Tuesday, 16 Oct 2012

Written Answers Nos. 1-82

Sick Pay Scheme Expenditure

Questions (58, 68)

Charlie McConalogue

Question:

58. Deputy Charlie McConalogue asked the Minister for Social Protection her proposals for the future of sick pay; and if she will make a statement on the matter. [44417/12]

Michelle Mulherin

Question:

68. Deputy Michelle Mulherin asked the Minister for Social Protection if she will conduct a regulatory impact assessment as regards placing the burden for sick pay of employees on business. [44089/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 58 and 68.

The Department will spend an estimated €847 million on illness benefit payments in 2012. The number of people claiming illness benefit and other disability payments has increased greatly in the past 10 years – a 44% increase from some 170,000 to some 247,000 between 2001 and 2010. Alongside those figures, the House will be aware that the Social Insurance Fund, from which illness benefit payments are made, is seriously in deficit, to the tune of some €1.5 billion in 2011. That is the background against which the question of introducing a scheme of statutory sick pay for both the public and private sectors is being considered.

As well as contributing to tackling the deficit in the social insurance fund, a statutory sick pay scheme would help to limit progression from short-term illness to long-term illness or disability. It would also serve to bring Ireland into line with practice in other countries in this area. And, finally, it would contribute towards enhancing the health of the workforce more generally and addressing levels of absenteeism. As has been pointed out by the OECD, where the State bears all the costs of illnesses, there is less incentive for employers (whether in the private or public sector) to engage actively in managing the costs involved.

In considering this question, I have to say again that I, along with my colleagues in Government, am acutely conscious of the pressures facing employers in the current economic climate, and in particular, the pressures facing smaller and medium-sized enterprises. The Government is equally conscious of the need to maintain competitiveness, facilitate business opportunities and generate sustainable employment. In this regard, I should emphasise that the three day waiting period which currently applies in respect of Illness Benefit would also apply in any scheme of statutory sick pay.

The question of providing for possible compensatory mechanisms for particularly vulnerable employers is just one of a range of complex issues that need to be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. In the event that Government were to decide to proceed with a scheme of this nature, an impact assessment would form part of the preparatory measures.

One-Parent Family Payment Applications

Questions (59)

Robert Troy

Question:

59. Deputy Robert Troy asked the Minister for Social Protection if she is considering changing the inclusion of child support in the calculation of means in lone parents allowance applications; and if she will make a statement on the matter. [44423/12]

Written answers

Minister for Social Protection

The Revised Estimates for my Department provide for expenditure of €1,062 million on the one parent family payment scheme in 2012. One parent family payment is a means tested social assistance payment for men and women who are bringing up a child or children with the support of a partner. There are currently over 89,000 people receiving this payment. The weekly amount of the payment to each recipient depends on the weekly means of the parent. When assessing means for the one parent family payment, account is taken of all cash income which the person is receiving. Thus, for example, where a recipient has earnings from employment, the first €130 per week is disregarded and the balance is assessed at 50%.

Where a recipient is in receipt of a maintenance payment, this payment is also assessed as means. Initially, a person’s housing costs, if any, of up to €95.23 per week are disregarded for those who pay rent or a mortgage. Maintenance above this level is assessed at 50%. Similar arrangements apply across a range of other social assistance schemes such as disability allowance and jobseeker’s allowance.

As a result of this approach, a recipient will always retain at least half of any maintenance paid. I consider that these arrangements are appropriate in that there is always an incentive to seek and receive a maintenance payment in respect of the child, the recipient himself or herself or both, as appropriate. Accordingly, I have no plans, at present, to change the assessment of maintenance payments for entitlement to the one parent family payment and similar payments.

National Internship Scheme Administration

Questions (60)

Gerry Adams

Question:

60. Deputy Gerry Adams asked the Minister for Social Protection if she has investigated the reason for the high drop-out rate from jobbridge by persons who have not secured employment; and if she will make a statement on the matter. [44552/12]

Written answers

Minister for Social Protection

The JobBridge Scheme has made significant progress to-date since it came into operation on the 1st July 2011. 11,201 internships have commenced to date with 5,125 participants currently on an internship as at 15th October 2012 and over 2,200 opportunities presently advertised on www.JobBridge.ie. The take-up has been particularly strong in the SME sector with this sector accounting for 6,481 or 58% of all placements to-date. It is very encouraging that 35% of those participants who have finished their internship in the SME sector have immediately progressed into employment at the end of their internship. There has also been very strong participation in JobBridge from the youth unemployed. 3,156 or 28% of all placements to-date are from aged under 25. In addition, 5,082 or 45% placements have been taken up by those aged between 25-34.

