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Thursday, 19 Dec 2013

Written Answers Nos. 165-179

Rent Supplement Scheme Data

Questions (167)

Kevin Humphreys

Question:

167. Deputy Kevin Humphreys asked the Minister for Social Protection the amount paid in rent supplement to recipients in the areas of Dublin 2, 4, 6 and 8, respectively, in each year from 2011 to date in 2013; and the number of recipients; and if she will make a statement on the matter. [54813/13]

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Written answers

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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 80,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013.

Statistics are not available on the amount of rent supplement paid or the number of rent supplement recipients resident in Dublin 2, 4, 6 and 8 in each year from 2011 to date in 2013. The following tabular statement provides details of the number of rent supplement recipients in County Dublin.

Number of rent supplement recipients in County Dublin

Period

Number of Recipients

December 2011

34,423

December 2012

32,584

November 2013

29,653

Rent Supplement Scheme Eligibility

Questions (168)

Catherine Murphy

Question:

168. Deputy Catherine Murphy asked the Minister for Social Protection if her attention has been drawn to the fact that rents have increased significantly in parts of County Kildare in recent months; if her further attention has been further drawn to the extent to which this is impacting on the extent of homelessness in County Kildare where the housing waiting list is in excess of 7000 individuals or families; if she will relax the rent caps; and if she will make a statement on the matter. [54831/13]

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Written answers

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. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 80,000 persons in receipt of rent supplement for which the Government has provided €403 million in 2013.

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. The Department currently funds up to 30% of the private rented sector so it is essential that the rent limits are kept under review. The new rent limits have been set using the 35th percentile ensuring that sufficient housing is available for recipients of the scheme.

Under the revised rent limits, there have been increases in the maximum rent limits in Dublin while there have been some reductions across a number of rural counties reflecting the conditions in the rental markets in those counties. Separate to the county limits, higher rent limits have also been provided for in the commuter areas of North Kildare and Bray.

Recently released figures from the Private Residential Tenancies Board, shows that current rent limits are providing adequate supply levels for both North Kildare and County. The rent limits in place reflect Kildare’s current rental levels agreed between landlord and tenant. It is recognised that there is a general shortage of rental property available for North Kildare, and to a lesser degree the rest of the County, however, this is in line with national trends and has been factored into the current rent limits in place.

A key goal of the most recent review was to continue to ensure that rent limits do not distort local market conditions and allow natural levels of supply and demand to set realistic rental values. This is an especially important for low income working families, that is, to ensure that these families are not priced out of an area of their choice due to unrealistic, too high rental limits. The Department continues to monitor rent levels throughout the county. I have no plans to further revise rent limits at this time.

Policy in relation to social housing provision and housing lists are a matter for the Minister for Environment, Community and Local Government.

Questions Nos. 169 and 170 withdrawn.

Pension Provisions

Questions (171)

Eoghan Murphy

Question:

171. Deputy Eoghan Murphy asked the Minister for Social Protection if it is her understanding that all the recommendations in the recent Government commissioned OECD report on the pension system here will be implemented, and whether or not she believes that the new pension changes regarding single and double insolvency issues need to be amended so that they are similar to those protections for pensioners and workers that currently exist in the UK. [54867/13]

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Written answers

The sustainability of the pension system is a particular concern because of the demographic challenges Ireland faces, the associated increases in pension (and other age related) costs, and the deterioration in the public finances. This means that, in the future, the task of financing increased pension spending will fall to a diminishing share of the working population as demographic projections indicate the ratio of working age to older people will decrease from 5.3 to 1 at present to 2.1 to 1 by 2060. Life expectancy in Ireland is also increasing and whilst this is very welcome development, it also presents very real and obvious public policy challenges.

It was in this context and taking into account the impact of the economic downturn, that in 2012, discussions on long term pension policy identified the need for a focussed examination on the direction of policy to ensure a modern, sustainable, and adequate pension system. The OECD was commissioned by the Minister for Social Protection to review long term pension policy in Ireland. The particular aspects considered by the OECD included; the sustainability of the pension system in the light of demographic and investment challenges; the adequacy and coverage levels, in order to ensure adequate income in retirement with a particular focus on the lower and middle income group; the modernity of pension systems to ensure flexibility in the labour market and supporting mechanisms for longer working; equity within the pension system.

