Tuesday, 16 Oct 2012

Written Answers Nos. 83-106

Employment Support Services

Questions (83)

Seán Fleming

Question:

83. Deputy Sean Fleming asked the Minister for Social Protection the progress that she has made in the implementation of the pathways to work initiative; and if she will make a statement on the matter. [44406/12]

Written answers

Minister for Social Protection

As the Deputy will be aware, I launched the first INTREO office of the new employment and entitlements service of the Department, with An Taoiseach on Monday in Sligo. INTREO is the integrated employment activation and supports service model that this Government promised to deliver in the Programme for Government and in ‘Pathways to Work’. INTREO is the name for the new service model of the Department integrating the employment services and community programmes formerly of FÁS, and the Community Welfare Services (CWS) formerly of the HSE and the income support services provided by the Department itself.

The integration of functions and the transformation of the way the Department delivers its services were always envisaged as a multi-annual and iterative process of transformation. The launch of INTREO in Sligo on Monday is a key milestone in that transformation process.

Building upon the skills and processes in the enlarged Department, a new activation concept, the one-stop-shop has been developed and has been rolled out in four pilot offices, Sligo, King’s Inns Parnell Street, Dublin, Arklow and Tallaght.

Other offices in Ballymun, Kilkenny, Buncrana, Coolock, Finglas and Dundalk will go live before the end of the year. INTREO will be then be rolled out to all the Department’s offices nationwide by the end of 2014, in a programme that is being carefully managed in a live operating environment.

INTREO’s one-stop-shop offices includes a single integrated decision-making team that integrates and streamlines the processes formerly undertaken by the different agencies now amalgamated into the Department. Already clients are seeing the benefits of the integrated decisions process in terms of shorter decision times and in the reduced recourse to supplementary payments in offices where integrated decisions are in operation.

On being awarded a claim, the client will also be asked to sign a ‘social contract’ with the Department. The client acknowledges their responsibility to work to secure employment at the earliest possible opportunity, on the understanding that failure to adhere to those undertakings may result in the reduction or withdrawal of income support payments.

The most significant demands of the Pathways approach are i) profiles of clients to inform the approach taken to activation; ii) Early engagement with clients through group engagement sessions; iii) One to one interviews with case managers.

Progress under each of these headings is as follows (a) the Profiling of all new claimants has been operating in the four pilot one-stop shop locations and is now also operating in all other DSP offices. The roll-out programme has been completed ahead of the December 2012 target; (b) The Department targeted to involve 30,000 clients in group engagements with 20,500 by the end of August. In fact, more than 42,000 clients had been involved in group engagements by that time; (c) The Department committed to holding 90,000 initial one-to-one guidance interviews with clients by the end of August 2012 but almost 110,000 had been held by that date. That figure doesn’t include the 98,000 follow-up meetings held by the end of August.

INTREO is also refocusing the Department’s relationship with employers.

The level of contact with employers at national and local level is already increasing. For example Springboard Recruitment fairs were held in conjunction with HEA in Dublin, Galway and Cork during September. I am working on a further series of seven employer briefings over the next two months starting in Limerick on Friday.

The launch of INTREO marks a watershed in the way the Department responds to the needs of today’s Ireland. INTREO puts the flesh on the Government’s policy initiatives to put Ireland back to work.

Household Benefits

Questions (84, 99)

John Browne

Question:

84. Deputy John Browne asked the Minister for Social Protection her plans for the future of rent supplement; the timeline for any changes; the legislative changes that are necessary; and if she will make a statement on the matter. [44398/12]

Dessie Ellis

Question:

99. Deputy Dessie Ellis asked the Minister for Social Protection when her Department and the Department of the Environment and Local Government will report on the housing assistance reform, in particular on the introduction of the new housing assistance payment; and if the detail of the report will be made available to Members of the Oireachtas in advance of Budget 2013. [44567/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 84 and 99 together.

There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided a sum of €436 million for 2012. The aim of rent supplement is to provide short term income assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

In March 2012, the Government approved in principle to transfer responsibility for the provision of rental assistance to persons with a long term housing need from my Department, currently provided through rent supplement, to housing authorities using a new Housing Assistance Payment (HAP). A multi-agency steering group has been established to develop proposals to give effect to this transfer. The group is chaired by the Department of the Environment, Community and Local Government and consists of representatives from the Departments of Social Protection; Public Expenditure and Reform; Office of the Revenue Commissioners; the County and City Managers Association, and the Housing Agency. Proposals will be brought to Government before the end of this year including proposed amendments to legislation, if required.

