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Joint Committee on Social Protection, Community and Rural Development and the Islands debate -
Wednesday, 18 Oct 2023

Public Service Performance Report 2023: Department of Social Protection

Apologies have been received from Senators Róisín Garvey and Mark Wall.

Members participating in the meeting remotely are required to do so from within the precincts of Leinster House only. I remind those in attendance to make sure their mobile phones are switched off or on silent mode.

I welcome the witnesses. They are protected by absolute privilege in respect of the presentations they make to the committee. This means they have an absolute defence against any defamation action for anything they say at this meeting. However, they are expected not to abuse this privilege and it is my duty as Cathaoirleach to ensure this privilege is not abused. Therefore, if their statements are potentially defamatory in respect of an identifiable person or entity, they will be directed to discontinue their remarks. It is imperative they comply with any such direction. Witnesses are reminded of the long-standing parliamentary practice that they should not comment on, criticise or make charges against any person or entity by name or in such a way as to make him or her identifiable, or otherwise engage in speech that might be regarded as damaging to the good name of the person or entity.

Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against any person or entity outside the Houses or an official either by name or in such a way as to make him or her identifiable.

The committee will now consider the targets to be included in this year's public service performance report with officials from the Department of Social Protection. The 2016 OECD review of budgetary oversight by Parliament in Ireland highlighted the requirement to provide enhanced performance information to support the Oireachtas in assessing the outputs and outcomes from public expenditure. A challenge identified by the OECD in supporting the realisation of this goal relates to the timing of the publication of the Revised Estimates Volume. As the Revised Estimates Volume is published prior to the end of the year, outturn information is not available for the current year and only targets can be published. Oireachtas committees do not, therefore, have relevant outturn information related to performance available to them in a timely fashion to enable them to scrutinise performance in the preceding year.

The performance report addresses this shortfall and provides timely information about what was delivered by public funds in the preceding year.

Performance-based budgeting aims to improve the effectiveness and efficiency of public expenditure by linking the funding of public sector organisations to the results they deliver, making systematic use of performance information. The committee welcomes the opportunity for the first time to work with the Department in outlining the key targets that will be measured by the public service performance report. The key output of the public service performance report project is a framework to tag and track all areas of public expenditure against dimensions of equality, well-being, sustainable development goals and green budgeting. The committee looks forward to working with the Department in framing its input to the public service performance report.

I welcome from the Department of Social Protection, Mr. Niall Egan, assistant secretary, corporate affairs; Ms Saidhbhín Hardiman, assistant principal, budget and means; and Ms Sinéad Goodwin, assistant principal, CWS management support team. I note that we are here before the committee where we have the officials working hand in glove with members in trying to refine and update the public service performance report targets, which is in stark contrast to what is happening in our adjoining committee today, where we are looking again at significant cost overruns and a failure to achieve targets in the HSE and Department of Health. I thank the witnesses for the supplementary information they provided since they last appeared before the committee. We look forward to a productive engagement today to benefit all of us in exercising our responsibilities - the Department in meeting its overall targets and Members of the Oireachtas in our statutory and constitutional responsibility to monitor spending by Departments. I invite Mr. Egan to make his opening statement.

Mr. Niall Egan

I thank the Chairman and members of the committee for their invitation to discuss the Department’s preparation for its input into the public service performance report 2023. I have responsibility for corporate affairs in the Department. I am joined by my colleagues, Ms Saidhbhín Hardiman, assistant principal officer in the budget and estimates unit, and Ms Sinéad Goodwin, assistant principal officer in the Department’s community welfare service.

At the committee’s meeting on 5 July, we discussed in detail the Department of Social Protection’s performance as contained in the public service performance report 2022, which is prepared by colleagues in the Department of Public Expenditure, National Development Plan Delivery and Reform. The structure of the report provides a high-level overview of performance across all Government Departments and is based on a common framework to present key statistics in a clear, consistent and concise manner.

This framework focuses on core performance budgeting such as financial metrics and key output measures and also places a significant focus on outcome indicators. In addition, in recent years the Department of Public Expenditure, National Development Plan Delivery and Reform has expanded the report’s framework to include new sections to which the Department of Social Protection has contributed, including equality budgeting and green budgeting. It is important that each Department adheres to the common framework to ensure a consistent cross-government approach.

Performance reporting was originally introduced in 2012 with a view to providing analysis of the type and quality of performance information of each Department and the impact of its respective public policies. From the Department of Social Protection’s perspective, the performance report is built around the Department’s overarching goal, which is to promote active participation and inclusion in society through the provision of income supports, employment services and other services. Central to the achievement of this overarching policy objective is ensuring the Department places the client at the centre of its services and policies. The Department’s input into the annual public service performance reporting process of the Department of Public Expenditure, National Development Plan Delivery and Reform is, therefore, framed around these objectives. It is the Department’s intention that its input into the public service performance report for 2023 will be framed around its existing approach in accordance with the Department of Public Expenditure, National Development Plan Delivery and Reform's framework, namely, financial metrics and overarching output and impact indicators of the Department as a whole followed by specific output and impact indicators delivered across five key pillars of support, namely, pensions; working-age income and employment supports; illness and disability and carers' income supports; income supports for children; and supplementary payments.

Critical to performance reporting under each of these areas are key output indicators relating to payment-related metrics. These indicators enable a high-level review of the performance of the Department’s operational areas. The impact indicators are largely derived from poverty-related performance metrics as these represent the best indicators available relating to the effect social transfers play in mitigating poverty. The impact indicators are linked to independently published statistics by the Central Statistics Office, largely derived from the Survey on Income and Living Conditions, SILC.

