Written Answers Nos. 35 - 45
35. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection if it is her intention to restore the level of the respite grant to what it was in 2012; and if she will make a statement on the matter. [24677/15]
View answerThe estimated expenditure on carers in 2015 is over €822 million: €564 million on Carer’s Allowance, €21 million on Carer’s Benefit, €124 million on the Respite Care Grant and €113 million on Domiciliary Care Allowance. The payment of the Respite Care Grant (RCG) for 2015 commenced this June, with automatic payments issuing to over 70,000 carers.
The estimated cost in 2016 of increasing the RCG by €325, from €1,375 to €1,700, is €29.4 million in a full year. Any change in the rate of Respite Care Grant would have to be considered in a Budgetary context.
36. Deputy Thomas Pringle asked the Tánaiste and Minister for Social Protection the way a person's jobseeker status is determined when the person signs on for jobseeker's benefit, for example, the way her Department determines and who within the social welfare system determines if a person is a pay-as-you-earn unemployed jobseeker, a self-employed but currently unemployed jobseeker, a casual worker, or an unemployed jobseeker with no previous work experience; the mechanisms available to the person, if that person believes that the status assigned to him or her is incorrect, for example a person designated as previously self-employed may not be offered available training opportunities or a person designated as unemployed but who was in fact self-employed, may be expected to engage in training opportunities not useful to that person; and if she will make a statement on the matter. [24787/15]
View answerAs part of the application process for a jobseeker’s payment, it will be determined whether the person is currently fully unemployed, or is continuing to engage in employment, whether casually or in a self-employed capacity. Information on record and provided by the applicant will determine the nature and rate of payment, as well as his/her status prior to becoming and while unemployed. A person who is fully unemployed is subject to the conditions of the jobseekers scheme and will receive appropriate services, including referral to a Case Officer, regardless of whether they were an employee or were self-employed prior to making their claim. A person who, having made a claim, continues to work casually or engage in self-employment will be categorised as such in order that correct payments will be made.
Recipients of jobseeker payments, who are categorised as working casually, or engaging in self-employment, are not scheduled for systematic activation by the Department. However, they may voluntarily access any suitable employment supports for which they are eligible.
Fully unemployed recipients of jobseeker payments are scheduled by the Department to participate in an activation process and meet with a Case Officer. An integral part of this process is the agreement by the person with their Case Officer of a Personal Progression Plan. The Plan identifies what training needs and other supports the jobseeker requires in order to maximise their chances of re-entering the workforce.
37. Deputy Charlie McConalogue asked the Tánaiste and Minister for Social Protection if she will consider reversing the changes she made to the farm assist scheme with respect to income disregards, in view of the fact that it has had a serious negative affect on the income levels of already struggling farming families; the reason she is refusing to carry out an analysis to assess the impact that the changes have made on these families; and if she will make a statement on the matter. [24632/15]
View answerThe farm assist scheme provides support for farmers on low incomes and is similar to jobseeker’s allowance. Farm assist recipients retain the advantages of the jobseeker’s allowance scheme such as retention of secondary benefits and access to activation programmes. The 2015 Revised Estimates for the Department provide for expenditure of almost €89 million on the farm assist scheme in 2015.
All recipients of farm assist benefitted from the Christmas Bonus in December, 2014. All recipients with children are benefitting from the increase in child benefit announced in Budget 2015.
Changes introduced in Budgets 2012 and 2013 have brought farm assist into closer alignment with the jobseeker’s allowance scheme’s treatment of self-employed persons. Farm families with the lowest income will be least affected by these changes as the headline rates of farm assist have been maintained.
The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. Account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. Any farmer experiencing lower levels of income can ask for a review of their means.
As part of the normal budget process, all potential budget measures, including any proposed changes to the farm assist scheme, are assessed in terms of the impact they would have. My officials keep the scheme under ongoing review, including having regular discussions with the IFA. There are no plans to change the current scheme criteria.
