Jonathan O'Brien
Question:21. Deputy Jonathan O'Brien asked the Minister for Social Protection her plans to expand the back-to-education allowance for all postgraduate courses. [50107/13]
View answerSocial Welfare Code
Questions (21)
Written answers
The back to education allowance (BTEA) scheme is designed to support second chance education. It enables eligible persons to pursue approved education courses that leads to a higher qualification than that already held and to continue to receive income support equivalent to the value of their prior social protection payment for the duration of a course of study, subject to conditions. BTEA covers full-time second level courses and third level courses to higher diploma level (level 8 in the national framework of qualifications) including the professional diploma in education (primary and secondary teaching). The BTEA does not provide income support for students pursuing other postgraduate qualifications, masters or doctorates. My Department conducted a review of employment supports schemes, including BTEA, in 2012 and published the report in January 2013. The recommendations of that review, including those relating to BTEA are being considered.
Maternity Benefit
Questions (22)
Lucinda Creighton
Question:22. Deputy Lucinda Creighton asked the Minister for Social Protection if she is concerned that the changes to maternity benefit will further discourage women into the labour force in view of the ongoing rise in the number of women on the live register while the number of men is falling; and if she will make a statement on the matter. [50848/13]
View answerWritten answers
Maternity 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 €297.4 million on maternity benefit and adoptive benefit, in respect of a weekly average of 21,800 recipients. 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 be affected in 2014 as result of the Budget 2014 change will be a weekly average of 16,500. Persons currently in receipt and those receiving benefit before 6 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.
Ireland provides generous maternity leave entitlements of over 42 weeks currently – 26 week paid leave and a further 16 weeks unpaid. This is reflected by one of the highest birth rates in Europe and high participation by women in the labour force. The 26 week duration of the payment was preserved under Budget 2014 because I realise how important this time is for families and their children. This level is substantially in excess of the 14 weeks required under EU legislation. I therefore do not believe that the changes to maternity benefit announced in Budget 2014 will act as a disincentive for women from entering the labour force.
Defined Benefit Pension Schemes
Questions (23, 30)
Thomas Pringle
Question:23. Deputy Thomas Pringle asked the Minister for Social Protection the number of defined pension schemes that are currently in deficit; and if she will make a statement on the matter. [50840/13]
View answerThomas Pringle
Question:30. Deputy Thomas Pringle asked the Minister for Social Protection the number of pensioners on defined pension schemes of less than €12,000 per annum, between €12,000 and €60,000 per annum; and the number of pensioners on defined pension schemes over €60,000 per annum. [50839/13]
View answerWritten answers
I propose to take Questions Nos. 23 and 30 together.
The Pensions Act provides for a Funding Standard which applies to funded defined benefit pension schemes. This Standard requires defined benefit pension schemes to maintain sufficient resources to meet the liabilities of the scheme in the event of the wind up of the schemes. Where a scheme fails to satisfy the Funding Standard the trustees are required to submit a funding proposal to the Pensions Board outlining plans to restore scheme funding.
At the moment there are 820 schemes that are subject to the requirements of the Funding Standard and of these schemes, 50% approximately are in deficit. The majority of the schemes in deficit have submitted funding proposals to the Pensions Board to restore scheme funding. The Pensions Board is in contact with all schemes to ensure compliance with the Funding Standard. Where schemes that are in deficit have failed to submit a funding proposal the Pensions Board is assessing on a case by case basis whether to make use of its powers under the Pensions Act. These powers include prosecution of the trustees of the scheme for non-compliance, issuing unilateral direction under section 50 of the Pensions Act to restructure scheme benefits or ultimately directing the trustees to wind up the scheme.
I am not in a position to provide the full information you are seeking in relation to occupational pensions in the private sector. However, an analysis of sample data in relation to these schemes shows that 56% of pensions in payment are under €12,000, 40% are between €12,000 and €60,000 and 4% are over €100,000.
Rent Supplement Scheme Administration
Questions (24)
Clare Daly
Question:24. Deputy Clare Daly asked the Minister for Social Protection if her attention has been drawn to the fact that many social welfare recipients are having to subsidise their rent by paying a substantial proportion of their income to make up the difference between the rent supplement and the rent due, as a result of the gap between increasing rents in many areas and unrealistic ceilings set by her Department; and the way she proposes to deal with same. [50612/13]
View answerWritten answers
There are currently approximately 81,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013. The purpose of rent supplement is to provide short term income assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.Revised rent limits under the rent supplement scheme have come into force with effect from Monday 17 June 2013 and will be in place until 31 December 2014. The new rent limits have been determined following an extensive review of the private rental market based on the most up-to-date data available. There have been increases in the maximum rent limits in Dublin and Galway while there have been some reductions across a number of counties, reflecting the conditions in the rental markets in those counties. The Department continues to monitor rent levels throughout the country and officials dealing with rent supplement tenants will continue to ensure that their accommodation needs are met. Rent supplement is calculated to ensure that the person, after payment of rent, has an income equal to the basic supplementary welfare allowance rate, less a specified weekly minimum contribution which recipients are required to pay from their own resources.
