Tuesday, 29 Jan 2013

Written Answers Nos. 137 - 156

Youth Unemployment Measures

Questions (137)

Timmy Dooley

Question:

137. Deputy Timmy Dooley asked the Minister for Social Protection the progress that has been made on the establishment of a youth guarantee scheme; and if she will make a statement on the matter. [4095/13]

Written answers

Minister for Social Protection

The European Commission has made a proposal for a Council Recommendation on a Youth Guarantee. In the form proposed by the commission, the Recommendation would be for Member States to ensure that all young people receive a quality offer of employment, continuing education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education. To be adopted, the Recommendation has to be agreed by the Member States. The process of negotiation on the Recommendation is currently under way, and the Irish Presidency has indicated our intention to have the agreed Recommendation adopted at the Council of relevant ministers at the end of February, and by the European Council before the end of our Presidency.

The main issues under discussion in the negotiations relate to the identification of the target group of young people, to the length of the period within which a guarantee would apply, the types of measure that would qualify as meeting the guarantee, and the question of flexibility for Member States with particularly high levels of youth unemployment and/or particularly difficult circumstances in relation to their public finances. When an agreed Recommendation has been adopted, the Government will review existing policies related to youth unemployment and identify the measures that will be required for the implementation of the guarantee.

Pension Provisions

Questions (138)

Thomas P. Broughan

Question:

138. Deputy Thomas P. Broughan asked the Minister for Social Protection if she will outline her plans for a universal pension scheme; her views on when any such proposals will be published; and if she will make a statement on the matter. [3920/13]

Written answers

Minister for Social Protection

The overall objective of the pension system in Ireland is to provide an adequate and sustainable basic standard of living through direct State supports and to encourage people (through generous tax reliefs) to make supplementary pension provision so that they may have an adequate income replacement rates when they retire from work. Secure and adequate finances are one of the fundamental components of a happy and active retirement. Compared to the rest of the population, Ireland’s older people have the lowest poverty rates (at 0.9%) and are least likely to be at risk of poverty. Significant reform of our pensions systems is necessary to safeguard future sustainability and adequacy.

Recent figures indicate that only half of workers aged between 20 and 69 years have a private pension and this relatively low coverage is of major concern to the Government. The sustainability of the pension system is a particular concern because of the demographic challenges Ireland faces, the associated increases in pension (and other age related) costs, and the deterioration in the public finances. This means that, in the future, the task of financing increased pension spending will fall to a diminishing share of the population as demographic projections indicate the ratio of working age to pensioners will decrease from 5.3/1 at present to 2.1/1 by 2060. Life expectancy in Ireland is also increasing – in the mid 1990s, life expectancy for males was 73 and for females 78.5. In 2041, it will be 86.5 and 88.3 respectively. While this is a very welcome development, it also presents very real and obvious public policy challenges.

While the State pension is expected to provide sufficient retirement income for the lowest paid workers, many people retiring from work will have a significant income gap if they do not have supplementary private pension provision. It is a priority for the Government to increase supplementary pension coverage, particularly amongst the lower paid and those with gaps in their employment. The Programme for Government includes a commitment to reforming the pension system to progressively achieve universal coverage, with particular focus on lower-paid workers. A soft-mandatory approach such as that envisaged by an auto-enrolment scheme, using economies of scale to achieve greater cost efficiencies for the member, is a very proactive way in which we can increase supplementary pension coverage. However, it is recognised that introduction of such an initiative would be best supported by a more favourable economic environment than is currently the case.

Recent discussions on the pensions system in Ireland and future pension policy identified the need for a short and focussed examination on the direction of long term policy to ensure a modern, sustainable, and adequate pension system taking into account the impact of the economic downturn. In this regard, the OECD has been commissioned to review long term pension policy in Ireland and this will include consideration of an auto enrolment system. It is expected that the report from the OECD will be finalised in the first quarter of this year.

Employment Support Services

Questions (139)

Bernard Durkan

Question:

139. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she expects the various employment training, educational and/or other temporary employment measures and youth outreach provisions to positively impact on the numbers on the current live register with particular reference to the needs of the long-term unemployed and specifically long-term youth unemployment; her views on whether the full extent of the projections in this regard are likely to be achieved in the short and medium term; and if she will make a statement on the matter. [4033/13]

Written answers

Minister for Social Protection

The Department provides a range of employment and work experience supports for unemployed people. During 2012, an average of 48,700 persons availed of these schemes. These include JobBridge; the employment programmes, TÚS, the Rural Social Scheme, and Community Employment; and support for people setting up their own businesses by means of the Back to Work Enterprise Allowance and Short-term Enterprise Allowance. The employment programmes in particular are targeted for those who are long-term unemployed. For 2013, it is intended to increase employment and work experience places to 60,000. I expect these additional places to be fully taken up during the year. This will have a commensurate impact of reducing the Live Register in the short-term while persons avail of these programmes.

A particular emphasis will be placed on an intensified approach to engaging with long-term unemployed in 2013. Towards this end the Department intends, during 2013, to:

1. Commence a project to profile all c 420,000 clients on the live register. This will help the Department to prioritise the selection of clients for assistance and to allocate scarce places on training and activation schemes.

