Written Answers Nos. 70-79
70. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding a disability allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [9803/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 25 February 2015. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal 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.
71. Deputy Martin Heydon asked the Tánaiste and Minister for Social Protection if she will provide an update on the work of her Department in reviewing the entitlements of former self-employed citizens who find themselves out of business; her plans to implement improvements for this sector; and if she will make a statement on the matter. [9806/15]
View answerSelf-employed persons are liable for PRSI at the class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as guardians payment (contributory), maternity benefit and adoptive benefit. Ordinary employees who have access to the full range of social insurance benefits pay class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per week, the rate of employer's PRSI is 8.5%).
Self-employed workers who find themselves out of business and become unemployed or ill may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker's allowance and disability allowance. In the case of jobseeker's allowance they can apply for the means-tested jobseeker's allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. As in the case of a non-self-employed claimant for jobseeker's allowance or disability allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.
Self-employed people in receipt of jobseeker’s allowance have access to the full range of activation measures available through the State. Given the scale of unemployment levels, the key objective of activation policy and labour market initiatives is to offer assistance to those most in need of support in securing work and achieving financial self-sufficiency. This policy objective prioritises scarce resources to those in receipt of qualifying welfare payments. Accordingly the employment services and schemes provided by the Department are focused in the first instance on this cohort of unemployed people. However, many services are available to the formerly self-employed who are not in receipt of a social welfare payment.
Some employment services, such as assistance with job-search activities and the use of online job search tools, are available to people if they register with the Department's employment services offices, regardless of their social welfare status. Unemployed persons, including the previously self-employed, not in receipt of payments may also be eligible to avail of upskilling opportunities but are not eligible to receive a training allowance while undertaking the course. Springboard courses are open to people who were previously self-employed, regardless of their social welfare status.
In September 2013, I published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable, with the requirement that any proposals for change must be cost neutral.
The Group found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance during the three-year period from 2009 to 2011 received payment. Consequently, the Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.
The Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. To this end, the Group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. The Group further recommended that the extension of social insurance in this regard should be on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points.
This recommendation will require further consideration in conjunction with the findings of the most recent Actuarial Review of the Social Insurance Fund which indicated that the self-employed achieve better value for money compared to the employed when the comparison includes both employer and employee contributions in respect of the employed person. The Actuarial Review found that the effective annual rate of contribution needed to provide the full rate State pension (contributory), currently available to self-employed contributors, is approximately 15%.
My colleagues in Government and I will continue to reflect on the findings of the Advisory Group on this issue and will further consider the recommendations contained in the report taking into account future developments in terms of the budgetary and fiscal situation.
72. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the current status of plans for a central pensions register; and if she will make a statement on the matter. [9829/15]
View answerThe Pensions Authority maintains a central register of all occupational pension schemes. Section 60 of the Pensions Act requires the trustees of a pension scheme to register the scheme with the Pensions Authority and regulations prescribe the details required for that registration. This includes the name of the scheme, the trustees and the sponsoring employer.
With respect to the possibility of a service to enable both employers and scheme members trace all entitlements to pension benefit when a person reaches normal retirement age, I am aware that every effort is being made by the trustees of pension schemes to locate a member of a scheme when a pension is due for drawdown. My Departments supports these efforts through the provision of a host mailing service to assist the trustees locate a scheme member.
It is not uncommon nowadays for employees to regularly switch jobs and accrue pension entitlement through a number of employments. Accordingly, it will become more common for prospective retirees to have to ‘trace’ their accrued pension entitlements from multiple employers over their working life. Measures have been put in place to build linkages between the Personal Public Service Number and the relevant pension schemes which will assist in the development of mechanisms to keep track of accrued pension entitlements. Engagement with the pensions industry on the development of a pension tracing service is ongoing.
75. Deputy Michael Creed asked the Tánaiste and Minister for Social Protection the number of persons in receipt of the one-parent family payment; the number of these in receipt of a court-mandated maintenance payment or other such payment formally recognised by her Department; and if she will make a statement on the matter. [9868/15]
View answerI am informed that there were 69,397 persons in receipt of one-parent family payment (OFP) at the end of February. However, the information requested by the Deputy in relation to the number of recipients of OFP in receipt of a court mandated maintenance payment or another such payment is not available.
76. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if she will review the maximum amount payable under the exceptional needs payment payable in respect of a person (details supplied) in County Kildare, given that person's circumstances and the consequent need to increase the payment further; and if she will make a statement on the matter. [9869/15]
View answerThe person concerned has recently received assistance with an exceptional needs payment under the Supplementary Welfare Allowance (SWA) scheme. It is open to the person concerned to request a review of this decision to the SWA Review Officer for his area who is based in Clondalkin Local Office. Contact information has been forwarded to the person concerned.
77. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if, in view of the tragic circumstances of the case, she will examine the extent to which an exceptional needs payment may be increased in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [9870/15]
View answerThe person concerned has recently received assistance with an exceptional needs payment towards funeral expenses under the Supplementary Welfare Allowance (SWA) scheme. It is open to the person concerned to request a review of this decision to the SWA Review Officer for her area who is based in Clondalkin Local Office. Contact information has been forwarded to the person concerned.
78. Deputy Paul Murphy asked the Minister for Finance his views on the desirability of house price increases; if the policy of his Department should be to encourage or discourage increases in house prices; and if his Department conducts assessments of the likely impact of its policies on house prices. [9656/15]
View answerMy Department closely monitors movements in residential property prices and their potential impact on the economy. As regards recent trends, according to the Central Statistics Office, national residential property prices fell by 1.4 per cent between December and January, and are up 15.5 per cent over the 12 months to January. It is too early to say whether the recent trends mark a break from the pattern of property price inflation over the past two years.
Regarding the rise in prices in Dublin and other urban areas over the last year, this is a consequence of an inadequate supply response to growing demand. As the Deputy will be aware, it is Government policy to address barriers to the supply of residential properties which should have the effect of reducing upward pressure on prices.
Under Construction 2020, the Government has set out the strategy for addressing issues in the property and construction sectors. The strategy involves ensuring that any critical bottlenecks that might impede the sector in meeting residential and non-residential demand are addressed. It incorporates 75 time-bound actions encompassing the development of an overall strategic approach to housing supply, identifying and implementing further improvements in the planning process to facilitate appropriate development, and seeking to improve financing options for development and mortgage provision.
By addressing the impediments to the viability of development projects this should lead to a speedier realignment of supply with demand and to greater price stability. This will improve affordability and support our future growth and our national competitiveness.
More generally, there can be winners and losers from rising house prices. For those intending to purchase a house, rising prices can negatively affect their capacity to purchase their own home. This may negatively affect mobility including of skilled migrants, potentially harming our economic competitiveness.
On the other hand, for those who own a house, property price increases are associated with a number of positive effects such as a wealth effect which may encourage consumption. Also, higher prices may entice more property owners, including those previously in negative equity, to sell their home and trade up, bringing greater liquidity to the property market. In addition, increasing house prices improves the value of assets held on banks' balance sheets.
79. Deputy Terence Flanagan asked the Minister for Finance if he will consider introducing a special task force to combat illegal tobacco and fuel smuggling here; and if he will make a statement on the matter. [9674/15]
View answerI am advised that the Revenue Commissioners work in close cooperation with other enforcement authorities in this jurisdiction and in Northern Ireland to combat fuel and tobacco fraud which are all-island problems. The Cross Border Tobacco Fraud Enforcement Group and the Cross Border Fuel Fraud Enforcement Group include representatives of the Revenue Commissioners, An Garda Síochána, Her Majesty's Revenue and Customs and the Police Service of Northern Ireland and other relevant organisations. Both groups have proven effective in facilitating co-operation and supporting the identification and targeting of organised crime groups involved in tobacco and fuel fraud. Participation in the two groups is weighted in favour of enforcement staff carrying out investigations, which promotes a strong culture of cooperation. The Groups meet on a regular basis to review progress and plan activities, but there is continuous contact between enforcement staff across all of the agencies on live investigations.
