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Wednesday, 16 Apr 2014

Written Answers Nos. 18-24

Pensions Reform

Questions (18)

Willie O'Dea

Question:

18. Deputy Willie O'Dea asked the Minister for Social Protection the number of defined benefit pension schemes that closed in 2013 and to date in 2014; her plans to further reform the pensions industry here; and if she will make a statement on the matter. [17734/14]

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Written answers

I am informed by The Pensions Authority that 54 defined benefit pension schemes closed in 2013 and to date 7 schemes have closed in 2014.The primary objective of pension policy is to ensure the sustainability of pension provision and in that context to support an environment which will provide an adequate income for people in their retirement.

Significant changes in pension policy have been introduced in recent years, particularly in relation to increasing State pension age and supporting the sustainability of defined benefit pension provision.

However, there is no doubt, as set out by the OECD report which I published last April, that Ireland is facing further significant challenges on a number of fronts. The financial sustainability of the pension system as our population ages is a concern and we also face considerable short-term challenges due to the continuing impact of the financial and economic crisis. The OECD Review of the Irish Pension System provides an international perspective on Ireland’s retirement-income provision. It covers all components of the pension system: State, private personal and occupational plans, and schemes for public-sector employees.

The key recommendation in the OECD Review in relation to reform of the Irish pension system is to improve the adequacy of pensions and this can be achieved by increasing coverage in the funded part of the system.

The recommendations in the OECD report are actively being considered.

Child Benefit Data

Questions (19)

Ciara Conway

Question:

19. Deputy Ciara Conway asked the Minister for Social Protection the primary purpose of letters sent recently to households regarding child benefit; the purpose of seeking information on child care provision for the children of the household; if this information will inform policy, particularly the review announced on child care costs; and if she will make a statement on the matter. [17729/14]

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Written answers

Child benefit is a payment to parents for the support of their children. It is paid to some 607,919 families in respect of 1.16 million children, with an expenditure of approximately €1.9 billion in 2013. Safeguarding the child benefit budget is a priority and in this regard the Department has taken a proactive approach to ensuring that it is only paid to eligible families. A policy of issuing continuing eligibility certificates to parents, such as the letters referred to by the Deputy, commenced in 2008. The control policy for the scheme was reviewed in 2010 to ensure that controls in place to prevent fraud and abuse continue to be effective and relevant. As a result of this review, additional enhanced and updated control measures have been devised and implemented, with the continuing eligibility certification programme remaining as a key component of the control policy. When responding to the eligibility certificates, customers are asked to confirm their residence and which school, crèche or doctor their children attend. The information provided is examined to ensure that child benefit only continues to be paid where there is an ongoing entitlement.

Information received on child care as part of the child benefit control programme is used only in the context of this control measure, that is to indicate an ongoing entitlement to payment of child benefit and is not made available to any other agency for consideration in any other context, in line with data protection requirements.

Questions relating to any review of child care issues should be addressed to the Minister for Children and Youth Affairs.

Domiciliary Care Allowance Eligibility

Questions (20)

Denis Naughten

Question:

20. Deputy Denis Naughten asked the Minister for Social Protection if she will review the procedure employed in evaluating medical information provided to her Department for children with autism; and if she will make a statement on the matter. [17688/14]

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Written answers

Domiciliary Care Allowance (DCA) is an allowance paid in respect of children under 16 years, who have a disability so severe that it requires the child needing care and attention and/or supervision substantially in excess of another child of the same age. Eligibility for DCA is not decided on the medical or psychological condition, but on the resulting disability that necessitates the degree of extra care and attention required. Each application is assessed on an individual basis taking account of all the evidence, including medical evidence submitted by the parent/guardian. The report of the review of the DCA made a number of administrative recommendations relating to changes to the application, decision and appeal processes. These changes have been developed and implemented from the 7th April 2014.

The application form has been redesigned to allow the detail of the child’s care needs to be more comprehensively documented by the parent/guardian. Also, an additional medical information form can be completed for children with Pervasive Developmental Disorders, such as Autism. This additional medical information, which will be supplied by the specialist attending the child, will ensure that the appropriate information is available to assist in the decision making process. It is hoped that having as much information as possible on the child’s care needs available at the initial assessment stage will allow the correct decision to be made at the earliest opportunity possible and reduce the need for further examination and recourse to the appeals process.

The revised application/decision process will also include improved feedback in relation to the decision reasons at both application and appeal stages. Details on the new process, along with revised guidelines covering the administrative changes are available on www.welfare.ie and have been notified to all CIB Offices and to parent/guardian representative groups.