2. Increase the number of its own staff assigned to case work/employment services duties.

In addition, a major initiative planned for 2013 will be the streamlining of the existing Revenue Job Assist and Employer PRSI schemes into a single easy to administer scheme that offers an attractive incentive to employers recruiting people who are long-term unemployed.

While there should be an impact in the medium to long term in improving people’s probability of exit from the Live Register as a result of these measures, the impact is not quantifiable. However, we do have some preliminary evaluation of the outcomes from the JobBridge Internship Scheme, which forms a significant component of the Pathways to Work approach. The findings of the interim evaluation of JobBridge, by Indecon found that 61% of interns who completed their internship secured employment within 5 months. These progression rates compare favourably with European averages in this area and represent very significant progress in a short period of time. It is expected that the progression outcomes in respect of those under 25 would be broadly in line with this 61% figure.

Social Welfare Benefits Waiting Times

Questions (140, 160, 170, 474, 480)

Seán Kyne

Question:

140. Deputy Seán Kyne asked the Minister for Social Protection if she will outline the steps that are being taken to reduce and minimise delays in the processing time for applications to the various schemes as administered by the social welfare services component of her Department. [4035/13]

Martin Ferris

Question:

160. Deputy Martin Ferris asked the Minister for Social Protection the progress that has been made in reducing waiting lists for applicants to each of the social welfare payments in the past year. [4060/13]

Michael Healy-Rae

Question:

170. Deputy Michael Healy-Rae asked the Minister for Social Protection the waiting time for applications for payments to be decided upon, for example invalidity pension, disability benefit, jobseeker's and so on. [3928/13]

Bernard Durkan

Question:

474. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which it has been found possible to shorten the time taken to process applications for each category of social welfare payment; the area or areas still requiring further attention in this regard; and if she will make a statement on the matter. [4539/13]

Bernard Durkan

Question:

480. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she continues to monitor the staff requirements throughout her Department with particular reference to the need to eliminate backlogs arising from the increased number of applicants for various payments; if it has been found possible to respond to on-going and increasing demand arising from the economic situation which she inherited from her predecessors; and if she will make a statement on the matter. [4545/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 140, 160, 170, 474 and 480 together.

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. As can be seen from the data in the following table, schemes that require a high level of documentary evidence from the customer, particularly in the case of illness-related schemes, can take longer to process. Similarly, means-tested payments can also require more detailed investigation and interaction with the applicant, thereby lengthening the decision making process. Delays can also arise if information is required from social security organisations in other jurisdictions and where additional information has been requested from the applicant but remains outstanding. For example, pension claims on hand for more than three months typically occur in the case of EU/bilateral pensions where information from other jurisdictions is awaited or, in the case of self-employed, there may be outstanding PRSI liabilities. This delay impacts on the award of household benefits in many cases as these secondary payments are linked to when the primary benefit is awarded.

As part of the Department’s programme of service delivery modernisation, a range of initiatives aimed at streamlining the processing of claims, supported by modern technology, have been implemented in recent years. Operational processes, procedures and the organisation of work are continually reviewed to ensure that processing capability is maximised. In addition, the staffing needs of the Department are regularly reviewed, having regard to workloads and the competing demands arising, to ensure that the best use is made of all available resources. The Department will continue to source available staff to fill critical vacancies by way of redeployment, or transfer from within the Department and other Government Departments, taking account of the employment control framework (ECF) target, as determined by the Department of Public Expenditure and Reform. Since May, 2008 to end December, 2012, a total of 1,084 posts (1,111 people) have been filled across the Department through redeployment and transfer of staff.

The new Intreo service is currently being rolled-out and implemented on a phased basis. This new service integrates employment and income supports and provides for a streamlined and personalized service to clients in accessing job opportunities and availing of supports to enable them to get back to work at the earliest possible opportunity. The Intreo Centres also include a single integrated decision-making team that integrate and streamline 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.

The following table provides details of processing times for each quarter during 2013. It demonstrates the recent improvements that have been made in areas such as invalidity pension and family income supplement (FIS) areas. FIS claims, both new and renewals received on or after the 5th November 2012 are currently being processed on receipt and it is intended to eliminate all backlogs by the end of March 2013. The introduction of a new IT platform has also improved processing times for invalidity pension.

I wish to assure the Deputies that prompt processing of claims remains a priority for me. Each scheme area is continuously monitored and processing procedures reviewed to ensure that claims are paid to customer as quickly as possible.

Table: Claim processing times per Quarter - 2012:

				Average weeks to award
Scheme	Mar	June	Sept	Dec
State Pension (contributory)	6	5	7	3
State Pension (transition)	5	6	7	4
State pension (non-contributory)	11	12	12	13
Widow(er)’s Pension (contributory)	2	2	2	2
Widow(er)’s Pension (non-con) pension & one parent family payment (widow)	11	7	9	8
One Parent Family	17	15	13	14
Household Benefits	1	2	2	2
Bereavement Grant	1	1	1	1
Invalidity Pension	31	32	33	16
Family Income Supplement - New Claims	17	16	18	7
Disability Allowance	28*	17*	17*	17*
Carer’s Benefit	11	11	9	9
Carer’s Allowance	28*	28*	25*	25*
Jobseeker’s Benefit	2	2	2	2
Jobseeker’s Allowance	5	4	4	4
Illness Benefit	1	1	1	1
Maternity Benefit	2	2	2	2
Child Benefit - Domestic	3	2	4	3
Domiciliary Care Allowance	6	7	6	6
Back to Education Allowance				Applicants for BTEA are already in receipt of another social welfare payment before a decision is made on their entitlement to the Allowance.

