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Friday, 16 Sep 2016

Written Answers Nos. 709-736

Insolvency Payments Scheme Payments

Questions (709)

Louise O'Reilly

Question:

709. Deputy Louise O'Reilly asked the Minister for Social Protection the reason a person (details supplied) was denied access to the insolvency pension fund; and if he will make a statement on the matter. [25010/16]

View answer

Written answers

Under the provisions of the Protection of Employees (Employers’ Insolvency) Act 1984, a company shall be regarded as being insolvent if the company is placed into receivership or 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 informal insolvency where employers cease trading without engaging in any formal wind-up process.

The former employers of the person concerned ceased trading without engaging in any such formal wind-up process. This means that the person concerned cannot access the insolvency payments scheme as they fall outside the provisions of the Protection of Employees (Employers’ Insolvency) Act 1984.

The Department is continuing to review the situation of informal insolvency to ascertain what can be done to provide access for affected employees to the insolvency payments scheme.

I hope that this clarifies the matter for the Deputy.

Insolvency Payments Scheme Eligibility

Questions (710)

Louise O'Reilly

Question:

710. Deputy Louise O'Reilly asked the Minister for Social Protection the position regarding the review to establish the action that can be taken to help persons whose former employers ceased trading without entering into a formal winding-up process, who may not access the insolvency payments scheme under the terms of the Protection of Employees Acts; and if he will make a statement on the matter. [25011/16]

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 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 informal insolvency where employers cease trading without engaging in any formal wind-up process.

The Department is continuing to review the situation of informal insolvency to ascertain what can be done to provide access for affected employees to the insolvency payments scheme. The Department is 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 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 addition, the Department continues to engage with the two reviews of employment and company law initiated by the Minister for Jobs, Enterprise and Innovation on foot of the Clerys closure.

Bearing in mind the above, I am not in a position to indicate at this stage when the Department’s review of the law surrounding informal insolvency will be completed.

Jobseeker's Allowance Payments

Questions (711)

Bernard Durkan

Question:

711. Deputy Bernard J. Durkan asked the Minister for Social Protection when arrears owed in respect of jobseeker's allowance in the case of a person (details supplied) will issue; and if he will make a statement on the matter. [25020/16]

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Written answers

As advised in the reply to the Deputy’s most recent questions in this matter (ref: 17871-16), the person concerned received their jobseeker's allowance payment on 21 June 2016, including any arrears that were due from the date of their claim. Child dependant allowances were not payable to the claimant for the period they were out of the family home as these payments had been previously been paid to another customer of the department within the household.

If the person concerned wishes to make an application for payment for the period they were out of the family home, they will be required to provide clarification as to their residency and circumstances prior to 23 May, in order to establish whether an entitlement to a jobseekers payment existed for that period. If this requested clarification is provided we will be in a position to make a decision in respect of this earlier period.

I trust this clarifies the matter for the Deputy.

Free Travel Scheme Eligibility

Questions (712)

Bobby Aylward

Question:

712. Deputy Bobby Aylward asked the Minister for Social Protection the free travel alternatives that exist within his Department to accommodate a person (details supplied) who is not permitted to drive by the State due to a sight impairment but cannot avail of a free travel pass as they are under 66 years of age and are not in receipt of a disability allowance, blind pension, carer's allowance or an invalidity pension; and if he will make a statement on the matter. [25101/16]

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Written answers

The current free travel scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by almost 80 private transport operators. Persons resident in Ireland who are over 66 and persons in receipt of certain social welfare payments, including disability allowance, invalidity pension, partial capacity benefit (under certain conditions) and carer’s allowance, are eligible for the scheme. While medical evidence will be required to determine eligibility for these schemes, it does not entitle anyone to free travel. It is the fact of being in receipt of a qualifying payment rather than the fact of having a disability that gives rise to the entitlement.

Under the supplementary welfare allowance scheme (SWA) the Department of Social Protection may award a travel supplement in any case where the circumstances of the case so warrant. The supplement is intended to assist with ongoing or recurring travel costs that cannot be met from the client’s own resources and are deemed to be necessary. Every decision is based on consideration of the circumstances of the case, taking account of the nature and extent of the need and of the resources of the person concerned.

