Written Answers Nos. 37-43
37. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Social Protection if she is considering giving credits to farmers who were in receipt of farm assist and who until 2008 were precluded from paying self-employed contributions; and if she will make a statement on the matter. [3332/16]
View answerThe farm assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the former smallholders’ unemployment assistance payment. In line with the then existing arrangements for unemployment assistance (including smallholders) and pre-retirement allowance, the income of farm assist recipients was exempt from class S PRSI for self-employed workers. Recipients of farm assist who had previously paid Class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions.
Since 1st January 2007, the exemption from class S PRSI has been removed and those receiving jobseeker’s allowance and farm assist are subject to Class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.
Currently PRSI credited contributions (credits) are only awarded to former employees, to cover gaps in social insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc. Self-employed workers do not qualify for credits.
Any proposal to award retrospective credits to farm assist recipients would have to be considered in the context of access to credits for all other categories of the self-employed and in the wider Budgetary context.
39. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection to support a matter (details supplied) regarding social protection payments; and if she will make a statement on the matter. [3375/16]
View answerAny application for any social welfare payment is considered on its own merits taking the full circumstances of the case into account.
There are different qualifying conditions for each social welfare scheme. These may include a means test, payment of a certain number of PRSI contributions, and/ or satisfying the Habitual Residence Test. In all cases, decisions on individual cases are taken strictly on the basis of the evidence that the person does, or does not, satisfy the qualifying conditions.
In view of this it is not possible to make general statements regarding any particular nationality. In some cases, EU citizens will qualify for payment and in some cases they will not, depending on whether or not they satisfy the qualifying conditions of the particular scheme.
One of the qualifying conditions for child benefit and most social assistance payments is the habitual residence condition (HRC). Whether or not a person satisfies the HRC is assessed on the on the basis of objective considerations independent of nationality. However, under EU law there are some exemptions for EU workers, for example, in relation to family benefits such as child benefit and family income supplement. So workers from other EU countries (including Romania) would have more favourable treatment for these two payments than would people from outside the EEA. To qualify for this, the person would have to have achieved the status of “worker”. EU nationals who have never worked in Ireland do not have an automatic entitlement to any payment, but would have to satisfy the HRC and other conditions that apply to the relevant payment.
There are some situations where a non-EU worker could qualify for a payment where an EU citizen would not. These related mainly to contributory payments. For example, if a person from outside the EU is living legally in Ireland and has worked and paid sufficient contributions here, he or she may qualify for illness benefit in the event of being off work due to illness (subject to also meeting all of the other qualifying conditions). This would be regardless of nationality. On the other hand, an EEA citizen (even an Irish citizen) who has not worked and therefore has not paid sufficient contributions cannot qualify for illness benefit if they are ill.
In addition, the Department provides immediate and flexible assistance to people with insufficient means to meet their needs and those of their dependents through the Supplementary Welfare Allowance (SWA) scheme. The HRC does not apply to exceptional needs payments (ENP) or urgent needs payments (UNP) administered under SWA as by their nature these payments may be required to meet an immediate, unforeseen and once-off need.
40. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection to end discrimination of older women when applying for the State pension (details supplied); and if she will make a statement on the matter. [3376/16]
View answerThe State pension contributory is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating pension entitlement. Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes. In this context, even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they may qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances.
The home-maker's scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person’s social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for State pension contributory also being satisfied. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of their pension. The scheme does not involve the award of credits.
The 2007 Green Paper on Pensions estimated an annual cost of backdating the Home-maker's scheme, at that time, as €150 million (if to 1973) or €160 million (if to 1953). However it described those estimates as “extremely tentative” due to a number of factors, e.g., the fact that the cost would include, not just people resident in the State, but also many others resident in other countries, such as the UK. Given the cost that would be involved, the Green Paper did not propose that such backdating be introduced. Backdating the scheme now, for existing pensioners, could be expected to be significantly more expensive because (a) there are some 50% more contributory State pensioners now than there were in 2007, (b) the rate of the pension has increased since 2007 by 11%, and (c) the current cohort of people reaching pension includes more women who have had a significant level of insurable employment and would therefore be in a position to benefit from the home-maker's scheme. The cost would also be expected to increase each year in the coming years.
It is worth noting that the Actuarial Review of the Social Insurance Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors. This is due to the distributive nature of the Fund. For example, those with a yearly average of only 20 contributions (38% of the maximum) may qualify for 85% of the maximum rate. The Review also examined the changes in the contribution rules and the associated rates of payment which were to be introduced in September 2012. The Review found that those with lower earnings and those with shorter contribution histories still obtain the best value from their contributions.