It is planned that pilot testing of HAP arrangements will commence during the second half of 2013 with general roll out and commencement of transfers from January 2014. Policy matters and reporting in relation to the HAP scheme is a matter for my colleague, the Minister for the Environment, Community and Local Government.

The new arrangements will achieve a key Government commitment of removing barriers to employment and at the same time returning rent supplement to its original purpose of a short-term income support.

Gender Proofing of Policies

Questions (85, 108, 110)

John Halligan

Question:

85. Deputy John Halligan asked the Minister for Social Protection if she will gender-proof Budget 2013 before publication to ensure that women will not be disproportionately affected by cuts; and if she will make a statement on the matter. [44579/12]

Richard Boyd Barrett

Question:

108. Deputy Richard Boyd Barrett asked the Minister for Social Protection if she will gender-proof Budget 2013 before publication to ensure that women will not be disproportionately affected by cuts; and if she will make a statement on the matter. [44581/12]

Martin Ferris

Question:

110. Deputy Martin Ferris asked the Minister for Social Protection the rationale underpinning her cuts targets breakdown of children and families €250 million to €400 million; persons of working age €350 million to €600 million and older persons €150 million to €300 million; and if she is concerned at the impact such cuts will have on children in view of their dependence not only on child and family supports but also on persons of working age. [44565/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 85, 108 and 110 together.

The Comprehensive Expenditure Report published last December provides for additional new expenditure reduction measures of €1,033 million over the next two years by the Department of Social Protection. This includes €540 million of new savings to be achieved in Budget 2013.

The CER also stated that the Department would look at three broad areas, namely children and families, people of working age and retired and older people to identify further indicative savings. This does not imply that expenditure in any given area will reduced or by how much.

I recognise that reducing overall expenditure in 2013 and beyond in order to meet the expenditure ceilings will be extremely difficult and requires a critical analysis of all expenditure. In this context, I will look to minimise the impact of the necessary adjustments to the Department’s welfare expenditure on groups vulnerable to poverty and social exclusion. As part of the Budgetary deliberative process, the Department will analyse, in so far as possible, the distributive and poverty impact of possible welfare changes to all welfare recipients including different family types including those with children and male/female poverty impacts. Finally, the Department will prepare a similar analysis of the overall Budget 2013 tax and welfare packages when they are finalised.

Defined Pension Benefit Schemes Issues

Questions (86)

Clare Daly

Question:

86. Deputy Clare Daly asked the Minister for Social Protection if she will overhaul the minimum funding standard for defined benefit pension schemes which is unfair and inequitable in its present form and operates as a deterrent to the well being of these schemes and their members. [42248/12]

Written answers

Minister for Social Protection

The Funding Standard provides a benchmark against which the “health” of a scheme can be tested. The existence of the Funding Standard itself is not the central issue in relation to whether a scheme is properly funded. Rather the responsibility rests with the employer and the trustees for ensuring that the scheme is properly funded and managed. However, the Funding Standard does provide the regulatory mechanism for ensuring that a scheme can live up to the “promised” level of pension benefits. The fundamental problem facing pension schemes is that pensions have become significantly more expensive, because of increasing life expectancy and lower than expected investment returns which are reflected in increased annuity rates. The recent facility to purchase sovereign annuities will enable a higher rate of return to apply, but only in the case of those schemes which actually purchase the bonds/annuities.

While it is acknowledged that increased annuity rates are causing significant problems for pension schemes, this reflects the real cost of benefits. If the Funding Standard is changed in such a way that understates the cost of the benefits (by using prescribed non-market rates, or by using sovereign bond rates without a corresponding commitment to buying sovereign annuities on wind-up), then the members may be misled about the ability of the scheme to meet its obligations, and the on-going funding of the scheme will not be enough to close the deficit. This would be likely to make things worse, as future benefits would accrue at a faster rate than they were being paid for.