The Department’s targets for inclusion in the public service performance report for 2023 are also likely to be informed by the mid-term review of the pathways to work strategy, which is at an advanced stage and will be presented to the Minister for her consideration next month. The Department has this year completed its mid-term review of the roadmap for social inclusion and in that context will be shortly submitting to the committee its annual progress report and the report card on achieving the commitments contained in the roadmap for social inclusion. The Department also intends to publish its social inclusion monitor before the end of the year. The Department’s input into the 2023 public service performance report will, therefore, be informed by these respective reports and publications.

The public service performance report is one part of a broad range of reports and publications, all of which provide an important and valuable insight into the Department’s performance and the impact of the range of its supports and services have across Irish society. Other important publications include the Department’s annual report, the annual statistics report, its quarterly statistics reports and the annual progress reports for both pathways to work and the roadmap for social inclusion. The Department undertakes extensive independent customer satisfaction surveys across a range of its schemes and also has a wide-ranging research programme that analyses its schemes to assess their effectiveness.

The Department’s management board will approve the Department’s 2023 input into the public service performance report at the time of the Revised Estimates process, which is likely to be in December. As was stated at our most recent appearance and in subsequent correspondence to the committee, the Department is willing to work with the members of the committee in framing the Department’s input and would welcome any suggestions for inclusion in next year’s public service performance report. I assure the committee that its suggestions will be seriously considered by the Department when it is framing its input into the public service performance report for 2023. I look forward to hearing the committee's suggestions and welcome any questions members have for my colleagues and me this morning.

Most of this is demand-led. A rate is fixed, people will qualify and it is paid out. The physics of this case are not worked output; it is demand-led output. The one thing I find it hard to get detail and statistics on is defective means testing and how many people are getting caught by means testing. Means testing is cruel because it is much more penal than the tax system. Every time we ask a question to try to reform it, it is very hard because we cannot get the detail. Nobody seems to know the figures. I did get one figure. I think 98% of people on disability allowance are getting the full rate. That is useful because if means testing were amended there, the cost would not be significant but it would make a huge difference to a small cohort of people.

I will give two examples. The first involves small farmers who are on disability allowance. It involves a 100% means test if they get a few grants. Not even farm assist allows them the environmental schemes so all income - all grants and savings minus all costs - is taken away where someone with a disability has a hobby farm that they use as an activity. If I got a job, I could earn €165 and there would be no means testing. We need to get statistics, outputs, on these things.

The other obvious example affects parents, particularly homeowners, and children born with a significant disability who will never work, and it concerns what happens when the parents die.

If they have three children and they leave a property of €600,000, which is not extraordinary, particularly here in Dublin city, and it is divided between the three children, the first two get their €200,000 and put it in their pockets without any tax but the third loses disability allowance. We know the policy issues that need rectification but what we cannot find out is how many people are affected and therefore how much it would cost the Minister to rectify these mad anomalies in the system. I could go on all day giving examples. The problem I have is the specific output of all this means testing and, ergo, the cost implications. I think it used to be €80 million if you put up all social welfare rates by one euro but that is kind of mathematical certainty stuff. The biggest poverty trap is means testing, believe you me. That is all I have to say.

Mr. Niall Egan

The means test is fundamental to the Department of Social Protection's overarching income supports. It is targeted and is one reason we have one of the most efficient income support systems in the alleviation of poverty in the European Union.

Yes, but Mr. Egan is not saying that a 100% means test is fair.

Mr. Niall Egan

No, I am not saying that a 100% means test is fair.

He is not saying to us that the discrimination between self-employed and employed is fair, surely.

Mr. Niall Egan

I have not said anything of the sort. What I will say is the means test-----

It is not proportionate, therefore.

Mr. Niall Egan

If the Deputy will let me finish, means tests in different schemes have evolved. They are based on legislative provisions. We can say they are targeted, we take into account all means, and there are some exemptions for means depending on certain criteria. We are undertaking a review of means tests in the system. I do not have the statistics to which I think the Deputy is alluding concerning the disability allowance.

Mr. Niall Egan

I do not have those statistics, I have to be honest. I can see where he is coming from regarding the cost implications of means changes. We are undertaking a means test review in the Department at the moment. There are and will be significant cost implications if we amend means tests across the board in line with some of the examples the Deputy highlighted. I do not have that information to hand today.

One problem about the modern world is that you get so much information but how much is useful? I find the statistics very useful but it does not break it down to the granular level to make the policy changes we need. On this side of the table, we do not get the outputs. We know how many people are on a State pension and we know how much a €1 increase costs. That is easy enough for everybody to calculate. What we do not know is how many people are getting full rates and reduced rates to give us some guess as to what happens when you start trying to amend means testing. I was given a global figure of €50 million for a package I put together in the Department. I never saw any breakdown of how that figure was arrived at but it allowed us to say €50 million. It is less than €1 across the board payment across all schemes. That is how it is measured it so that the Minister and we, as a committee, can make recommendations. We need this information. If we recommend giving €12, €13, €15 or €24 or €25 or whatever rise to everybody, or giving a €24 raise rather than €25 - give X or X minus one - if we knew what minus one was going to do and there was an alternative to the means test, we could make the recommendation that is where the choices lie. We do not have it. It is the one output I would like to have that I do not have.

Mr. Niall Egan

Our means test review is the closest thing we will have for that.

