Written Answers Nos. 36 - 45
36. Deputy Seán Kyne asked the Minister for Social Protection the number of persons who have turned downed reasonable offers of education, training or employment in each of the years since she began her tenure as Minister for Social Protection; the possible sanctions available on foot of such refusals; and if she will make a statement on the matter. [43405/13]
View answerA jobseeker claim may be disallowed where the customer fails to meet the conditions of the scheme, including the requirement to be available for and genuinely seeking full-time work. A range of sanctions in the form of payment rate reductions can also be applied to clients who fail, without good cause, to co-operate with the Department’s activation measures, including offers of education or training. Reduced payment rates (Penalty Rates) for jobseekers, which were introduced in April 2011 allow for a penalty of up to €44 per week to be applied to an individual’s jobseeker payment where there is a failure to engage with activation measures. Strengthened sanctions were introduced in July 2013 to provide for a disqualification from payment for a period of up to 9 weeks, in circumstances where a customer who has had a Penalty Rate imposed for 21 days, continues to fail to engage.
Sanctions may also be applied if a client, without good cause, refuses or fails to take up a suitable education, training or development opportunity, or a specified employment programme, which is considered appropriate to the person’s circumstances. In the period May to December 2011, 352 penalty rates were applied. From January to December, 2012, 1,455 penalty rates were applied bring the overall total to 1,807. To end September 2013, 2,403 penalty rates were applied bring the overall number applied to 4,210 since their introduction.
37. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection her views on the sharp rise in severe material deprivation recorded here since 2007; the likely consequences of the changes to social transfers introduced by the latest budget for the prevalence and depth of poverty. [43362/13]
View answerThe national social target for poverty reduction is to reduce consistent poverty to 4 per cent by 2016 and to 2 per cent or less by 2020, from a 2010 baseline rate of 6.3 per cent. Reducing and ultimately eliminating poverty remains a fundamental aspiration of Irish society and is a commitment of the Government. One component of consistent poverty is basic deprivation, which is the enforced lack of two or more items from a list of 11 basic goods and services due to a lack of income. The list includes items such as two pairs of strong shoes; a warm waterproof overcoat, keeping the home adequately warm and a meal with meat, chicken or fish (vegetarian equivalent) every second day. The indicator was developed by the Economic and Social Research Institute as a way of capturing the lack of resources in the population. It is a component of the consistent poverty indicator used for the national social target for poverty reduction.
The CSO Survey on Income and Living Conditions (SILC) is the official data source for national poverty indicators and household and individual income. It found that in 2007 the rate of basic deprivation was 11.8 per cent. The rate doubled to reach 24.5 per cent in 2011. The increase in basic deprivation highlights the continuing impact of the economic crisis on household living standards, due to higher unemployment and a fall in incomes.
Social transfers play a key role in reducing poverty and basic deprivation. The effectiveness of social transfers in reducing poverty can be measured by comparing the at-risk-of poverty rate before and after social transfers. In 2007, social transfers (excluding pensions) reduced the at-risk-of-poverty rate from 33 per cent to 16.5 per cent, representing a poverty reduction effect of 50 per cent (rising to 60 per cent if pensions are included). This increased by 10 percentage points to a 60 per cent poverty reduction effect in 2011. Including pensions, the poverty reduction effect went from 60 per cent in 2007 to 68 per cent in 2011, an increase of 8 percentage points. The strong performance of social transfers over the period underlines the crucial importance of social welfare in protecting the most vulnerable people during the economic crisis. Using data from Eurostat from 2011, Ireland’s performance in reducing poverty is far in excess of the EU-27 norm of 35.7 per cent, and even more so the 29 per cent reduction achieved in countries which are worst affected by the crisis.
The Department undertakes a social impact assessment of the main welfare and direct tax measures in the Budget. The main finding of the assessment of Budget 2013 was that it led to no significant change in the at-risk-of-poverty rate, including the at-risk-of-poverty rate for children, and that the strong poverty reduction performance of social transfers was maintained. I will publish the assessment of the 2014 Budget in due course.