*Estimated for schemes which have recently been transferred to new IT platform

Social Welfare Code

Questions (141)

Seamus Kirk

Question:

141. Deputy Seamus Kirk asked the Minister for Social Protection the average social transfer in 2012 for the top 10% of income earners and the bottom 10% of income earners; and if she will make a statement on the matter. [4102/13]

Written answers

Minister for Social Protection

Data on the distribution of social transfers by income decile are reported by the Central Statistics Office (CSO) from the Survey on Income and Living Conditions. Data for 2012, as requested by the deputy, are unlikely to be published by the CSO until the end of 2013. The publication of data for 2011 has been delayed and is now expected later this year. The 2011 data will include revised data for 2010 (originally published by the CSO in March 2012).

Rent Supplement Scheme Application Numbers

Questions (142, 174, 471, 478)

Catherine Murphy

Question:

142. Deputy Catherine Murphy asked the Minister for Social Protection the number of rent supplement applications that remain unprocessed at this time; the average length of time it takes to process a rent supplement application; the same figures for each of the past three years; and if she will make a statement on the matter. [3911/13]

Bernard Durkan

Question:

174. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of applications for rent support, mortgage interest relief, supplementary welfare or other basic payments received in each of the past two years to date; the numbers approved under each heading; the numbers referred to appeal; the number of decisions overturned on appeal; the average length of time taken overall under each heading; and if she will make a statement on the matter. [4032/13]

Bernard Durkan

Question:

471. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of applications for rent support received on a county basis in each of the past four years to date; the numbers granted, refused or pending in each case; and if she will make a statement on the matter. [4535/13]

Bernard Durkan

Question:

478. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of applications received in her Department or through the Health Service Executive for mortgage interest support in each of the past three years to date; the number granted refused or pending; the average length of time taken to determine such cases; and if she will make a statement on the matter. [4543/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 142, 174, 471 and 478 together.

The supplementary welfare allowance scheme (SWA) is considered the "safety net" within the overall social welfare system in that it provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependants. The Government has provided approximately €718 million for the various SWA schemes in 2013. I include a tabular statement outlining the number of claims awarded for basic supplementary welfare allowance, rent supplement and mortgage interest supplement for each of the last three years. A breakdown of the number of rent supplement claims in payment on a county basis for each of the past four years is provided. I also include details of the number of payments made under the exceptional needs payments and urgent needs payments schemes for 2011 and 2012. Statistics are not available on the length of time taken to process SWA applications, the number of applications received or their outcome.

Statistics from the Social Welfare Appeals Office advise that 5,445 SWA appeals were received in 2012. The average processing time was 17.6 weeks for appeals dealt with by way of summary decision and 22.9 weeks for those requiring an oral hearing. Prior to October 2011, supplementary welfare allowance appeals were submitted directly to appeals officers of the Health Services Executive (HSE). A tabular statement detailing the outcome of SWA appeals decided by appeals officers for 2012 is included. The statistics presented in relation to appeals are not analysed under the various sub schemes within SWA as individual appeals can relate to more than one scheme area.

Reviews of exceptional needs payments and urgent needs payments are not appealed to the Chief Appeals Officer but are referred for review by another officer if the applicant is not satisfied with the outcome of their application. Statistics are not maintained on the number or the outcome of such reviews.

The provision of a prompt service is a major objective for the Department’s staff administering the various elements of SWA. All decisions are decided as speedily as possible. This is tempered by the necessity to ensure that every case is fully examined and that all cases are dealt with in a consistent and fair manner. I am satisfied that the Department’s staff dealing with applications or appeals in relation to SWA payments make every effort to ensure all transactions are processed in an efficient, fair and transparent manner.

Tabular Statement

Table 1: Number of Rent Supplement, Mortgage Interest Supplement and Supplementary Welfare Allowance claims awarded by year.

Year	Rent Supplement	Mortgage Interest Supplement	Supplementary Welfare Allowance
2012	48,731	5,209	85,121
2011	63,878	10,106	95,227
2010	71,674	11,321	112,365

Table 2: Number of payments made under Exceptional Needs Payment and Urgent Needs Payment schemes

Year	Exceptional Needs Payments	Urgent Needs Payments
2012	196,837	644
2011	225,620	594

Table 3: Supplementary Welfare Allowance Appeals decided by Appeals Officers

Year	Allowed	Part Allowed	Disallowed	Total
2012	1,017	142	3,105	4,264

Number of Rent Supplement Recipients by County at Year End:

