Thursday, 5 Feb 2015

Written Answers Nos. 41-51

Rent Supplement Scheme Administration

Questions (41)

Alan Farrell

Question:

41. Deputy Alan Farrell asked the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 60 of 14 January 2015, in view of the fact that the payment of rent supplement was suspended pending a review, the reason it was reinstated without a review taking place; if an investigation into this matter is ongoing; if this will be considered a case of fraud; her plans to ensure this situation is prevented in future; and if she will make a statement on the matter. [4718/15]

Written answers

Tánaiste and Minister for Social Protection

The payment of Rent Supplement is a matter between the Department and the tenant, subject to the tenant satisfying the eligibility criteria and payment issues directly to the tenant. Where the Department is notified of issues regarding a tenant not passing the Rent Supplement to the landlord, the Department can request the tenant to authorise payment directly to the landlord. This can only be arranged with the tenant’s consent.

Any contract/lease agreement that exists between the tenant and the landlord is a private matter, regardless of whether or not Rent Supplement is in payment. Any difficulties that arise between the two parties are a matter for either party to resolve or to pursue through the Private Residential Tenancies Board (PRTB) or through civil proceedings.

As previously stated, the landlord contacted the Department on 23 May 2014 to state that the tenant had not paid rent for 4/5 months. The case was examined but payment continued. In September 2014 the Department was notified of a change in circumstances and a rent review was undertaken. On foot of this review the tenant was requested to authorise the payment to be made to the landlord. The tenant consented and Rent Supplement issued for September and October 2014 directly to the landlord’s account. The tenancy ceased shortly after.

The circumstances surrounding the case have been reviewed and there is no evidence of fraud against the Department having occurred.

Unemployment Data

Questions (42)

Willie O'Dea

Question:

42. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection if she will provide the latest statistics for the long-term unemployed here; if she is satisfied with the current impact of labour activation matters in her Department; and if she will make a statement on the matter. [4914/15]

Written answers

Tánaiste and Minister for Social Protection

The latest data on the long-term unemployed are from the CSO’s Quarterly National Household Survey (QNHS) for Q3 2014. The number of long-term unemployed at that time was 139,000, down by over 60,000, or almost one third, from the level seen in 2012. The long term unemployment rate has fallen from a peak of 9.5% in 2012 to 6.4% in late 2014.

The Pathways to Work Strategy sets out a comprehensive reform of the State’s approach to helping unemployed jobseekers return to work. Since its inception in 2012, there have been a number of reforms including the new one-stop model of Intreo; increasing initial one-to-one guidance interviews with jobseekers (with the number of such interviews, at 169,000 in 2014, up 8% on 2013); and making 57,000 FET places available to the long-term unemployed.

In addition to on-going measures, Pathways to Work 2015 includes additional actions. First, from early 2015, a structured process of engagement with the existing long-term unemployed will commence. This will see at least 8,300 long-term unemployed people being referred to the activation process (Group Engagement followed by regular one-to-one case officer contact) each month in early 2015.

Second, a new employment services model, JobPath, will be rolled out in 2015. It is a payment by results contract model with third party providers of employment services specifically targeted at long-term unemployed jobseekers. JobPath aims to provide additional capacity to the Public Employment Service in order to enable it engage more systematically with long-term unemployed jobseekers.

In support of these enhanced engagement processes, 57,000 FET places will continue to be reserved for the long-term unemployed in 2015. A minimum of 16,000 places for the long-term unemployed will also be provided through key public employment programmes. This includes an expansion of the JobsPlus initiative, an employment subsidy that incentivises employers to recruit the long-term unemployed.

There are definite signs that, in tandem with the recovery in economic demand, reforms undertaken to date are having some impact in improving the employment prospects of people who are unemployed. I am satisfied these measures together with reforms planned for 2015 will help to bring about continuing falls in unemployment and especially long-term unemployment.