The “top up” payments referred to fall into two specific categories. Where a person has an additional income above the rate of supplementary welfare allowance they are, in certain circumstances, allowed to top up their rent as they will still have sufficient income to meet their basic needs after paying their rent.
The second type of top-up payment can occur where the application to the Department declares a rent lower than that actually being charged by the landlord. There has been no evidence presented to the Department showing widespread or systemic ‘false declarations’ of rent supplement through the use of illegal top-ups. The tenant, landlord or landlord’s agent must complete the rent supplement application form, which includes the amount of rent, and declare that the information provided is correct and accurate. The Department’s form clearly states that making a false statement or withholding information may lead to prosecution.
The Department, in June 2012, introduced powers of enquiry (Section 14 of the Social Welfare and Pensions Act 2012) for staff to formally request and oblige landlords to provide information in respect of rent supplement tenants, principally to verify the agreed rent and existence of the tenancy. This measure improves both the governance and oversight arrangements in place.
Social Insurance Rates
Questions (25)
Lucinda Creighton
Question:25. Deputy Lucinda Creighton asked the Minister for Social Protection her views on whether the introduction of the PRSI rate of 4.25% on lower paid workers as part of the jobs initiative increased the total number of employees on the national minimum wage during the period of its existence; if she is concerned that a return to the higher rate in 2014 may slow this employment growth for persons in this income bracket; and if she will make a statement on the matter. [50847/13]
View answerWritten answers
Employer PRSI is payable on earnings at the rate of 10.75% in respect of weekly earnings in excess of €356 and, from 1 January 2014, at 8.5% on weekly earnings of €356 or less.As part of the 2011 Jobs Initiative, the Minister for Finance announced the halving of the 8.5% rate of employer PRSI to 4.25%, as a means of helping job creation and improving labour cost competitiveness, particularly in the tourism and other employment-rich areas of the economy. The measure was implemented in July on a 2½ year time limited basis to apply from 1 July 2011 until 31 December 2013. The 4.25% employer PRSI rate will therefore revert to the original 8.5% rate from 1 January 2014.
Retaining the 4.25% rate of employer PRSI in 2014 would reduce the expected PRSI yield to the Social Insurance Fund by €195 million in a full year. As the reversion of the employer rate to 8.5% is provided for in legislation, it has already been built into the PRSI income base for 2014 and subsequent years. The level of wages paid to employees is a function of a number of critical factors including the prevailing economic environment. There is no information available to indicate that this measure impacted, or will have an impact, on the number of employees on the national minimum wage.
Labour Activation Projects
Questions (26)
Willie O'Dea
Question:26. Deputy Willie O'Dea asked the Minister for Social Protection the way in which she has responded to the criticism from the OECD, European Commission and IMF regarding the lack of action relating to labour activation measures here; the number of persons that have been placed in full-time employment as a result of these measures; and if she will make a statement on the matter. [50829/13]
View answerWritten answers
All of the bodies referred to are supportive of the labour market activation measures and institutional reforms being undertaken by Ireland. Moreover, while they have on occasions raised questions about the pace at which reforms are being enacted, the most recent troika review has acknowledged that the main reforms – the roll-out of INTREO, the P300 project to reallocate 300 staff of the Department to casework duties, and the preparations for contracting out of certain employment services – are being implemented as rapidly as possible.Given the wide range of measures involved – ranging across training, education, employment and work experience programmes as well as the reform of employment service and welfare delivery, it is not possible to identify the number of people placed in full time employment as a result. Information can however be given in relation to certain of the targets set for activation measures under Pathways to Work.
For example, a target was set that, of the 180,800 people who were on the live register and fully unemployed for over a year at the beginning of 2012, 75,000 of these would move into employment by the end of 2015. By the end of June 2013, 30,600 of this group were known to have moved into employment. Of these, 21,900 had entered full-time employment and left the live register, and 8,800 had entered part-time employment. As there can be some time lag in the reporting of new entries to employment by the relevant employers, it is likely that these figures will increase retrospectively as further records become available. Equally, the Deputy will be aware of the success of certain programmes in helping participants find jobs. For example, evaluation results indicate that 61% of leavers from JobBridge find employment within 5 months of leaving their internship.
Question No. 27 answered with Question No. 9.