I thank the Chairman and members of the joint committee for inviting the representatives of the National Disability Authority to address this meeting. I propose to speak about some social welfare issues which impinge on issues relating to disability in the context of the outline sectoral plan on disability published by the Department of Social and Family Affairs in October 2004. A final sectoral plan will be sent to the Oireachtas for adoption on or before 29 July 2006 in line with the terms of the Disability Act 2005. The authority has been flagging some issues which relate to the sectoral plans as they have arisen on foot of its research. The authority which was established in 2000 as a statutory body to advise the Minister for Justice, Equality and Law Reform on issues relating to disability welcomes the opportunity to make a presentation to the committee about some issues relating to disability and the social welfare system, drawing on its recent research work and in the context of sectoral plans. The authority's statutory remit includes undertaking research, giving advice on standards and drafting codes of practice. It has a role in monitoring the target for the employment of people with disabilities in the public service.
According to the 2002 census, there are approximately 320,000 people with disabilities in Ireland. One in four disabled people of working age has a job, compared with 70% of non-disabled people. Social welfare pensions represent a major source of the income of the over 40% of disabled people who are aged 65 years or over. Approximately 200,000 people receive weekly social welfare payments related to illness or disability. Recent research indicates that people with disabilities are twice as likely to be living in poverty as others in our society, regardless of the way in which poverty is measured. More than twice as many people with disabilities are in the income bracket the European Union terms as being "at risk of poverty". This is closely related to social welfare dependency.
In 2001, 83% of disabled people at risk of poverty were living in homes in which nobody had a job. Of these, some 87% were living in homes which depended primarily on social welfare. One in seven disabled people — twice the rate for other adults — experiences basic deprivation. Such persons go without basics such as heat and proper meals, or get into debt when trying to meet their day-to-day living expenses. The extra costs of living encountered by people with disabilities are factors in the development of such problems. Such persons are more than twice as likely to be consistently poor, which means they experience low incomes and basic deprivation. Consistent poverty for people with disabilities did not change during the Celtic tiger years. The poverty rate for people with disabilities remained virtually unchanged between 1995 and 2001, even though it halved for other adults.
The main issues which arise in the social welfare system in seeking to reduce poverty are how to promote employment and financial independence for disabled people who can work, how to provide for adequate levels of income for those who depend on social welfare and how to assist with the extra costs of disability. A job is one of the key ways to ensure disabled people receive an adequate income and enjoy financial independence. Disabled people who do not have a problem with taking a job are significantly less likely than their peers to have a job.
A report published by the National Economic and Social Council, The Developmental Welfare State, argues that income support should be combined with the promotion of social integration, including supported pathways into work. While the back to work allowance scheme and others which allow disabled people to engage in limited work of a rehabilitative nature while retaining social welfare benefits are valuable, the committee should consider other ways in which the social welfare system can play a more supportive role in helping people with disabilities to remain in employment or take up work. People with disabilities who take up full-time work stand to lose their primary welfare payments, secondary benefits such as free travel, household benefits or rent supplement and health service benefits such as medical cards or the mobility allowance. Different research studies have identified this as an important barrier to raising employment levels.
A pilot programme has been undertaken in the midlands area, involving a partnership between the Department of Social and Family Affairs, the local Health Service Executive and FÁS, to offer tailored advice and support about employment to young people with disabilities who are between the ages of 16 and 25. This exercise could be extended to other areas and other age groups. The lessons learned from this pilot programme will be valuable in informing future policy.
Approximately four out of five disabled adults of working age acquired their disability in adult life. Recent research suggests that when people become disabled or acquire a long-term illness, the proportion at work falls by 30 percentage points. There is scope for the social welfare system to play a more active role in supporting people to remain at work after onset of a disability. For example, information could be channelled to employers of those off work for a period about the range of FÁS supports for retention of an employee who has acquired a disability. These supports, which are generous, are little used.