Among the most important reasons indicated by host organisations for participating in JobBridge include that the scheme enables the organisation to evaluate potential future employees and because the scheme contributes to national policy by providing internship opportunities to unemployed. Securing access to additional skills was also seen as a very important reason by organisations.

It is also worth noting that employment progression outcomes from JobBridge compares very favourably with European averages for work placement schemes. An interim report on the evaluation of the scheme has just been completed by Indecon and will be published shortly. This will provide more comprehensive data on the progression outcomes of interns post-internship.

JobBridge, like any active labour market intervention, needs to be carefully evaluated in order to consider the possibilities of positive or negative effects, and whether it is likely to increase employment probabilities for participants. Consequently, the Department is committed to the continuous monitoring and review of the operation of the JobBridge scheme on an on-going basis. The Department has conducted 380 monitoring visits this year and I wish to advise the Deputy that 95% of these visits were of a satisfactory nature.

As at end September, 2,295 or 41% of internships were completed in full, while 3,297 or 59% were completed early. While this may appear to be of initial concern, I am satisfied that the records indicate that a very high proportion of early completers did so to take up a job and 66.3% of early completers have secured paid employment. This is largely as a result of the skills and experience gained while undertaking their internship. In other cases, early completers returned to training or education, returned to job search, took up another placement etc.

Rent Supplement Scheme Payments

Questions (61, 65)

Joe Higgins

Question:

61. Deputy Joe Higgins asked the Minister for Social Protection if she will review the rent supplement scheme caps in view of an increasing number of tenants being forced out of their homes and localities due to the lower limits imposed since the beginning of the year. [44500/12]

Bernard Durkan

Question:

65. Deputy Bernard J. Durkan asked the Minister for Social Protection if her attention has been drawn to the hardship caused by the system currently in use by her Department whereby particular administrative areas such as counties or boroughs are used to determine the maximum rent payable to those on council housing lists and in need of rehousing due to the very serious variations caused by local factors which has raised the rents in the market place to the extent that local authority housing applicants living in such areas cannot avail of rent support other than by relocating to an area distant from them and beyond the reach of their families; if she will therefore carry out an examination based on the number of queries and or complaints received arising from such issues with a view to ensuring that rent support is made available to those who are currently being deprived and suffering severe hardship; and if she will make a statement on the matter. [44547/12]

Written answers

Minister for Social Protection (Deputy Joan Burton)

I propose to take Questions Nos. 61 and 65 together.

The Government has provided €436 million for rent supplement in 2012. There are currently approximately 90,000 customers in receipt of this payment.

As the Department currently funds approximately 30% of the private rented sector it is essential that State support for rents are kept under review and reflect current market conditions. New maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These new limits were set after an analysis of the most up to date market data available. For all counties, major urban population centres were tested as part of the rents review to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

The revised limits are applicable to new rent supplement tenancies from January 2012 and existing tenancies on review. Approximately 40,000 rent supplement claims have been awarded in 2012 indicating that accommodation can be secured within the new limits. Where rents are in excess of the limit, customers are being asked to contact their landlord and renegotiate the rent. Where landlords do not agree to reduce the rent within the limits, staff will discuss the options open to the tenant, including seeking alternative accommodation.

Officials administering the scheme advise that customers are securing alternative accommodation within their locality. Any customers who have specific issues in relation to relocating should discuss these issues with Department officials who are continuing to provide support and advice to customers in addressing their accommodation and other needs. There will be no incidence of homelessness due to these changes.

Officials in my Department continue to examine the impact of the rent limits on those who claim rent supplement but at this stage I have no plans to revise the existing rent limits.