My Department also provides annual funding contribution of €1.5 million towards the Rural Transport Programme (RTP) which is administered by the National Transport Authority. The rural transport programme provides services to people whose travel needs are not met by existing bus or train services. The Programme aims to enhance and sustain nationwide accessibility, through community based participation, particularly for those at risk of social exclusion.

Any decision to extend the free travel scheme to include persons not in receipt of a primary qualifying payment would have to be considered in the context of overall budgetary negotiations.

I hope this clarifies the matter for the Deputy.

Pension Provisions

Questions (713)

Seán Fleming

Question:

713. Deputy Sean Fleming asked the Minister for Social Protection if he will reverse the changes to the contributory old age pension system whereby persons who have a very large number of paid contributions for their pension but their yearly average is less than the full amount because they had started work before they had taken up the position of homemaker and left the paid workforce for a period and are now being penalised by not being allowed the full pension compared with persons who have a much less number of reckonable or paid contributions to their pension but did not start work as early in their lifetime and they are now eligible for a higher contributory pension; and if he will make a statement on the matter. [25122/16]

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Written answers

The 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 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.

One of the conditions of the State pension contributory is that a person needs a minimum of 520 weekly contributions (i.e. 10 years) paid since entering insurable employment. If a person does not have this minimum number of contributions paid, they will not generally have an entitlement to this particular pension, either at a full or reduced rate.

There are others who, while satisfying the minimum requirements for a State pension contributory, do not qualify for the full rate, and as a result claim an alternative support to which they have a higher entitlement.

Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating the rate of pension entitlement. Entitlement is banded, with the maximum rate payable to those with a yearly average of 48-52 contributions, and the minimum rate payable to those with a yearly average in the range of 10-14 contributions per year. Even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they would generally qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances, and it will not always be their most advantageous payment to claim.

The homemaker’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.

Where people who were unattached to the labour market during most of their adult lives cannot 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.

Work is under way 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 around 2020. This is a very significant reform with considerable policy, legal, administrative, and technical elements to be considered in its development and implementation. The position of women who were homemakers will be considered very carefully in this reform.

I hope this clarifies the matter for the Deputy.

State Pensions Reform

Questions (714)

Niamh Smyth

Question:

714. Deputy Niamh Smyth asked the Minister for Social Protection his plans to abolish the compulsory retirement age of 65; the options of financial support available to people who retire at 65 years of age but do not receive the State pension until they are 66 years of age; the reason people are being forced onto jobseeker's payments for one year in these situations; and if he will make a statement on the matter. [25131/16]

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Written answers

The Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition) available from 65 for those who satisfied the qualifying conditions, thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and 68 in 2028. The changes introduced in 2011 were on foot of a Government commitment included in the National Recovery Plan published in 2010, and in the subsequent Memorandum of Understanding with the EU/ECB/IMF

Each year more people are living to pension age and living longer in retirement. As a result of this demographic change, the number of State pension recipients is increasing by approximately 17,000 annually. This has significant implications for the future costs of State pension provision which are currently increasing by close to €1 billion every 5 years. The purpose of changes to the State pension age is to make the pension system more sustainable in the context of increasing life expectancy.

The Deputy should note that there is no general retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. There have always been people who have retired before State pension age, and none of them are forced by the State to claim other payments. However, where they are eligible for such payments, they can make claims to them.

In terms of financial supports, social welfare benefits will continue to be available to the age of 66 for those who are required to leave employment. Jobseekers whose benefit expires in their 65th year will continue to be paid benefit up until the age of 66. Where a jobseeker’s benefit claim spans two benefit years, a new Governing Contribution Year requirement is not applied to the second benefit year of a claimant aged 65 (effectively this means that they may receive payment in both years based upon eligibility in the first year).

I hope this clarifies the matter for the Deputy.

State Pensions

Questions (715)

Seán Barrett

Question:

715. Deputy Seán Barrett asked the Minister for Social Protection his plans to continue with the community employment pilot scheme launched in December 2015, whereby people who are 62 years of age and over will have the option of participating on the scheme on a continuous basis, until they reach the State pension age of 66 years; and if he will make a statement on the matter. [25138/16]

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Written answers

In January 2016, provision was put in place under the Community Employment (CE) programme to enable older jobseekers (62 years and over) participate on the scheme on a continuous basis until they reach the State Pension age, subject to scheme limits.

