Skip to main content
Normal View

Tuesday, 19 Jul 2016

Written Answers Nos. 396-410

Departmental Reviews

Questions (396)

Denise Mitchell

Question:

396. Deputy Denise Mitchell asked the Minister for Social Protection the determinations of the interdepartmental working group viewing the increased incidence of workers being classified as self-employed but not possessing the features of self-employment; and the impact this has on tax and PRSI payments. [21940/16]

View answer

Written answers

An interdepartmental working group, comprising officials from the Department of Social Protection, Department of Finance and the Revenue Commissioners, has been examining the issue of disguised self-employment. The classification of a worker for PRSI purposes is relevant to their liability to PRSI and the appropriate rate of payment. In turn, this also determines their entitlement to a range of social insurance benefits.

To inform the work of the group, the previous Government launched a consultation process on the use of intermediary type employment structures and self-employment arrangements, and its impact on tax and PRSI. The consultation invited submissions from interested parties on possible measures to address the loss to the Exchequer that may arise under arrangements (i) where an individual, who would otherwise be an employee, establishes a company to provide his or her services, and (ii) where an individual, who is dependent on, and under the control of, a single employer in the same manner as an employee, is classified as a self-employed individual.

The public consultation closed on 31 March, 2016. Twenty-three submissions were received. A report on the consultation is being been prepared by the working group.

I hope this clarifies the matter for the Deputy.

Community Employment Schemes Funding

Questions (397)

Mary Butler

Question:

397. Deputy Mary Butler asked the Minister for Social Protection the funding of the community employment programme 2015 under the headings in budget and actual amounts in participant allowances, supervision, materials and training, in tabular form; and if he will make a statement on the matter. [21962/16]

View answer

Written answers

Community Employment (CE) is an active labour market programme designed to provide eligible long-term unemployed people and other disadvantaged with an opportunity to engage in part-time work and training within their communities on a temporary, fixed-term basis.

The CE budget allocation for 2016 is €376.5m and it allows for 23,752 participants and 1,375 supervisory staff. Details of the funding in 2015, under the headings budget and actual amounts in participant allowances, supervision, materials and training is outlined in the following table.

Community Employment 2015 Budget and Expenditure under the Requested Headings

(per CSM December 2015)

Description

2015 Budget €

2015 Actual €

Variance €

Participant Allowances

292,181,452

286,541,932

-5,639,520

Supervision

56,922,181

55,357,326

-1,564,855

Materials

13,500,887

13,733,159

232,272

Training

6,114,334

5,954,343

-159,991

Departmental Staff Retirements

Questions (398)

Mary Butler

Question:

398. Deputy Mary Butler asked the Minister for Social Protection the number of community employment supervisors and assistant supervisors in each region of his Department who are due to retire or reach 66 years of age for the years 2016 and 2017; and if he will make a statement on the matter. [21963/16]

View answer

Written answers

Details of CE Supervisors and Assistant Supervisors due to reach 66 years of age during the remainder of 2016 are set out as follows:

Region

Supervisor

Assistant Supervisor

Grand Total

Cork Central

2

2

Dublin Central

1

1

Dublin South

1

1

Mid-Leinster

4

4

Midlands North

4

1

5

Midlands South

2

2

Mid-West

1

1

North East

1

1

3

North West

2

2

South East

1

1

South West

2

2

West

2

2

Grand Total

23

2

25

The following table gives details of CE Supervisors and Assistant Supervisors due to reach 66 years of age during 2017:

Region

Supervisor

Assistant Supervisor

Grand Total

Cork Central

2

2

Dublin Central

1

1

Dublin North

2

2

Dublin South

2

1

3

Mid-Leinster

5

5

Midlands North

2

2

Midlands South

5

5

Mid-West

7

7

North East

2

1

3

South East

2

2

West

3

1

4

Grand Total

33

3

36

Disability Allowance Applications

Questions (399)

Brendan Griffin

Question:

399. Deputy Brendan Griffin asked the Minister for Social Protection if a decision has been made on an application by a person (details supplied) under the disability allowance scheme; and if he will make a statement on the matter. [21964/16]

View answer

Written answers

I can confirm that the person concerned submitted an application for disability allowance (DA) on 5 May 2016.

Entitlement to DA is based on satisfying medical, means and residency conditions. Unfortunately, the person in question did not fully complete the application form. On 14 July 2016, the person in question was requested by a deciding officer (DO) to provide additional information which was omitted by the applicant from the application form but which is necessary in order to decide on her eligibility. On receipt of this information a decision will be made and the person concerned will be notified directly of the outcome.

I hope that this clarifies the matter for the Deputy.