Social Welfare Payments Waiting Times

Questions (62, 64, 75, 94)

Brendan Griffin

Question:

62. Deputy Brendan Griffin asked the Minister for Social Protection if her attention has been drawn to problems (details supplied) being experienced by those collecting social welfare payments at Lucan Village Post Office, County Dublin; if she has plans to improve these facilities; and if she will make a statement on the matter. [44095/12]

Derek Keating

Question:

64. Deputy Derek Keating asked the Minister for Social Protection if her attention has been drawn to problems (details supplied) being experienced by those collecting social welfare payments at Lucan Village Post Office, County Dublin; if she has plans to improve these facilities; and if she will make a statement on the matter. [44093/12]

Pat Deering

Question:

75. Deputy Pat Deering asked the Minister for Social Protection if her attention has been drawn to problems (details supplied) being experienced by those collecting social welfare payments at Lucan Village Post Office, County Dublin; if she has plans to improve these facilities; and if she will make a statement on the matter. [44094/12]

Derek Keating

Question:

94. Deputy Derek Keating asked the Minister for Social Protection if she will address the problem that has been causing distress to the many residents of Lucan, County Dublin, regarding the payment of their entitlements in Lucan Village Post Office in view of (details supplied); if she will consider making an unannounced informal visit with this Deputy at any time of her choosing to Lucan Post Office; and if she will make a statement on the matter. [44092/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 62, 64, 75 and 94 together.

The Department is committed to providing a high quality service to its customers and to ensuring that all payments are made available on their due date. The quality of customer service that social welfare recipients receive at post offices is important to the Department and to An Post, which has responsibility for that service. In that regard, I am informed that An Post has taken a number of measures to improve service at Lucan Post Office, including extending opening hours.

The Department actively monitors the numbers of its customers accessing post offices on particular days and from time to time makes arrangements to transfer some payments to alternative collection days to minimise any potential for queuing. The process of changing payment days is complex and must be managed closely to ensure that customer service is not interrupted. The impact of this change is monitored by the Department in consultation with An Post. For example, in March this year some 240 customers who normally received payments at Lucan Post Office on a Friday payday were moved to a Tuesday payday and An Post has given positive feedback on the impact of that change of payment days.

I would like to assure the House that the Department will continue to work closely with An Post to monitor the effectiveness of the remedies put in place up to now and to consider what further scope for improvement is available. I will discuss the Deputy’s suggestions regarding a visit to this office with him but I would like to assure him that I am familiar with the position.

EU-IMF Programme of Support Issues

Questions (63, 89)

Dara Calleary

Question:

63. Deputy Dara Calleary asked the Minister for Social Protection if she will outline her discussions with the Troika on the social welfare system; and if she will make a statement on the matter. [44394/12]

Seán Fleming

Question:

89. Deputy Sean Fleming asked the Minister for Social Protection if she will outline the discussions she has had with the Troika in relation to the future of the disability allowance for people aged 16 to 18 years; and if she will make a statement on the matter. [44392/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 63 and 89 together.

In November 2010 the then Government negotiated a funding agreement with the EU / ECB / IMF funding Troika. That Government agreed a structural adjustment programme which is subject to a monthly and quarterly reporting process as well as on-going discussions with the Troika on all expenditure headings, including social protection. The latest quarterly review commenced this week.

The arrangements governing Ministerial meetings with the Troika on their quarterly delegation visits to Dublin are that my colleagues the Minister for Finance and the Minister for Public Expenditure and Reform meet with the delegation on behalf of the Government. Consequently, apart from an initial meeting immediately on taking office, I have not formally met with the Troika recently to discuss the Irish social protection system generally or disability allowance, in particular. However, I have met members of the Troika informally.

Officials from my Department, and from other Departments, meet with the Troika delegation as part of each quarterly review. Commitments in the Funding Programme which relate to my Department are discussed with the Troika delegation, the achievement of commitments is noted where relevant, and the agreement is revised to reflect any new or follow-on commitments made in the course of the quarterly review, as appropriate. All of the commitments in the social protection area that were required to be delivered up to the present time have been delivered in full and on time.

After each quarterly review, both the European Commission and the IMF publish the findings of their review in what are known as occasional papers or country reports, respectively. The most recent of these was published in September and related to the Troika delegation visit in July. In these reports, the Commission and the IMF may identify areas of social welfare expenditure which they believe merit examination in the context of the continuing reform of the system and fiscal consolidation.

Although the Troika may identify areas of expenditure which they believe merit examination, any changes to the schemes operated by the Department will be decided by the Cabinet, subject to the approval of the Oireachtas, in the context of the on-going review of expenditure generally and in the context of deciding the fiscal consolidation measures to be included in Budget 2013.

Question Nos. 64 answered with Question No. 62.

Question No. 65 answered with Question No. 61.