During the review process, the OECD engaged extensively with the full range of sectoral interests including the social partners, representatives from the pensions industry and older people and with Government departments. The OECD published its final review in April 2013.

In making its recommendations the OECD noted that “In considering these alternatives, it should be kept in mind that each of the national schemes and reforms discussed in this review was adopted in a specific national economic, social and political setting. There is no blueprint for reform which Ireland could take off-the-shelf and implement directly. Any solution has to fit the Irish situation.

The findings and recommendations of the OECD report are not prescriptive. The report provides a wide choice of measures for consideration which involve a number of Government Departments. The report is being examined in detail and I will shortly bring a response to Government for decision setting out a road map for long term pensions policy in Ireland.

In relation to the challenges facing underfunded Defined Benefit (DB) schemes, the package of measures I recently announced as part of the Social Welfare and Pensions Bill (No.2) 2013 addresses the situation where an underfunded DB pension scheme winds up in deficit or elects to restructure. It can arise at present that pensioners may receive all or almost all the pension fund and the members who have contributed but not retired receive considerably less than expected. These measures will ensure a more equal distribution of assets in an underfunded scheme when an insolvency/restructuring occurs.

The measures will apply only in a limited set of circumstances, meaning the potential number of schemes affected will be small. In those limited circumstances, the measures will ensure a fairer deal for employee and former employee members by increasing their future pension entitlements, while prioritising an occupational pension of up to €12,000 for existing pensioners in addition to their State pension entitlements.

The typical pensioner in such a scenario would have a State pension (contributory) of €12,000 in addition to their occupational pension, meaning they would therefore receive a retirement income of up to €24,000. Those pensioners receiving occupational benefits in excess of €12,000 will still retain a significant degree of prioritisation for receipt of benefits.

In the case of both a company and the scheme being insolvent, the Government will guarantee that existing pensions will be protected to a level of 50% with pensions of €12,000 or less being 100% protected. I am pleased that agreement has been reached with the Minister for Finance to use funds from the pension levy to meet any obligations on the State that may occur arising from such double insolvencies.

These measures meet Ireland's obligations under the EU Insolvency Directive to protect workers' entitlements. They also ensure greater fairness within DB scheme structures.

Questions Nos. 172 and 173 withdrawn.

Invalidity Pension Appeals

Questions (174)

Róisín Shortall

Question:

174. Deputy Róisín Shortall asked the Minister for Social Protection if she will provide an update on the invalidity pension application in respect of a person (details supplied) in Dublin 11; when the claim will be decided; if her Department is considering a disability allowance application for this person; and if so the outcome of this application. [54932/13]

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Written answers

I am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence, has decided to allow the invalidity pension appeal of the person concerned by way of a summary decision. The person concerned has been notified of the Appeals Officer’s decision.

With regard to the disablement pension appeal, I am further advised by the Social Welfare Appeals Office that the case was referred to same Appeals Officer who has requested clarification on certain issues from the Department. On receipt of their response, the Appeals Officer will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.

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.

Unemployment Benefits

Questions (175)

Terence Flanagan

Question:

175. Deputy Terence Flanagan asked the Minister for Social Protection the action she is taking to deal with the fact that some persons are better off on the dole rather than working; and if she will make a statement on the matter. [54959/13]

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Written answers

The 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.

Replacement rate analysis 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 1.3% 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.

In addition, the Benefit of Work Ready Reckoner, recently launched on www.welfare.ie, will highlight the difference for jobseekers between potential income from work and the welfare payments they currently receive. It will help jobseekers assess the benefits of taking up work opportunities as the economy recovers.

