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Wednesday, 17 Jun 2015

Written Answers Nos. 62-71

Pension Provisions

Questions (63)

Michael McGrath

Question:

63. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the rules governing the ability of a person in receipt of the State pension (contributory) or the State pension (non-contributory) to take up paid employment; and if she will make a statement on the matter. [24114/15]

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Written answers

Encouraging longer working is part of the strategy to address the issue of sustainability of the State pension. People in receipt of the State pension may also engage in paid employment.

There is no means test for the State pension (contributory), and so the personal rate applicable in respect of such a pension is not reduced by paid employment.

The State pension (non-contributory) is means tested and takes into account both the income and assets of the claimant and his or her spouse or partner. For this purpose, a formula is applied to the value of all applicable assets to determine a weekly means. The weekly rate payable depends on the total weekly means, from both income and assets, of the person or couple. The first €30 of means is disregarded as part of the means test.

The Deputy may also wish to note that there is no statutory retirement age in Ireland. Responsibility for setting retirement age is a matter for the employer/employee relationship and the contract of employment. As a result, people can retire before or after State pension age. It is hoped that, where appropriate, workers will choose and be able to work to pension age (and beyond if that is their desire) and in such cases they will have a higher income than they would have from their pension alone.

Questions Nos. 64 to 67, inclusive, answered with Question No. 51.

State Pension (Contributory) Applications

Questions (68)

Thomas P. Broughan

Question:

68. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the number of applications for a State pension (contributory) received by her Department in 2013, 2014, and to date in 2015; the number of applications approved, pending, or refused, per year; and if she will make a statement on the matter. [24194/15]

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Written answers

The table shows the total number of state pension (contributory) applications received during the period January 2013 to end-May 2015, the number of applications pending and decision outcomes.

Year ending

31 Dec 2013

Year ending

31 Dec 2014

Year to

31 May 2015

Claims received

39,215

40,212

17,210

Claims pending

2,190

3,058

4,129

Claims awarded

28,129

27,591

10,679

Claims disallowed

7,877

8,205

4,210

The Department is committed to delivering the best possible service to its customers. The processing target of 90% of applications decided by entitlement date has been achieved for state pension (contributory) consistently during this period.

In order to ensure that entitlement to pension is decided by their due date, applicants are advised to apply at least three months in advance of reaching pension age (66). Due to improvements implemented through service delivery modernisation initiatives, where state pension contributory qualification exists, applicants are contacted and invited to make timely applications.

Invalidity Pension Applications

Questions (69)

Thomas P. Broughan

Question:

69. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the number of applications for invalidity pension received by her Department in 2013 and 2014, and to date in 2015; the number of applications approved, pending, or refused, per year; and if she will make a statement on the matter. [24195/15]

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Written answers

The table below shows the number of claims received, approved, pending and refused for the periods requested.

INVALIDITY PENSION CLAIMS

Year

Received

Awarded

Disallowed

Pending at end of period

*2013

9,640

9,494

9,298

2,013

2014

9,240

7,018

6,543

2,034

@ end May 2015

3,794

3,216

2,864

1,506

The award figure includes applications which were initially disallowed but were subsequently awarded following DO review or appeal.

*A number of backlog claims and appeals were cleared in 2013

Carer's Allowance Applications

Questions (70)

Pat Breen

Question:

70. Deputy Pat Breen asked the Tánaiste and Minister for Social Protection when a decision on a carer's allowance will issue in respect of a person (details supplied) in County Clare; and if she will make a statement on the matter. [24217/15]

View answer

Written answers

I confirm that the Department received an application for carer’s allowance from the person in question on the 9th April 2015. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.

Fuel Prices

Questions (71)

Patrick O'Donovan

Question:

71. Deputy Patrick O'Donovan asked the Minister for Finance the progress being made to narrow the differentials between solid fuels north and south of the Border; and if he will make a statement on the matter. [24003/15]

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Written answers

The price differential of fuel purchased north and south of the border is driven by a number of variable factors, exchange rates, taxes, reliefs and differing compositions of the products. The exchange rate between the Euro and Sterling at any given point in time has a significant impact on the end price of solid fuel in both jurisdictions. Since mid 2013 the sterling euro exchange rate has changed by over 14% in favour of Sterling. 

Taxes applied to solid fuels differ in both jurisdictions with different VAT rates in operation on both sides of the Border, the VAT rate is 5% in the north and 13.5% in the south. Since 2013 a carbon tax has been applied in Ireland while the UK apply a Climate Change Levy on non-domestic consumption of solid fuel.  

With regard to the VAT rates, the UK can apply the 5% rate to coal and other fuels used for residential purposes on the basis that they had a zero VAT rate in place for those supplies on 1 January 1991. This provision also allows Ireland to apply the zero VAT rate to certain foodstuffs, children's clothes and shoes, and certain medicines on the basis that the VAT rate in force on 1 January 1991 was zero. However, it is not possible for Ireland to apply a zero rate or 5% rate to coal, as we did not apply a zero rate to coal on that date. Nonetheless, as Ireland applied a reduced VAT rate to coal on 1 January 1991, this allows us to continue to apply a reduced rate to coal, but only where the rate is 12% or more.

The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. In this regard solid fuels have the highest carbon content of all fossil fuels. As a result they are considered the dirtiest fuels and given the environmental impact it is important that they are taxed.

The application of carbon tax to solid fuels was delayed to allow for the development of a robust mechanism to counter the large scale sourcing of coal from Northern Ireland where lower sulphur standards apply. The Department of the Environment undertook to provide such a robust mechanism in conjunction with the National Standards Authority of Ireland (NSAI). Such a mechanism is in place since June 2011 and the Air Pollution Act (Marketing, Sale, Distribution and Burning of Specified Fuels) Regulations 2012 specify the environmental standards for coal placed on the market and provide the regulatory framework in relation to the distribution and sale of coal in the State.

In particular, the Regulations require that all bituminous coal sold and used outside smoky coal ban areas for residential use must have a sulphur content of no more than 0.7%, which is lower than that in Northern Ireland and therefore bituminous coal supplied to Northern Ireland standards, for sale on that market, may not be sold in the State. Compliance with the Regulations is being enforced by local authorities. A verification mechanism, SWiFT 7, has been developed by the NSAI for the verification of sulphur content in coal. This provides for a robust mechanism to verify the sulphur content of coal to national standards. Suppliers who produce and supply solid fuels in contravention of the Regulations are subject to investigation and prosecution under the Air Pollution Act by local authorities charged with enforcing the regulations and preventing such supply.

In the most recent cross Border price comparison, which was carried out by the Revenue Commissioners in May 2015, petrol and diesel were significantly cheaper in the south whilst home heating oils were a fraction of a cent more expensive in the south. Petrol was cheaper by 15 cent per litre and diesel was cheaper by 28 cent per litre in the south. Kerosene was 0.16 cent more expensive per litre and home heating diesel was 0.02 cent more expensive per litre in the south. Coal and peat are not among the products compared as part of this survey, however, this illustrates the price differentials that exist generally in fuel products.

Coupled with the long lead in period to the implementation of carbon tax on solid fuels this Government has also provided, through the Sustainable Energy Authority of Ireland, generous grants via Better Energy Homes and also provides home energy upgrades free of charge to vulnerable households via Better Energy Warmer Homes to reduce dependence on combustion of fossil fuels for home heating. In 2014 the Better Energy programme provided €53m grant support towards €118m energy upgrade works.

These grants, together with the carbon tax, are key tools to reduce emissions towards meeting our climate change commitments.

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