It is if the statistics were included in the report. That is what I am getting at.

Mr. Niall Egan

In the public service performance report?

Mr. Niall Egan

The most important statistics are the impact statistics. We need to know what impact our social welfare transfers have concerning the stated objectives of the Department.

That is very academic stuff. That is not the way the people in my office see it.

Mr. Egan, without interruption, please.

Mr. Niall Egan

It is really important that we can stand over a social welfare system that has a direct impact in improving people's lives, that we can measure it and make measurements that are comparable with other social welfare systems. That is a really valuable insight into the effectiveness of the social transfer system. That is the key indicator we have and can build upon for next year's public service performance report. Regarding the question on means, I know where the Deputy is coming from but the means test review will be the output that probably best answers his questions.

I will leave it at that.

I wish to deal with poverty indicators first. They are a key element of the performance targets. The difficulty is that there is a time lag between the Central Statistics Office, CSO, figures when compared with the Department of Social Protection figures. What is being done between the Department and the CSO to try to get an indicator that is more time relevant? Due to the time lag, it is very hard for us to compare like with like as regards income inputs - we spend a substantial amount of money - but there is a time lag in the poverty indicators. Is there any engagement with the CSO to come up with a better short-term indicator? As well as keeping longer-term statistics, in the short term, are there indicators that would be more reflective of what is happening on the ground.

Mr. Niall Egan

We have regular engagement with the CSO across the board within the Department. I meet my counterpart once every six months about work in hand because I also have responsibility for statistics within the Department and the sharing of data. We also have staff on secondment from the CSO in the Department helping to produce our statistics. In fairness to the CSO, it made changes to the poverty statistics it produced - the survey on income and living conditions - in the recent past. Last year's statistics are the first iteration of that. It has brought the indicators forward by about six months. It has narrowed the gap. It used to be worse than it currently is. There has been movement in that space. The CSO has to have a methodology that is robust and comparable with other jurisdictions. We will raise the issue of timing, which the Chair highlighted, regarding income versus poverty statistics, but there is a limit to what the CSO can do because it is survey-based, particularly the deprivation questions. That is the time lag associated.

I understand that. Within the methodology, there is only so much that can be done in that regard, which I accept. I am more indicating if there were live sets of data that would be indicative of what is happening concerning the poverty data. The CSO, for argument's sake, might say that grocery price inflation is very indicative of the trends in poverty. I am only throwing that out there. While we may not have live poverty figures, the Department in its performance report would reflect it as it is reflecting it here and would say that grocery price inflation is as it is so the likelihood is that the poverty indicators will go in this direction. That would mean that when we look at these figures, we have something in real terms of what is happening. I know it is not a completely accurate picture but it gives us some indication of what is happening.

For example, one issue which the committee has spent a of time looking at is supplementary welfare payments.

Having the supplementary welfare payments plotted out in terms of fuel prices whether that is electricity, natural gas and so on, would give us some indication of how responsive the supplementary welfare payments are in terms of fuel supports to what is happening on the ground.

Members of the Oireachtas are very conscious of supplementary welfare payments because they are, ultimately, a bulwark against poverty on a day-to-day basis. One of the criticisms that has been reflected before the committee has been the centralisation of community welfare clinics into urban areas. In my own county, most of these clinics take place in either Boyle, Roscommon or Athlone. They are not taking place in Castlerea, Strokestown, Elphin, Monksland, Brideswell and places where they would have historically taken place. There is a concern that there is an urban-rural divide arising in terms of people making claims. Historically, there would always have been more claims in urban areas than in rural areas. It would be great to even to be able to plot over time whether there are applicants from urban or rural areas. It would also be nice to be able to do it by district electoral division, DED, or eircode region, at some stage in the future. I know that is not possible at the moment. It would be useful even to have that type of indicative methodology to see whether the lack of clinics in rural has had an impact on the number of people making claims.

Another thing, and it would be a very simple indicator, is the use of the phoneline. The Department has now rolled out a phoneline, which is the main conduit that is now being used by the Department for engagement with the community welfare service. In terms of like-for-like, month-for-month comparisons of the use of that and tying that in with statistical data of either grocery or fuel prices would be useful to see what is happening, and it would help Members to understand more what is happening, particularly with supplementary welfare because it is one issue that is consistently raised by Members. I would like the Department to have a look at what is and is not possible, especially in that area. It could possibly be a combination of Department and CSO data, but it should be more live and current data than is in the performance report.

A big difficulty for me and one of the big criticisms I have of the performance report is that we are setting targets for demand-led schemes, which means we are trying to predict next year how many people will sign on to the live register. That is not a performance target. If 50,000 people sign on the live register, we must make 50,000 payments, or it could be 40,000 or 60,000. The Department has no control over that aspect. They are a set of statistics but they do not provide us as Members of the Oireachtas with any insight into performance. Things that would make a difference to us as a committee are the number of people who move from welfare to the working family payment. There are two sets of applicants who qualify for the working family payment. They are people already in employment who apply for it and people who transition from welfare to work and avail of the working family payment. That, for us, would tie in with the Department's objective of trying to get people into work but also provide us, as a committee, with an indicator of how successful this is, and if it is not successful, why is it not and maybe explore with the Department how we could improve it.

Another issue that is raised consistently is the one-parent family payment, transitioning to the working family payment, part-time work and paying PRSI. These statistics already exist within the Department and are two key poverty indicators for us. We all know from the Department's statistics that the people on welfare who experience the greatest level of poverty are one-parent families. It would be helpful if we had indicators for how that is transitioning, if people are moving into work, if they are not moving into work then why not, and what can we do to help support them in that.