38. Deputy Róisín Shortall asked the Minister for Social Protection following her signature of Statutory Instrument S.I. 616/11, the reason no pre-existing claimants were directly informed of the changes introduced to the rules of the scheme; the protocols in place in her Department to inform claimants of rule changes so that they may remain in compliance with the conditions of the scheme under which they are claiming and if these protocols were followed after her signature of S.I. 616/11; if she will seek legal advice on the soundness of relying on this statutory instrument in respect of pre-existing claimants when her Department made no effort to contact claimants directly to inform them of rule changes; and if she will make a statement on the matter. [43833/13]
View answerIn all cases, it is a legal obligation, and the expectation of the Department, that applicants will supply all relevant information as part of their application process, and that they will subsequently report any changes in their circumstances, as such changes may affect their ongoing entitlements. In the context of State pension (transition/contributory) where an increase of qualified adult is in payment, this reporting obligation applies to both the primary recipient and their qualified adult should any change in the latter’s circumstances occur, such as the transfer of an asset. Similarly, it is a long established principle of the social welfare code that an individual does not deprive themselves of income or assets in order to qualify for a payment, or for a higher rate of payment than would otherwise have been granted. This principle has been in operation across the means tested social assistance schemes, including State pension (non-contributory) for many years. SI No. 616 of 2011 extends this provision to the means tested increase for qualified adult payable on State pension (transition/contributory).
There is a sound policy rationale and legal basis for extending the provisions of existing deprivation legislation to State pension (transition/contributory) new applicants and existing recipients. It is not the practice, nor would it be practical or cost effective, that the Department would undertake a direct individual information mailshot to all of customers who may be affected each time a legislative change is made which may affect them. The Department ensures that all information in relation to its schemes is available on the website www.welfare.ie. This includes reference to the underlying principle of deprivation of income or assets in the context of means testing for schemes operated by the Department. The website has recently been updated to ensure that the information in relation to contributory pensions reflects the legislative provisions.
39. Deputy Catherine Murphy asked the Minister for Social Protection the number of applications made for an emergency needs payment which were prompted because a person or family had become homeless in 2010, 2011, 2012 and to date in 2013; the number of payments awarded in that time and the total cost; her views on whether current housing and rent assistance policy is directly fuelling this problem; the measure she proposes to tackle the issue; and if she will make a statement on the matter. [43410/13]
View answer55. Deputy Joe Higgins asked the Minister for Social Protection if her attention has been drawn to the increase in the number of homeless families following the reduction in rent allowance earlier this year. [43835/13]
View answerI propose to take Questions Nos. 39 and 55 together.
Under the social welfare system, homeless people have entitlements to the full range of social welfare schemes, including supplementary welfare allowance (SWA) and associated supplements, subject to the normal qualifying conditions. The Department, through its work in the Homeless Persons Unit and the Asylum Seekers & New Communities Unit, also provides assistance to people in sourcing the most appropriate accommodation available. In addition, prison and hospital in-reach services are provided to explore accommodation options and, where necessary, liaising with local authorities to identify and source the most appropriate accommodation available for those who are homeless or at risk of homelessness. This ensures that where possible, people are diverted away from homeless services and towards community-based supports.
The SWA scheme provides a once off payment to help with the cost of any exceptional needs a person may have which they could not reasonably be expected to meet from their own resources. Statistics are not available on the number of applications for exceptional needs payments (ENPs) prompted where a person or family has become homeless. Under the ENP scheme assistance may be provided towards rent deposits. This form of assistance is very important to those on low incomes who are at risk of, or who are homeless, or who rely on the private rented market to meet their housing needs. The number of exceptional needs payments (ENPs) in respect of rent deposits for the years 2010 to September 2013 are provided in the attached tabular statement.
The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are approximately 82,000 rent supplement recipients for which the Government has provided over €403 million in 2013. The Department completed a review of the maximum rent limits for rent supplement earlier this year and the revised rent limits came into effect on 17 June 2013. The emphasis of the review was 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. The review broadly reflects the new market trends with rises in rent limits in County Dublin and Galway with the majority of rural counties falling. Special provisions are made in exceptional circumstances including, for example, people with disabilities in specially adapted accommodation or homeless persons.
The Department’s strategic policy direction is to return rent supplement to its original purpose of a short term income support. In July 2013 the Government approved the introduction of the Housing Assistance Payment (HAP). Under HAP, responsibility for recipients of rent supplement with a long-term housing need will transfer from the Department of Social Protection to local authorities. Officials in the Department of Social protection are working with those in the Department of Environment, Community and Local Government, who are leading the project, in developing proposals to give effect to this transfer. Under HAP, customers with assessments of a long term housing need who would otherwise receive rent supplement will be taken directly into HAP. There is no evidence to suggest that rent supplement policy is increasing the incidence of homelessness. Policy in relation to housing is a matter for the Department of Environment, Community and Local Government.