	2012	2011	2010	2009
Carlow	1,239	1,440	1,484	1,498
Cavan	519	843	1,029	1,115
Clare	1,722	1,961	1,937	1,780
Cork	9,878	10,732	10,988	10,603
Donegal	2,411	2,977	3,194	3,470
Dublin	32,584	34,423	33,818	31,261
Galway	4,134	4,615	4,829	4,989
Kerry	2,037	2,278	2,339	2,398
Kildare	4,338	4,447	4,409	4,161
Kilkenny	1,365	1,619	1,577	1,472
Laois	1,097	1,178	1,151	979
Leitrim	374	440	530	507
Limerick	3,323	3,833	3,896	3,669
Longford	511	623	715	789
Louth	2,549	2,734	2,563	2,426
Mayo	2,435	2,928	3,012	3,077
Meath	2,143	2,723	2,552	2,213
Monaghan	438	488	598	640
Offaly	1,240	1,349	1,273	1,053
Roscommon	997	1,275	1,276	1,286
Sligo	591	698	787	822
Tipperary	2,199	2,609	2,680	2,572
Waterford	1,773	2,098	2,332	2,267
Westmeath	1,592	1,671	1,623	1,521
Wexford	3,700	4,102	4,055	3,763
Wicklow	2,495	2,719	2,613	2,699
Total	87,684	96,803	97,260	93,030

Partial Capacity Benefit Scheme Data

Questions (143)

Kevin Humphreys

Question:

143. Deputy Kevin Humphreys asked the Minister for Social Protection the number of people transferred to partial capacity benefit in 2012; if she will indicate the number of people in each assessment band of capacity; the number who were assessed as mild and not eligible; her views on the way the scheme is operating; if she has any plans to review its operation after one year; and if she will make a statement on the matter. [3923/13]

Written answers

Minister for Social Protection

The number of people awarded partial capacity benefit since the scheme commenced in February, 2012 until the end of the year was 908 in total. The numbers in each assessment band is as follows: Awarded - Moderate 770; Awarded - Severe 124; Awarded - Profound 14; Total - 908. Some 38 applicants were assessed as being capable of work and thus ineligible for the partial capacity benefit scheme.

The introduction of the partial capacity benefit scheme has provided an opportunity for people with disabilities, and assessed to have an employment capacity which is restricted in comparison to the norm, to avail of employment opportunities while continuing to receive an income support payment. The scheme is facilitating greater levels of recruitment of people with disabilities in the open labour market and represents an important development of the social welfare system. The department will continue to keep progress on the scheme under review.

Social Welfare Code

Questions (144)

Barry Cowen

Question:

144. Deputy Barry Cowen asked the Minister for Social Protection if the programme for Government commitment to maintain social welfare rates still stands; and if she will make a statement on the matter. [4093/13]

Written answers

Minister for Social Protection

The Programme for Government contains a commitment to maintain welfare rates. This commitment relates to primary weekly social welfare payments intended to enable recipients to meet their basic day-to-day income needs. As the Deputy will be aware there were no reductions in primary weekly social welfare payments, including increases for qualified adults or qualified children in Budget 2012 or in Budget 2013.

Departmental Equipment

Questions (145)

Patrick O'Donovan

Question:

145. Deputy Patrick O'Donovan asked the Minister for Social Protection if she will provide details on the progress made in improving the ICT capability of her Department to detect potential irregularities, over payments or fraud; and if she will make a statement on the matter. [4030/13]

Written answers

Minister for Social Protection

The Department of Social Protection has a number of systems which have been developed over many years to enable it to pay multiple groups of clients and to manage data in relation to its various schemes. These systems reliably deliver over 87 million payments yearly between them. Although developed independently, mechanisms exist on the major systems whereby significant changes made to customer or claim details are automatically notified to other relevant systems. The Department is working towards consolidation on a single ICT ‘platform’ - the Business Object Model implementation - BOMi. This work is carried out as part of the Department’s continuous Service Delivery Modernisation programme.

As this programme progresses, all of the Department’s client and claim related systems will be integrated on the BOMi platform, ensuring that all client and claim information is fully and automatically available across all of the Department’s schemes and places of business. Not only does the Department work with the information held by ourselves, we also recognise the value of working closely and collaboratively with other agencies to ensure that social welfare abuse is comprehensively detected and tackled. Over the last number of years we have been engaged in data matching exercises with other Government Departments and public bodies for control purposes. Data matching is viewed as an efficient and effective mechanism to target control related activity. I am satisfied that the Department’s systems communicate with each other and other bodies to share relevant information and this process will continue to be refined and expanded to meet control and other needs.

Question No. 146 answered with Question No. 135.

Household Benefits Scheme

Questions (147, 186)

John McGuinness

Question:

147. Deputy John McGuinness asked the Minister for Social Protection the discussions that she has held with electricity, telephone and gas providers about costs to household benefits package recipients; the progress made; the monetary implications of the cuts to recipients; and if she will make a statement on the matter. [4053/13]

Jonathan O'Brien

Question:

186. Deputy Jonathan O'Brien asked the Minister for Social Protection the discounts she has managed to agree with the utility companies who supply gas and electricity to those in receipt of the household benefits. [4066/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 147 and 186 together.

The total cost of the electricity/gas allowance in 2013 is estimated at €176 million with 405,000 recipients. The total cost of the telephone allowance in 2013 is estimated at €48 million with 395,000 recipients. My Department meets regularly with the energy and telecommunication providers to ensure the smooth operation of the household benefits scheme, and to pursue savings for the Department and better deals for our customers. Those discussions are on-going. We continue to receive a discount from Electric Ireland; this discount was increased last year to €1.7 million. This is in addition to a previous ‘write off’ of €1.1 million in relation to Public Services Obligation (PSO) rebate in 2009. Last year a deal was concluded with Eircom which was estimated to generate €17 million in savings over a twelve month period.