Looking at the statistics book the witnesses have provided, on page 56 and the number of recipients of the main working age employment supports, such as the likes of the back-to-education allowance, the back-to-work enterprise allowance scheme, the part-time job incentive scheme and the partial capacity benefits scheme, these are all schemes where we are getting people off the live register and back into work or off the disability register and back into work or part-time work. Again, these would be key indicators for the committee in knowing how successful are those diversion policies we are looking at. Is there anything we can do in terms of the policy area to try to improve those? In this case, raw numbers do not give us any indication because we are looking at a diminishing number of people who would be eligible to apply for these schemes, but percentage terms or trends in terms of that percentage, because I know the percentages would be quite small, or even having normalised figures, let us say, and where the trend is going in that regard would give us some indication of what is happening and how successful our policy is.

Another consistent issue for the committee is the carer's support grant. There is a feeling, rightly or wrongly, and I know from personal experience but it is only anecdotal evidence, that we are still seeing full-time carers still not drawing down the carer's support grant. As I have said recently to the Department at this committee, there needs to be a reinvigorated public awareness campaign in that regard. It would be interesting to see then how that is reflected in the data in terms of increases in the number of new applicants. Naturally, the carer's support grant will ebb and flow with the number of recipients of carer's allowance, carer's benefit and the domiciliary care allowance. What is the variation other than those in relation to it? A subset of these data that would be useful to this committee, because the overall headline data tell us nothing unless we do a deep dive into those data, is how many carer's support grants are being issued to people who are not in receipt of another supplementary payment. What is happening with that trend on foot of a reinvigorated advertising campaign by the Department?

On page 70, which concerns the school meals programme, which is a new and positive programme being run by the Department, and in fairness to the Minister and the Department, there has been a substantial increase in spending on the programme, we are provided with the spending on it, but that does not tell us as members anything, really. Is that because the costs have gone up? I know it has been extended. The Minister in her comments and in her press conference earlier this week did not focus on the figures but on the number of children and the number of schools. For us as members, it is the number of children in receipt of this, the number of schools in receipt of it, and the uptake within schools.

A particular connoisseur I have will not use the school meals available to her. It is not being run through the Department in that school, but she still brings her lunch in. It is one thing having the meals available but the uptake of those meals would tell us as a committee whether we are getting value for money with that. Some of us are old enough to remember the school milk scheme, which was a wanton waste of milk and money. The milk was not consumed in school. It was going into bins and down the sinks, but it was not being consumed. Are the school meals delivering what we all want in terms of the uptake of it? That might not be available in the Department's raw data and a separate survey may need to be done, but that type of data would be useful to us. A breakdown of hot meals and sandwiches being delivered would be useful to us as a committee as well, and those data are available to the Department.

I move to the statistics on the back to school clothing and footwear allowance, the working family payment as a whole and with respect to uptake and the back to work family dividend. These are all schemes that are meeting the Department's stated objectives, but how can we get a better insight into the trends of what is happening here? How successful are these policies in achieving the stated objective and giving us data that would be of benefit to us? On the back to school clothing and footwear allowance, how many of these are being paid out to families outside the existing schemes? That would give us an indication of what is happening more generally in society.

I have already spoken about the working family payment in the context of people coming from employment onto the payment. There are various reasons for that, including a change in employment circumstances and the birth of another child. I will not go into the debate around the fact the payment discriminates against families with larger numbers of children as that is one for another day and we will have it here in a few weeks’ time. What are the reasons this is happening? We are trying to get people off welfare and, we hope, moving from the working family payment into higher rates of employment. We are not just looking at this with our focus on the Department’s statistics of support but also at where people are leaving it and why are they leaving it. Are they going back onto welfare or are they going into better paid jobs? That type of information would be useful to the committee.

Another issue that would be of use to us as a committee would be the statistics regarding the claims rejected. I am aware we have it on page 100. Delving into the reasons for rejection is interesting. How many of these applications are rejected because the forms are not filled out correctly? What are the main weaknesses of those forms? From speaking to the Department, the anecdotal evidence is quite a number of forms get returned because they are not signed. Even knowing the reasons they are returned might allow the Department to run an awareness campaign or make it crystal clear at the top of every application form that the first thing a person should do is sign it. The Department talks about the statistics in the form of processing times. Those times are dependent on completed applications coming in, so rather than giving us the processing times, indications of why they are rejected and how many would give us as a committee a better idea of what is happening with them. To try to address this, the Department could produce a frequently asked questions sheet outlining the main mistakes made in particular applications so people may be aware of those. That would also make Oireachtas Members aware, so when we are advising people on, say, their carer’s allowance application, they ensure they have the medical report completed and submitted. That would be of benefit.

Another issue that has come up here relates to carers who are no longer in a caring role. Their return to work or to training is something the committee is very interested in. Unfortunately, quite a lot of carers who are out of paid work and involved in a caring role for a considerable period of time end up back on the live register. Knowing how long they are on the register and what interventions are being made to get them back into training or employment and what type of employment they are getting into would be indicative of whether our policies on supporting family carers are working. It is an issue the committee has an interest in.

Turning to the quarterly statistics, the uptake of maternity benefit and especially paternity and parents’ benefit are indicative of whether the policies are being delivered in this particular area. I spoke about additional needs earlier. I accept no performance report can include all these, but as a committee we are trying to look at indicative sets of data that could be included in the performance report that would give us an indication of what is happening in this area, and I am throwing out suggestions on that.