The requirement for a risk reserve is being introduced from 2016, to provide a level of protection for scheme members against future volatility in financial markets. It is accepted that the requirement for a risk reserve presents an added challenge for schemes, however, guidance issued by the regulator identifies options which the scheme can consider in meeting this requirement by 2023.

The Pensions Board recently announced that the timeframe for pension schemes to submit funding proposals has been extended to 30 June 2013. This extension will give schemes additional time to help them address the issues they are facing. It should be noted that the changes to the Funding Standard are being implemented over the next 11 years, not immediately. This is the longest recovery period generally allowed in any European country.

Overall, the changes made to the regulatory structure for defined benefit schemes are intended to bring increased stability to pension promises in the future and lessen schemes’ exposure to risks.

Child Care Services

Questions (87)

Sandra McLellan

Question:

87. Deputy Sandra McLellan asked the Minister for Social Protection if she will provide an update in the delivery of the bankable commitment to childcare that she promised would precede the lowering of the lone parent payment cut off age; and the recent discussions she has had with the Department of Children and Youth Affairs and the Department of Education and Skills regarding increasing the availability of affordable after-school care. [44555/12]

Written answers

Minister for Social Protection

The inter-departmental group (IDG) on school-age childcare consists of representatives from the Department of Social Protection, the Department of Children and Youth Affairs, (DCYA) – which is the lead Department in relation to child care policy and provision – and the Department of Education and Skills. The role of the group is to explore the best possible model for enhancing the provision of school-age childcare to assist in meeting the childcare needs of the customers of my Department, including lone parents. The model in question will address the childcare requirements of children aged between 7 and 12 (inclusive) and will also address the child care required during both the school term and the school holidays.

Extensive work has been completed by the IDG to quantify the level of school-age childcare required to support the relevant social welfare income support recipients, in particular lone parents, for each year up to and including 2015. An examination has been completed of existing childcare schemes and the capital investments already made by DCYA in this sector. The completed model and proposals will be submitted to Government for approval.

In addition to this work, I have had the opportunity, with my officials to examine the childcare in Sweden. The information and experience gained will provide valuable input to the on-going work of the IDG on school-age childcare.

Free Travel Scheme Administration

Questions (88)

Peadar Tóibín

Question:

88. Deputy Peadar Tóibín asked the Minister for Social Protection if her attention has been drawn to the fears caused by the proposal to cut the free travel scheme for older persons and those with disabilities; and her intentions with regard to the scheme. [44562/12]

Written answers

Minister for Social Protection

The free travel scheme is currently available to all people living in the State aged 66 years or over, to carers and to people who are in receipt of certain disability type payments. There are currently in excess of 740,000 customers eligible for free travel and when spousal and companion passes are taken into account, there are over 1.1 million customers with some free travel eligibility. The cost of the free travel scheme has risen substantially over the last 10 years from almost €46 million for some 608,000 customers in 2001 to over €75 million for 726,000 customers in 2011. My Department also provides some funding for the rural transport programme. In line with the Government decision, expenditure on this scheme has been frozen since 2010.

To help ensure the future sustainability of the free travel scheme, a review is being carried out by officials from my Department, the Department of Transport, Tourism and Sport, the Department of Public Expenditure and Reform and the National Transport Authority. The review is in the early stages.

There are considerable challenges ahead to protect, as far as possible, the key income supports provided by my Department which impact in some way on the lives of almost every person in the State. As part of the deliberative process for the budget, my Department will analyse all schemes, and in so far as possible, the distributive and poverty impact of possible welfare changes. These impacts will be taken into account in arriving at the final decisions on the Budget to ensure that the scarce resources are targeted at those most in need. No decisions have been made at this time with regard to the upcoming Budget.

Question No. 89 answered with Question No. 63.

Social Welfare Offices

Questions (90)

Martin Heydon

Question:

90. Deputy Martin Heydon asked the Minister for Social Protection her plans for expansion and improvement works at the Newbridge Local Social Welfare Office, County Kildare, which is experiencing poor and cramped conditions for both employees and visitors to the office; the progress that has been made on these works; the timeline for the completion of same; and if she will make a statement on the matter. [44099/12]

Written answers

Minister for Social Protection

The Department recognises that it requires additional office accommodation to meet the needs of social welfare customers and staff in the Newbridge area. It is working closely with the Office of Public Works (OPW), which has responsibility for the acquisition of all accommodation requirements for the Department, to that end. There are currently four projects in hand with the OPW which, on completion, will fully address its office accommodation problems in Newbridge. One of these projects will be completed by the end of this year. Planning permission has been granted in the case of a second project and a third is at the design stage. Both of those projects will be completed in 2013.