The number of ENP’s in respect of rent deposits for the years 2010 to September 2013
|
Year |
No of Claimants |
Expenditure |
|
2010 |
8,700 |
€4.5m |
|
2011 |
7,500 |
€3.8m |
|
2012 |
5,600 |
€2.6m |
|
2013* |
3,400 |
€1.6m |
* as of 30 September 2013
41. Deputy Peter Mathews asked the Minister for Social Protection her plans to ensure that persons are financially better off in employment rather than on welfare; and if she will make a statement on the matter. [43140/13]
View answerThe replacement rate for given income levels is a tool used to measure the degree to which out-of-work benefits when unemployed replace take home income from work. While there is no pre-determined level of replacement rate, which would influence every individual’s decision to work, higher replacement rates may indicate lower incentives to take up employment. In this regard a replacement rate in excess of 70% may be considered to be excessive. The Department will shortly make available an online "Better Off in Work" ready reckoner which will give an indicative estimate of the difference between a customer's potential in-work and current out-of-work payments based on information input by the customer. I expect this to be of significant practical help to jobseekers. Replacement rate analysis, as supported by research by the ESRI, demonstrates that the great majority of people on the Live Register have a strong financial incentive to work and significant numbers leave the Register each year.
In this regard it may be noted that almost three-quarters of the people on the Live Register are only claiming a personal rate for themselves. They are either single or may have a spouse or partner who is working. In addition, 53% of the people on the Live Register receive less than the maximum personal weekly rate.
High replacement rates are generally associated with a relatively high number of dependent children and/or receipt of rent or mortgage supplement. However, it is important to note that only some 9% of persons on the Live Register are in receipt of rent supplement, with a further 1.5% in receipt of mortgage interest supplement. The vast majority of jobseekers do not receive these additional supports. Significant moves have already been taken to address the impact of housing entitlements upon replacement rates. Arising out of commitments in the Programme for Government to review the operation of the rent supplement scheme, proposals to integrate the systems for providing rent supplement and social housing support have been advanced. It is intended to transfer responsibility for the provision of rental assistance to persons with a long term housing need from the Department of Social Protection (currently provided through rent supplement) to housing authorities using a new housing assistance payment.
The effect of this transfer and the introduction of a new form of housing assistance payment will be to address one of the significant disincentives to accessing full-time employment that exists under the rent supplement scheme. This will have a positive impact on replacement rates.
42. Deputy Mick Wallace asked the Minister for Social Protection the way she plans to respond to recent calls by the OECD for Ireland to do more to tackle youth unemployment; and if she will make a statement on the matter. [43360/13]
View answerIn the first instance, the Government’s primary strategy to tackle all forms of unemployment, including youth unemployment, is to create the environment for a strong economic recovery by promoting competitiveness and productivity through the Action Plan for Jobs. Economic recovery will underpin jobs growth and thus reduce unemployment and long-term unemployment. Past experience suggests that youth unemployment, which tends to rise relatively rapidly in a downturn, can be expected to fall relatively rapidly during the recovery.
The Government is also implementing a number of programmes to assist young unemployed persons and keep young jobseekers close to the labour market. There are five main approaches being taken to tackle youth unemployment: education, training, job search assistance/guidance, work experience, and encouraging job creation. These actions range across a number of Departments and Agencies and include:
- The Youthreach programme providing 6,000 integrated education, training and work experience for early school leavers without any qualifications or vocational training who are between 15 and 20 years of age;
- The Vocational Training Opportunities Scheme scheme, which provides a range of courses to meet the education and training needs of unemployed people over 21 years of age, particularly focusing upon early school leavers;
- The Back to Education Allowance scheme run by the Department of Social Protection provides income maintenance for unemployed people returning to further or higher education. Over 6,500 young people participated on this scheme in the last academic year;
- Approximately 12,000 persons aged under 25 completed a training course with FÁS in 2012. This excludes apprenticeships and evening courses;
- This year MOMENTUM, a scheme for education and training interventions, which is part of the Government’s Action Plan for Jobs initiative, is currently being rolled out by the Department of Education. MOMENTUM will support the provision of free education and training projects to allow 6,500 long term jobseekers to gain skills and to access work opportunities in identified growing sectors. Over 1,250 of these places are assigned specifically for under 25s;
- The JobBridge National Internship Scheme is focused on providing work experience to young people with the total number of placements of young people on JobBridge during 2012 at 2,700;
- Long-term unemployed youth will also benefit from the JobsPlus initiative which is designed to encourage employers to recruit long-term unemployed people. Under this scheme the State will pay circa €1 of every €4 it costs the employer to recruit a person from the Live Register.
