Written Answers Nos 140-147
140. Deputy John Curran asked the Minister for Social Protection the status of an application by a person (details supplied) under the carer's allowance scheme; and if he will make a statement on the matter. [19978/16]
View answerI confirm that my department received an application for carer’s allowance (CA) from the person concerned on 23 June 2016. Unfortunately, there are currently delays in the processing of new applications. Additional resources have been provided to the CA section in order to improve the waiting times for new applications and they are working hard to make this happen.
Frequently, delays are outside the control of my Department and are caused by the customer failing to fully complete the claim form or failing to attach the supporting documentation that is requested on the application form.
This application will be processed as quickly as possible and the person concerned will be notified directly of the outcome.
In the meantime, if the means of the person concerned are insufficient to meet her needs she should apply for a means-tested supplementary welfare allowance from her local community welfare service.
I hope this clarifies the matter for the Deputy.
141. Deputy Bernard J. Durkan asked the Minister for Social Protection the eligibility of a person (details supplied) under the illness benefit scheme; and if he will make a statement on the matter. [19979/16]
View answerIllness benefit is a payment for people who cannot work due to illness and who satisfy the pay related social insurance (PRSI) contribution conditions. One of the conditions is that a person must have a minimum of 39 reckonable contributions paid or credited in the governing contribution year. Claims made in 2016 are governed by the 2014 tax year and only PRSI Classes A, E, H, and P are reckonable for illness benefit purposes.
The person concerned is self-employed and has PRSI contributions at Class S in the 2014 tax year. As Class S contributions are not reckonable for illness benefit purposes the person concerned does not qualify for payment of this benefit.
A person who does not qualify for illness benefit may apply for supplementary welfare allowance or disability allowance subject to the qualifying conditions being met.
Further information on these schemes is available on my Department’s website www.welfare.ie.
I hope this clarifies the matter for the Deputy.
142. Deputy Darragh O'Brien asked the Minister for Social Protection his views on the possibility of a refund to a person (details supplied) under the state pension (contributory) scheme; and if he will make a statement on the matter. [19981/16]
View answerSection 34 of the Social Welfare Consolidation Act 2005 provides for the return, subject to any conditions, restrictions and deductions specified in the regulations, of any sums paid in error by means of employment, self-employment, voluntary or optional PRSI contributions.
In the case referred to by the Deputy, PRSI contributions were deducted appropriately and consequently there is no basis for a refund.
I hope this clarifies the matter for the Deputy.
144. Deputy Noel Grealish asked the Minister for Social Protection if he will consider providing persons who have completed 40 years social insurance contributions the right to a full State pension (contributory); the cost of such a change; the number of persons likely to qualify for a full pension; the number of persons currently in receipt of a full pension; the number on a reduced pension, by the different rates of reduction in each country; and if he will make a statement on the matter. [19996/16]
View answerThere are a number of criteria which must be satisfied in order to qualify for a State pension contributory, whether at full or reduced level. These include that the person must be aged 66 or over and have at least 520 paid contributions, i.e., a minimum of 10 years. Provided a person satisfies all the relevant conditions, they may qualify for a State pension contributory, the minimum personal rate of which is €93.20, and the maximum personal rate of which is €233.30.
The Deputy should note that there is no fixed amount of paid and/or credited contributions required which will qualify a person for a full-rate State pension (contributory). The total amount of contributions a person will require also depends upon the duration over which they made these contributions, as both of these figures are used to calculate a person’s ‘yearly average’ contributions, upon which their rate of entitlement is based. Since the contributory pension was introduced in 1961, the ‘yearly average’ contributions test has been used in calculating the level of pension entitlement, where the total contributions paid or credited are divided by the number of years of the working life (from their entry into insurable employment up to the year prior to their reaching State pension age).