The fourth project is the largest and most complex of the four. While the other three projects will provide a welcome alleviation of the current office accommodation problems, a fully satisfactory outcome will not be achieved for either staff or customers until the fourth project is completed. It is still at a very early stage of development and it is not possible to give a realistic completion date until further progress is made in site selection and detailed design.

Social Welfare Fraud Cost

Questions (91)

Alan Farrell

Question:

91. Deputy Alan Farrell asked the Minister for Social Protection the number of claims of a fraudulent nature that have been made to her Department in 2011; the number of incorrect payments made by her Department in 2011; the cost of these payments in total to the Exchequer; the funding allocated to the investigation and recouping of these payments in 2011 and to date in 2012; and if she will make a statement on the matter. [44507/12]

Written answers

Minister for Social Protection

Overpayments are the only instances where it can be proven conclusively that a payment has been incorrectly paid. An overpayment will arise where, in accordance with Part 11 of the Social Welfare Consolidation Act 2005, a revised decision is made by a deciding officer on a claimant’s claim resulting in a retrospective reduction in his/her entitlement. The Department categorises overpayments as fraud, non-fraud and estate cases. In 2011, there were a total of 63,310 overpayments amounting to €92.4m. Fraud cases arise mainly on foot of false declarations by customers concerning their employment, income or family status while non-fraud cases are primarily due to customer, third party or departmental error. Estate cases arise where undisclosed means by customers (usually pensioners) come to light after their deaths.

The breakdown of the 2011 overpayments is as follows:

- Fraud - €34.9m involving 20,585 cases;

- Non-fraud - €46.0m involving 42,354 cases; and

- Estate - €11.5m involving 371 cases.

The Department is fully committed to recovering 100% of all overpayments. An outstanding overpayment will result in a reduction of all future entitlements up to and including State pension and potentially a claim on any estate. An overpayment will remain on a customer’s record until fully recovered. The Department endeavours to seek the maximum level of repayments from customers in order to encourage prompt repayment of all debts. Effective debt recovery is seen an integral part of the deterrent to fraudulent claiming.

The Department’s Central Overpayments and Debt Management Unit is the central reporting area for all the Department’s overpayments and it monitors debt recovery policies and practices across the various scheme areas with a view to improving the level of debt recovered. However, it is important to point out that each of the Department’s primary scheme areas and local offices has a localised debt management function. The number of staff specifically involved in the management and collection of debt will depend on the claim load and the level of overpayments in each of these areas.

Child Benefit Payments

Questions (92, 96, 107)

Seán Crowe

Question:

92. Deputy Seán Crowe asked the Minister for Social Protection if her attention has been drawn to the Central Statistics Office figures published last month which indicated that the income of households with children fell five times more than childless households between 2009 and 2010; and her plans to protect children from further income drops in the recession. [44563/12]

Richard Boyd Barrett

Question:

96. Deputy Richard Boyd Barrett asked the Minister for Social Protection if she has consulted or is planning to consult with the Department of Children and Youth Affairs, in the interests of the imprescriptible rights of children with regard to any planned cuts to child benefit, back to school allowance, family income supplement, back to education allowance, carer's allowance, disability benefit and all other social protection payments which can impact on child welfare; and if she will make a statement on the matter. [44582/12]

John Halligan

Question:

107. Deputy John Halligan asked the Minister for Social Protection if she has consulted or is planning to consult with the Department of Children and Youth Affairs, in the interests of the imprescriptible rights of children with regard to any planned cuts to child benefit, back to school allowance, family income supplement, back to education allowance, carer's allowance, disability benefit and all other social protection payments which can impact on child welfare; and if she will make a statement on the matter. [44580/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 92, 96 and 107 together.