Following Budget 2013, the structure of the electricity and gas allowance has been changed from a unit based allowance to a cash credit of €35 per month. This rate is currently aligned to the best average market rate currently available. The changed structure of the allowance is designed to encourage customers to achieve better savings through greater mobility between energy suppliers who can best meet their individual energy needs.

As announced in Budget 2013, and having regard to the on-going budgetary constraints, the monthly telephone allowance for customers has been reduced from €22.60 to €9.50. By way of response, I welcome that Eircom are currently looking at developing special packages for vulnerable customers in response to this change. In addition, there are a wide variety of deals available from other operators within the market; by way of illustration it is now possible to get a standard pay-as-you-go brand name mobile telephone for as little as €19.99.

Electricity and gas customers will mitigate the average loss per customer of €7.05 if they regularly shop around and ensure that they get the best value now in the market place from energy providers for their specific energy needs. The Commission for Energy Regulation website energycustomers.ie has information on how to switch electricity/gas supplier and the Commission for Communications Regulation website www.callcosts.ie has information on how to switch telecommunication and broadband supplier.

Social Welfare Code Reform

Questions (148)

Kevin Humphreys

Question:

148. Deputy Kevin Humphreys asked the Minister for Social Protection if there has been any study or analysis within her Department or associated agencies of the flexicurity welfare state model that is used in Denmark and Germany and may be introduced in France; if she has considered any aspects of this model in the reforms currently underway; and if she will make a statement on the matter. [3922/13]

Written answers

Minister for Social Protection

Flexicurity is a very broad concept. While initially identified with the Danish model of high levels of compensation, weak employment protection and a high spend on activation measures, flexicurity has come to be seen as a way of describing quite a wide range of combinations of policy measures. There are in fact at least 16 combinations of flexibility and security found in EU member states that could be broadly deemed as some form of ‘flexicurity’. Broadly speaking flexibility and security are defined along the following lines: Flexibility refers to

- relevant transitions made during the working life-cycle

- upward mobility and talent development

- flexible organizations with incentives enabling the adaptation to new production processes

- ease of combination between working and personal life.

Security (understood beyond job security) refers to

- equipping people with the skills that allow them to make progress throughout their working lives and help them to find new jobs;

- adequate unemployment benefits to provide income support during periods of unemployment combined with employment supports to ease transitions back into employment

- training opportunities for all workers, in particular, the low-skilled and older workers.

Recently, there has been a greater emphasis on the flexibility component of flexicurity in this time of crisis, with the view that flexibility was in itself the best way to create job opportunities and by extension, security. In Ireland, we have, with the reforms to our activation system encapsulated in our Pathways to Work policy, defined our own Irish model of flexicurity. These reforms, when combined with the Action Plan for Jobs, aim to deliver on both flexibility and security. In particular, the rollout of the Intreo offices, throughout the country, is consistent with the flexicurity approach, linking the security of training and benefits with the flexibility of encouraging more intensive job search and transitioning between employments.

With regard to flexible and reliable contractual arrangements, (another tenet of flexicurity), there is a strong body of employment legislation in Ireland to ensure that workers’ rights are fully protected under a range of various contract types. Legislation has been introduced in recent years to protect employees who are engaged in more flexible working arrangements such as part time employment and fixed-term contracts. With regard to the welfare code we provide a range of options including casual working, part time work incentive and family income supplement which facilitate flexible work arrangements. A balance has been sought between, on the one hand, maintaining workers’ security in terms of their conditions of employment while, on the other, having due regard to the flexibility required by employers in terms of organising work and/or work patterns and seeking to ensure that job creation is not inhibited through overly rigid regulation. Within the body of legislation employers and employees have reasonable levels of freedom and flexibility to organise their work and their workplaces to take account of their particular needs and circumstances.

Community Employment Schemes Places

Questions (149, 175)

Aengus Ó Snodaigh

Question:

149. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection of the 2000 new community employment places announced on 19 January 2013, the number that will be allowed for longer than one year. [4058/13]

Aengus Ó Snodaigh

Question:

175. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection of the 2,000 new community employment places announced on 19 January 2013, the number that will be ring fenced for those in receipt of disability allowance or for drugs projects or childcare places. [4059/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 149 and 175 together.

The 2,000 additional places for the Community Employment (CE) programme announced in Budget 2013 will be an ongoing commitment to the programme and will increase the overall number of CE places to 25,300 inclusive of Supervisor posts. These places will be approved on a phased basis from the end of January to the end of the year, in line with the overall CE budget allocation. Schemes have been notified of the availability of these additional places and the application process.

The allocation of the 2,000 CE places will be informed by the following criteria:

- The population of long-term unemployed persons in each regional Division of the Department, the number of claimants on Jobseekers Allowance, lone parents and disability claimants in receipt of a welfare payment for 52 weeks or more.

- Priority will be given to schemes and organisations who are involved in the delivery of community childcare services, social and healthcare services for people with a disability. This is in order to support the provision of these services and offer training qualifications and work experience to CE participants. An allocation of 500 of the additional places will be reserved for childcare support and 500 of the additional places for social and health-related services.

- Priority will be given to applicants who are involved in Drug Rehabilitation Services and who consider participation on CE to be a further step in this process. Additional CE places will be made available to respond to new proposals.