Rent Supplement Scheme Administration

Questions (43)

Bernard Durkan

Question:

43. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which she continues to monitor the situation in respect of applicants on local authority housing lists living in counties immediately adjacent to Dublin in receipt of rent support in respect of private accommodation, the rent of which is rapidly moving beyond the ability of the tenants to pay; if her attention has been drawn to the extent to which this seriously impacts on the counties immediately adjacent to Dublin; her views on extending the provisions available to tenants in the Dublin local authority areas to those in adjoining counties, thereby averting large-scale homelessness in the months ahead; and if she will make a statement on the matter. [4975/15]

Written answers

Tánaiste and Minister for Social Protection

There are currently approximately 71,500 rent supplement recipients for which the Government has provided over €298 million for 2015.

I am acutely aware of the difficulties people are experiencing in maintaining affordable rented accommodation in areas of high demand in the current market, including areas surrounding Dublin such as North Kildare. The Department is finalising a review of the maximum rent limits and raising rent limits may not be the solution to the problem as it is likely to add to further rental inflation and could impact, not alone on rent supplement recipients, but also on many lower income workers, their families and students. I am keeping this matter under close review.

The Department has put measures in place to ensure that the housing needs of rent supplement customers throughout the country who are at risk of homelessness are addressed by providing for increased flexibility within the administration of the rent supplement scheme. Notices were circulated to all Community Welfare Service staff reminding them of their discretionary power to award, on a case by case basis, a supplement for rental purposes in such circumstances in July and December 2014. A National Framework has also been developed to ensure that appropriate supports continue to be provided throughout the country in a consistent manner. The Department continues to monitor the measures in place to ensure that the appropriate supports are in place for rent supplement recipients including the Interim Tenancy Sustainment Protocol operating in Dublin, which was extended to Cork city within the last week.

Responsibility for monitoring applicants on local authority housing lists is a matter for my colleague, the Minister for the Environment, Community and Local Government.

Rent Supplement Scheme Administration

Questions (44)

Aengus Ó Snodaigh

Question:

44. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection in view of her previous assertion that raising the rent supplement caps would lead to further rises and artificial inflation of rents, the steps she has taken to guard against this happening on foot of the supplementary welfare allowance note for information 2014/18 circulated to staff of her Department on 9 December 2014 which effectively raises the rent supplement caps; the discussions she has held with the Department of the Environment, Community and Local Government; and if rent controls will be urgently introduced. [4909/15]

Written answers

Tánaiste and Minister for Social Protection

There are currently approximately 71,500 rent supplement recipients for which the Government has provided over €298 million for 2015.

The Department is finalising a review of the maximum rent limits and raising rent limits may not be the solution to the problem as it is likely to add to further rental inflation and could impact, not alone on rent supplement recipients, but also on many lower income workers, their families, and students. I am keeping this matter under close review.

The Department has put measures in place to support rent supplement recipients at risk of homelessness or loss of their tenancy in the currently constrained private rented market, including the issuance of the information note referred to by the Deputy. A National Framework has also been developed to ensure that appropriate supports continue to be provided throughout the country in a consistent manner. The Interim Tenancy Sustainment Protocol introduced in the Dublin region during 2014, has provided support for some 340 families to date which represents approximately 2% of families receiving rent supplement in Dublin. The protocol has also been extended to Cork city within the last week.

These measures, whilst they provide for flexibility within the administration of the rent supplement scheme on a case by case basis, will ensure that the risk of rent supplement contributing to rental inflation trends throughout the State is minimised. The Department continues to monitor the use of discretionary power for the purposes of preventing homelessness or the loss of a tenancy, which remains low in the overall context of the rent supplement customer base.

Policy in relation to rent controls is a matter for my colleague, the Minister for the Environment, Community and Local Government.

Pensions Reform

Questions (45)

Terence Flanagan

Question:

45. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the measures she is taking to reduce the pension costs charged to members of pension schemes; and if she will make a statement on the matter. [4916/15]

Written answers

Tánaiste and Minister for Social Protection

The 2012 Report on Pension Charges undertaken by my Department, working with the Central Bank and the Pensions Authority, was the first comprehensive Government report on this subject. Since publication, a range of measures have been taken to deliver on the report’s recommendations and work is ongoing in this regard. For example, in line with the recommendation that the implementation of the Consumer Protection Code should be monitored, the Central Bank has undertaken a number of themed reviews aimed at ensuring this is the case. This includes a recently published review of annual pension statements which found the vast majority of firms were in compliance with the code. Where the Bank identified a small number of firms where the format of annual statements were not as required, those concerned were required to submit implementation timelines for full compliance.