Family and child income support payments assist parents in contributing to the costs associated with raising children and play a very important role in the objective of reducing child poverty. It should be noted that expenditure this year on child benefit, qualified child increases on primary social welfare payments, the family income supplement and the back to school clothing and footwear allowance is estimated to be just over €3 billion. The Government is conscious that these payments are an important source of income for families, particularly during a time of recession and unemployment. Furthermore, the Government is committed to tackling Ireland’s economic crisis in a way that is fair, balanced, and which recognises the need for social solidarity. In addressing the problems with the public finances, the Government will seek to ensure that resources are allocated fairly and that less well-off families are protected in so far as possible. Furthermore, the Government is acutely aware of the need to address child poverty as a priority as part of the National Action Plan for Social Inclusion 2007-2016 (NAPSincl) and in the Programme for Government. The recently completed review of the national poverty target also highlights the importance of addressing child poverty and will be published shortly.

I assume that the statistics cited by the Deputy relate to the recently published CSO report entitled “Survey of Income and Living Conditions (SILC): Thematic Report on Children 2004 – 2010”. The report publishes data related to household incomes for seven-year period up to 2010 and is derived from the CSO’s annual Survey on Income and Living Conditions (SILC) from which data in relation to poverty up to 2010 had already been published. The report therefore covers a period before this government’s term of office began.

The Department is aware that the publication shows that average weekly gross income for all households with children less than 18 years did fall from €1,288.33 in 2009 to €1,184.00 in 2010 or a fall of 8.1% in the year. I am also aware that the corresponding data for households without children under 18 years were €924.65 and €902.23 respectively representing a fall of 2.4% in the year.

It should be borne in mind that these trends largely reflected the decline in household incomes generally, as a consequence of the economic downturn. Direct income of households with children (largely income from employment and self-employment) fell by almost 11% in the year 2010. In fact, it was an increase in average transfer payments of almost 2% that moderated the loss of gross income for such households to 8.1%. The operation of the tax and social contribution system served further to moderate this loss in net incomes to 7.4% compared to 2.3% for households without children.

While we must acknowledge this considerable loss in purchasing power, the moderation in the loss from direct to net incomes is largely due to the relative effectiveness of the social welfare system and the effect of family related social transfers. It can also be observed from CSO data in how the at risk of poverty rate for people living in households with children in 2010 decreased from 49.4 per cent when all social transfers were excluded to 18.7 per cent when all social transfers were included: a reduction of nearly 31 percentage points. This clearly demonstrates the role that social transfers, play in protecting people in households with children from poverty. More generally, the SILC data from this report also shows that the poverty reduction effect of social transfers for children has risen continuously from around 40% in 2004 to over 60% in 2010 as the social welfare system became more effective in addressing poverty in households with children.

Nonetheless, I am conscious that achieving a better design of the overall system of child income supports raises complex issues about the effectiveness and efficiency of the full range of income supports currently provided to families and their children. In this context and in line with a commitment in the Programme for Government, I established an Advisory Group on Tax and Social Welfare last year, which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes. The Advisory Group prioritised the area of family and child income supports and has completed its work on this area. Their report is currently receiving my consideration and will assist the Government in considering the effectiveness and efficiency of the current system of child income supports.

Any plans to change child and family income support payments will be a matter to be decided in a budgetary context and announced on Budget day. As the Government meets and acts collectively, Ministers regularly consult with their colleagues in Government on policy proposals and any implications that they might have in terms of children’s rights.

Community Employment Schemes Review

Questions (93)

Gerry Adams

Question:

93. Deputy Gerry Adams asked the Minister for Social Protection if she will reconsider the decision to limit participation on community employment schemes to one year as the general rule in view of (details supplied) [44551/12]

Written answers

Minister for Social Protection

Community Employment (CE) is an active labour market programme designed to provide eligible long term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a temporary, fixed term basis. CE helps unemployed people to re-enter the active workforce by breaking their experience of unemployment through a return to a work routine and to assist them to enhance/develop both their technical and personal skills. The maximum participation limits for CE are 3 years in total for those under 55 years of age, and 6 years in total for those of 55 to 65 years of age. Off-shore islander clients are exempt from CE participation caps. Persons in receipt of one of the four qualifying disability-related social welfare payments are eligible for one additional year on top of these two limits, i.e., 4 years for those under 55 and 7 years for those of 55 to 65.

The length of time a person can remain on CE is dictated by a number of factors (as governed by the eligibility rules of CE):

- Age of the person;

- Department of Social Protection (DSP ) payment and duration;

- Previous participation on CE since April 2000;

- Whether they are considered job-ready;

- Budgetary limitations.