Where people who were unattached to the labour market during most of their adult lives may not qualify for a contributory pension in their own right as they have paid few or no contributions, or cannot qualify for a full rate as a result of an intermittent PRSI record, the social protection system provides alternative methods of supporting such pensioners in old age. Therefore, if their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full rate pension, which by default is paid directly to them. Alternatively, they may qualify for a means-tested State Pension (non-contributory), amounting up to 95% of the maximum contributory pension rate.
41. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection to support a matter concerning invalidity pensions (details supplied) in Dublin 3; and if she will make a statement on the matter. [3377/16]
View answerInvalidity pension is one of a range of income supports available to those who are unable to work due to illness or incapacity. While recipients of Disability Allowance and Invalidity Pension did not benefit from a weekly rate increase in Budget 2016, I was pleased to provide for improvements that impact on recipients of Invalidity Pension.
I provided for the 75% Christmas Bonus payment for all welfare recipients, including recipients of Invalidity Pension. A couple in receipt of Invalidity Pension with a qualified adult and two qualified children received a bonus payment of €293.40.
In addition, those eligible for the Fuel Allowance will gain from the increase in January of €2.50 per week, from €20 to €22.50 per week over the fuel season.
Funding for the Free Travel scheme, which benefits a large number of Invalidity Pension recipients, is being increased by €3 million, from €77 million to €80 million, to meet increased numbers eligible for the scheme and therefore fully protect entitlements under the scheme.
Invalidity Pension recipients with children will also benefit from the €5 increase in the monthly rate of Child Benefit.
The Respite Care Grant, now renamed the Carer’s Support Grant to better reflect the usage of the grant, is being increased by €325, from €1,375 to €1,700 per annum. Furthermore, payment of Carer’s Allowance will be extended by 6 weeks, from 6 weeks to 12 weeks, after the death of the care recipient. These measures will benefit the carers of those Invalidity Pension recipients who are relying on another person to provide full time care.
It should also be noted that as a result of Budget 2015, recipients of Invalidity Pension who live alone gained from the €1.30 increase in the weekly rate of the Living Alone Allowance.
There have also been other developments in relation to the employment of people with disabilities, most notably, the publication by Government in October 2015, of the Comprehensive Employment Strategy for People with Disabilities which provides for a ten year strategy to ensure that people with disabilities who are able to and want to work are supported and enabled to do so.
I have also (in 2012) introduced the Partial Capacity Benefit scheme, available to recipients of Invalidity Pension, which allows you to return to work or self-employment (if you have reduced capacity to work) and continue to receive a payment from the Department of Social Protection.
42. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection to support a matter (details supplied) regarding carer's allowance in Dublin 5; and if she will make a statement on the matter. [3378/16]
View answerCarer's allowance (CA) is a means-tested social assistance payment, made to persons who are providing full-time care and attention to a person who has a disability such that they require that level of care.
The department informs me that it has not received an application for CA from the person concerned in respect of her brother. If the person in question wishes to make an application, she should complete and return the application form (CR1) that I have arranged to issue to him.
43. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection to examine the case of a person (details supplied) in County Dublin who was advised to maintain a carer's allowance. [3380/16]
View answerCarer's Allowance (CA) is a means-tested social assistance payment, made to a person who is providing full-time care and attention to a person who has a disability such that they require that level of care. CA was in payment to the person concerned from 3 September 2009 in respect of her son.
The claim was referred to a local social welfare inspector (SWI) on 7 May 2015 to confirm that all the conditions for receipt of CA were continuing to be satisfied.
During this review, it was found that her son was a full-time resident in a care home since 22 December 2013.
CA may be payable for a maximum of 13 weeks where either the carer or care recipient is undergoing medical or other treatment of a temporary nature in an institution such as a hospital, convalescent, nursing or care home.
As her son became a permanent resident from 22 December 2013, CA was no longer payable.
Payment of CA was stopped from 28 May 2015 and an overpayment of €16,841.40 was assessed for the period from 26 December 2013 to 27 May 2015.
The person concerned was notified on 22 September 2015 of this decision, the reason for it and of her right of review and appeal.
The person concerned has appealed this decision to the independent Social Welfare Appeals Office (SWAO). The SWAO will be in contact directly with the person concerned in relation to the progress of the appeal.
