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Wednesday, 29 May 2013

Written Answers Nos. 1 - 14

Disability Allowance Payments

Questions (10)

Michael Colreavy

Question:

10. Deputy Michael Colreavy asked the Minister for Social Protection if she will maintain disability allowance at its current rate in budget 2014. [25723/13]

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Written answers

The Revised Estimates for the Department provide for expenditure of €1,115 million in 2013 on the disability allowance scheme, an increase of €29 million (2.7%) over 2012. There were almost 102,400 recipients of disability allowance at the end of March. However, the Government was able to reduce the net savings required in Budget 2013 to €390 million, €150 million less than originally indicated. This enabled the Government to ensure, for the second year in a row, that there was no reduction in primary weekly rates of payment, including the rate of disability allowance. In addition, there were no changes to the weekly fuel allowance which may be payable with disability allowance or to free travel, which DA recipients also receive.

In relation to the forthcoming Budget, the Deputy will be aware that the Expenditure Report 2013 published by the Department of Public Expenditure and Reform last December provides for additional new expenditure reduction measures of €440 million to be achieved in 2014 in the Department of Social Protection budget. The Government have not made any decisions in relation to measures to be introduced in Budget 2014. The Government will finalise its consideration of the Budget in the coming months having regard to all of its commitments, including the commitment in the Programme for Government to maintain welfare rates. The outcome of this process will be announced on Budget Day.

Work Placement Programmes

Questions (11)

Jim Daly

Question:

11. Deputy Jim Daly asked the Minister for Social Protection if she will provide an update on her Department's work in introducing a work placement initiative to allow the unemployed to work within local authorities. [25640/13]

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Written answers

The Government, as part of the Budget package for 2013, announced a number of initiatives focused on providing work opportunities for jobseekers, including the provision of 10,000 additional work placements across a number of schemes. The additional placements on community employment, Tús and JobBridge have already been rolled-out and are in the process of being filled by the sponsoring organisations and implementing bodies. The Budget package introduced a new initiative with local authorities to provide 3,000 part-time work opportunities in 2013. This is in line with the commitments set out in the Action Plan for Jobs and Pathways to Work.

The design of this initiative has been largely completed and local authorities have been engaged in a process of identifying the nature of work and range of opportunities that can be made available across their administrative and operational areas. Local authorities have been asked to complete consultations with staff representative bodies and other key stakeholders to enable the scheme to commence on a staged basis over the coming months. Currently, 13 local authorities have agreed to lead out the first wave of the initiative and selection of participants will commence by the Department of Social Protection in the coming weeks. Following referral of interested customers by the Department, each local authority will conduct their own recruitment process, involving skill profiling, job matching and vetting by An Garda Síochána before a person is assigned to a position. My understanding is that the local authorities in this first wave have identified some 700 positions to be filled before the end of September. The remaining placements are in the process of being identified with a view to having commenced recruitment by the end of 2013.

Rent Supplement Scheme Expenditure

Questions (12, 57)

Thomas P. Broughan

Question:

12. Deputy Thomas P. Broughan asked the Minister for Social Protection if she will report on her Department's spending in 2012 and to date in 2013 on rent supplement; the number of persons currently in receipt of the payment; and her views on the effect of rent supplement levels on rent rates, particularly in the greater Dublin area. [25705/13]

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Clare Daly

Question:

57. Deputy Clare Daly asked the Minister for Social Protection if she will review the cap on rents, which is penalising those on social welfare, against the backdrop of rising rents. [25639/13]

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Written answers

I propose to take Questions Nos. 12 and 57 together. There are currently approximately 86,000 recipients of rent supplement for which the Government has provided over €403 million for 2013 and €423 million in 2012. Expenditure on the scheme up to end April 2013 is approximately €127 million. The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation and not to act as an alternative to the other social housing schemes operated by the Exchequer. As the Department currently funds almost 30% of the private rented sector it is essential that State support for rents are continually kept under review, reflect current market conditions and do not distort the market in a way that could increase rent prices for others such as low-income workers and students.