The overall duration limits are strictly enforced to maximize the number of places available for potential clients. There are no plans to extend the time limits on CE. The emphasis on shorter-term interventions on CE as part of the Pathways to Work Initiative is to assist the maximum number of eligible persons via participation on the scheme. The current rules governing CE eligibility allow for 10% persons engaged on a year’s placement to have their time extended into a second year if they can demonstrate that they would benefit from such an extension.

The aim of CE still remains as an active labour market programme with the emphasis on progression into employment. There is a wide range of client groups which need access to CE – lone parents, persons with disabilities, stabilised substance abusers and unemployed persons. DSP at all times is obliged to accommodate the needs of all these groups in terms of participation on Community Employment. The programme is managed within this context, with consideration to the availability of resources and the needs of participants and the community.

Question No. 94 answered with Question No. 62.

Redundancy Payments

Questions (95)

Clare Daly

Question:

95. Deputy Clare Daly asked the Minister for Social Protection if she will include a stamped addressed postcard with all redundancy applications which will be sent back to the applicant confirming receipt of the file. [44090/12]

Written answers

Minister for Social Protection

Applications for redundancy lump sum or rebate payments should be made via the Department’s on line application system. The application should then be printed down and signed by the employer and the employee and sent to the Department. An application is not valid until this signed form is received in the Department. Claims are processed in order of date of receipt.

I have no plans to introduce a system of acknowledgements.

Question No. 96 answered with Question No. 92.

Fuel Allowance Payments

Questions (97)

Pádraig MacLochlainn

Question:

97. Deputy Pádraig Mac Lochlainn asked the Minister for Social Protection if she will make additional provision by way of the partial or whole restoration of the cuts made to the fuel allowance in view of the further price hikes approved by the Commission for Energy Regulation last month. [44559/12]

Written answers

Minister for Social Protection

The fuel allowance is a means tested weekly payment of €20 available for people on long term welfare schemes, including State pension, disability allowance, one-parent family payment and jobseeker’s allowance (after 15 months). Between 2005 and 2011 the numbers in receipt of fuel allowance rose from 266,000 to 390,000, an increase of almost 50%. During this period the cost rose from €82 million to €250 million, an increase of over 200%. Given the increase in numbers and costs, changes had to be made to the scheme to make it sustainable.

While the scheme provides additional support for people on long-term welfare payments, it is not intended to meet energy costs in full. The current fuel season currently lasts for six months of the year, commencing on Monday 8 October this year and finishing on Friday 5 April 2013, a total of 26 weeks.

I am not in a position to reverse the changes to the fuel allowance scheme agreed by Government last year. In the current economic climate every scheme in my Department must be kept under review, particularly payments that are additional to a primary weekly payment.

Question No. 98 answered with Question No. 82.

Question No. 99 answered with Question No. 84.

Social Insurance Fund Deficit

Questions (100)

Seán Crowe

Question:

100. Deputy Seán Crowe asked the Minister for Social Protection following the revised estimates 2012 which provided for a deficit in the Social Insurance Fund of €1.82 billion in 2012 which her Department has acknowledged is now likely to be exceeded in 2012, the amount by which it is likely to be exceeded; and the amount of the total Departmental spend for 2012 is expected to be. [44564/12]

Written answers

Minister for Social Protection

The 2012 estimate for the Department provides for a Social Insurance Fund deficit of €1.82 billion. At the end of September, the deficit amounted to more than €1.7 billion because, while expenditure during the first nine months was on target at €6.6 billion, income was more than €¼ billion below target at just under €4.9 billion. It is expected that spending on Social Insurance Fund schemes, services and administration will be on target for the full year but the Social Insurance Fund deficit will be in the region of €2.1 billion to €2.2 billion due to the shortfall in PRSI contributions. The Department’s expenditure is incurred almost entirely on payments to individual recipients based on predetermined qualifying conditions and rates of payment, most of which are set out in legislation. The expenditure, which is demand led, is driven by economic, social and demographic factors. The 2012 estimate provides €20.55 billion for total Departmental expenditure on schemes, services and administration. At the end of September, total Departmental expenditure amounted to €15.5 billion, which was some €135m. more than planned. It is expected that the outturn for the full year will be in the region of €20.7 billion to €20.8 billion.