There is another issue the committee will be looking at in the week after next in the Comptroller and Auditor General’s report, and this comes back to Deputy Ó Cuív’s question earlier, namely, overpayments. This is something the committee has made recommendations to the Department on before. None of us want to see overpayments. They are not good from an accountability point of view and are not good for the recipient either, especially those on welfare payments who find it hard to manage money anyway. Having to make a 15% repayment weekly, particularly in the current economic climate, puts a huge financial burden on them. The vast majority of overpayments are inadvertent. Very few of them are actually fraud. For us as a committee, having more targeted reviews that would try to address these in the short term rather than letting arrears accrue would be useful. Over half the overpayments happened, I think, six years prior, so there is an accumulation there. A lot of it comes back to the means situation Deputy Ó Cuív spoke about where there has been an incremental increase in savings and, as a result, overpayments build up over a period of time. I suspect if some analysis were done of the targeted reviews that have been carried out in the past 12 months, many of them would fall into this category.

It would make far more sense for the Department to run a set of awareness-raising campaigns pointing out that if your social welfare payment has not been reviewed in a number of years and if you have savings in the bank of more than €20,000 as a single person or €40,000 as a married person, you should make the Department aware of that fact, rather than letting arrears accrue in this respect. The difficulty with older people, in particular, is that such people with joint bank accounts, where one is a contributory payment and the other is a non-contributory payment, do not realise that where they hold a joint bank account, this has implications as to the non-contributory payment. Is there a way we can drive down those numbers of incidents? They have to be measured, in the first instance, which is where the Department comes in, but the objective over time is to reduce those numbers. One of the best ways of doing that is through awareness-raising.

My point is that by carrying out measurements from a statistical point of view, the Department can then try to set targets to reduce those numbers and problem-solve as to what is the best way to do that. Is it through an information campaign or through some other mechanism of engaging with active retirement groups around the country? I am told that at long last, a very valuable service which was historically within the Department is being brought back, which is the information officers. With that type of engagement, if such officers had that type of information available to them and if they were actively going out to engage with communities on it, it would help to drive down those figures.

I have given the Department a long list of suggestions here and I do not expect it to come back on them today but I am asking the Department to look at some of these suggestions. These are the issues which we, as members of this committee and as Members of the Oireachtas, are coming up with on a day-to-day basis. We all have the one objective on this. As I said at our previous meeting, other than my initial comments, I am not asking for the Department to reinvent the wheel here. Many of the statistics I am talking about are available but it is a matter of some of those being included in the performance targets. While this is set out by the Department of Public Expenditure, National Development Plan Delivery and Reform, it may be the case that one or two of these suggestions are reflected in the performance target but that when the Department comes before this committee, it would have a supplementary note on some of the other proposals. We do not have to stick rigidly to this performance target. It may be the case that other supplementary elements could be presented to this committee and to its successor that would help to provide an insight into some of those performance targets, which would be more effective to us.

As Deputy Ó Cuív said earlier and as I have already said, some of the figures here tell us absolutely nothing. The average number of weekly payments having a target and delivery in relation to it does not give us any insight into what is going on in the Department. These are demand-led schemes. To say that 100% of them are paid on time each week is what I would expect, namely, that every payment is paid on time each week. Those figures do not provide us with any insight as to what is going on within the Department. The Department has the data and statistics there that will be more reflective of what is happening within the Department but also will give us a greater insight into where we need to change policy, which is the objective behind this performance report. It is one that is supposed to assist us as members in holding the Department to account with respect to its spend.

I have to say, honestly, from my engagement with the Department - it will be robust and always will be - that there is always a willingness to try to address the issue and it is always coming from that perspective. We might never succeed in that regard but the perception I get in dealing with the Department is that it is trying to do the best it can for the people it is trying to serve. It is not a case of this is the way things have always been done and will continue to be done. It is a Department that is always willing to learn and grow and an alteration in either some of the way the performance report itself is presented, or supplementary data which could reflect better what is in the performance report, would ensure that we as a committee would have a more robust engagement in the future.

I will leave those comments with the Department and I ask Mr. Egan or his colleagues to by all means come back on any particular aspect of them, if they so wish. It is more a question of us as a committee throwing out suggestions to the Department as to where we would like to see these reflected in some manner in the data that are presented before the committee next year. I thank our guests and the committee.

Mr. Niall Egan

I thank the Chair.

Can I make a very quick point, please? The data are very useful. There is an absolute binge going on at the moment about the increase for a qualified adult, IQA. The Department is writing out to many people and I understand the way the data are got because it knows who to write to, where data matching is going on between certain accounts. Arising from that, many people are being caught where they had loving relationships; he had a good salary and they put it all into joint accounts. The irony is that we should be running a campaign to say that whatever you do, do not put the money into joint accounts but put it into the earner's name because if it is there, social welfare cannot get at it. I would love to know how many cases the Department has picked up where it is found that there have been overpayments due to this phenomenon, where I would be very interested in where this happened due to joint accounts.