Mortgage Arrears Proposals

Questions (66)

Sandra McLellan

Question:

66. Deputy Sandra McLellan asked the Minister for Social Protection if her attention has been drawn to the AA home insurance and Irish Times commissioned research which found that the average weekly cost of running a home bought in the boom is €920; if she is concerned regarding the inadequacy of social welfare payment levels for this and other categories; and her plans to ensure that families experiencing unemployment are not pushed into poverty and further debt. [44556/12]

Written answers

Minister for Social Protection

I am aware of the survey conducted by AA Insurance and published in the Irish Times in September 2012. I note that, as reported, a significant amount of the costs of running a home relates to significant mortgage repayments.

In this regard, I recently announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two involve the enhancement of the website www.keepingyourhome.ie and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears.

The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice is provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service.

The Government is acutely aware of the difficulties that many households are facing in meeting their mortgage repayments and addressing these difficulties is at the forefront of Government’s agenda. The new service providing distressed mortgage holders with independent financial advice taken together with the Personal Insolvency Service and the Mortgage to Rent initiatives clearly demonstrate the commitment of Government to tackling the personal debt burden being carried by ordinary people.”

With regard to the adequacy of social welfare payment levels in general, the Revised Estimates for my Department provides for expenditure of €20.55 billion in 2012 on a wide range of income supports and other services. This expenditure represents 39% of Gross Current Government Expenditure and impacts in some way on almost every single person and business in the State, either directly or indirectly. The weekly payment rates of all primary welfare payments were fully protected in Budget 2012 and the Government will consider the appropriate level of expenditure in 2013 in the context of the forthcoming Budget.

Carer's Allowance Payments

Questions (67)

Bernard Durkan

Question:

67. Deputy Bernard J. Durkan asked the Minister for Social Protection if she is satisfied regarding the availability of adequate resources to ensure sufficient funding for carer's in the current and forthcoming year having particular regard to the desirability of maintaining those in need of care in their own environment rather than reliance on institutional care; if she is satisfied that all applicants for carer's allowance have their cases processed expeditiously; and if she will make a statement on the matter. [44548/12]

Written answers

Minister for Social Protection

There are almost 52,000 people in receipt of carer’s allowance from my Department at an annual cost of over €500 million. Of these, over 22,000 are getting half rate carer’s allowance in addition to another social welfare payment at an annual cost of some €90 million. The carer’s allowance scheme is based on demand and not on a fixed budget and therefore, I am satisfied that all claimants who are eligible and fulfil the scheme criteria will be awarded the allowance.

The means test for carer’s allowance is one of the most generous means tests in the social welfare system. The income disregard is €332.50 per week for a single person and €665 per week for a couple. A couple with two children can earn up to €35,400 and qualify for the maximum rate of carer’s allowance, as well as the household benefits package and free travel while a couple earning €59,300 will still qualify for the minimum rate of carer’s allowance, as well as the household benefits and free travel. In Budget 2012, the basic rate of carer’s allowance and the respite care grant were not reduced.

The Department is committed to ensuring that claims are processed as expeditiously as possible. Processing times vary across schemes, depending on the differing qualification criteria. In the case of carer’s allowance, a high level of documentary evidence is required from the customer which can take longer to process. Similarly, because it is a means-tested payments, some cases can require more detailed investigation thereby lengthening the decision making process.

However, I am confident that the Department is taking appropriate action to improve processing times. The carer’s allowance section has recently completed a major service delivery modernisation project to improve the efficiency with which it processes applications from clients for carer’s allowance. A noted improvement was achieved in September with claims processing substantially exceeding claim intake. While, it will take a number of months before the backlog is reduced to a fully acceptable level, the allocation of available resources to this task will remain under review.

With regard to welfare expenditure for next year, no decisions have been made at this stage. In the current economic climate every scheme in my Department must be kept under review. As part of the deliberative process for the next Budget, my Department will analyse, in so far as possible, the distributive and poverty impact of possible social welfare changes. These impacts will be taken into account in arriving at the final decisions on the Budget.

Question No. 68 answered with Question No. 58.

Question No. 69 answered with Question No. 57

Youth Guarantee

Questions (70)

Barry Cowen

Question:

70. Deputy Barry Cowen asked the Minister for Social Protection if she will detail her plans for a youth guarantee to be discussed during Ireland's Presidency of the EU Council; and if she will make a statement on the matter. [44400/12]

Written answers

Minister for Social Protection

The proposals for a European-wide approach to a “youth guarantee”, that are to be discussed during Ireland's Presidency of the EU Council, will be drawn up in the first instance by the European Commission. The Commission is currently reviewing relevant youth policies across the Member States with a view to making its proposals. The Commission’s proposals are expected to be published in December, and achieving political agreement on these proposals in the Council will be a major objective of Ireland’s Presidency in the first half of 2013.