The provision is available on a pilot basis and is being monitored by the Department until the end of the year when a review will be undertaken of the pilot scheme. No decisions on its future will be made under after the review is completed.

I hope this clarifies the matter for the Deputy.

Rent Supplement Scheme Expenditure

Questions (716)

Fergus O'Dowd

Question:

716. Deputy Fergus O'Dowd asked the Minister for Social Protection the amount he has spent on rent supplement to date in 2016; the number of households assisted and the average monthly rent supplement paid per household by county; and if he will make a statement on the matter. [25157/16]

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Written answers

Supports in relation to housing and the provision of financial supports, including the rent supplement scheme, which is currently supporting some 51,800 recipients at a cost of €267 million in 2016, are a key priority for Government. Expenditure on the scheme for the period from January to July 2016 is some €164.5 million.

The national monthly average expenditure for rent supplement recipients for the eight months ending August 2016 is approximately €415 per recipient, or €4,980 per annum per recipient. Average costs on a county basis are not maintained; however, for the eight-month period ending August 2016, Dublin’s approximate monthly recipient cost is in the region of €570 per recipient, and for the rest of the country the monthly cost is approximately €320 per recipient.

A breakdown of rent supplement recipients on a county basis for August 2016 is provided in the table.

Rent Supplement Recipients by County, 31 August, 2016.

County

Recipients

CARLOW

712

CAVAN

363

CLARE

578

CORK

5,569

DONEGAL

581

DUBLIN

21,340

GALWAY

2,794

KERRY

1,585

KILDARE

2,847

KILKENNY

375

LAOIS

889

LEITRIM

292

LIMERICK

1,073

LONGFORD

375

LOUTH

1,058

MAYO

1,201

MEATH

1,201

MONAGHAN

213

OFFALY

633

ROSCOMMON

592

SLIGO

338

TIPPERARY

1,152

WATERFORD

717

WESTMEATH

1,315

WEXFORD

2,072

WICKLOW

1,930

Grand Total

51,795

Jobseeker's Allowance Payments

Questions (717)

Bernard Durkan

Question:

717. Deputy Bernard J. Durkan asked the Minister for Social Protection the correct level of jobseeker's allowance in the case of a person (details supplied); and if he will make a statement on the matter. [25159/16]

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Written answers

Since 15 June 2016, the person concerned has been awarded Jobseeker’s Allowance (JA) at a rate equal to the maximum payable for a family of 1 adult and 1 dependent child. However, as she has an outstanding overpayment, an amount equal to 15% of the adult JA rate is deducted from her weekly payment.

I hope this clarifies the matter for the Deputy.

Guardian's Payment

Questions (718)

Éamon Ó Cuív

Question:

718. Deputy Éamon Ó Cuív asked the Minister for Social Protection when he plans to publish the expenditure review of the orphan's payment; his plans on reforming this payment to bring it in line with the foster payments; the number of families in receipt of the orphan's payment; the total annual expenditure for 2015; and if he will make a statement on the matter. [25192/16]

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Written answers

Guardian’s payment (contributory) and guardian’s payment (non-contributory) are, respectively, social insurance and social assistance (means-tested) payments made to a person caring for a child, where that child is defined as an orphan under social welfare legislation. These payments were known as orphan’s payments until they were re-named in July 2006. Both payments are paid at the weekly rate of €161 per week.

Currently, there are around 1,500 people receiving guardian’s payments, in respect of approximately 2,000 orphans. Some guardians are receiving the payment for more than one child. In 2015, expenditure on this scheme amounted to €17.6 million.

The National Action Plan for Social Inclusion 2007–2016 sets out a wide ranging programme of action to address poverty and social inclusion. The plan includes the income support target for children as follows: "maintain the combined value of child income support measures at 33%-35% of the minimum adult social welfare payment rate over the course of this Plan".

In the case of guardian’s payment cases the total weekly child income support provided, when child benefit is included, amounts to €193.30. This is equivalent to 104% of the minimum adult social welfare payment rate of €186.

The guardian’s payment schemes were reviewed as part of my Department’s Expenditure Review Programme in 2002-2003. The Expenditure Review Report was published in March 2003 and is available on the Department’s website, www.welfare.ie. I have arranged for a copy of the Report to be sent to the Deputy.