It is farcical, of course, that the Department is telling couples who love each other not to share, where one was the main earner and the other was the main worker, by which I mean a carer at home. This is a big problem for people coming to pension age now where there was a common arrangement. I believe that 70% of couples were in predominantly one-income houses where, therefore, the IQA is better than any pension entitlement the spouse might have. It is a bit ironic for us to be telling them to be putting it into the one account, which is actually what one has to advise one's customers. It is very easy to legally and perfectly avoid getting caught with the IQA if savings are the problem and if the source of the savings is the primary earner, where it is very easy to sort that out. People do not realise that. What the Department could do is to put a big warning in respect of the IQA when the Department grants the pension that whatever you do, do not put it in a joint account, except where you control it under a certain amount of money, if the Department had that sort of data on its system. The Department gives us the statistics, we make the recommendations and the Department will write up on the pension grant where people must take these things on board, to help people to avoid getting caught in this unnecessarily, for doing the right thing.

Deputy Ó Cuív raises an important point but there are many implications in what he is talking about and it may be something on which the committee may wish to work with the Department to produce something specifically to look at that. I know that the statistics would be available to the Department. I am not sure if it would come into the performance indicator report but it is a very interesting one. There are also social implications for all of this as well and it might be something we return to in private session later.

Of course, because I am trying to show the Department the social implications of following the policy it has. Somebody, somewhere decided to start chasing all of these IQAs down recently and the only people not getting caught are either skinflints or people who knew the rules, read every minor document and understood fully the implications of what they were doing.

I will allow Mr. Egan to make a further contribution.

This reminds me of an insurance company which will not pay out on under clause 57(b), or whatever it is, as written in legalese.

We might return to this in private session also. I invite Mr. Egan to speak now, please.

Mr. Niall Egan

I acknowledge and agree with the Chair that from the Department's perspective, we genuinely are always trying to improve. We pride ourselves on that and on genuinely trying to help the people we are supporting. We have a lot of modernisation, including digitalisation projects under way to make our services accessible 24 hours per day, seven days per week. We are also keen to maintain the existing channels. We know that face-to-face, telephone and postal communications will continue to be valuable challenges. I acknowledge the Chair's comments on that and thank him for them.

I also thank the committee for the numerous suggestions. We will take them away, consider them and reframe how we can best put forward what the committee is looking for in next year's public service performance report, PSPR. Some of the output targets, such as processing times are important to retain as was evident from last year's report showing where we fell below the target we set in some areas. The committee asked us why that had happened and we responded with supplementary material about domiciliary care allowance. We essentially moved an entire unit to a new area of the Department. It was an absolutely justifiable question to ask. There is strong merit in keeping those kinds of targets. However, what was said on the broad remit is duly noted.

The Chair commented on more up-to-date statistics. We have a model available called SWITCH, which we run in-house and the Economic and Social Research Institute, ESRI, also runs. We are able to use it to produce more timely information such as what the Deputy is looking for on the poverty impact of certain measures.

With all due respect, the clerk may correct me, but my understanding is that we have only recently got access to that. It was in the past few months. It may help to address the issue. The Parliamentary Budget Office has only recently got access to it. It was solely within the ESRI until recently, but my understanding is that the Parliamentary Budget Office now has it and has been providing briefings to the committee on that issue.

Mr. Niall Egan

I was not aware of that, but I can understand why the Parliamentary Budget Office would have access. We could look at using SWITCH to produce a more up-to-date indicator, similar to what the ESRI did last Friday with its budget perspectives and what impact the budget measures announced last week will have on certain cohorts. We can look at that measure to supplement the existing poverty indicators.

Numerous issues were raised about supplementary welfare and additional needs payments, including the centralisation. Last year, we saw a record increase in applications for additional needs payments. As regards progressive measures, the Deputy referred to the telephone, 8,500 telephone calls were received per month about access or looking for support for additional needs payments and there was a 98% call answering rate. It is important to acknowledge that. We also have the online service and 20% of claims are coming in online. The payment levels of additional needs payments are comparable to previous years, such as 2019, before the Covid-19 pandemic. We can give the committee some material on that trend, but it might be a supplement to the PSPR. We acknowledge - it also came through strongly at the last meeting on 5 July - that the committee would like us to look at additional needs payments from a PSPR perspective. We will take that on board.

The Chair raised several questions and suggestions about the impact our schemes are having on successful progression to employment, including the working family payment, back to work family dividend, back to school clothing and footwear allowance, among others. That would involve detailed evaluations. They are what we in the Department call econometric evaluation queries. They are the big questions, such as whether the things we are investing in and how the scheme was designed are genuinely impactful. A programme of work is under way in the Department. We are undertaking two econometric reviews at the moment. One is on employment support schemes, community employment and Tús. It is at an advanced stage. Earlier this year, we also commenced an evaluation on the back to work family dividend. The reviews will answer those types of questions. We will take on board the request to see whether there is anything in terms of employment services we can include at a higher level in next year's PSPR. It might look at something along the lines of how many people we have supported and where they are three or six months later. We will take it back and try to work on it.

The committee is concerned that not everyone is availing of the carer's support grant. I cannot answer that question, but 34,000 people received the carer's support grant last year who were not in receipt of a primary social welfare payment. That gives a sense of-----

My question is where the trend is going.

Mr. Niall Egan

We can look at previous years. I cannot predict the future but I note that point, as well as claim rejections and other issues raised today about the need for awareness campaigns. We will also take those suggestions on board.

We know the number of children receiving school meals. Currently, 260,000 children are in receipt of school meals and 65,000 children receive hot school meals across 1,600 schools. An expansion to approximately 9,000 schools was announced as part of the budget last year to cover a predicted 150,000 children. We hope that will be reached by the end of the year but it is subject to take-up. The question about the effectiveness is a question for a review. We did a review of school meals in the recent past but those types of questions need time and detailed research to be undertaken. I am not sure we will be able to replicate that in the PSPR on an annual basis.