Analysis of recent reports has shown that rents have increased in some urban areas, including Dublin, with rental asking rates falling in other cities and rural areas. Revised rent limits were due to be in place from July of this year. However, I am pleased to say the review is almost finalised, with new rent limits expected to be in place in early June. The emphasis of the review is to ensure that value for money is achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation. All major urban population centres are being examined to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities.

Family Income Supplement Eligibility

Questions (13, 51)

Peadar Tóibín

Question:

13. Deputy Peadar Tóibín asked the Minister for Social Protection if she will consider reducing the income thresholds used to assess qualification for family income supplement. [25715/13]

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Mary Lou McDonald

Question:

51. Deputy Mary Lou McDonald asked the Minister for Social Protection if she will direct her Department to begin a public awareness campaign to highlight the availability of family income supplement. [25716/13]

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Written answers

I propose to take Questions Nos. 13 and 51 together.

The family income supplement or FIS payment is designed to provide income for employees on low earnings with families. The FIS payment preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he/she was unemployed and claiming other social welfare payments. I am happy to inform the Deputy that the processing of all FIS applications both new and renewal made to my Department are fully up to date. It should be noted that total FIS claim intake rose from 37,597 in 2007 to 51,214 in 2011 and at present there are just over 40,440 families who are benefiting from the scheme. Expenditure on FIS for 2012 was of €224 million with estimated expenditure for 2013 to be of the order of €229 million.

The FIS payment preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he/she was unemployed and claiming other social welfare payments. To qualify for payment of FIS, a person must be engaged in full-time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. The applicant must also have at least one qualified child who normally resides with, or is supported by him or her. Furthermore, the average family income must be below an income threshold which varies according to the number of qualified children in the family.

FIS income thresholds have been maintained at the same level since 2010. Prior to this FIS income thresholds had risen broadly in line with equivalent social welfare rates so as to maintain their value relative to unemployment payments. A reduction in income thresholds would have financial implications which would have to be considered in the context of the budget. There are no plans to do so currently.

More generally, I recognise that creating jobs and tackling poverty are two of the key challenges that we face. It is essential that our tax and social protection systems play their part in addressing these issues and ensure that work is worthwhile. To this end, I established an Advisory Group on Tax and Social Welfare with the aim of harnessing expert opinion and experience in order to address a number of specific issues. These include making cost-effective proposals for improving employment incentives and achieving better poverty outcomes, particularly child poverty outcomes. In this regard the Group is currently examining the issue of working age supports, which includes consideration of in-work supports such as FIS.

The availability of FIS is currently advertised and promoted by means of a number of appropriate and cost-effective methods. The Department of Social Protection’s website provides a description of the qualifying conditions and contact details along with examples of the families that can qualify. A visitor to the website can access comprehensive and easily understandable information about the payment and download an application form and information booklet. From 16 January 2013, the date on which the new Departmental website was launched, to date, the FIS pages have received almost 40,000 page views. Further prominence will be given to FIS on the Department’s website shortly as it is planned to advertise the scheme on the revolving banner on the Department’s home page. Information is also available through the Citizen’s Information Service and on their website.

The Department recently undertook a series of road shows around the country designed to inform employers of Intreo, the new integrated one-stop shop service in the Department, and to let employers know about all the incentives that are available to encourage them to employ people from the live register. These events provided an opportunity for employers to learn about the wide range of support services provided by the Department, including FIS. Information on FIS forms part of the Department’s employer information pack which is available via the website and the Department’s employment support service staff throughout the country are fully briefed on FIS.

My Department is shortly to embark on a poster campaign in all the Department’s local offices and the Department’s information officers and employer liaison officers have recently been briefed on the qualifying criteria and supports that FIS provides for employees with families on low incomes.

Question No. 14 answered with Question No. 9.
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