Some people with disabilities are not able to work a full day. At present, however, the choices are between dependence on social welfare or remaining in full-time work. Recent research suggests that payment of a partial disability payment could encourage people who might otherwise leave to remain at work and could also support others in a gradual return to work after onset of a disability.
Approximately one in four adults with disabilities can neither use public transport nor drive a car. The cost of transport to work can be a major impediment to taking a job. Free travel and the mobility allowance are generally confined to those on social welfare incomes who are not in employment. There is merit in looking at tailored assistance towards the cost of getting to work for those with disabilities who experience particular difficulties with transport. New ways of channelling tailored assistance with transport costs will be technically feasible when smart card technology is extended to all forms of public transport and to the taxi sector, which we expected to roll out in due course.
The social welfare system could play an enhanced role in supporting people with disabilities who wish to work. Examples of this are: tailored advice and assistance around getting work; an easing of the benefit traps; advice and information to employers around job retention supports; introduction of partial disability payments for those who can only work part-time; and assistance with the cost of transport to work.
Pensioners and other people with disabilities who, for whatever reason, are unable to work will continue to depend on social welfare as a primary source of income. Although social welfare payments have increased faster than inflation, they have in recent years increased at a slower pace than other incomes. This has led to a widening gap between the incomes of those dependent on social welfare and others. The proportion of disabled people living on less than 60% of the average median incomes doubled between 1995 and 2001. To maintain the position of disabled social welfare recipients relative to other income earners, social welfare payment rates would need to move in line with other incomes.
The underlying cost of living is higher for many people with disabilities. Disabled people may have above average medical and medicines bills, be obliged to pay for disability aids, have extra transport costs and incur extra costs in terms of accessing care or paying for general items such as heating, clothing or special diets. To take a simple example, it could cost a non-disabled person using Dublin Bus weekly tickets €17 per week to travel to work by bus but it could perhaps cost a person who can only travel to work by taxi €100 per week. A study commissioned by the NDA shows that the extra costs of disability vary with the nature of the disability and the severity of difficulties experienced and could add up to a quarter of the cost of living. This estimate is, however, subject to a wide margin of statistical error, a summary of which is included in the briefing material.
Secondary benefits such as free travel, household benefits and, in the health area, the medical card or the mobility allowance partially address the costs of disability issue. However, those who do not qualify for the relevant social welfare payments or who are over the income limits do not qualify for assistance with the extra costs of disability.
The Commission on the Status of People with Disabilities, which reported in 1996, recommended the introduction of a cost of disability payment to cover additional costs not otherwise being met through services. The commission recommended this payment should vary in line with needs, should not be taxable and should be independent of age or employment status. Currently, most of the assistance available to those with disabilities towards these extra costs of living is channelled through secondary benefits that are largely confined to those on social welfare incomes. These benefits include free travel, household benefits, medical cards and the right to disability aids for those thereon and mobility allowance. However, there is little help towards the costs of disability for working families.
The Department of Social and Family Affairs' working group on the review of the illness and disability payment schemes concluded:
The Working Group supports the view that the costs of disability should be addressed separately rather than through higher basic income maintenance payments [which would not be targeted on those individuals whose needs are greatest] ... Furthermore, the Working Group stresses the importance of meeting the costs of disability in a way that is less dependent on labour force status, if people with disabilities are to be given the opportunity to participate in the workforce.
The NDA has estimated that tiered payments of €10, €20 and €40 per week, depending on the severity of the problem, could cost just under €170 million per year.
In this short submission, the NDA has presented some key data on poverty and disability and highlighted some of the issues of concern in the social welfare system. Under the Disability Act 2005, the Department of Social and Family Affairs has prepared an outline sectoral plan on disability issues, which is open for consultation. The final sectoral plan is to be tabled in the Oireachtas by end July of 2006. The NDA looks forward to the final plan and to a full debate on its contents by the Oireachtas before its final adoption.