I accept that it is not appropriate to put some of what I am asking for in the PSPR and some of it cannot be put into supplementary information because the data may not be generated. However, there is no reason that when the PSPR is circulated to the committee next year, with some of the supplementary data we are to be provided with from SWITCH that is not within the criteria set out here, the Department cannot also tell the committee it has completed reviews and what are the results and recommendations of those reviews. This would give the committee a better insight into what is going on. It is not purely this set of data because some of the data are useful as regards time delays and processing, as Mr. Egan pointed out, but it does not give us any insight into what is going on in the Department. Those figures are not relevant for demand-led schemes. They may be relevant in other areas, but not in ours.

Mr. Niall Egan

I accept that.

The Chair asked how many claims had been rejected and for what reason. We do not have that detail across the board. However, we noticed that this was a big issue, especially last year, for additional needs payments. We undertook several communication and awareness raising campaigns to promote additional needs payments and we saw an impact from those. Ms Goodwin and her team undertook detailed work with NGOs and different stakeholders to help people to complete the application forms for additional needs payments. For instance, we briefed the Society of St. Vincent de Paul and the Money Advice & Budgeting Service, MABS. We brought their staff in to talk to community welfare officers, CWOs, to relay what issues the people they were supporting were facing when they meet a CWO.

Therefore, we have a better understanding of the issues from the ground as well and as to how we can best address those. Based on that we have also sought to improve our communications about additional needs payments, ANPs, and reviews where those are not successful.

Could I suggest that the next time it is done Members of the Oireachtas are also included in that because we deal with these people on a day-to-day basis?

Mr. Niall Egan

Okay.

We would see weaknesses. The supplementary welfare allowance scheme has been turned on its head in terms of where it is at the moment but we only found out as a committee what was going on when we actually had the Department come in to explain it. That should not be the case. We are at the coalface on this issue. We are equally busy as the Society of St. Vincent de Paul or the Money Advice and Budgeting Service, MABS, would be regarding this and we refer people on to those services as well. It would be useful for all Members of the Oireachtas to be kept in that loop because it is something we do on a day-to-day basis and could help circumvent some of the frustration that has been expressed across the Houses in terms of parliamentary questions, PQs, debates, and here in the committee.

Mr. Niall Egan

We will take that on board and will relay that to our colleagues in the Department, and duly note it. Regarding Deputy Ó Cuív's comment about the increase for qualified adults, I am not 100% sure of the background of what he referred to so I may have gotten the wrong end of this. We are preparing for the changes to the State pension in terms of the total contributions approach so we would have written to an awful lot of people to see if they have an entitlement. In terms of caring-----

For people who are on the increase for qualified adult, IQA, and who are long-standing pensioners, the Department is not writing to them and asking them. That is something I always check when they come in under the IQA, whether they had stamps of their own and could get the carer's credit. That is not what the Department is writing out to people about. It is doing an update, a needs assessment. If people had been warned and been told then what they have been told now they would not have gotten caught; legitimately not, there is no cheating here. It is quite simple. If someone puts €110,000 in a joint account the person on the IQA begins to lose - the threshold is approximately €55,000 each - whereas if the person who earned the money just used their money and put it in a separate bank account of their own and just put enough money in the joint account to keep afloat, they would then never get caught. People were never told that and now the Department is coming after them and cleaning them.

Mr. Niall Egan

Apologies for getting the wrong end of that stick.

It can be seen how hurtful it is. How does one explain to an 80-year-old who has been parsimonious all their life, part of a couple who are sharing it all, that what they should have done was put everything in the man's name and then there would be no way of the Department touching it.

Mr. Niall Egan

As the Chairman said, we just need to be very careful in how we would handle and manage that situation. I can relay Deputy Ó Cuív's comments to colleagues in the relevant section of the Department. An earlier comment was that we must look at how we are communicating and make people aware that if there are changes, what implications they may have.

The problem with this change is, if the Department had warned them it would have been really tricky.

I know, that is the difficulty.

If the Department had warned people about what it should have warned them to do, there would then have been a whole other cohort of society saying the Department is encouraging - because it was 90% men - men not to share with their wives. That of course is wrong if they had that split in the labour between the two of them, the paid part and the unpaid part of the huge job of rearing a family and earning a living. If this issue had been tackled head-on 20 years ago this would never arisen because nobody could stand up in the wind that would blow if people realised that what we are actually doing was making it better to perform in an obnoxious way.

The great academic Fr. Ted would say: "It is an ecumenical matter". It is a very complex issue and Deputy Ó Cuív is correct. I ask Mr. Egan to take it back to his colleagues in the Department and the committee will discuss this later because it is a fundamental issue we should be looking at as a committee. Did Deputy Ó Cathasaigh want to come in?

Yes. The Cathaoirleach and Deputy Ó Cuív have been around the houses so I will not try to retread the path or touch on all of the different issues. I will focus on three specific issues. The first issue is the hot school meals. I tabled a parliamentary question to the Minister, Deputy Humphreys, in November of last year and we were looking at a figure of €2.90 per hot meal, and 60 cent was the figure for breakfasts. I expressed concern at the time that figure would struggle to keep pace in terms of the costs of food inflation. I have a question as to whether we are reassessing those levels of payments. Are the procurement considerations for getting those hot school meals to children just monetary or are we trying to have wider procurement considerations, particularly around things such as green procurement? I know the Minister of State, Senator Hackett, has looked at matters around the procurement of organics, for example, by the State. Given the spend we are putting in, and there is considerable new spend going into the area of hot school meals, are we maximising in terms of value for the State but also those co-benefits that can be unlocked such as supporting an organic sector? Specifically, and most importantly, are we providing for the nutritional needs of the children? Regarding breakfast,in particular, I am not sure how we can feed people on a nutritionally sound basis for 60 cent, and €2.90 does seem low for a hot school meal.

