 50% of the original decisions by social welfare deciding officers were overturned on appeal.
The area of disability payments, for example, is still undergoing reform. At the end of April 2013 over 4,000 people were awaiting a decision, whereas in April 2014, the number was down to 2,750. The average processing time of disability allowance applications going through the social welfare appeals system has dropped from 10.2 weeks in 2013 to 9.6. Departmental delays have been reduced considerably, too. I can supply tables to the Deputy outlining the progress made.
Deputies Aengus Ó Snodaigh and Joan Collins have a particular insight into this area and it is critically important that they share with us their ideas on how the schemes could be improved. It is important to provide income support for those who are entitled to it. That means, among other things, that medical advisers have to be very clear. The quality of information provided by them can vary wildly from case to case, but we will continue to work to improve processing times. In that context, I compliment the staff involved. Sometimes people can be very critical of public servants, but staff in my Department are working very hard to improve the system and have done so.
State Pensions Reform
Joan Collins
Question:87. Deputy Joan Collins asked the Minister for Social Protection her plans to address the unfair and disproportionate impact that the change to the PRSI bands has had on women's pensions and, in particular, low-paid female workers. [24126/14]
In April 2012 the pensions policy officer of the Irish Congress of Trade Unions, ICTU, met representatives of the Department of Social Protection and was informed that it accepted congress's assertion that those with an average number of 29 annual contributions stood to lose €1,500 a year for life from next September. This is a grossly inequitable cut which targets a section of the workforce and will adversely affect vulnerable workers, particularly women. We believe that when these workers realise what has been done, they will simply not accept the cut.
Some 33%, or €6.5 billion, of all expenditure incurred by the Department relates to pensions. The number on pensions is increasing by approximately 17,000 annually. In other words and as a result of demographic changes in society, an additional 17,000 individuals seek payment of retirement pensions each year. In 2013, for example, the Department was obliged to make provision for an additional €190 million as a result of the increase to which I refer.
In the context of women and social insurance payments, it is worth noting that the actuarial review of the Social Insurance Fund carried out in 2012 confirmed that the fund - owing to its distributive nature - provided better value for female rather than male contributors. The review also examined the changes to the contribution rules and the associated rates of payment which were to be introduced in September 2012. It found that those with lower earnings and shorter contribution histories would still continue to obtain the best value from their contributions.
The contributory State pension is a very valuable benefit. Therefore, it is important to ensure those qualifying have made a sustained contribution to the Social Insurance Fund during their working lives. The reform measures introduced to date are consistent with this goal. The contributory State pension is based on contributions paid and credited during the course of the pensioner's working life and, accordingly, those who had less attachment to the workforce qualify for lower pensions under the scheme. As the Deputy noted, new rate bands were introduced from September 2012. These additional payment rate bands more accurately reflect the social insurance history of a person and ensure those who contribute more during a working life benefit more from the scheme in retirement than those with fewer contributions. The social protection system provides alternative methods of supporting such pensioners who have been less attached to the workforce.
In April I tabled a question in which I asked the Minister to provide a rate band analysis of all State pension contributory awards since 1 September 2012, broken down by number of awards, gender and percentage of overall awards. Her reply contained a tabular statement which was detailed and showed that 27% of those in the 20-29 rate band were female and that 8% were male and that 9% of those in the 15-19 rate band were female, while 3% were male. I forwarded this information to ICTU and received a reply which thanked me for my interest in revealing it. ICTU pointed out at the time that these changes would impact unfairly and disproportionately on women, particularly low-paid female workers. It also protested, in the strongest terms, at the grossly unfair way the rise in pension and age entitlement had been handled. Congress intends to continue to fight on these issues. Those who represent workers are of the view that the Minister has, in terms of the change in the pension rate banding, discriminated against women, particularly those in receipt of low pay. She is going to be challenged on this matter in the future.
It is important to reiterate that €6.5 billion of all social welfare payments made by Department relates to pensions. The cost in this regard is increasing by €190 million each year as a result of the 17,000 additional people who claim pensions each year. As the Deputy is aware, the social protection system provides alternative methods in supporting pensioners who have been less attached to the workforce. These include the homemaker scheme, increases for qualified adults, widow's, widower's and surviving civil partner’s pensions which can be based on the PRSI record of the worker or the spouse and the means-tested non-contributory State pension.
The supports provided for pensioners have resulted in similar outcomes for male and female pensioners in Ireland, with poverty rates for women over 65 years being statistically the same or slightly lower than those for men.
My priority has been to fully maintain the maximum weekly rates of payments for pensioners. We have successfully done this in all the budgets I have been involved in, despite the fact that each year we have had to spend, happily, an extra €190 to €200 million on the significant numbers who arrived at retirement age in that year.
It is great to see 17,000 pensioners living longer and having a productive working life. However, the point I am making is that the Minister's changes in September 2012 disproportionately affected women, especially older women, and the evidence supports this.
I am saying to Deputy Collins that the independent actuarial review shows comprehensively that women actually benefit significantly from the social welfare system - in fact, more than men do. We do not have the time now to go into a detailed discussion of why this is so. I refer Deputy Collins to the actuarial review, which is on the Department's website. I am pleased to say that, as a society, we prioritise pensioners and payments to our pensioners. I have been able to sustain these despite the economic crash that the country has unfortunately experienced, and I will continue to do so.