Freedom of Information Requests

Questions (176)

Seán Fleming

Question:

176. Deputy Sean Fleming asked the Minister for Social Protection the number of freedom of information requests received by her Department in 2012 and to date in 2013; the number of requests for which a search and retrieval fee was sought; the maximum fee sought by her Department in respect of a request received; the number of requests not proceeded following the non-payment of the search and retrieval fee sought; and if she will make a statement on the matter. [55007/13]

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Written answers

The response to the Deputy's question is provided in tabular format:

No of requests

2012

1/1/2013 to

16/12/ 2013

Personal

1,581

n/a

Non-personal

103

89

No of requests for which a fee was sought

2

5

Max fee sought

€5,500

€200

No of requests not proceeded following the non-payment of fee

1

4

Jobs Initiative

Questions (177)

Terence Flanagan

Question:

177. Deputy Terence Flanagan asked the Minister for Social Protection her plans to have private sector companies find jobs for the long-term unemployed; and if she will make a statement on the matter. [55014/13]

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Written answers

On 12 December 2013, the Department published a contract notice inviting tenders for the provision of employment services. This new programme, which is called “JobPath”, is aimed specifically at the long-term unemployed and those most at risk of becoming long-term unemployed. JobPath will be delivered by private/third party providers of employment services under contract to the Department. JobPath will augment and complement the Department’s existing employment service capacity as well as that of the Local Employment Service (LES) and Job Clubs, which already operate under contract to the Department. The closing date for receipt of JobPath tenders is 28 February 2014. Taking account of the time required for the tender evaluation process and the service establishment phase it is expected that JobPath will become operational towards the end of 2014.

Rent Supplement Scheme Eligibility

Questions (178)

Bernard Durkan

Question:

178. Deputy Bernard J. Durkan asked the Minister for Social Protection the full extent of any eligibility for rent support in the case of a person (details supplied) in Dublin 15; and if she will make a statement on the matter. [55044/13]

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Written answers

The rent allowance claim for the person concerned has now been reviewed and the full extent of her eligibility has been reassessed. The outcome of this is that the amount she has been awarded has increased by €46.20 to €247.10 per month. This is based on her earnings from her casual part-time employment. An arrears payment for October and November has also been calculated and will be included with her December payment.

She has been asked by her Rents Unit to provide further details from her employer of the hours she is working. In order for the correct level of eligibility for her rent support to be maintained she needs to furnish this information without delay.

Carer's Benefit Eligibility

Questions (179)

Bernard Durkan

Question:

179. Deputy Bernard J. Durkan asked the Minister for Social Protection the reason it is suggested that a person (details supplied) in County Kildare, on the basis that they are deemed to work for more than 15 hours per week, thus affecting their entitlement to carer's benefit but who actually works for 10.8 hours per week; and if she will make a statement on the matter. [55047/13]

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Written answers

The Department received an application for carer’s benefit from the person in question on 26 October 2012. Under the provisions of carer’s benefit and carer’s leave legislation, a person claiming carer’s benefit may take up limited employment outside the home for up to 15 hours per week. Earnings from this limited employment cannot exceed €332.50 per week.

The employer confirmed that the person in question was working within the limited hours and earnings per week and carer’s benefit was awarded from 10 January 2013 to 7 January 2015. Following a control check, involving an investigation by a social welfare inspector (SWI) it was established that the person concerned works less than 15 hours per week apart from one week per month when the person in question works 4 consecutive nights. Both the hourly limit and earnings limit for these particular weeks are exceeded.

Carer’s benefit legislation states that a person who, having been in receipt of carer’s benefit for less than 6 weeks, ceases to be entitled to that benefit they shall be disqualified for receipt of carer’s benefit for 6 weeks from the last day for which he or she was entitled to the benefit. Therefore, where a person does not satisfy the conditions for receipt of carer’s benefit for 1 week out of every 4, they are also deemed not to satisfy the conditions for the other 3 weeks.

On 11 December 2013 a letter was issued to the person concerned outlining the circumstances as the Department sees them and the consequences of those circumstances and giving them the opportunity to present their own case in response. To date no reply has been received.

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