Written Answers Nos. 290 - 307
290. Deputy Willie O'Dea asked the Minister for Social Protection if PRSI will be deducted at source from interest on deposit accounts from 1 January 2014; or if an alternative method of collection is proposed. [44654/13]
View answer291. Deputy Willie O'Dea asked the Minister for Social Protection if financial institutions will be obliged to retain details of individuals' PPS numbers to facilitate the deduction of PRSI from interest on deposit accounts from 1 January 2014. [44655/13]
View answer292. Deputy Willie O'Dea asked the Minister for Social Protection the yield that is expected in 2014 from collection of PRSI on unearned income; and the breakdown of the total by category of unearned income. [44656/13]
View answer302. Deputy Róisín Shortall asked the Minister for Social Protection if PRSI will be payable on interest on savings in 2014; to whom it will apply; and the rate of same. [44738/13]
View answer307. Deputy Róisín Shortall asked the Minister for Social Protection how the imposition of PRSI on interest on savings in 2014 will be applied in respect of accounts held in the name of children. [44787/13]
View answerI propose to take Questions Nos. 290 to 292, inclusive, and 302 and 307 together.
In Budget 2013 it was announced that from 1 January 2014, the exemption from PRSI applying to employed contributors and occupational pensioners aged under 66 years, whether that pension arises from that person's own employment or the employment of his or her spouse or civil partner, whose only additional income is unearned income, will be abolished. This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings will be liable to PRSI at 4% provided the person is a chargeable person in accordance with the Revenue definition.
A chargeable person does not include a PAYE taxpayer (i) who does not have other income or (ii) who has an element of other insignificant income that is fully taxed through the Office of the Revenue Commissioners PAYE system (Revenue regard amounts not exceeding €3,174 as insignificant). Individuals with income exceeding €3,174 must pay and file under Revenue's self-assessing system. This income will be chargeable to PRSI at 4% (Class K). This new PRSI charge will not give rise to any social insurance benefits.
The financial institutions will not be involved in the collection of any PRSI liability. As such the financial institutions will not be obliged to retain details of individual's PPS numbers. Collection will be through the Revenue self-assessment system.
PRSI is payable by any person over the age of 16 and under pensionable age who is employed or self-employed. In determining whether or not PRSI is chargeable on accounts held in the name of a child the relevant issue will be the treatment by the Office of the Revenue Commissioners of the interest arising. If chargeable on a child, who is under 16, in his/her own right, there will be no PRSI charge.
The expected yield for this measure is €14m in 2014 and €20 million in a full year.
293. Deputy Willie O'Dea asked the Minister for Social Protection the criteria that will be applied for the awarding of an exceptional needs payments in respect of funeral or burial costs; and the sum of money provided for such purpose. [44657/13]
View answerUnder the supplementary welfare allowance (SWA) scheme, the Department may make a single exceptional needs payment (ENP) to help meet essential, once-off and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. It is expected that the estimated expenditure for ENPs in 2013 will be in excess of €35 million.
Application can be made under the scheme for assistance with funeral and burial expenses. There is no automatic entitlement to an ENP 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. In 2013 to date, approximately 2,700 payments have been made in respect of funerals and burials at a cost of €3.6 million, at an average payment of over €1,300.
In determining an entitlement to an ENP for funeral expenses the Department official will take into account the circumstances of the individual applicant and that of the deceased person including any money, property, insurance policies, etc.
Any 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.
294. Deputy Willie O'Dea asked the Minister for Social Protection if she will provide in tabular form the number of recipients of the maximum payment of maternity benefit in each year from 2007 to 2012; and the expected number of recipients who will receive a lower payment in 2014 as a result of the recently announced changes to the payment. [44658/13]
View answerMaternity benefit is an income maintenance payment awarded to eligible women for a 26-week period on foot of a confinement. Entitlement to this benefit for employees is contingent on entitlement to statutory maternity leave. In 2013 my Department will spend €297.4m on Maternity Benefit and Adoptive Benefit, in respect of a weekly average of 21,800 recipients.
The information requested by the Deputy in respect of recipients of the maximum payment of maternity benefit in each year from 2007 to 2012 is not readily available. Budget 2014 provided that, from January 2014, a standard weekly rate of €230 will be paid to persons qualifying for maternity benefit. It is estimated that the number of persons who will receive a lower payment in 2014 as result of the Budget 2014 change will be a weekly average of 16,317.