On paternity benefit, I saw that the Department's metric or bar for success was getting a 65% take-up on that. I hear anecdotally that of a lot of people are not availing of the paternity benefit which is a pity so do we want to raise the bar in that sense? We are achieving that 65% take-up so do we want to go above and beyond that?

I see the Department provided equality budgeting and green budgeting. I wanted to ask about sustainable development goals. Mr. Egan was looking for suggestions for future reporting. This Department is the lead Department on four of the targets related to the sustainable development goals, and a stakeholder Department for an additional sub-target. I wonder whether this is something Mr. Egan is considering in terms of reporting on the Department's budgetary performance and whether that is something we could look into incorporating in the future. Those are the three specific issues, Chair.

The Deputy was much briefer than the previous two contributors.

I might have honed the questions slightly.

Mr. Niall Egan

I thank Deputy Ó Cathasaigh. Regarding hot school meals, the figures he quoted for breakfast and the hot school meals have since increased.

What are the figures at, approximately?

Mr. Niall Egan

It is now 75 cent for breakfast and €3.20 for a hot school meal so the figures have gone up. Those are the current rates. They had not increased for a very long time before that and obviously the Department keeps things under review. We are very confident they are of nutritional value because that is one of the key requirements, of the hot school meals particularly, any provider has to meet. The feedback we have gotten from schools, from students themselves, and from their parents is very positive in terms of the nutritional value. It is also positive from the teachers' perspective and what it means in a practical way throughout the day and also the fact students really seem to enjoy them.

Regarding procurement, there is a procurement process related to the expansion of the hot school meals programme and that will be under way as part of that expansion; we can take the Deputy's comments on green procurement point on board.

I agree with the Deputy on paternity benefit. If we are achieving our target of 65% then we need to reevaluate that target.

Is the Department getting far above the 65% target?

Mr. Niall Egan

Not hugely, to be honest. We can reassess it on that basis. Parts of targets are to be two-fold, one is obviously to stretch and that is again a promotional issue.

I am coming away with a lot of communication awareness campaigns today, potentially. There absolutely is value in that because it is a really important scheme.

Roughly a third-----

Mr. Niall Egan

Are not availing of it. With the expansion of the parental benefit scheme announced in the budget, there are a further nine weeks on top of the paternity benefit, which we must also consider. We report into a separate reporting mechanism for sustainable development goals. As part of that, our colleagues in the Department of Public Expenditure, National Development Plan Delivery and Reform asked us, in preparation for next year, to undertake a budget tagging exercise in line with the sustainable development goals. I am confident that will be in next year's report. That is in addition to separate reporting we do under the sustainable development goals.

The committee has a huge interest in this matter. I have issues with the public service performance report per se but there is no difficulty in the Department reporting on that in conjunction with it. I suggest that the Department, in its engagement with this committee, include that report as part of our review. Perhaps it needs to change in terms of our request to the Department coming forward but we could look at this in conjunction with it. It is not productive to deal with all of these different strands separately. It may be a weakness on our part that we only look at the public service performance report; perhaps we should look at the other reviews along with the sustainable development goals and perhaps they could be incorporated into it. It would make for a more productive engagement between the Department and the committee and give us better sight of what is happening.

On the Department's review on foot of the engagement today, it may be the case that there will be minimal change in this report. I know that the Department has to go back to its management board and the Department of Public Expenditure, National Development Plan Delivery and Reform regarding this matter. It may be the case that there will be a supplementary report presented to our committee next year, along with the public service performance report. This would include some of these other statistics and the report on the sustainable development goals so that we, as a committee, can have a better sight across the remit of what is happening. Perhaps the Department will consider that. Sorry for cutting across.

Mr. Niall Egan

Not at all. We will certainly consider it.

The Department is carrying out these reviews anyway and doing the report on the sustainable development goals. Sadly, they are never discussed in any public forum unless there is something controversial in them. A lot of time and effort goes into them and, respectfully, I suggest that the Department look at what could logically be incorporated into its presentation to the committee under the topic of the Department's performance. That may require engagement with the committee and we may need to change the terms of reference and the invite to the Department. The intention is not to try to reinvent the wheel, it is to try to elicit the data that will make this engagement far more constructive next year than it has been historically and, I hope, this will set the benchmark for other Departments and committees. In fairness, we would all accept that in terms of engagement with the public and public representatives, the Department does and has historically set the benchmark. Whenever we are at meetings with local authorities or other Government Departments, people always ask why do they not take a leaf out of the Department of Social Protection's book concerning engagement. We would like to be in the same situation for performance reporting to this committee by the Department. I will leave that as a final thought. We are available to engage further with the witnesses in a less formal mechanism if they feel it would be of assistance in drilling down exactly where we want to go. We are all on the one side of the page in this regard. I thank the witnesses for their time this morning.

That concludes the committee's business in public session today. I propose that the committee go into private session to consider other business. Is that agreed? Agreed.

Sitting suspended at 10.50 a.m. and resumed at 10.58 a.m. in private session.
The joint committee adjourned at 12.09 p.m. until 9.30 a.m. on Wednesday, 25 October 2023.
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