Thursday, 17 Oct 2013

Written Answers Nos. 46-55

Child Benefit Payments

Questions (46)

Denis Naughten

Question:

46. Deputy Denis Naughten asked the Minister for Social Protection her plans to address the persistent control savings associated with child benefit; and if she will make a statement on the matter. [43136/13]

Written answers

Minister for Social Protection

Child Benefit is a payment to parents for the support of their children. It is paid to approximately 606,000 families in respect of some 1.15 million children with an estimated expenditure of approximately €1.9 billion. I am very conscious of requirement to safeguard the Child Benefit budget and, in this regard, my Department has taken a proactive approach to ensuring that it is only paid to eligible families. The policy of issuing continuing eligibility certificates to parents commenced in 2008 and the control policy for the Scheme was reviewed in 2010 to ensure that controls on fraud and abuse of the scheme continue to be effective and relevant. As a result of this review, enhanced and updated control measures have been devised. Control savings are an estimate of the value of the various control activities across the schemes in payment. They refer to future expenditure that would have been incurred but for this control work. Without this control work, the social welfare expenditure would over time increase by this amount. Control savings are used as a performance indicator for year-on-year activities. They do not include any cases of departmental or clerical error or any cases where the customer voluntarily told the Department of changes to their means or circumstances, which resulted in a change to their rate of payment.

The total savings from Child Benefit control activity was €48.5 million in 2008, €89 million in 2009, €106 million in 2010, €85 million in 2011 and €83 million in 2012. The level of savings achieved is due to the effectiveness of the control programme in recent years.

Question No. 47 answered with Question No. 35.

JobsPlus Scheme

Questions (48)

John Halligan

Question:

48. Deputy John Halligan asked the Minister for Social Protection her views on whether the higher subsidies for employers who employ a person who is two years unemployed under the JobsPlus scheme as against a lower payment for persons unemployed for a shorter time will inevitably encourage employers to ignore applications from those out of work for a shorter period; and if she will make a statement on the matter. [43414/13]

Written answers

Minister for Social Protection

JobsPlus is a new simplified scheme which replaced the Employer Job (PRSI) Exemption (effective from 20th June 2010) and Revenue Job Assist (which commenced on 6 April 1998) schemes and is more targeted at channelling full time job opportunities to the longer term unemployed. JobsPlus provides an immediate financial incentive to employers who recruit employees from those who are long term unemployed on the live register. The incentive is payable, on a monthly basis, over a two year period while the employee is retained in full time employment. JobsPlus is biased in favour of those who are more long term unemployed by setting the value of the incentive at two levels:

- In respect of recruits unemployed for more than 12 months but less than 24 months: €7,500.

- In respect of recruits unemployed for more than 24 months: €10,000.

While unemployment has stabilised recently, persons on the live register for a year or more now account for about 45.5% of all persons on the live register and this rate has been increasing slowly in recent months. Every new full time job supported under JobsPlus not only reduces social welfare payments made by the State, but critically reduces the payments made to the longer term unemployed people, whom evidence suggests are more likely to become dependents of welfare. In addition, these new full time workers will now contribute to the Exchequer in terms of tax and PRSI paid.

State Pension (Contributory) Eligibility

Questions (49, 51)

Dessie Ellis

Question:

49. Deputy Dessie Ellis asked the Minister for Social Protection if she has conducted research assessing the impact of changes to the State pension for future pensioner poverty. [43682/13]

Dessie Ellis

Question:

51. Deputy Dessie Ellis asked the Minister for Social Protection if she will respond to the finding of the KPMG actuarial review of the Social Insurance Fund that as a consequence of changes to eligibility rules for the State pension contributory more persons retiring in 2020 will be entitled to a smaller pension and if she is concerned in view of the role played by social transfer in reducing pensioner poverty that this risks increasing pensioner poverty. [43681/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 49 and 51 together.

As the pension system in Ireland has developed, pensions policy has continued to evolve. In recent years there has been a particular focus on the sustainability of the State pension system because of the demographic issues that Ireland faces; the associated increases in pension and other age related costs; and the deterioration in the public finances since the recession.

Significant research has taken place with regard to pensions generally and the impact of changes in State pension. This has included a Green Paper on Pensions, various technical studies and, most recently, the OECD Review of Pensions in Ireland.

The Actuarial Review of the Social Insurance Fund provided evidence that the task of financing increased pension spending will fall to a diminishing share of the population as demographic projections indicate that the ratio of working age to pensioners will decrease from 5.3 at present to 2.3 by 2050 while the number of older people will increase from 12% of the population being over 65 in 2012 to an estimated 23% in 2050. In the medium to long term, pension related expenditure will account for an increasing proportion of Fund expenditure - rising from 57% in 2011 to 85% in 2066.

In terms of impact assessment, the Actuarial Review has assessed the future impact of State pension changes. This shows that, notwithstanding the State pension reform measures, social insurance benefits offer excellent value for money for those on the lower part of the income distribution, those with shorter contribution histories, and the self-employed. The social solidarity principle which underlies the Fund is reflected in the fact that, for those at the higher end of the income distribution, the Fund is redistributive and this group generally get back less than they pay in.

Payment of pension is now more closely linked to contributions made over a working life due to the comprehensiveness of the social insurance system, the existence of voluntary contributions, the Homemaker’s Scheme and the facility for awarding credited contributions to employees in times of unemployment or illness. All of these elements mean that, unless a person goes abroad or operates in the informal economy, s/he will have the potential to achieve a 100% insurance record.