In the broadest terms, discussions to date indicate that a guarantee approach would involve identifying a specific target group of young people and ensuring that, within some specified time period after entering unemployment, each of them had either found a job or been placed in an appropriate education, training or work experience programme.

However, there is considerable variation among Member States with regards to the possible implementation of any such guarantee, in terms of the target groups covered and the extent and nature of the policy commitments made. The target group may include all persons aged under 25 who become unemployed, or be limited only to those who leave school with low qualification levels and remain "not in employment education or training" (NEET). The specified time period to which the guarantee relates may also vary, as may the type of intervention that is seen as meeting the guarantee. Experience suggests that the core of any "guarantee" approach requires detailed and human-resource intensive administrative processes and information systems, usually within the public employment service.

The Department is reviewing arrangements here in the light of these various approaches. In particular, we are currently assessing the possible implications of any proposal in terms of the administrative, financial and programme resources that would be required. These resource demands are likely to be particularly acute in Ireland given the current scale of youth unemployment. However, more precise estimation will not be possible until the details of the Commission’s proposals are finalised.

Rent Supplement Scheme Applications

Questions (71)

Mary Lou McDonald

Question:

71. Deputy Mary Lou McDonald asked the Minister for Social Protection if her attention has been drawn to confusion regarding the new process in respect of applying for rent supplement; her views on whether the change whereby persons can no longer make their urgent applications face to face to a community welfare officer but instead have to fill out forms and send these with documentation to a PO box is a backward step; if her attention has been further drawn to the fact that persons are being told they will not receive a decision on their application for months; and if she will reverse this policy and insist that community welfare officers continue to deal with these applications. [44553/12]

Written answers

Minister for Social Protection

The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. The overall aim is to provide short-term assistance and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 90,000 persons in receipt of rent supplement, for which the Government has provided €436m in 2012.

Historically rent supplements have been administered at a local level by the Community Welfare Service directly to the customer. As a result of the large increase in claims being made in recent years, with the number of persons in receipt of the allowance increasing by 62% during the period from 2007 to 2011, it was considered that the processing of rent supplement claims could be delivered more efficiently through centralised units in some areas. Departmental officers who were formerly community welfare officers continue to assess applications for rent supplement within the centralised units. The establishment of rent units also supports front line staff to focus in the delivery of basic payments and exceptional and urgent needs payments.

Customers living in one of the areas covered by a rent unit can obtain a rent pack from their local departmental representative. This pack contains detailed information and all the relevant application forms. This rent pack can also be requested by phone from the relevant unit. Information on the areas covered by rents units throughout the country is available on the Department’s website.

The timescale for determining individual applications for rent supplement is dependant, among other things, on the availability of the required information, such as details of the applicant’s income, bank statements, information from landlords, etc. In addition, some aspects of the applications are inevitably time consuming and delays can occur where further investigations or third party evidence is required. Delays can also arise if the applicant is slow to respond to requests for additional information. If the Deputy has a concern in relation to processing delays in a particular rent unit or in respect of an individual, they should provide this detail to the Department for follow up.

The delivery of services in relation to processing rent supplement applications is subject to on-going review. However, I have no plans at this time to reverse the establishment of some centralised rent units. I am satisfied that staff makes every effort to decide rent supplement claims in an efficient, effective and timely manner.

Back to Education Allowance Eligibility

Questions (72, 76)

Joe McHugh

Question:

72. Deputy Joe McHugh asked the Minister for Social Protection her plans with respect to including flexibility into the back to education allowance eligibility criteria; if she will consider in this context, the impact of current eligibility criteria on applicants whose jobseeker's allowance does not meet the 187 day requirement because applicants completed level five qualifications via the Department of Education and Skills job initiative programme; if she will contemplate improving the back to education allowance scheme to accommodate the progression in education of unemployed construction workers; if she will consider a specific example (details supplied) as exemplary of this inflexibility [44097/12]

Joe McHugh

Question:

76. Deputy Joe McHugh asked the Minister for Social Protection her plans with respect to including flexibility into the back to education allowance eligibility criteria; if she will consider in this context, the impact of current eligibility criteria on applicants whose jobseeker's allowance does not meet the 187 day requirement because applicants completed level five qualifications via the Department of Education and Skills job initiative programme; if she will contemplate improving the back to education allowance scheme to accommodate the progression in education of unemployed construction workers; if she will consider a specific example (details supplied) as exemplary of this inflexibility; and if she will make a statement on the matter. [44096/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 72 and 76 together.