In parallel, my Department is involved in complementary EU negotiations on a review of the IORPs (Institutions for Occupational Retirement Provision) Directive which lays down basic requirements for occupational pensions. It is anticipated that final provisions will result in improvements in the areas of transparency, trustee competencies and scheme governance and which will promote competitiveness in charging structures.

Under the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 the Pensions Board was restructured into the Pensions Authority and the Pensions Council. The Pensions Council was established to provide advice on pensions and also to give consumers a greater input into pension policy. The Pensions Council will ensure that the system has a far stronger consumer focus. I have previously highlighted that there a number of specific areas which I want the Council to focus on which includes pension charges. Progress on the issue of charges will also be supported by the restructuring of the Pensions Authority to strengthen governance and regulation of schemes.

National Internship Scheme Administration

Questions (46)

Aengus Ó Snodaigh

Question:

46. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection her views on the appropriateness of job clubs contracted by her Department to provide courses to jobseekers using JobBridge interns to deliver these classes on their own; her views that this discovery highlights the inadequacy of the safeguards and monitoring mechanisms built into the JobBridge scheme; and if she will take any action in response to the revelations. [4911/15]

Written answers

Tánaiste and Minister for Social Protection

I believe that the Deputy is referring to a recent report on Job Clubs prepared by the internal audit unit of the Department. In preparing this report the Department’s internal auditor raised a query in relation to the appropriateness or otherwise of one Job Club hosting a small number of interns in a role of Job Club instructor. It is important to note in this regard that the Department funds the operation of some fifty Job Clubs located around the State. These Job Clubs are operated by 46 separate contractors who are, in the main, Local Development/Partnership Companies (LDCs). The Job Club in question is a community based, not for profit, social enterprise. Department records show that it is one of two Job Clubs which have hosted JobBridge interns.

All Job Club providers are private limited companies and therefore, for the purpose of the JobBridge scheme, are treated like any other employer providing internship opportunities in line with criteria attaching to the scheme. With regard to the appropriateness of JobBridge interns working in Job Clubs the question of the suitability of any individual intern to operate as a Job Club administrator/instructor is a matter to be assessed, on a case by case basis, by Job Club management. I note that in this case the internship posts advertised required applicants to have FETAC level 6 qualifications in delivery of training programmes and that Departmental records show that all of the interns who completed an internship with the Job Club concerned subsequently entered into paid employment. Accordingly the internships appear to have met their purpose in providing a bridge between unemployment and paid employment. Their use by the Job Club in this case appears therefore to have been an appropriate activation intervention and is to be welcomed rather than criticised.

In the past JobBridge has been criticised by some people on the grounds that some of the opportunities offered were so called low level jobs. In this instance the appropriateness of the internships is being questioned on the basis that the roles required ‘higher level’ qualifications. In fact what this case shows is that JobBridge offers a broad range of internships to respond to the needs and aspirations of the complete spectrum of jobseekers, including those targeting very specific sectors but lacking critical real workplace experience in their chosen field.

I am satisfied therefore that no question arises in respect to JobBridge arising out of this case.

To ensure that both the host organisation and intern are abiding by the spirit and the rules of the scheme, the Department undertakes ongoing monitoring of internships. This involves the regular review of monthly compliance reports and random site visits to facilitate discussions with both parties to the internship. The Department has conducted over 9,000 monitoring visits to-date, and 97% of these visits have been of a satisfactory nature.

Departmental Schemes

Questions (47)

Seán Kyne

Question:

47. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection the level of engagement between her Department and recruitment agencies here to encourage and maximise the use of jobsireland.ie in identifying possible candidates; and if she will make a statement on the matter. [4981/15]

Written answers

Tánaiste and Minister for Social Protection

The Department provides a free recruitment service to employers and recruitment agencies through the Jobs Ireland website (www.jobsireland.ie). The purpose of the service is to support employers and recruitment agencies to increase employment and to provide a mechanism through which jobseekers can search for job opportunities and submit applications. In 2014, over 110,000 vacancy positions were advertised on the JobsIreland website, either directly by employers or by recruitment agencies on behalf of a company. Over 400 recruitment agencies have used the service since its establishment in 2000.