- There is scope to encourage innovation, new approaches and models of delivery from organisations who are experienced in addressing the needs of long-term unemployed. Approximately 100 places will be reserved for such proposals. However, this will be reviewed on the basis of the quality of applications received.

- The balance of places will be made available to schemes who can demonstrate a clear justification on the basis of quality of service and performance.

- For all applications, priority will be given to schemes and organisations who can demonstrate a track record in the development and progression of participants into employment.

The supply of the additional 2,000 CE places will be based on the demand and capacity of CE sponsoring organisations both existing schemes and new applicants to deliver activities that benefit the jobseeker and add value to the local community in line with the criteria outlined above. The standard CE eligibility criteria will apply to participants taking up these additional places. Persons in continuous receipt of a CE-qualifying social welfare payment for at least 52 weeks are eligible to apply for participation on CE. The duration on CE will be determined by the profile of the CE participant as is currently the case. The Department is committed to the continuing improvement of CE to ensure value for money, progression of the job seeker and support for communities.

Exceptional Needs Payments

Questions (150)

Derek Keating

Question:

150. Deputy Derek Keating asked the Minister for Social Protection following the recent circular directive SWA 1/02013 issued on 11 January 2013 regarding supplementary welfare payments that were traditionally paid around the period of Holy Communions and Confirmations as an Exceptional Needs payment for those less well off, if she will outline the amount of money that will be saved in relation to this decision; if she will consider the way the impact of such a decision can be reversed including whether it may have been made on the basis of a State grant for a religious service and, if this is so, if she will confirm the basis of this decision; and if she will make a statement on the matter. [3919/13]

Written answers

Minister for Social Protection

Under the supplementary welfare allowance (SWA) scheme, the Department may make a single exceptional needs payment (ENP) to help meet essential, once-off, exceptional and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. There is no automatic entitlement to a payment. ENPs are payable at the discretion of the officers administering the scheme taking into account the requirements of the legislation and all the relevant circumstances of the case in order to ensure that the payments target those most in need of assistance. The Government has provided €47.6m for the scheme in 2013.

A review of the guidelines on exceptional needs payments was carried out by the Department by a working group made up of former community welfare service staff. One of the recommendations emanating from this review is to address the different approaches taken, in different areas, in relation to the payment of exceptional needs payments in respect of religious ceremonies, mainly Communions and Confirmations, and to ensure that the SWA scheme is responding to financial need and not occasions. For 2013, the Department has recommended that payment of the allowance specifically in respect of religious ceremonies will cease. Applications can continue to be made under the scheme for assistance with child clothing.

I have no plans to reverse this position as these measures will ensure that the ENP Scheme will continue to respond to specific need and not to the occasion. It is expected that savings in the region of €1.5 million will be achieved by this measure. Persons who consider that they have an entitlement to an ENP under the supplementary welfare allowance scheme should contact the local officials administering the scheme.

Social Insurance

Questions (151)

Thomas Pringle

Question:

151. Deputy Thomas Pringle asked the Minister for Social Protection the progress that has been made or her plans to provide unemployment benefits to the self-employed. [4036/13]

Written answers

Minister for Social Protection

The Advisory Group on Tax and Social Welfare which I established in 2011 is charged with, inter alia, examining and reporting 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.

One of the issues examined in the third Actuarial Review of the Social Insurance Fund, as at 31 December 2010, published in 2012, was the long-term cost implications to the Social Insurance Fund (SIF) and the break-even contributions rates required to provide jobseeker’s benefit to the self-employed and to provide invalidity pensions 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 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%.

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.

Social Welfare Benefits Data

Questions (152)

Sandra McLellan

Question:

152. Deputy Sandra McLellan asked the Minister for Social Protection the number of applicants there were under the supplementary assistance payment or other social protection payments for help due to severe flooding in Dublin and elsewhere in the country since major floods on 24 October 2011; the number granted a payment and the amount of the additional €10 million she had allocated for flod relief that year since; and if she has had any further discussion with Department of Public Expenditure and Reform on the question of quicker and more targeted payment. [4076/13]

Written answers

Minister for Social Protection

The Department of the Environment, Community and Local Government is the lead Department for severe weather emergencies and the Office of Public Works has responsibility for capital flood relief activities. However, the Department of Social Protection has an important role to play in assisting households in the immediate aftermath of emergency events such as the flooding of October 2011 and June 2012. Generally, in response to flooding situations, departmental officials provide individuals with emergency payments to offset immediate needs e.g. assistance with the purchase of food, clothing, fuel and household goods. Local staff are proactive in contacting households affected and in providing targeted supports to those in need as swiftly as possible. Community Welfare Services operating in the areas affected extend their opening hours providing additional emergency service. This service is supplemented by facilitating clients with individual appointments and making house calls.

A humanitarian aid scheme was approved by Government in response to flooding situations. The Department has received sanction, up to a maximum allocation of €10m, to provide for the activation of the scheme in any future cases affected by severe flooding thereby ensuring immediate supports. The humanitarian aid scheme, which is means tested, is available to people whose homes were damaged in the flooding and who are not in a position to meet costs for essential needs, household items and in some instances structural repair as a result of the flooding damage.