In assessing the adequacy of the rate of guardian’s payments, the Review found that the guardian’s payment scheme and the foster care scheme differ fundamentally in their purpose and in view of the adequacy of the rate of guardian’s payments, it did not consider that the rate of guardian’s payments should be increased to the rate of the foster care allowance.

There are no plans currently to increase the rate of guardian’s payment to equate that of foster care allowance, and any decision to increase the rate of guardian’s payment would have to be considered in an overall budgetary context.

I hope this clarifies the matter for the Deputy.

Pension Provisions

Questions (719)

Michael Healy-Rae

Question:

719. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on a matter (details supplied) regarding public and private sector pensions; and if he will make a statement on the matter. [25201/16]

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Written answers

Defined Benefit (DB) occupational pension schemes typically commit to paying the beneficiary a certain percentage of their final income in retirement on a pro rata basis factoring in their overall years of service in the relevant employment. Broadly speaking, data from the Pensions Authority indicates that approximately 340,000 public sector workers and 125,000 private sector workers are currently members of DB schemes as at end 2015. The payment to the pensioner from a DB scheme is generally integrated with, or inclusive of, the State pension which is currently approximately €12,000 per annum.

Defined Contribution (DC) pension schemes on the other hand, which are most prevalent in the private sector, are not integrated with, or inclusive of, the State pension and any payment from such schemes would be additional to any State pension entitlement. In such schemes, the employee’s and employer’s contributions are invested and the total proceeds, together with any investment growth which may have accrued, can then be drawn down at retirement. 2015 end data from the Pensions Authority indicate 281,629 active members of DC schemes. At present, the decisions as to whether to save in to a pension, and the rate of contributions to that pension, are voluntary and at the discretion of the employee and employers. Typically speaking, the combined employer and employee contributions made to DC pensions are less than those made to DB pensions and where this is the case it would result in a more modest outcome for the member.

I hope this clarifies the matter for the Deputy.

Social Welfare Benefits

Questions (720)

John McGuinness

Question:

720. Deputy John McGuinness asked the Minister for Social Protection if he will restore the payment of benefit to a person (details supplied). [25213/16]

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Written answers

The client exhausted his Jobseeker’s Benefit on 21/06/2016 and applied for Jobseeker’s Allowance which is a means-tested payment. A meeting with a Social Welfare Inspector is required to complete the means report to process this payment. Because the client had been working casually, he was unavailable to attend a number of appointments made with him by the Inspector.

The client has now returned to full-time work. As he has no mobile phone number, the Inspector wrote to him on 1 September 2016 requesting that he contact her to make an appointment outside of working hours. He has not to date responded to this communication.

Data Protection

Questions (721)

Ruth Coppinger

Question:

721. Deputy Ruth Coppinger asked the Minister for Social Protection if he had correspondence with the Data Protection Commissioner regarding the ability of a Minister or a Department to comment on an individual case; and if he will make a statement on the matter. [25220/16]

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Written answers

I confirm that to date neither the Department nor I have had correspondence with the Data Protection Commissioner regarding the ability of a Minister or a Department to comment on an individual case.

The Department does not comment on individual cases and it takes its data protection responsibilities with the utmost seriousness.

It is my intention to seek guidance from the Data Protection Commissioner about what can be done when it comes to correcting factual (rather than personal) information put into the public domain that is not true or not the whole truth.

I hope this clarifies the matter for the Deputy.

Domiciliary Care Allowance Appeals

Questions (722)

Eugene Murphy

Question:

722. Deputy Eugene Murphy asked the Minister for Social Protection if he will reassess an unsuccessful domiciliary care allowance application (details supplied); if he will reconsider this application; and if he will make a statement on the matter. [25222/16]

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Written answers

A review of the decision to disallow Domiciliary Care Allowance (DCA) was requested on 16 November 2015 and the person concerned was notified on 5 February 2016 that following an examination of the file the original decision was upheld.

The person concerned lodged an appeal on 1 March 2016. A further review was undertaken as part of the appeals process and the person concerned was notified on 23 June 2016 that the original decision was upheld. The application together with the additional information supplied has been forwarded for consideration by the Appeals Office. The Appeal Office will be in contact in due course.

I hope this clarifies the matter for the Deputy.