The most recent statistics available from the CSO’s Quarterly National Household Survey show the level of youth unemployment has fallen from an average of 75,000 in 2010 to 63,000 in the most recent twelve months for which data are available. The level of employment of young people appears to have stabilised, and indeed the employment rate (proportion of the population with jobs) for those aged 20-24 years rose from 46.5% in mid-2012 to 49% in the second quarter of this year. With regard to the expected future impact of existing policies, the original Action Plan for Jobs sets out a target for 100,000 net new jobs to be created by 2016, many of which will be filled by young people.
Looking forward, in addition to current initiatives, policies to increase youth employment will be supplemented by additional measures under the Youth Guarantee which will be rolled out in 2014. While the Recommendation for an EU-wide Youth Guarantee Scheme was adopted during the Irish Presidency earlier this year, the implementation of the scheme across the EU has yet to begin. It is recognised, both in the Youth Guarantee Recommendation itself and more generally, that the pace of implementation must take account of the scale of the youth unemployment and inactivity challenge and consider the fiscal capacity of each Member State. At the same time, Member States should take all possible measures to ensure that the Recommendation is swiftly implemented. The scale and nature of any additional measures required for the implementation of a Guarantee at national level will depend on the trend in youth unemployment, and in particular the number of young people likely to experience periods of unemployment of more than four months under current policies.
The Department of Social Protection has set up an interdepartmental group with officials and programme managers from the Department of Education and Skills, Department of Jobs Enterprise and Innovation, and the Department of Children and Youth Affairs, to review the current range of youth employment policies in Ireland to assess what measures will need to be taken to commence the implementation of the Guarantee. The Department of Social Protection has also engaged the assistance of the OECD in developing the Youth Guarantee Policy.
It is intended to produce a concrete plan for the implementation of the Guarantee for consideration by the Government in December before being transmitted to the European Commission by the end of 2013. Development of the implementation plan will include identification of the costs of implementation, and how it is envisaged that these will be met (how much can be provided from domestic sources, and what is the likely requirement from EU funds, e.g. European Structural Fund and Youth Employment Initiative). The amount that will be required for Ireland will only become clear when the implementation plans are drawn up.
44. Deputy Lucinda Creighton asked the Minister for Social Protection her plans to amend the Civil Registration Act 2004; and if she will make a statement on the matter. [43139/13]
View answerOn the 19 July, 2013, the Cabinet approved the drafting of the Civil Registration (Amendment) Bill 2013. I brought this proposal for legislation to the Cabinet as there are a number of important policy issues that I want to see implemented through amendments to the 2004 Act. Two of the principal ones are as follows:
- the introduction of measures to combat marriages of convenience by making such marriages far more difficult to contract in the future;
- the establishment of a birth registration process which will make it an obligation to include the father’s particulars on a birth certificate so as to ensure that the child will have a record of their father.
The Bill will also provide for a wide range of issues relating to the registration of life events in the State. Representations and recommendations have been made by various groups and organisations since the enactment of the Civil Registration Act 2004 and this Bill seeks to address these issues. The General Register Office, which administers the Civil Registration Service, has identified areas where legislative amendments are required to streamline the service to the general public. The Department is currently working with the Office of the Parliamentary Counsel to the Government on the drafting of the heads of a Bill and I hope to introduce legislation early next year.
It should also be noted that the Civil Registration Act 2004 will be further amended through gender recognition legislation which I intend to introduce early next year. I published the General Scheme of the Gender Recognition Bill 2013 on the 17 July, 2013, following Cabinet approval. The Bill provides for the recognition of the acquired gender of transgender people aged 18 and over and who are not married or in a civil partnership. The 2004 Act will be amended to provide for a gender recognition register.
45. Deputy Pádraig Mac Lochlainn asked the Minister for Social Protection her views on whether the activation programmes in her Department will have a depressing effect on wages. [43370/13]
View answerThe major activation programmes operated in the Department are aimed at increasing the capacity of unemployed people through education and training (for example through the Back to Education Allowance), through offering them periods of productive employment on work of value to the community (for example through Community Employment and Tús) or through offering them periods of work experience (for example under JobBridge). These programmes are therefore likely, through helping to increase the capacity and productivity of the workforce, to support more general increases in output, productivity and wages in the economy over time. While activation efforts can, by increasing the supply of labour, act to restrain upward pressure on wage levels during times of full, or close to full, employment it is very unlikely that activation efforts would ever lead to a reduction in wages. It is particularly unlikely that activation efforts would act in any way to depress salary levels during a period of high unemployment.