From October 2011 to 05 January 2013 some 1,370 payments were made at a cost of some €1.188m. Statistics are not available on the number of applications made. The majority of the payments were made to householders resident in Dublin, Monaghan or Cork. In Dublin, a total of 798 payments have been made at a cost of €497,066. Since 2009, there was a combined spend of in excess of €21m when the spending of the various Government Departments and Agencies is added together in response to flooding events (DSP will spend in excess of €5 million with a further €16.4 million spent by the local authorities and over €0.5 million by the Department of Agriculture and Food on fodder relief for farmers, making a total spend of over €21 million).

Departmental Contracts

Questions (153, 157, 163, 180)

Pat Deering

Question:

153. Deputy Pat Deering asked the Minister for Social Protection the position regarding the tender for the payment of entitlements on behalf of her Department; when a decision will be made in relation to the awarding of this contract, if she will take into consideration the impact on jobs, convenience and professional standards that are currently being provided by An Post; and if she will make a statement on the matter. [3926/13]

Regina Doherty

Question:

157. Deputy Regina Doherty asked the Minister for Social Protection the position regarding the tender for the payment of entitlements on behalf of her Department; when a decision is being made in relation to the awarding of this contract; if she will take into consideration the impact on jobs, convenience and professional standards that are currently being provided by An Post; and if she will make a statement on the matter. [3925/13]

Anthony Lawlor

Question:

163. Deputy Anthony Lawlor asked the Minister for Social Protection if she will provide details on the tendering process due to commence when the current contract with An Post for the payment of welfare customers expires on the 31 December 2013; when a decision will issue in relation to the awarding of this contract; if she will take into consideration the impact on jobs, convenience and professional standards that are currently being provided by An Post; and if she will make a statement on the matter. [3927/13]

Derek Keating

Question:

180. Deputy Derek Keating asked the Minister for Social Protection the position regarding the tender for the payment of entitlements on behalf of her Department; when a decision will be made in relation to the awarding of this contract; if she will take into consideration the impact on jobs, convenience and professional standards that are currently being provided by An Post; and if she will make a statement on the matter. [3918/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 153, 157, 163 and 180 together.

Public sector contracts for the supply of products and services are generally subject to a competitive tendering process. This ensures that the taxpayer receives value for money and ensures that all potential suppliers are given the opportunity to put forward the most efficient, effective and competitive solutions for consideration and evaluation. The award of public sector contracts with a significant financial value is subject to various EU Directives. Because of the financial value of this particular service, the Department is required to publicly advertise for the procurement of cash services before entering into a new contract for the delivery of social welfare payments to customers around the country.

The current contract with An Post expires on 31st December, 2013. In anticipation of this, the Department is undertaking two public procurement competitions this year for the delivery of welfare payments. The first request for tenders was publicly advertised on 20th December 2012. The Tender is seeking over the counter cash services for social welfare customers who are currently in receipt of payments through the post office network. The contract term will be for a period of two years, which may be reviewed annually, up to six years in aggregate. The closing date for receipt of Tenders is 18th February 2012. All Tenders received in response to this procurement competition will be evaluated on the basis of criteria outlined in the Request for Tender including the quality of their proposed approach for customer service, suitable logistical arrangements to ensure all customers are on time, in full; the quality of their proposed arrangements for the prevention of fraud; and the quality of their proposals for financial and contract management. The outcome of this public procurement competition will give rise to a contract to ensure continuity in the delivery of cash payments to the Department’s almost one million customers, whilst also putting in place arrangements to facilitate the transition from cash payments to electronic payments.

Deputies will be reassured to know that any concerns regarding convenient access for customers to payment outlets and the standards of the services they can expect to receive in drawing their welfare payments have been specifically identified in the published Tender. I anticipate that a contract will be awarded on foot of this procurement in Quarter 2 of 2013.

To supplement existing levels of payments made directly into customer accounts in financial institutions, the Department also advertised their intention to undertake a second procurement later this year. This will support the progression over time from cash payments to increasing levels of electronic payments to customers. The Department envisages a situation where all payments to our customers will be paid electronically. This is in line with the Government policies and objectives such as better public services and to improve the efficiency of the national payments environment. These objectives are aligned to the objectives of the National Payments Plan. The second procurement to be undertaken for the provision of an ePayment solution, which will complement the existing Electronic Funds Transfer (EFT) payments into financial institutions will be published before the end of June 2013.

Rent Supplement Scheme Administration

Questions (154, 164, 167, 171)

Dessie Ellis

Question:

154. Deputy Dessie Ellis asked the Minister for Social Protection the changes she intends to make to the rent supplement scheme in view of the strain that recent changes are putting on families and persons in Dublin in particular who cannot find properties within the rent limits. [4065/13]

Alan Farrell

Question:

164. Deputy Alan Farrell asked the Minister for Social Protection the number of persons who have left or changed rent supplemented accommodation this year due to the reduction in rent supplement allowable since January 2012; and if she will make a statement on the matter. [3924/13]

Billy Kelleher

Question:

167. Deputy Billy Kelleher asked the Minister for Social Protection if she will outline the impact the lowering for the cap on rent allowance has had on recipients; and if she will make a statement on the matter. [4100/13]

Catherine Murphy

Question:

171. Deputy Catherine Murphy asked the Minister for Social Protection if she will confirm that differential rent allowance limits have been permitted within local authority boundaries with respect to certain urban areas; if this is the case with Bray, County Wicklow at present compared to rates in the rest of County Wicklow; if so, if she will outline the rationale for this arrangement; if there is scope to extend this arrangement to other towns in similar circumstances to Bray; and if she will make a statement on the matter. [3910/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 154, 164, 167 and 171 together.