Persons currently in receipt and those receiving benefit before January 2014 will not be affected by the change – they will continue to receive between €217.80 and €262 per week for the duration of their leave.
295. Deputy Willie O'Dea asked the Minister for Social Protection if she will publish the revised guidelines for exceptional needs payments. [44659/13]
View answerUnder the supplementary welfare allowance (SWA) scheme, the Department may make a single exceptional needs payment (ENP) to help meet essential, once-off and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. It is expected that the estimated expenditure for ENPs in 2013 will be in excess of €35 million.
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. A review of the guidelines on exceptional needs payments was carried out during 2012 by a working group of staff from the Department's community welfare service. One of the recommendations emanating from this review was to address the different approaches taken, in different areas, to the payment of ENPs.
In January 2013, guidelines were issued to staff providing recommendations in relation to the maximum amounts payable for a number of items covered under the scheme. These guidelines issued by way of an internal Departmental circular to staff administering the scheme, their management and support areas. I have no plans to publish these guidelines. Details of the recommended maximum amounts provided in the circular are as outlined in the following tabular statement. These guidelines assist Departmental staff and do not limit the discretionary powers, provided for under the Social Welfare Acts, available to officers administering the scheme to assist an individual or household in any particular hardship situation which may arise.
Officials in the Department continue to review the issue of payments under the ENP scheme to ensure consistency and fairness.
Recommended maximum amounts under the ENP scheme are as follows:
|
Cooker |
€310 |
|
Fridge |
€140 |
|
Fridge/Freezer |
€250 |
|
Washing machine |
€250 |
|
Kitchen table |
€120 |
|
Kitchen chairs |
€40 each |
|
Single bed complete |
€120 |
|
Double bed complete |
€180 |
|
Wardrobe |
€150 |
|
Chest of drawers (3) |
€ 90 |
|
Chest of drawers (6) |
€100 |
|
Floor covering (per sq. meter) |
€10 |
296. Deputy Willie O'Dea asked the Minister for Social Protection the number of persons aged 19 to 22 years in respect of whom the back to school clothing and footwear allowance is currently paid. [44660/13]
View answerThe back to school clothing and footwear allowance (BSCFA) scheme provides a one-off payment to eligible families to assist with the extra costs when children start school each autumn. The Government has provided €48.8m for the scheme in 2013.
To date in 2013, some 14,000 persons over the age of 18 years qualified for BSCFA. Budget 2014 provides for the discontinuance of the allowance for young people over the age of 18 with the exception of those attending second level education. Young people attending third level education who currently qualify for the allowance would generally be eligible for third level student grants.
297. Deputy Willie O'Dea asked the Minister for Social Protection when the current recipients of rent supplement will transfer to the proposed housing assistance payment; and the benefits she believes this will bring. [44661/13]
View answerThe 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 currently over 82,000 rent supplement recipients for which the Government has provided over €403 million for 2013.
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 using HAP. 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. The intention is, following the commencement of the relevant legislation, that the HAP testing phase would be initiated in the selected local authorities during 2014.
Overall, HAP will provide a more integrated and streamlined service for persons and households seeking support from the State to meet long term housing costs and will provide local authorities greater flexibility to provide assistance to those in need of social housing. The measure will secure better value for money for the Exchequer in ensuring that rental payments are conditional on adherence to improved accommodation standards. One of the key benefits that HAP will bring is the removal of barriers for people currently in receipt of rent supplement in returning to employment which is consistent with the Governments commitments under the Pathways to Work programme. The engagement of people in employment will ultimately bring about wider social benefits, both to the individual and their families and also to the economy. The transfer of the long term recipients to the housing authorities will assist in returning rent supplement to its original purpose of providing short term support to those unemployed.
298. Deputy Willie O'Dea asked the Minister for Social Protection if the abolition of the mortgage interest supplement will leave the State without an assistance mechanism for persons experiencing short-term difficulty paying their mortgage and for whom the lengthy and cumbersome mortgage arrears resolution process may not be suitable. [44662/13]
View answerThe original purpose of the mortgage interest supplement scheme was to provide short term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 11,000 people in receipt of mortgage interest supplement with €41.8 million provided in 2013.