38. Deputy Mick Wallace asked the Tánaiste and Minister for Social Protection her views on the recent call from the Irish Postmasters Union for the withdrawal of revised Department of Social Protection forms which may encourage payment of social protection payments through banks rather than post offices; and if she will make a statement on the matter. [24804/15]
View answerI want to emphasise that the forms provided by the department, to enable customers apply for social welfare entitlements, are continuously reviewed to ensure that they are amenable and relevant to all customers. In this context the department considers that its forms should reflect the choices being made by new customers on what payment channel they opt for. The fact is that more and more of the department’s customers are opting for payment of their social welfare entitlement directly into their bank accounts. However, in order to ensure that the department’s forms present payment options equally I have asked the department to update them to ensure that a neutral wording in relation to payment options is provided and to also to ensure that one payment option is not favoured over another.
This Government has consistently stated its commitment to maintaining the post office network as is clear in the Programme for Government. It is a key piece of the social infrastructure for both urban and rural areas. It is this Government’s policy that An Post will remain a strong and viable company in a position to provide a high quality postal service that will maintain a nationwide customer-focused network of post offices in the community.
The Post Office Network Business Development Group, chaired by Bobby Kerr, has decided that the future of the Post Office will be best secured through the development of a more sustainable business model including the development of financial services, which is identified by the Group as fundamental to the future of the post office network. The development by An Post of a payment account will be critical to a more sustainable business model as society inexorably moves to electronic payments rather than cash payments. The post office network cannot remain reliant an income stream from my department for cash payment to its clients where an increasing number of social welfare recipients wish to receive payments to their bank accounts.
39. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which adequate resources remain available to her Department to meet rent support requirements, in view of the rapid increase in rents throughout the greater Dublin area and adjoining counties; and if she will make a statement on the matter. [24802/15]
View answerRent supplement continues to play a vital role in housing families and individuals, with the scheme supporting approximately 68,000 people this year at a cost of €298 million. Over 5,600 claims have been awarded in 2015. Rent supplement is a demand-led scheme and the Government will continue to ensure that the necessary resources for the scheme are in place.
In response to the current difficulties experienced in the private rented market, the Department has implemented preventative measures to provide for flexibility in assessing customers’ individual accommodation needs through the National Tenancy Sustainment Framework. Under this approach, each tenant’s circumstances are considered on a case-by-case basis and rents are being increased above prescribed limits throughout the country, as appropriate, including those in Kildare.
The Department is also working with Threshold’s Tenancy Sustainment service in the Dublin and Cork city areas where supply is most acute. This flexible approach has already assisted over 2,100 rent supplement households nationwide to retain their rented accommodation through the payment of increased rent payments.
In addition the Department has also undertaken a communications campaign which seeks to encourage people at risk to contact the Department or the Threshold Tenancy Protection service as early as possible.
I can assure the Deputy that I am keeping the matter under review to ensure that the necessary supports continue to be provided.
40. Deputy Denis Naughten asked the Tánaiste and Minister for Social Protection the steps she is taking to facilitate the sharing of information with the Departments of Education and Skills and Children and Youth Affairs; and if she will make a statement on the matter. [24629/15]
View answerClient data is transferred from the Department of Social Protection (DSP) to the Department of Education and Skills (DES) in order to meet with EU regulations governing the programmes under the European Globalisation Fund (EGF), for which DES is the Management Authority.
Client data is also shared with DES’s Student Universal Support Ireland (SUSI) for the purposes of determining scheme eligibility.
DSP carries out data matching exercises for the purpose of validating PPS Numbers requested by DES for third level college registration purposes.
Information on the enrolment of students is sent from DES to DSP for the purpose of the control of social welfare schemes and for the purpose of confirming eligibility to social welfare schemes.
Periodically DSP provides statistical information to facilitate DES in their future school planning process.
DSP has data sharing arrangements in place with the Department of Children and Youth Affairs (DCYA) for the provision of parent and child details to confirm eligibility for, and to support that Department in the financial management of the after-school childcare scheme and to monitor the take-up of available places. DSP also provides summary information to DCYA on the national and divisional take-up of community employment childcare places.
41. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection the number of lone parents who were financially worse off and the number who were better off after they transitioned from the one-parent family payment in 2013 and 2014; if this resulted in an increase or a decrease in the numbers involved in activation through employment or education; and if she will make a statement on the matter. [24838/15]
View answerThe reforms to the one-parent family payment (OFP) saw approximately 10,000 customers transitioning from OFP to a range of alternative income support payments on 4 July, 2013, and on 3 July, 2014.
However, it is not possible to give definitive figures on the number of customers who experienced a change in income on foot of transitioning from the OFP scheme as this depends on individual circumstances and the status of all affected customers may have changed in the interim.
Over 2,000 customers transferred from the OFP and Family Income Supplement (FIS) to a re-rated FIS, which was automatically increased to take account of the loss of 60% of their OFP income. It should also be noted that in July 2013 and in July 2014 almost 600 lone parents become new FIS recipients. These 600 individuals would have gained financially from claiming FIS for the first time.
Almost 6,000 lone parents transitioned to jobseeker’s scheme including the jobseeker’s transitional payment. The majority of customers who moved to a jobseeker’s payment received no change in their weekly income. However, individuals who were earning above €60 per week incurred a loss as the jobseeker’s means test is less generous than the equivalent OFP means test.
Lone parents who have transitioned to the jobseeker’s transitional payment are being supported by the Department to produce a personal development plan with the help of a case officer on a one to one basis. My Department will continue work with lone parents to provide them with enhanced access to the Department's supports and services.
There were over 400 lone parents would have been due to transition from OFP and half rate Carer’s Allowance to full rate Carer’s Allowance. As a result these individuals would have suffered a drop in their weekly income. However, earlier this year I introduced an extension to the entitlement of the OFP so that from May of this year these customers can re-apply for OFP and provided they satisfy the conditions they will be able to retain OFP and half rate carer’s allowance until their youngest child is 16 years of age.
The remaining lone parents transitioned from OFP to a wide range of other payments or to education, training or employment programmes.
42. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection the number of determination orders from the maintenance recovery unit that will be invalid after 2 July 2015; the annual loss to the State when these determination orders cease; and if she will make a statement on the matter. [24840/15]
View answerThe issue of maintenance payments is first and foremost a private matter for the persons concerned, and if they cannot resolve the problem, for the courts through family law provisions. The liability to maintain family provisions, contained in social welfare legislation, are separate to family law legislation.
In every case where a one parent family payment (OFP) is awarded, the Department seeks to trace the other parent (liable relative) in order to ascertain whether he/she is in a financial position to contribute towards the cost of the OFP. A liable relative is given the option to commence making payments to the OFP recipient or directly to the Department.
The issuing of a maintenance contribution assessment under the social welfare legislation does not alter an individual’s obligation to discharge maintenance payments, pursuant to an order of the Court.
In 2014, the Department issued 2,586 determination orders for maintenance. As a result of the impending transfer of claimants from OFP to jobseekers transitional payments (JST), 134 of those determination orders issued to liable relatives in 2014 will no longer have a liability to the scheme from June 2015. This represents approximately 5% of the determination orders issued in 2014.
As indicated at the Joint Oireachtas Committee on Education and Social Protection on 18th February, where this matter was also raised, the Department is aware of this issue and will be considering an amendment to the JST arrangements in the future to pursue these liable relatives.
43. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection if she will provide figures or estimates on the number of lone parents who will be forced to give up part-time jobs when they transition to the jobseeker's allowance; the estimated additional cost to the State when their claims are reassessed; and if she will make a statement on the matter. [24839/15]
View answerApproximately 30,000 lone parents are scheduled to transition from the one-parent family payment (OFP) scheme on 2 July, 2015. These individuals were invited to attend information sessions in their local Intreo offices where they were advised of the different options available to them when they transition from the OFP scheme. At these information sessions staff of the Department informed lone parents that the most financially advantageous option available to them was to work a minimum of 19 hours per week and claim family income supplement (FIS).
On foot of these information sessions, estimates suggests that to date over 1,250 of these lone parents have become first time FIS recipients. This means these individuals have either taken up employment or have increased their existing hours of employment to claim FIS.