I am informed that, if one breaks down claims based upon their banding, there are currently 225,507 State pension (contributory) claims approved for a pension rate based upon the 100% band, and 140,218 claims for a reduced rate band pension (which includes the 98% rate). It should be noted, however, that the rate of payment for a number of these (including some of those on the 100% band) are reduced for other reasons unrelated to banding, such as pro-rata mixed insurance pensions (where the pensioner has mixed insurance records, having worked in both the public and private sector) and pensions where the pensioner worked both in Ireland and another EU country. These individualised various rates of reduction based on the circumstances of each pensioner mean that it is not practical to provide a breakdown of reduced rates of payment in the manner requested by the Deputy.
The additional cost to the Exchequer for people with a completed 40 year Social insurance contribution record qualifying for a full pension would depend on a number of factors –
- Whether the 40 years of contributions would be paid contributions, or could include credited contributions received when in receipt of another social welfare payment (such credited contributions are used in the calculation of the yearly average).
- Whether such a pension could be claimed before age 66 (i.e. many people would have paid 40 years contributions aged 58-65).
- How soon such pensioners accrued a 40 years contributions record.
- The number of existing workers, currently outside the pension system, who would have 40 years of paid contributions.
- Whether such a pension could be paid to people under current pension age and still working, in addition to their wages
- Additional net costs could potentially include people retiring early and ceasing payment of PRSI and taxes.
Any significant measures that would increase the cost of the State pension would have to be carefully costed and considered in an overall policy and budgetary context.
The Deputy should note where people cannot qualify for a full rate contributory pension as a result of an intermittent PRSI record; the social protection system provides alternative methods of supporting such people in old age. For example, 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.
I hope this clarifies the matter for the Deputy.
145. Deputy Niall Collins asked the Minister for Social Protection the cost of extending social protection supports to the self-employed and permitting such persons to opt into the existing class A structure, paying the rate corresponding to their income levels over a calendar year; and if he will make a statement on the matter. [19999/16]
View answerProviding a supportive environment for enterprise and employment is fundamental to achieving the Government’s aim of job creation. In particular, the role of entrepreneurs and the self-employed will be central to this ambition.
The new Programme for a Partnership Government contains a commitment to introduce an improved PRSI scheme for the self-employed. In addition, we will also ensure that the Earned Income Tax Credit available to the self-employed will match that available to employees, over a number of budgets. This process commenced in Budget 2016 with the introduction of a €550 tax credit for the self-employed. I want to ensure that appropriate sustainable supports are available to the self-employed in the event of certain contingencies arising
The self-employed have been liable for compulsory social insurance since 1988. The self-employed persons pay PRSI at the class S rate of 4% and are covered for the following benefits: State pension (contributory) and Widow’s, Widower’s or Surviving Civil Partner’s Pension (contributory), Guardian’s Payment (contributory), Maternity Benefit and Adoptive Benefit. Self-employed contributors will also be entitled to the new Paternity Benefit to be introduced later this year. The schemes to which the self-employed have access to amount to €6.3 billion out of a total SIF scheme spend of €8.4 billion, or 75% of SIF expenditure.
The schemes to which the self-employed do not have access are: Jobseeker’s Benefit, Illness Benefit, Partial Capacity Benefit, Invalidity Pension, Health and Safety Benefit, Carer’s Benefit, Treatment Benefit, Occupational Injuries Benefits including Disablement Benefit.
The cost of extending certain short-term social insurance benefits was considered in the Actuarial Review of the Social Insurance Fund, as at 31 December 2010. The report found that:
i. the effective annual rate of contribution required to provide the core full-rate State Pension (contributory) is approximately 15% at national average earnings. This compares very favourably with the 4% currently paid by the self-employed.
ii. An incremental increase of 1% in contribution rates would be required if Jobseeker’s Benefit in addition core State Pension (contributory) is provided.
iii. The average contribution rate required for the core State Pension (contributory) plus the Invalidity Pension is estimated to be in the region of 2%.