Under the Code of Conduct on Mortgage Arrears, lenders are obliged to put in place Arrears Support Units to deal with borrowers under the Mortgage Arrears Resolution Process (MARP). The most appropriate way in which customers experiencing short term mortgage difficulties can be supported is through engagement with their lender under this process. Lenders must explore all options for repayment arrangements in order to determine which options are viable for each particular case. These options include interest only arrangements and deferring payment of all or part of the instalment repayment for a period.
The continued payment of mortgage interest supplement does little to assist recipients in improving the long term difficulty in addressing their mortgage problem or to provide sustainable solutions. The Department has examined a number of cases which clearly show that the significant investment by the State in providing support under the mortgage interest supplement is not reflected in the customers' outstanding mortgages or encouraged the implementation of sustainable solutions.
I am satisfied that the range of supports implemented by this Government, including the range of information and guidance resources available, are appropriate in assisting those facing mortgage difficulties following the discontinuance of the mortgage interest supplement scheme.
299. Deputy Robert Dowds asked the Minister for Social Protection if she will provide an update on JobBridge; the extent of the scheme; and the numbers moving from JobBridge into permanent positions. [44683/13]
View answer300. Deputy Robert Dowds asked the Minister for Social Protection if she will carry out an in-depth investigation into the operation of JobBridge, especially in financially successful companies, to ascertain the extent of abuse of the scheme in private companies; the numbers that move from JobBridge to permanent employment within the same company; and if there is evidence of those companies using the talents of those on JobBridge without it leading to permanent positions [44684/13]
View answerI propose to take Questions Nos. 299 and 300 together.
The JobBridge scheme came into operation on 1 July 2011. As at 17 October, 2013, 22,128 internships had commenced with 6,004 individuals currently undertaking JobBridge placements and a further 2,864 internship opportunities advertised on the JobBridge website (www.jobbridge.ie).
On 1 May, 2013, the Taoiseach and I launched the final report of an extensive and in-depth evaluation of the JobBridge scheme carried out by Indecon Economic Consultants. The report found that the scheme operated with minimal deadweight and displacement, exceptionally high rates of satisfaction, both from interns and host organisations, and comparatively high rates of exit into employment. 61.4% of interns move into employment within 5 months of completion of a JobBridge internship.
The independent evaluation found that of the interns actually in employment at the time of the survey, 56% were in employment with their host organisation and 44% were in employment with another organisation.
In order to protect the intern and to ensure the integrity of the JobBridge scheme a variety of control measures and criteria are in place. These are designed to ensure that the internship does not displace an existing position; that it provides an appropriate training and development experience; and that appropriate mentoring and support is provided to the intern. The Department also conducts random monitoring visits to check compliance with over 3,400 monitoring visits to-date; 98% of these visits have been of a satisfactory nature. Remedial action is taken in all cases of non-compliance.
301. Deputy John McGuinness asked the Minister for Social Protection if the issues raised in correspondence to her Department by a person (details supplied) in County Carlow have now been resolved. [44714/13]
View answerI am advised by the Social Welfare Appeals Office that an oral hearing of the appeal of the person concerned took place on 07th October 2013 and that the Appeals Officer is now considering the appeal in the light of all of the evidence submitted, including that adduced at the oral hearing. The person concerned will be notified of the Appeals Officer's decision when the appeal has been determined.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
303. Deputy Mary Lou McDonald asked the Minister for Social Protection if she will provide the full-year effect of all expenditure reductions for her Department as set out in the expenditure report 2014, as provided for in the expenditure report 2013. [44752/13]
View answerBudget 2014 provided for: expenditure reduction measures of €226 million in 2014; €30 million in savings through additional fraud and control measures; and €34 million in savings through efficiencies and lower than anticipated expenditure on certain schemes, an overall expenditure reduction package of €290 million in 2014.
The savings in 2015, 2016, 2017 and in a full year arising from these expenditure reductions will be an estimated €334 million, €351 million, €363 million and €372 million respectively.
306. Deputy Andrew Doyle asked the Minister for Social Protection if all officials at regional offices of her Department are made fully aware and possess a certain level of knowledge of the voluntary work option, thus removing a barrier to letting persons volunteer in their community; and if she will make a statement on the matter. [44762/13]
View answerI am deeply conscious of the long tradition of volunteering in this country and the contribution that volunteering makes to Ireland's social fabric. In recognition of the vital role played by the voluntary community, my Department operates a Voluntary Work Option scheme for customers on the Jobseeker schemes. Under these arrangements a Jobseeker customer 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.