The back to education allowance (BTEA) scheme is a second chance education opportunities scheme designed to remove the barriers to participation in second and third level education by enabling eligible people on certain social welfare payments to continue to receive a payment while pursuing an approved full-time education course that leads to a higher qualification than that already held.

A person wishing to pursue BTEA will have to satisfy a number of conditions such as being a certain age, in receipt of a prescribed social welfare payment for a specified time period, pursuing a full time course of study leading to a recognised qualification in a recognised college and progressing in the level of education held by the client with reference to the national framework of qualifications among others. A waiting period is considered essential to enable people to engage in job search and consider options available to them. BTEA confers entitlement to income support for an extended period and to avoid distortions due to pull factors to the Live Register for the purpose of accessing schemes of this nature. The qualifying period for the second level option is 3 months (78 days) in recognition of the need for more urgent intervention for this cohort, while the qualifying period for third level courses is 9 months (234 days). A person awarded statutory redundancy may access BTEA immediately, provided an entitlement to a relevant social welfare payment is established.

Question No. 73 answered with Question No. 57.

Mortgage Interest Supplement Payments

Questions (74)

Brendan Smith

Question:

74. Deputy Brendan Smith asked the Minister for Social Protection if she is considering reversing the increase in personal contributions to the mortgage interest supplement introduced in Budget 2012; and if she will make a statement on the matter. [44424/12]

Written answers

Minister for Social Protection

There are over 16,000 persons in receipt of mortgage interest supplement for which the Government has provided a sum of €51 million for 2012. Mortgage interest supplement is normally calculated to ensure that a person, after the payment of mortgage costs, has an income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances less a minimum contribution which recipients are required to pay from their own resources. The weekly minimum contribution is €30 for a single adult household and €35 for coupled households. Many recipients pay more than this amount because recipients are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate SWA rate towards their accommodation costs.

I have no plans at this time to amend the personal contributions to mortgage interest supplement. Any changes to the mortgage interest supplement scheme would be considered in a budgetary context.

Question No. 75 answered with Question No. 62.

Question No. 76 answered with Question No. 72.

Domiciliary Care Allowance Review

Questions (77)

Niall Collins

Question:

77. Deputy Niall Collins asked the Minister for Social Protection the current status of the domiciliary care allowance review group she established in July; the timeframe for its report; and if she will make a statement on the matter. [44404/12]

Written answers

Minister for Social Protection

I understand that the review of the operation of the domiciliary care allowance scheme is progressing well. The working group is due to submit a report to me by the end of the year.

Question No. 78 answered with Question No. 57.

Invalidity Pension Eligibility

Questions (79)

Pádraig MacLochlainn

Question:

79. Deputy Pádraig Mac Lochlainn asked the Minister for Social Protection if she is concerned by the refusal rate on invalidity pension applications which is exceptionally high at 87% between January and July 2012. [44560/12]

Written answers

Minister for Social Protection

Invalidity pension is a payment made to people who are permanently incapable of work because of illness or incapacity and who satisfy the contribution conditions. Currently, (to the end September 2012) there are 49,183 people in receipt of payment on this scheme. The refusal rate on invalidity pension claims in the period 1/1/2012 to 30/9/2012 was 64%. The rate of refusal is dependent on the extent to which the claims meet the qualifying conditions for the scheme. In 2011, the corresponding figure was 56%.

The large increase in the number of invalidity pension claims being made in 2011 and 2012 is a major factor in the increased refusal rate. The increased invalidity pension claim intake relates to changes made to the qualifying conditions for short-term illness benefit, which is now limited to a maximum of 2 years. As a consequence, there has been an increase in the number of claimants seeking to avail of the longer term invalidity pension. However, such claimants may not satisfy the medical conditions necessary to establish a permanent incapacity to work and/or may not satisfy the social insurance contribution conditions necessary to qualify for an invalidity pension. People who are refused for any of these reasons may apply/qualify for an alternative social welfare payment.