JobsPlus Scheme

Questions (21)

Finian McGrath

Question:

21. Deputy Finian McGrath asked the Minister for Social Protection the reason there has been little political will to push JobsPlus in the marketplace; if she will support the establishment of an agency which would have the long-term unemployed on its books and big business would have to go to it in order to obtain incentives; and if she will make a statement on the matter. [17465/14]

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Written answers

JobsPlus provides a direct monthly financial incentive to employers who recruit employees from those who are long term on the live register. The incentive is payable, on a monthly basis, over a two year period if the employee is retained in full time employment for two years. JobsPlus is biased in favour of those who are longer term unemployed. The value of the aggregate monthly payments is €7,500 for employing a jobseeker 12 to 24 months on the live register and €10,000 if the jobseekers were on the live register for over 24 months. Since its launch in July 2014, JobsPlus has concluded arrangements to support some 2,000 jobseekers in full-time employment, 60% of whom were previously over 24 months on the live register. JobsPlus is one of the many schemes being promoted to employers at a series of well attended employer briefing sessions which I am currently delivering throughout the country. The objective of the employer information sessions is to increase awareness of the supports available to employers and the role they can plan in tackling the level of unemployment both locally and nationally. A dedicated Employer Engagement Unit was established in the Department in 2012 to co-ordinate the Department’s engagement with employers. The unit includes staff dealing with JobBridge, the European Job Mobility (EURES) and the National Contact Centre, which hosts the Jobs Ireland website, as well as providing policy and coordination support to employer engagement across the country.

In addition, the Department’s divisional teams provide opportunities for direct engagement with employers with dedicated officers at senior management level leading the engagement process. Further engagement opportunities are being provided via the new Intreo centres which offer a single point of contact for all employment and income supports to bother jobseekers and employers. The Department has also produced an Employer Pack with information about the range of supports and services available. The Pack is available to download at http://www.welfare.ie/en/Pages/Employer-Pack.aspx.

Job Initiatives

Questions (22)

Aengus Ó Snodaigh

Question:

22. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection her views on the objections to JobPath, which proposes to outsource employment support services to private operators, submitted by the public sector unions to the Haddington Road mechanism; and if she will halt the JobPath procurement process. [17649/14]

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Written answers

JobPath is a new programme of employment activation aimed specifically at the long-term unemployed and those most distant from the labour market. The allocation of additional resources to the activation of long term unemployed people was the focus of an updated “Pathways to Work” policy statement published in July 2013 (PTW 2013). The Department examined various resourcing and contracting options, and taking note of recommendations by the OECD among others, the Government decided to procure additional capacity from providers with expertise and experience in the provision of employment supports or related services.

This additional capacity will complement and augment the Department’s own activation capacity. It should be noted that the Department currently augments its internal employment services capacity through contracted provision. The Department has contracts with 22 companies for the provision of Local Employment Services and a further 46 companies for the provision of Job Clubs. With regard to the objections to JobPath raised by some public sector unions, an arbitration hearing was held on Monday 14th April 2014 and the outcome of this hearing is awaited.

Social Welfare Payments Administration

Questions (23)

Willie O'Dea

Question:

23. Deputy Willie O'Dea asked the Minister for Social Protection her plans to transfer payments from her Department to an electronic system; if she has discussed this proposed change with the Department of Communications, Energy and Natural Resources; and if she will make a statement on the matter. [17736/14]

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Written answers

Last year, the Government approved the Department’s Payment Strategy for the modernisation of welfare payments. One of the primary objectives of this strategy is to reduce the number of cash payments where possible. This will generate significant savings in fees paid for cash services and increase efficiencies in the payment cycles at both departmental and national levels. The Payment Strategy is consistent with wider Government policies. It gives new impetus to the policy first agreed by Government in 2004 to move to a fully electronic payments environment. It is also grounded in the wider agenda for better public services and more effective e-payments as set out in the Public Service Reform Plan and the eGovernment Strategy 2012-2015. The Strategy is fully aligned with the objectives of the National Payments Plan which stresses the criticality of moving to electronic payments in order to reduce the exceptionally high levels of cash usage in the Irish economy with its consequential impacts on costs and competitiveness. In supporting this agenda, the Payment Strategy aims to remove the limits that cash payments impose on clients in terms of making onward financial transactions, availing of cheaper prices online and through electronic payment transfers, and building levels of financial inclusion. However, I have consistently stressed that those most vulnerable in our society will be protected and that no client will be left without payment if they are not in a position to accept that payment electronically. The Department of Communications, Energy and Natural Resources is fully aware of the Department’s Payment Strategy. The Deputy will be aware that these matters were addressed by Minister Rabbitte in this House and the Seanad recently.

We are all conscious of the clear trend towards electronic payments which are being adopted by consumers generally as a matter of choice. These behavioural choices are very apparent among the Department’s clients also. The Department is willing to accommodate its clients in exercising their choice for electronic payments where this is possible in the interests of economy, efficiency and national competitiveness.

Question No. 24 answered with Question No. 13.
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