Back to Education Allowance

Questions (723)

Gerry Adams

Question:

723. Deputy Gerry Adams asked the Minister for Social Protection if he is aware of the case of a person (details supplied) whose application for the back to education allowance was rejected; if he will make enquiries in respect of this case; and if he will make a statement on the matter. [25230/16]

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Written answers

The decision to refuse the Back to Education Allowance (BTEA) application of the person concerned is correct and in line with the Department’s scheme rules which do not allow payment of BTEA for a degree course where the person concerned already holds a degree.

The BTEA scheme is designed to support second chance education. It enables eligible persons to pursue approved education courses and to continue to receive income support for the duration of a course of study, subject to meeting certain conditions.

The guidelines governing the operation of the programme are, in the main, in line with the mechanisms in place for student support type schemes administered by the Department of Education and Skills.

BTEA enables eligible persons to pursue approved full-time education courses that lead to a higher qualification than that already held. The

Progression in education is a condition to access BTEA and it should be noted that is not a requirement unique to the BTWEA scheme as other State supports for education purposes are grounded on a student progressing from one qualification level to a higher one.

The BTEA has been extensively reviewed and amended over the past number of years to bring it in line with other educational and DSP supports and my Department has no plans to further alter the current criteria, as set out in the 2016 scheme guidelines.

Paternity Leave Scheme

Questions (724)

Gerry Adams

Question:

724. Deputy Gerry Adams asked the Minister for Social Protection if he will consider relevant parents of babies born before 1 September 2016 for inclusion under the provisions of the Paternity Leave and Benefit Act 2016. [25260/16]

View answer

Written answers

The introduction of paternity leave and paternity benefit was originally announced as part of Budget 2016. At the time of the announcement, the Government gave a commitment that paternity leave and benefit would be introduced from September 2016.

The Paternity Leave and Benefit Act 2016 states that paternity leave and benefit is available for births or adoptions, where these occur on or after 1 September 2016.

The Department of Justice and Equality who have responsibility for paternity leave consulted with employer representative bodies on the introduction of paternity leave on the basis that the new entitlement would commence in September. Employers have been working and preparing to cater for paternity leave on that basis.

My Department has been allocated €5 million for paternity benefit from September until the end of the year. Picking a date prior to September would require additional money, which has not been allocated to the Department of Social Protection’s Revised Estimates for 2016.

In light of previous consultation, the preparations employers have made, and the limited budget allocation for paternity benefit in 2016, it would therefore not be possible to commence paternity leave and benefit prior to September.

Carer's Allowance Applications

Questions (725)

Michael Ring

Question:

725. Deputy Michael Ring asked the Minister for Social Protection when a decision will be reached on a carer’s allowance review in respect of a person (details supplied). [25281/16]

View answer

Written answers

I confirm that my Department received an application for Carer’s Allowance (CA) from the person concerned on 28 January 2016 in respect of two care recipients.

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 twelve 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 in respect of either care recipient.

The person concerned was notified on 26 May 2016 of this decision, the reason for it and of her right of review and appeal.

The person concerned requested a review of this decision and submitted additional evidence in support of her application. The outcome of that review is that it has been decided that one care recipient requires full-time care and attention and that while the other care recipient requires some assistance with some daily tasks, the information supplied is insufficient to show that he requires frequent assistance throughout the day with normal bodily functions.

Therefore CA was awarded to the person concerned for one care recipient on 13 September 2016 and the first payment issued to their nominated bank account on 29 September 2016.

Arrears of allowance due from 23 January 2016 to 28 September 2016 will issue shortly.

The person concerned was notified on 13 September 2016 of this decision, the reason for it and of her right appeal.

I hope this clarifies the matter for the Deputy.

Carer's Allowance Payments

Questions (726)

Pat Breen

Question:

726. Deputy Pat Breen asked the Minister for Social Protection the reason a person (details supplied) has not been facilitated with regard to a carer's allowance; and if he will make a statement on the matter. [25295/16]

View answer

Written answers

Carer’s allowance was awarded to the person concerned on 18 July 2016 and the first payment issued to her nominated bank account on 21 July 2016.

Arrears of allowance due from 19 May 2016 to 20 July 2016 have also issued. The person concerned was notified of these details on 18 July 2016.

Carer’s allowance is not a qualifying payment for Fuel Allowance. However, the person concerned has a Fuel Allowance on her State Pension Non-Contributory Pension.

I hope this clarifies the matter for the Deputy.