Social Welfare Rates
Aengus Ó Snodaigh
Question:88. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she will raise the possibility of restoring any of the cuts made by the current or previous Governments to social welfare payments in the context of the upcoming budgetary process or in advance of same; and her views on whether the PRSI yield, which is significantly ahead of profile in the year to date, gives her some scope to do so. [24120/14]
Thomas P. Broughan
Question:106. Deputy Thomas P. Broughan asked the Minister for Social Protection if she will reconsider reversing some of the cutbacks to her Department's budget in the 2012, 2013 and 2014 budgets, especially for carers, lone parents, disabled people and senior citizens. [24197/14]
I mentioned this matter last week. I am not asking the Minister to give information about budget 2015.
My lips are sealed.
I am not asking the Minister about that because at issue is money the Minister will have that will remain unspent. This is voted expenditure and it could be reassigned within the Department without having recourse to a budgetary measure. I am calling on the Minister to consider the €138 million she has gained so far this year and use it to help those whom she has punished in recent years, whether through changes in the respite care grant or elsewhere.
I propose to take Questions Nos. 88 and 106 together.
I will bring to the attention of the Minister for Finance and the Minister for Public Expenditure and Reform the fact that Deputy Ó Snodaigh is supporting my budget. It is helpful to have an ally such as Deputy Ó Snodaigh.
Hear, hear.
The Government is committed to reaching the deficit target of less than 3% of GDP in 2015.
Where are the young bucks, though? They are snapping at the Minister's heels.
The Government will give detailed consideration to how the target will be reached over the coming months. The Exchequer returns to the end of May were published last week. They showed that taxes were €446 million or 2.9% ahead of profile while overall net voted expenditure was €156 million or 0.9% below profile. The Department of Social Protection returns showed that net voted expenditure was €138 million or 2.7% below profile, as Deputy Ó Snodaigh noted. This includes the impact of higher PRSI receipts of €108 million in the year to date, due obviously to the additional number of people who are at work, paying PRSI and, as we have seen from the tax returns, paying income tax as well. Overall expenditure on all schemes, services and administration in the Department is under profile by €27 million, or 0.3%.
The better than expected performance of PRSI income mirrors that of taxes and is evidence of a slowly emerging recovery in the economy that everyone hopes will continue. In particular, the reduction of nearly 33,000 in the number on the live register year on year to the end of May is encouraging. The Department and I are committed to an unrelenting focus on job creation. This is the best way of reducing welfare expenditure, while freeing resources to assist the vulnerable and deal with the demographic pressures of an ageing population.
The budget for next year will not be announced until October. As the Deputy rightly stated, I will not discuss its details, nor will I speculate on the overall adjustment to be made. However, it is important that we continue to push the development and roll-out of Intreo in order that people can be brought into employment and avail of education, training and work experience. This year the Department will spend approximately €1.1 million on schemes ranging from the community employment scheme to Tús and the back to education scheme. This is an important investment in the country's future. Obviously, we will watch the data closely between now and October.
I regularly meet organisations that have an interest in social protection matters. I will meet 39 community and voluntary organisations on 4 July. I will listen carefully, as I do every year, to their opinions on the priorities for 2015. I will ensure the issues they will raise at the meeting are brought to the attention of the Government.
I was not expecting a discussion on budget 2015 which we will have in October, but many changes can be made by ministerial order. Some of what we are discussing is Voted expenditure, but in many instances savings have been made, for example, through increases in employment or because so many unemployed persons have emigrated. I asked the Minister a question when we discussed the Social Welfare and Pensions Bill last week. Given the many pronouncements made by her and her Labour Party colleagues concerning a change in attitude, perhaps she might consider prior to the announcement of the budget using some of these savings to reverse a number of ministerial orders instead of sending the money back into the black hole of the Exchequer. She mentioned the respite care grant. Although it was granted last Thursday to many people, it has been €325 short for the past two years. We are facing into another winter, yet the Government cut six weeks from the fuel allowance period for 60,000 or more recipients. Perhaps these cuts might be reversed by using the saving of €24 million, although it would not meet the entire figure of €136 million or €138 million.
I notice that Sinn Féin's proposals to generate extra income are to increase taxes significantly, particularly for those in work or who have family homes. It has also promised on the doorsteps to abolish water charges, the property tax and the universal social charge, USC. It is important that the stabilisation and growth in the economy, particularly in employment, that we have achieved, as a result of which we are able to borrow internationally at cheap rates compared to Germany, should continue. The more people who leave the social welfare system, return to work and pay initially a small amount of PRSI before paying more in taxation, the more there will be an easing in the social welfare budget. I hope this would allow us to invest more in returning people to work through education, training and work experience. This will enable us to secure and improve the position for those who are in receipt of social welfare payments. Importantly, we have been able to maintain core social welfare payments at a difficult time historically. We are moving away from that period, but we still do not know for certain what the economic outlook will be by October. The trends so far have been positive.