The 1,250 lone parents who are new FIS recipients are now financially better off than when they were claiming the one-parent family payment. These customers will also qualify for the new back to work family dividend (BTWFD) from 2 July. The Dividend is worth €1,550 per child in the first year and reducing to 50% entitlement worth €775 per child in the second year.
In both 2013 and 2014 an increase in new FIS recipients from the lone parents who transitioned off the OFP scheme also occurred. This indicates that many transitioning lone parents have increased their hours of employment in order to become new FIS customers.
Based on the experience to date there is no evidence of a trend in lone parents leaving employment on foot of the transition from the OFP scheme.
44. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the measures she is taking to reduce pension costs being charged on members of pension schemes; and if she will make a statement on the matter. [24626/15]
View answerThe 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. The report culminated in recommendations which involve measures to introduce clarity and consistency across the various pension products, increase consumer understanding and provide a better result for the consumer.
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 review of new requirements for annual pension statements introduced in 2012 which requires that information on charges be provided in a way that seeks to inform the customer. The review found that 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 was not as required, those concerned were required to submit implementation timelines for full compliance.
In terms of support to trustees of occupational pension schemes, the Pension’s Authority is in the process of enhancing its e-learning website for trustee training which will include material on pension charges. It is also updating the Trustee Handbook and expects to publish the new handbook, which will contain a chapter on pension charges, in the near future.
The pension charges report refers to the broader pensions policy debate on the introduction of a universal pension system. It indicates the introduction of such a scheme may be the most effective way to introduce change in this area. International experience has shown that this type of scheme is extremely successful in providing a simplified and lower cost charging structure and a consistent application across employers. This type of arrangement could assist in resolving the difficulties inherent in the current structure of a proliferation of small schemes paying considerably higher charges than larger schemes, ultimately eroding the value of the pension received by the member. In this regard and in line with the Statement of Government Priorities, the Government recently decided to proceed with work to develop a roadmap for the introduction of a new, universal, supplementary workplace retirement saving scheme. The Universal Retirement Savings Group (URSG) has been established to consider the constituent factors involved in constructing an efficient and effective universal retirement savings system and to bring forward a recommendation in the form of a roadmap and estimated timeline for introduction.
Finally, the role of the new Pensions Council is to provide advice on pensions and to give a much stronger prominence to consumer concerns. I have previously highlighted that there a number of specific matters which I want the Council to focus on and this includes the area of pension charges which, following its recent establishment, the Council has now begun to consider.
45. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if she expects any call on the additional funds raised from the increased pension fund levy in 2014 and 2015, which, in her budget statement, she said were required to make provision for potential State liabilities, which may emerge from pre-existing or future pension fund difficulties; the circumstances in which such a call would arise; and if she will make a statement on the matter. [24581/15]
View answerThe Minister for Finance stated previously in the House that an additional levy on pension funds was introduced for 2014 and 2015 to help fund the Jobs Initiative and to make provision for potential State liabilities emerging from pre-existing or future pension fund difficulties, and that the yield from the additional levy in these years forms part of general tax revenue of the Central Fund and is not directed to any particular or specific item of expenditure.
The Social Welfare and Pensions (No.2) Act 2013 amended the Pensions Act 1990 to address double insolvencies occurring after the 25th December 2013. No claim has been made in respect of any double insolvencies occurring since the enactment of the 2013 legislation.
The Social Welfare and Pensions Act 2009 provided for the establishment by the Minister for Finance of a Pensions Insolvency Payments Scheme (PIPS) to provide for the payment of pensions, in the event of the wind up of a pension scheme where both the employer and the scheme are insolvent, at less cost than through traditional annuities, thereby making more scheme assets available for the pensions of those yet to retire. Application for pension payments under this scheme would give an indication of the number of double insolvencies arising in the period since the ECJ ruling in the UK Robins case of 25th January 2007 and prior to the 2013 legislation. Eleven schemes have been certified by the Pensions Authority as eligible schemes to apply to the Minister for Finance to pay pensions under PIPS. Any of these schemes which considers that the State has a liability for a shortfall in the funding in the scheme will need to establish the extent of any liability arising. No formal claim has been made in respect of any of these schemes.