Mortgage Interest Supplement Scheme Appeals

Questions (400)

Richard Boyd Barrett

Question:

400. Deputy Richard Boyd Barrett asked the Minister for Social Protection the supports available to a person who cannot work due to illness in order to pay their mortgage in the absence of the mortgage interest supplement which is being phased out (details supplied); and if he will make a statement on the matter. [21966/16]

View answer

Written answers

The original purpose of the mortgage interest supplement (MIS) scheme was to provide short term support to eligible people who were unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The scheme, which assists with the interest portion of the mortgage repayments only, was discontinued for new applicants from 1 January 2014, with customers availing of this support prior to 1st January 2014 retaining entitlement until the closure of the scheme on 1 January 2018. The scheme currently supports approximately 2,600 people for which the Government has provided over €7 million in 2016.

As advised in an earlier response to the Deputy, a review of the person’s concerned ongoing entitlement to MIS was recently undertaken. On review, it was ascertained that the interest portion of the mortgage repayment was less than the minimum contribution payable for a single person, and the payment was stopped on this basis. The person concerned was advised of the outcome of this review and of their right to appeal which I understand is underway.

The most appropriate way in which people experiencing mortgage difficulties can be supported is through on-going engagement with their lender to explore sustainable solutions.

The Deputy is aware that the role of the Money Advice and Budgeting Service (MABS) has been enhanced with the establishment of a new Dedicated Mortgage Arrears (DMA) MABS service established to help those specifically with mortgage debt. There are now 28 specialist DMA advisors working across 24 locations countrywide, assisting borrowers to assess the options available to them, signposting them towards ISI where appropriate, or negotiating with lenders on their behalf. I would advise that the person concerned contacts their local MABs regarding this service. Contact details for the local MABS services are available on the MABS website at www.mabs.ie or by contacting the Helpline at 0761072000.

I trust this clarifies the matter for the Deputy.

State Pension (Contributory) Eligibility

Questions (401)

Thomas Byrne

Question:

401. Deputy Thomas Byrne asked the Minister for Social Protection if he will address inequalities in the pension system for women, particularly those who left the workforce to rear children before 1994; if he will address the glaring impact the increase in the required number of paid contributions made in recent years has had on women; and if he will make a statement on the matter. [21992/16]

View answer

Written answers

The State pension (contributory) SPC 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-makers 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 Homemaker'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” and the passage of time means that the potential cost now would be significantly higher.

“Developing the National Pensions System - Final Report of the National Pensions Board” published in 1993, recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 and the necessary legislation to effect these recommendations was contained in Section 12 of the Social Welfare Act 1997 which provided for their implementation in two stages, with the paid contribution requirement being standardised at 260 from 2002, rising to 520 from April 2012.

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. 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.

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.

Work is underway to replace the ‘yearly average’ system with a ‘total contributions approach’. Under this approach, the number of contributions recorded over a working life will be more closely reflected in the rate of pension payment received. It is expected that the total contributions approach to pension qualification will replace the current average contributions test for State pension (contributory) for new pensioners from 2020, although that date is subject to change, as this is a very significant reform with considerable legal, administrative, and technical components to be put in place prior its implementation. The position of women who were home-makers will be considered very carefully in developing this reform.

I hope this clarifies the matter for the Deputy.

Back to School Clothing and Footwear Allowance Scheme Applications

Questions (402)

Bernard Durkan

Question:

402. Deputy Bernard J. Durkan asked the Minister for Social Protection the progress to date in determination of an application by a person (details supplied) for a back-to-school allowance; and if he will make a statement on the matter. [22019/16]

View answer

Written answers

The back to school clothing and footwear allowance (BSCFA) provides a once-off payment to eligible families to assist with the costs of clothing and footwear when children return to school each autumn. The allowance is means-tested and the scheme operates from June to September each year.

The person referred to by the Deputy made an application for the allowance on 27 June. In support of her application, she submitted a payslip dated 6 May 2016. A letter has issued to the applicant requesting a June or July payslip so that the person’s current means can be established.

On receipt of this information, a decision will be made on her application for BSCFA.

Insolvency Payments Scheme Eligibility

Questions (403)

Brendan Griffin

Question:

403. Deputy Brendan Griffin asked the Minister for Social Protection when the review of eligibility for the insolvency payments scheme will be completed; and if he will make a statement on the matter. [22020/16]

View answer

Written answers

Under the provisions of the Protection of Employees (Employers’ Insolvency) Act 1984, an employer company shall be regarded as being insolvent if the company is placed into receivership or if a winding-up order has been made or a resolution for the voluntary liquidation of the company has been passed. The Act does not cover situations of informal insolvency where employers cease trading without engaging in any formal wind-up process and their former employees are left with wage-related payments owing to them.

The Department is continuing to review the situation of informal insolvency and to establish, what if anything, can be done to provide access for employees to the Insolvency Payments Scheme in such situations. The Department is actively consulting with a range of interested parties, including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners, in respect of this issue.