The Deputy may wish to note that there have been significant improvements with regard to the level of pensioner poverty in Ireland in recent years. This is mainly attributed to substantial increases in the rates of State pensions over the period and other non-cash benefits. In 2004, the at risk of poverty rate for people aged 65 or over was 27.1% - higher than for other age groups and higher than the rate for the total population which was 19.4%. By 2011 the at risk of poverty rate for those aged 65 or over had dropped to 9.7% while that for the population as a whole is at 16%. In 2011, the consistent poverty rate for those over age 65 was 1.9% compared to 6.9% for the population as a whole. This compares to 3.9% in 2004 which stood at 6.6% for the population. Every effort has been made to maintain the rate of State pension at 34% of average earnings.

Even with the State pension reforms underway the role of social transfers will continue to be protected and social welfare supports will continue to be available to those most in need. It should also be borne in mind that for those with a shorter contribution history which will result in a lower rate of payment of State pension, the non-contributory pension will continue to be available to those who meet the qualifying criteria which could result in a higher rate of payment.

Question No. 50 answered with Question No. 31.

Question No. 51 answered with Question No. 49.

Voluntary Work Option Issues

Questions (52)

Thomas Pringle

Question:

52. Deputy Thomas Pringle asked the Minister for Social Protection if she will consider introducing clearer guidelines for the accessibility of the voluntary work option to ensure that jobseekers can make a valuable contribution to society while still being eligible for a jobseeker's payment; and if she will make a statement on the matter. [43407/13]

Written answers

Minister for Social Protection

I am deeply conscious of the long tradition of volunteering in this country and the contribution that it makes to Ireland’s social fabric. In recognition of the vital role played by the voluntary community, the Department operates a Voluntary Work Option scheme for customers on the jobseeker schemes. Under these arrangements jobseekers may engage in voluntary work within the State without affecting their entitlements provided they continue to satisfy the statutory conditions of being available for and genuinely seeking work. The aims of the Voluntary Work Option are twofold, namely: (i) To encourage voluntary organisations to involve jobseekers to the greatest extent possible in their activities by creating new opportunities for voluntary work; and (ii) To inform jobseekers of their freedom to involve themselves in voluntary work and to encourage them to do so.

Examples of voluntary work in which jobseekers may engage include helping the sick, elderly or persons with a disability or assisting youth clubs, church groups, sports groups, cultural organisations and local resident associations. Voluntary groups may be locally or nationally organised and may include community groups.

Details of the Voluntary Work Option arrangements are published on the Department’s website and, in order to ensure that the profile is raised, all staff involved in the administration of the jobseeker schemes were recently reminded of these arrangements and of the operational procedures under which they operate.

Skills Development

Questions (53)

Seán Crowe

Question:

53. Deputy Seán Crowe asked the Minister for Social Protection the steps she will take to provide assistance to jobseekers to meet transport and subsistence costs associated with participation in skillsnet training; and if she has discussed this with the Department of Education and Skills. [43375/13]

Written answers

Minister for Social Protection

Skillnets is a state-funded, enterprise-led support body dedicated to the promotion and facilitation of training and up-skilling as key elements in sustaining Ireland's national competitiveness. They support and fund networks of enterprises engaged in training under a Training Networks Programme. If persons wishes to pursue a part time education course they may be able to do so while retaining their jobseekers payment under the Part Time Education Option (PTEO) of the back to education programme. The Department supports the provision of a wide variety of Skillnets training, delivered by networks of private sector companies in a range of sectors and regions, mainly via the PTEO. The PTEO allows participants to attend part-time day/evening or weekend courses of education or training and retain their jobseekers payment while an entitlement exists provided that they continue to satisfy the conditions of being available for and genuinely seeking employment on an on-going basis. Payment is made at the same rate as the primary payment and no maximisation of payments occurs.

While generally out of pocket expenses are not paid in respect of such courses, in circumstances where a person receiving a relevant social welfare payment agrees to attend a specified short-term course of education, training or development that is specifically initiated and organised by a Department’s case officer s/he will be paid Out of Pocket Expenses.

There are no plans to change these conditions. The Department is in on-going contact with the Department of Education and Skills with regard to issues of support to social welfare recipients engaged in education and training.

Information and Communications Technology Issues

Questions (54)

Seán Kyne

Question:

54. Deputy Seán Kyne asked the Minister for Social Protection the progress made in providing a new computer software programmes for the delivery and administration of direct payment social welfare schemes; if all schemes will be administered via a single platform; if she would outline the co-operation and information exchange that takes place between her Department's IT system and that of Revenue. [43404/13]

Written answers

Minister for Social Protection

My Department has, over a considerable number of years, made extensive use of a number of computer systems to administer social welfare schemes and to provide payments to its clients. For the past number of years, it has been engaged in a multi-year Service Delivery Modernisation Programme designed to deliver a high quality, proactive service to our clients. As part of that process a new computing platform, known as the Business Object Model implementation (BOMi), is continuously being developed and implemented. Approximately 80% of all claims administered by the Department are currently managed on the BOMi.In response to the introduction of Local Property Tax earlier this year, the Department developed new facilities on the BOMi to process all payments, including those for claims administered on other systems. It was then in a position to apply deductions to certain of those schemes in accordance with social policy and legal constraints. It is intended, over time and as resources permit, that all schemes will be administered and paid from the BOMi platform. The system is facilitating the transformation programme which is currently underway within the Department and it also enables information to be shared and services to be provided to other Departments and agencies.

The Department and the Revenue Commissioners co-operate very closely on matters of common interest and information has been exchanged electronically on a regular basis regarding clients, earnings data, employment status, DSP claims and payments and control information. This information is exchanged at varying intervals (e.g. weekly, monthly, yearly) depending on the business processes involved. Bi-lateral groups exist at various levels which meet regularly to review co-operation between both organisations and implement improvements, including new exchanges of data between the two organisations, as requirements are identified.

Question No. 55 answered with Question No. 39.