Using a number of assumptions based on the existing population of contributors and beneficiaries, the Actuarial Review report estimated the full year incremental costs of extending Jobseeker’s Benefit and Invalidity Pension to the self-employed, stated in 2012 terms, to be €87m and €78m in a full year, respectively. This is based on two principal assumptions, namely that the incidence rate of benefit is the same as that applying to the overall population and that the extended scheme reaches full “maturity” in terms of the numbers of additional beneficiaries with immediate effect. It is possible, in practice that the incidence rate may be different and it is likely that the scheme will take time to reach full maturity.
The former Advisory Group on Tax and Social Welfare published a report in 2013 which examined the options for extension of cover to the self-employed. 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.
The Group further recommended that the extension of social insurance 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. The Group concluded that "extension on a voluntary basis, through either an “opt in” or “opt out” basis, could lead to the selection of bad risks and would undermine the social solidarity and contributory principles that underline the social insurance system.”
I intend to extend, over a period of time, the range of benefits which the self–employed can access through the social insurance system, with particular reference to providing access to benefits for long-term illness/incapacity and treatment benefits. My Department is currently examining the costs and financing of such an extension of benefits as well as the phasing in of access to the benefits. This examination will have to include the level of appropriate additional contribution the self-employed should make for more benefits.
I look forward to making progress on this issue regarding specific proposals, as well as providing later this year a timeframe for implementation.
146. Deputy Niall Collins asked the Minister for Social Protection the reduction in the yield from social insurance in a calendar year if the PRSI employer's rate of 8.5% was extended for employees earning up to €385, €390, €395 and €400 per week; and if he will make a statement on the matter. [19904/16]
View answerCurrently employers pay PRSI at the rate of 8.5% where weekly earnings are between €38 and €376. Once weekly earnings exceed €376, the rate of employer PRSI is 10.75%.
The reduction in the PRSI yield to the Social Insurance Fund of increasing the upper threshold at which 8.5% rate of employer PRSI applies, is contained in the following table:
|
Employer PRSI New Upper Threshold for 8.5% Rate |
Full Year Cost |
Employments Affected |
|
€385 |
€3.3m |
12,860 |
|
€390 |
€5.1m |
19,380 |
|
€395 |
€8.1m |
30,000 |
|
€400 |
€10.0m |
36,730 |
These estimates are based on the latest available data and reflect macro-economic indicators for 2017. It should be noted that the estimates do not take possible changes in employer or employee behaviour into account.
147. Deputy Michael Healy-Rae asked the Minister for Social Protection the status of an application by a person (details supplied) under the carer's allowance scheme; and if he will make a statement on the matter. [20019/16]
View answerCarer’s allowance (CA) is in payment to the person concerned since 14 August 2003 in respect of one care recipient who resides with her.
I confirm that my department received an application for CA from the person concerned on 10 November 2015 in respect of two additional care recipients, her mother and father, who reside elsewhere.
It is a condition for receipt of a CA that the carer must be providing full-time care and attention. It is a further condition that the person being cared for must require full-time care and attention. This means that the person requires from another person continual supervision and frequent assistance throughout the day in connection with normal bodily functions, or continual supervision in order to avoid danger to himself or herself, and is likely to require such full-time care and attention for at least 12 consecutive months
The evidence submitted in support of this application was examined and a deciding officer (DO) decided that the person in question was not entitled to CA on the grounds that neither of these conditions was satisfied.
The person concerned was notified on 16 March 2016 of these decisions, the reasons for it and of her right of review and appeal.
The person concerned requested a review and submitted additional evidence in support of her application.
On review it was decided that one of the care recipients, her father, does require full-time care and attention but that her mother, the other care recipient does not.
In order to determine whether the person concerned is providing full-time care and attention, the matter was referred to a local social welfare inspector (SWI) on 21 June 2016. Once the SWI has reported, the review will be completed and the person concerned will be notified directly of the outcome.
I hope this clarifies the matter for the Deputy.