Community Employment Schemes Review

Questions (80)

Aengus Ó Snodaigh

Question:

80. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she will consider extending participation in community employment schemes to persons under 25 years in view of the rise in long-term unemployment amongst young persons. [44550/12]

Written answers

Minister for Social Protection

There are no plans to extend eligibility to persons under 25 (other than those already covered under the current eligibility criteria). Community Employment (CE) is not generally intended for persons under 25 years of age as there are other more appropriate and suitable interventions for that cohort. Those who do not meet the CE eligibility criteria are advised to contact their local DSP Employment Services Office where an Employment Services Officer will be happy to discuss the employment and training options that are open to them. Within the current very difficult budgetary constraints, the number of places on CE has been maintained in 2012. In delivering these places, the Department will continue to operate flexibly in the management of this allocation in order to maximise progression to the labour market, while at the same time facilitating the support of community services.

Question No. 81 answered with Question No. 57.

Social Welfare Code Issues

Questions (82, 98, 101, 102, 364)

Seamus Kirk

Question:

82. Deputy Seamus Kirk asked the Minister for Social Protection the proposals, if any, she has to provide adequate social welfare supports to the self-employed; and if she will make a statement on the matter. [44412/12]

Mary Lou McDonald

Question:

98. Deputy Mary Lou McDonald asked the Minister for Social Protection her intentions with regard to the extension of further social welfare benefits to the self-employed. [44554/12]

Martin Ferris

Question:

101. Deputy Martin Ferris asked the Minister for Social Protection when she will present options for consideration, having regard, inter alia, to the results of the July 2012 actuarial review of the social insurance fund; and if the detail of these options will be made available to members of the Oireachtas well in advance of Budget 2013. [44566/12]

Éamon Ó Cuív

Question:

102. Deputy Éamon Ó Cuív asked the Minister for Social Protection if she is considering any changes to PRSI contributions for self-employed persons; and if she will make a statement on the matter. [44416/12]

Bernard Durkan

Question:

364. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she continues to review the position in respect of entitlements to means tested social welfare payments for the self-employed which will take into account the economic circumstances of families that find themselves in situations of social and economic distress; and if she will make a statement on the matter. [44872/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 82, 98, 101, 102 and 364 together.

Self-employed persons are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory). Ordinary employees who have access to the full range of social insurance benefits pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per week, the rate of employer’s PRSI is 4.25%).

The third Actuarial Review of the Social Insurance Fund, as at 31 December 2010, was completed by consultants KPMG in June 2012 and laid before each House of the Oireachtas on 24 August 2012. The Review covers a 55 year period from 2011–2066 and builds on the findings of the 2000 and 2005 Actuarial Reviews of the Fund.

One of the issues examined in the 2010 Review was the long-term cost implications to the Social Insurance Fund (SIF) and the break-even contributions rates required to provide invalidity pensions to the self-employed and to provide jobseeker’s benefit for self-employed workers. The report found that the effective annual rate of contribution, or the required contribution as a percentage of salary, needed to provide the core full-rate State pension (contributory), which is the benefit currently available to self-employed contributors, is approximately 15%. This compares favourably with the 4% rate currently paid by the self-employed. An incremental increase in contribution rates from approximately 15% to 16% would be required if jobseeker’s benefit in addition to core State pension (contributory) is provided. The average contribution rate required for the core State pension (contributory) plus jobseeker’s benefit and the invalidity pension is estimated to be in the region of 17.3%.

Last year I established the Advisory Group on Tax and Social Welfare to meet the commitment made in the Programme for Government. The Advisory Group will, inter alia, examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable.

The Advisory Group’s overall method of working is based on producing modular reports on the priority areas identified in the Terms of Reference. Where possible, the aim is to provide recommendations that can be acted upon in time for the annual budget, estimates and legislative cycle and to allow the Government to best address its commitments under the EU-IMF Programme of Financial Support. The Group has been considering the issue of social insurance coverage for the self-employed and will submit its report once its examination of the various questions has been completed.

Self-employed workers may establish eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of jobseeker’s allowance they can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In general, their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year and, in the current climate, account is taken of the downward trend in the economy. As in the case of a non-self-employed claimant for jobseeker’s allowance or disability allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment .

Any proposals to extend additional cover to the self-employed will have to be considered in a budgetary context, taking account of the finding of the Actuarial Review that the self-employed achieve very good value for money compared with the employed – when the comparison includes both employer and employee contributions in respect of the employed person.