The Department is engaged in a programme to modernise its services. This modernisation programme is fundamental to the Department’s objectives of delivering a comprehensive service to people, positioning the Department to better adapt to political priorities and changing customer needs, while delivering on internal effectiveness and efficiency goals.

As part of the modernisation programme and in order to improve the job/candidate matching capability of Jobs Ireland, a tender process is currently under way for a new job matching system. Subject to the outcome of the tender process it is anticipated that the new system will go live during 2015. Improving the job/candidate matching capability of this service will incentivise employers and recruitment agencies to use the service to provide more jobs for those who are unemployed.

In line with the Government’s programme of change, the Department established a dedicated employer engagement Unit in 2012 with a focus on building relationships with employers and recruitment agencies to raise awareness and take- up of employment services and supports, including availing of the Jobs Ireland service. This work will continue during 2015.

Poverty Data

Questions (48)

Aengus Ó Snodaigh

Question:

48. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection her views on the Central Statistics Office's survey on income and living conditions finding that the percentage of the population experiencing enforced deprivation has risen to 30.5%; and if she will introduce emergency social welfare provisions targeting those groups experiencing deprivation. [4907/15]

Written answers

Tánaiste and Minister for Social Protection

The recently published CSO release on SILC 2013 shows that the basic deprivation rate was 30.5 per cent, an increase of 3.6 per cent on 2012. The increase in deprivation in particular affected children, the unemployed, households with no one at work, and lone parent households. Overall, the rise in basic deprivation has affected all income groups and reflects the legacy of the economic crisis since 2008 on many low and middle income households.

The key measure of poverty from a policy perspective is consistent poverty, which is the combination of at-risk-of-poverty and basic deprivation. The rate of consistent poverty in 2013 was 8.2 per cent, a slight though not statistically significant increase on 2012. The Government remains committed to meeting the national social target for poverty reduction, which is to reduce consistent poverty to 4 per cent by 2016 and 2 per cent or less by 2020.

At-risk-of-poverty rate fell from 16.5 per cent in 2012 to 15.2 per cent in 2013. A key reason for this fall is the enhanced impact of social transfers in reducing income poverty. In 2013, welfare payments and other social transfers (including pensions) lifted a third of the population out of the at-risk-of poverty, thereby reducing the rate from 49.8 per cent to 15.2 per cent. This is equivalent to a poverty reduction effect of 69.5 per cent, as compared to 67.2 per cent in 2012.

It is clear that since 2012-2013, the period reported in this survey, there has been a recovery in economic growth and employment, with the unemployment rate falling from 14.7% in 2012 to 13.1% in 2013 and to 11.3% in 2014. Also indicators like the long-term unemployment rate show an improvement.

We are committed to delivering a new deal on living standards to ensure that economic recovery is felt by low and middle income working families. Thus, Budget 2015 increases support for families raising children, assists unemployed families with children to return to work and improves the financial position of vulnerable welfare recipients, including those living alone. I am confident that these measures will be reflected in future poverty statistics.

Back to School Clothing and Footwear Allowance Scheme Payments

Questions (49)

Seamus Healy

Question:

49. Deputy Seamus Healy asked the Tánaiste and Minister for Social Protection if she will restore the back to school allowance to 2009 levels; and if she will make a statement on the matter. [4986/15]

Written answers

Tánaiste and Minister for Social Protection

The back to school clothing and footwear allowance (BSCFA) scheme provides a once-off payment to eligible families to assist with the extra costs when children start school each autumn. The Government has provided €44.3 million for this scheme in 2015.

In 2014, BSCFA payments were made to over 166,000 families in respect of over 304,400 children at a cost of €42.5 million. The rate of payment was €100 in respect of children aged 4 to 11 and €200 for children over 12 years in second level education.

Any changes to the scheme to increase the payment amounts would have to be considered in a budgetary context.

Youth Guarantee

Questions (50)

Terence Flanagan

Question:

50. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection if she will provide an update on the roll-out of the Youth Guarantee scheme; and if she will make a statement on the matter. [4917/15]

Written answers

Tánaiste and Minister for Social Protection

The Government’s primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people. This strategy has been succeeding, with an increase of over 80,000 in employment over the last 2 years.