There are currently approximately 88,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013. Revised rent limits are in place since January 2012 and are applicable to all new rent supplement tenancies from this date and existing tenancies on review. These limits were set after an analysis of the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money was obtained whilst at the same time ensuring that people on rent supplement are not priced out of the market for good quality private rented accommodation. The central aim was to ensure availability; the limits do not provide rent supplement tenants with access to all housing in all areas.

Special provisions can be made in exceptional circumstances to exceed the rent limits including, for example, people with disabilities who require specially adapted accommodation or homeless persons. Approximately 48,700 rent supplement claims were awarded during 2012, showing that accommodation can be secured within the new limits. Information on the numbers who have secured alternative accommodation is not available. Department officials dealing with rent supplement will continue to ensure that accommodation needs for recipients can be met.

As part of the rent limit review, all major urban population centres were tested to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. Ongoing analysis shows that for Dublin there are properties available within the maximum rent limits for rent supplement recipients. Over 32,500 persons in receipt of rent supplement reside in Dublin.

Traditionally, the Bray area was permitted the use of the County Dublin rent limits. It was noted during analysis for the June 2010 Rent Limit Review that Dublin limits for the Bray area had become a significant distorting influence for the local market. It was concluded that rents were out of line with the natural supply and demand points expected for the Bray area. Accordingly it was decided that the Bray area was to be excluded with separate limits set for this area. Officials in the Department continue to examine the impact of the rent limits on those who claim rent supplement. The next review of rent limits will take place before June 2013 and any changes to the existing limits will be considered as part of this review.

Social Welfare Code

Questions (155)

Dessie Ellis

Question:

155. Deputy Dessie Ellis asked the Minister for Social Protection if she still intends to proceed with the introduction of the single working age payment concept, announced by her to the Troika in March 2011; and if a decision has been made to exclude carers, those in receipt of one parent family, disability and invalidity payments. [4064/13]

Written answers

Minister for Social Protection

The Single Working Age Assistance Payment or single payment is a proposal to create a single social welfare payment that would cover all people of working age, including those who would currently be classified as unemployed, with a disability, or parenting alone. The introduction of a single payment could potentially be a key development in the pursuit of a more focused and purposeful activation agenda, which could be delivered through my Department’s Intreo service. The single payment would provide recipients with access to the supports or services they need to enable them take up employment or avail of education and training opportunities and thereby result in better overall outcomes.

The single payment would also be an opportunity to address the current complexity of Ireland’s social welfare system by streamlining a number of different payments for people of working age, thereby making it more transparent and accessible. The development of supports and services is a necessary precondition for the introduction of a single payment and work is on-going on the development of these services. Given the specific nature and purpose of carer’s allowance, the Government has decided to exclude carer’s allowance from any single payment proposals. However, no other decisions have been made in relation to the introduction of a single payment.

Redundancy Payments

Questions (156)

Joe Higgins

Question:

156. Deputy Joe Higgins asked the Minister for Social Protection if her Department will meet the cost of the statutory redundancy and unpaid holiday pay of the workers who lost their jobs in a company (details supplied) as per the agreement between the workers and Deloitte and Touche. [4103/13]

Written answers

Minister for Social Protection

The company in question was recently put into receivership and it is understood that it is the receiver’s intention to seek a buyer for all or part of the business. My Department is not aware of any of the employees concerned having been made redundant to date. In the event that any of the employees concerned are eventually made redundant they may be eligible for a statutory redundancy payment under the Redundancy Payments Acts 1967 to 2012. In order to be eligible for a redundancy lump sum payment, an employee must:

- have at least two years continuous service;

- be in employment which is insurable under the Social Welfare Acts;

- be over the age of 16; and

- have been made redundant as a result of a genuine redundancy situation meaning that the job no longer exists and he/she is not replaced.

Under the scheme, an eligible employee is entitled to two weeks’ pay for every year of service, plus a bonus week, subject to a gross weekly salary ceiling of €600.

It is the employer’s responsibility to pay statutory redundancy payments in the first instance. Where an employer can prove to the satisfaction of the Department that it is unable to pay statutory redundancy to its eligible employees the Department will make lump sum payments directly to those employees. Such payments raise a debt against the employer which the Department will seek to recover.

The purpose of the insolvency payments scheme is to protect certain outstanding pay-related entitlements due to employees because of their employer being insolvent as defined by the rules of the scheme (for example, liquidation or receivership). These entitlements include wages, holiday pay, sick pay, payment in lieu of minimum notice due under the Minimum Notice & Terms of Employment Acts, 1973-2001, and certain pension contributions. Various other statutory awards made by the Employment Appeals Tribunal (EAT), Rights Commissioners, etc., are also covered by the scheme.

Some or all of the employees concerned may have entitlements under the insolvency payments scheme. As yet the Department has received no applications under the scheme. In the event of the business winding-up the Minister for Social Protection would be a preferential creditor in respect of any statutory redundancy lump sum payments made by the Department or payments under the insolvency payments scheme.