The Department is also considering legal advice on the difficult and complex company and employment law issues arising and the potential impacts that any potential policy developments could have on existing legislation. In particular, the Department of Social Protection is mindful of its responsibility to uphold the legal structure within which companies operate.

Officials from the Department are continuing to engage with all relevant parties to try to progress the situation of informal insolvency. I am not in a position to indicate at this stage how or when this will be resolved.

I hope that this clarifies the current state of play for the Deputy.

Departmental Funding

Questions (404, 405)

Ruth Coppinger

Question:

404. Deputy Ruth Coppinger asked the Minister for Social Protection the State funding provided by his Department and agencies under its remit to non-profit or non-governmental organisations for each year from 2008 to 2015. [22046/16]

View answer

Ruth Coppinger

Question:

405. Deputy Ruth Coppinger asked the Minister for Social Protection the State funding provided by his Department and agencies under its remit to faith-based non-profit organisations for each year from 2008 to 2015. [22047/16]

View answer

Written answers

I propose to take Questions Nos. 404 and 405 together.

The information requested is currently being examined within my Department and will be made available to the Deputy as soon as possible.

Disability Allowance Applications

Questions (406)

Thomas Pringle

Question:

406. Deputy Thomas Pringle asked the Minister for Social Protection the status of a disability allowance application by a person (details supplied); and if he will make a statement on the matter. [22106/16]

View answer

Written answers

I can confirm that the Department is in receipt of an application for disability allowance (DA) from the above named person. On 29 June 2016 the application was referred by a deciding officer (DO) to a social welfare investigative officer (SWI) for a report on the person’s means and circumstances. Once the SWI has submitted his/her report to the DO, a decision will be made on the application and the person concerned will be notified directly of the outcome.

I hope this clarifies the matter for the Deputy.

Disability Allowance Applications

Questions (407)

Thomas Pringle

Question:

407. Deputy Thomas Pringle asked the Minister for Social Protection the status of an application for a disability allowance by a person (details supplied); and if he will make a statement on the matter. [22108/16]

View answer

Written answers

The person concerned has been awarded disability allowance with effect from 2 March 2016. The first payment was made to the person in question on 29 June 2016.

Arrears of payment due will issue as soon as possible once any necessary adjustment is calculated and applied in respect of any overlapping payments or in respect of outstanding overpayments (if applicable).

I hope this clarifies the matter for the Deputy.

Carer's Allowance Applications

Questions (408)

Thomas Pringle

Question:

408. Deputy Thomas Pringle asked the Minister for Social Protection the status of an application for a carer's allowance by a person (details supplied); and if he will make a statement on the matter. [22109/16]

View answer

Written answers

I confirm that my department received an application for carer’s allowance (CA) from the person concerned on 10 March 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 the 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, both the person concerned and his partner are in receipt of a weekly social welfare support.

I hope this clarifies the matter for the Deputy.

Invalidity Pension Applications

Questions (409)

Joan Collins

Question:

409. Deputy Joan Collins asked the Minister for Social Protection when he will decide on an application for an invalidity pension by a person (details supplied); the average waiting time for such applications to be assessed; and if he will make a statement on the matter. [22119/16]

View answer

Written answers

Invalidity pension (IP) is a payment for people who are permanently incapable of work because of illness or incapacity and who satisfy the pay related social insurance (PRSI) contribution conditions.

The department received a claim for IP for the person concerned on the 17 April 2016. The person concerned was refused IP on the grounds that the medical conditions for the scheme were not satisfied. He was notified on the 15 July 2016 of this decision, the reasons for it and of his right of review and appeal.

The average waiting time for new IP applications is currently approximately 12 weeks.

I hope this clarifies the matter for the Deputy.

Carer's Allowance Applications

Questions (410)

Joan Collins

Question:

410. Deputy Joan Collins asked the Minister for Social Protection if his Department received an application for a carer's allowance from a person (details supplied); when payment of the allowance will be approved; and if he will make a statement on the matter. [22120/16]

View answer

Written answers

I confirm that my department received an application for Carer’s Allowance (CA) from the person concerned on 22 June 2015. It is a condition for receipt of a CA that the person being cared for must have a disability whose effect is that they require full-time care and attention.

This is defined as requiring from another person, continual supervision and frequent assistance throughout the day in connection with normal bodily functions or continuous supervision in order to avoid danger to him or herself and likely to require that level of care for at least 12 months.

The evidence submitted in support of this application was examined and the deciding officer decided that this evidence did not indicate that the requirement for full-time care was satisfied.

The person concerned was notified on 5 April 2016 of this decision, the reason for it and of his right of review and appeal. The person concerned has requested a review of this decision and submitted additional evidence in support of his application. The review is currently being processed and once completed, the person concerned will be notified directly of the outcome.

I hope this clarifies the matter for the Deputy.

Top
Share