Within this framework, the Youth Guarantee sets a medium-term objective of ensuring that young people receive an offer of employment within four months of becoming unemployed. The main plank of the guarantee is assistance to young people in finding and securing sustainable jobs. For those who do not find employment, additional offers are provided for. Most such offers (over 70%) are in further education or training. Others are in community-based employment programmes such as CE, Gateway and Tús, or through the JobsPlus employment subsidy for private employment.

Overall, the Youth Guarantee provides for over 28,000 programme opportunities for unemployed young people in 2014, as set out in the following table. This figure excludes some 24,000 places provided for young people through PLC courses and apprenticeships. These PLC and apprenticeship places, together with the wide range of vocational third-level courses provided for the young, although not reserved for unemployed jobseekers, nevertheless contribute to the spirit of the guarantee.

It is important to note that some of the initiatives planned under the guarantee required primary legislation to allow positive discrimination on age grounds in the provision of employment services and supports. Two employment schemes in particular, the Youth Guarantee developmental internship programme and the JobsPlus variant for young people, were launched in November 2014 after the required legislation was passed in June 2014. The legislation also permits the introduction of earlier and more intensive engagement by INTREO with the young unemployed.

Models for the engagement of young people through Intreo have been agreed and will form the basis of the national roll-out of the Youth Guarantee in 2015. Potential refinement of these models may be considered on the basis of outcomes and learning from the Ballymun Youth Guarantee Pilot Project.

Youth Guarantee Progress YTD: End December 2014

Programme	Expected full-year intake	2014 YTD	Note
Youthreach/CTC	3,300	3553	CTC starters end Dec -- including Youthreach 1800 persons
JobBridge (including developmental internship)	5,000	3,138	As of end December 2014
Tús	1,000	1,410	As of 30th November 3014
JobsPlus	1,500	410	As of end Dec 14- U25 estimated as 14.6% of total starters in 2014 (2806)
Momentum	2,000	631	As of December 12th 2014
BTEA (excl Momentum)	3,300	2319	As of 14th October
BTWEA	200	139	Including 5 persons on STEA
VTOS	500	672	Estimated unemployed entrants
FAS/Solas	9500	8,027	Based on SST, Traineeship, Bridging & LTI starters YTD (end December)
CEB youth Entrepreneurship Training and Mentoring supports	700	0	Not yet commenced
CEB/MFI micro-loans for young people	150	10	23rd December 2014
International Work Experience and Training	250	0	Not yet commenced
Gateway	450	192	30th November 2014
Community Employment	500	600	End December 2014
Total	28,350	21,101	Excluding where figures are not available

One-Parent Family Payment Eligibility

Questions (51)

Willie O'Dea

Question:

51. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection her plans to reverse the proposed changes to the one-parent family payment which will take effect in July 2015; and if she will make a statement on the matter. [4915/15]

Written answers

Tánaiste and Minister for Social Protection

There are currently 69,884 lone parents being supported by the one-parent family payment (OFP) scheme at an estimated cost to my Department of approximately €607 million in 2015.

The purpose of the phased OFP scheme age change reforms that were introduced in the Social Welfare and Pensions Act, 2012, is to reduce long-term social welfare dependency and poverty among lone parents and to ensure that they have improved access to the Department’s range of education, training, and employment support programmes in order to assist them in securing employment.

The final phase of the OFP scheme age change reforms will take place on 2 July, 2015, when the maximum age limit of the youngest child at which an OFP recipient’s payment ceases will be reduced to 7 years for all recipients. It is anticipated that approximately 30,200 OFP recipients will transition out of the OFP scheme on that day. These customers will be supported by my Department to transition to an alternative income support payment – as appropriate.

The introduction of the Back to Work Family Dividend as announced in Budget 2015 provides a further incentive for jobseekers and OFP recipients to avail of employment opportunities by allowing them to retain their increase for a qualified child when they leave welfare for employment or self-employment. It is estimated that approximately 9,600 lone parents who transition off their OFP payment will transfer to the family income supplement and as such will qualify for the Back to Work Family Dividend.

There are no plans to review the OFP age reforms.