Questions Nos. 101 and 102 answered with Question No. 82.

Job Statistics

Questions (103)

Pearse Doherty

Question:

103. Deputy Pearse Doherty asked the Minister for Social Protection if she has investigated and sought to quantify the link between social welfare cuts and job losses in view of the fact that there has been a net loss of 33,400 jobs since the publication of her Pathways to Work. [44557/12]

Written answers

Minister for Social Protection

The Quarterly National Household Survey (QNHS) reported an annual fall in employment of 33,400 for Quarter 2 2012. Over the same period, the Earnings, Hours and Employment Costs Survey (EHECS), which is the more reliable source for public sector employment estimates according to CSO, reported an annual fall in employment of 25,800 for the 'Total Public Sector including Semi-State bodies' sector. This includes a reduction of 5,300 related to Census 2011 temporary field staff over the year. The annual fall in employment for quarter 1 2012, as reported in the QNHS, was 18,100 and for Quarter 2 2011 was 37,800. The annual fall in public sector employment from EHECS for those quarters was 21,900 and 2,300 respectively. While the two sets of statistics cannot be directly related, it is clear that public sector employment, including the temporary increase due to Census recruitment last year, is having a significant impact on employment trends.

The Department will spend €20½ billion on a wide range of schemes and services this year. While there are many factors driving expenditure, including unemployment levels, demographic changes such as the increase in the number of over-65s and changes in the rules governing entitlements, the contribution, if any, of changes in social welfare to employment trends is not evident.

Redundancy Rebates

Questions (104)

Martin Heydon

Question:

104. Deputy Martin Heydon asked the Minister for Social Protection if she will consider a proposal (details supplied) to amend recent changes to the employer redundancy rebate provisions to make exception for small companies who satisfy certain criteria relating to turnover and staff numbers to alleviate the burden on these companies most at risk and to avoid this change becoming a disincentive for such companies to take on additional staff in the first place; and if she will make a statement on the matter. [44098/12]

Written answers

Minister for Social Protection

The purpose of the redundancy payments scheme is to compensate workers, under the Redundancy Payments Acts, for the loss of their jobs by reason of redundancy.

Compensation is based on the worker’s length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600.00 per week. All payments are made from the Social Insurance Fund (SIF). There are two types of redundancy payment made from the SIF - rebates to those employers who have paid statutory redundancy to eligible employees and statutory lump sums to employees whose employers are insolvent and/or in receivership or liquidation.

It is the responsibility of the employer to pay statutory redundancy to all their eligible employees. An employer who pays statutory redundancy payments to their employees is then entitled to a rebate of a portion of that payment from the State. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund.

Significant and increasing amounts have been paid out in redundancy rebates to employers from the SIF in recent years. While the SIF is constituted primarily from employer contributions, the taxpayers’ contribution is also significant. One of the factors which influenced the Government’s decision to revise the rebate rate was the increasing cost of rebates in recent years.

I am very concerned about the deficit in the Social Insurance Fund. In term of redundancy rebate payments to employers, €152.2 million was paid out in 2006; €167.4 million in 2007; €161.8 million in 2008; €247.9 million in 2009; €373.2 million in 2010 and €185.3 million in 2011. The amounts paid out in lump sums to employees have also increased. The Budget 2012 changes were given legislative effect in the Social Welfare and Pensions Act 2012. The new changes apply where the date of dismissal by reason of redundancy occurs on or after 1 January 2012.

I do not see why this country should continue to borrow money to plug the hole in the Social Insurance Fund in order to fund the cost of making people redundant – often from very profitable companies.

As part of the deliberations on Budget 2012, the approach taken in other countries was examined and it was decided that the 60% level of rebate is not sustainable in the current economic climate. While this may cause difficulties for employers it should be noted that redundancy rebate payments to employers are not common in many EU and other jurisdictions. The new arrangements bring Ireland more closely into line with practice in other countries.

It is not proposed to introduce a tiered system of redundancy rebate rates or to make exceptions for small businesses.

Back to Education Allowance Payments

Questions (105)

Pearse Doherty

Question:

105. Deputy Pearse Doherty asked the Minister for Social Protection if she will amend operational guidelines on the back to education allowance to allow consideration to be given to awarding the back to education allowance when it can be demonstrated that a lower or equivalent level qualification is required to secure progression or employment. [44558/12]

Written answers

Minister for Social Protection

The back to education allowance (BTEA) is a second chance education opportunities scheme designed to remove the barriers to participation in second and third level education. It enables those in receipt of 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. One of the key requirements to access this scheme is that a person must progress in the level of education held with reference to the national framework of qualifications among others. It is my intention to retain the requirements in respect of progression in education as a feature of the BTEA in line with the necessity that State support for education purposes is grounded on a student progressing from one qualification level to a higher one. The Springboard initiative funded by the Department of Education and Skills is available to unemployed and those previously self-employed to up-skill or re-skill in areas where sustainable employment opportunities may arise as the economy recovers. This can involve undertaking a course of study at a lower level of qualification already possessed by the applicant. Participants on jobseeker's payments may pursue Springboard courses and retain their payments while an entitlement exists under the PTEO.

Rent Supplement Scheme Payments

Questions (106, 367, 368)

Catherine Murphy

Question:

106. Deputy Catherine Murphy asked the Minister for Social Protection if her attention has been drawn to the fact that the highest concentration of applications for rent assistance payments are found in areas where the subvention limit is generally lower than average market rent rates; if her attention has further been drawn to the fact that more than 50% of people on housing waiting lists are concentrated in just seven counties; if she will agree that there is a significant relationship between the two statistics; if she is developing proposals to tackle the rent assistance pressure points around the country such as the Leixlip, Celbridge, Maynooth area of Kildare where rent assistance subvention limit is clearly beneath the average market rents in the area; if she will provide any information on discussions she may have had with the Department the Environment, Community and Local Government regarding the use of National Asset Management Agency properties to alleviate rent assistance pressure points; and if she will make a statement on the matter. [44569/12]

Bernard Durkan

Question:

367. Deputy Bernard J. Durkan asked the Minister for Social Protection her plans, if any to re-examine the maximum rents currently in place throughout County Kildare with particular reference to Celbridge, Leixlip and Maynooth, in view of the fact that the current maximum rent limit of €725 is not realistic as the locations in question are majorly affected by student rental accommodation and rental accommodation for local major employers; and if she will make a statement on the matter. [44875/12]

Bernard Durkan

Question:

368. Deputy Bernard J. Durkan asked the Minister for Social Protection if if she will examine the particular hardship caused to the people of County Kildare due to the system currently in place by her Department to determine maximum rents payable to those on council housing lists to such an extent that they cannot avail of rental properties in their local areas and must relocate to an area distant from their families; and if she will make a statement on the matter. [44876/12]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 106, 367 and 368 together.

There are approximately 90,000 persons in receipt of rent supplement for which the Government has provided a sum of €436 million for 2012. The aim of rent supplement is to provide short term income assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

The maximum rent 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. The Department will continue to monitor rent levels throughout the country but at this point I have no plans to revise the existing rent limits.

Analysis shows that for County Kildare, there are properties available within the maximum rent limits for rent supplement recipients. The number of rental properties available in North Kildare is somewhat lower than the numbers available in the rest of the county and therefore impacts on the number of accommodation units available for rent supplement. The maximum rent limit for a couple or one parent family, with two children in County Kildare is €725.

Latest figures show that there are currently 4,329 rent supplement recipients in County Kildare. When compared with Census 2011 household data this shows that 36% of properties rented from private landlords are in receipt of rent supplement in County Kildare. Figures also show that there are over 900 rent supplement recipients in the Leixlip, Maynooth and Celbridge areas in North Kildare, indicating that it is possible to secure accommodation in these locations within the rent limits. A multi-agency steering group has been established to develop proposals to give effect to this transfer. The group is chaired by the Department of the Environment, Community and Local Government and consists of representatives from the Departments of Social Protection; Public Expenditure and Reform; Office of the Revenue Commissioners; the County and City Managers Association, and the Housing Agency.

Discussions regarding the use of National Asset Management Agency (NAMA) properties for social housing have not taken place with the Department for Environment, Community and Local Government. Policy in relation to the proposed use of NAMA properties for social housing and local authority housing lists are a matter for my colleague the Minister for Environment, Community and Local Government.