Disability Allowance Applications

Questions (727)

Fiona O'Loughlin

Question:

727. Deputy Fiona O'Loughlin asked the Minister for Social Protection if he will review an application for a disability allowance in respect of a person (details supplied); and if he will make a statement on the matter. [25323/16]

View answer

Written answers

There is no record of an application for disability allowance from the person in question. If the person in question wishes to make an application, she should fully complete and submit an application form (DA1) so that her eligibility may be determined.

If the person in question has submitted an application for DA in the last few days, there is no need to reapply and the Department will be in touch with her in due course.

Community Employment Schemes Operation

Questions (728)

Pearse Doherty

Question:

728. Deputy Pearse Doherty asked the Minister for Social Protection the reason employees of a community employment scheme project (details supplied) in County Donegal were transferred to placements supported by a number of other separate organisations following the withdrawal of the original host organisation from the scheme; the efforts made to source an alternative community employment sponsor willing to manage all these placements to avoid the division of this workforce; the reason an official from his Department who is liaising with these employees has so far not accepted requests from those previously employed on the scheme to meet to discuss this matter further; and if he will make a statement on the matter. [25330/16]

View answer

Written answers

Each community employment (CE) sponsor organisation is a legal entity with which the Department enters into an individual contract and, therefore, any formal negotiation about a scheme is with the sponsor. Officials of the Department have been working closely with the sponsors to which the Deputy’s question refers, to address the issues arising from expected closure of the scheme.

The Department’s focus from the beginning has been to ensure that there is no loss of jobs or services as a result of the decision by the sponsor in question not to renew its contract with the Department. The Department’s preferred option throughout has been for the current sponsor group to remain, however this has not proved possible. The Department’s wish to keep the existing scheme in place and to ensure there was no loss of jobs or services is clearly demonstrated by the fact that the existing contract was extended on two occasions and, in addition, an offer was made to renew the contract for a full year on two occasions. However, this was declined.

The transfer of participants or a CE Supervisor to another CE sponsor is subject to the agreement of the receiving CE sponsor and also Departmental agreement. The current position is that the Department made contact with other CE Sponsors in the area to establish if they would accept some or all of the existing participants on transfer, as well as the CE Supervisor. To date, agreement has been reached to transfer a number of participants to alternative schemes. Negotiations are ongoing in relation to the remaining participants and the CE supervisor.

I hope this clarifies the matter for the Deputy.

Social Welfare Code

Questions (729)

Michael Healy-Rae

Question:

729. Deputy Michael Healy-Rae asked the Minister for Social Protection the way contributions are considered when a person applies for a social protection payment (details supplied); and if he will make a statement on the matter. [25338/16]

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Written answers

There are two types of schemes run by my Department – assistance schemes which are funded by the Exchequer, and benefit schemes, which are funded by the Social Insurance Fund through pay related social insurance contributions (PRSI). The 2016 Revised Estimates for my Department provide for expenditure of approximately €8.6 billion on benefit schemes.

A person who applies for any social insurance payment from the Department of Social Protection is subject to the conditions of that scheme, including having the required number of qualifying PRSI contributions for the scheme. For example, to qualify for jobseeker’s benefit (JB) a person must have at least;

- 104 reckonable PRSI contributions paid since they entered insurable employment and satisfy either one of the following;

a) Have at least 39 reckonable PRSI contributions paid or credited in the Governing Contribution Year (GCY) of which 13 of these contributions must be paid contributions or

b) Have at least 26 reckonable contributions paid in both the Governing Contribution Year (GCY) and the year immediately preceding the GCY.

The GCY is the year two years prior to the current year. For example the GCY for 2016 is 2014.

The wide number of options in relation to combining contributions for JB allows as many people as possible to qualify for a payment. However, it is not possible to cater for every individual specific personal circumstance and as a result there will always be situations where a person will not qualify for a benefit payment. The purpose of jobseeker’s benefit is to ensure that those who have a close connection to workforce are supported. Where an individual does not have entitlement under jobseeker’s benefit, they may qualify for a means tested jobseeker’s allowance payment.

Where an individual does not have entitlement under jobseeker’s benefit or allowance, they may be eligible for the supplementary welfare allowance (SWA) scheme, which is considered the "safety net" within the overall social welfare system. The SWA scheme provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependants. The main purpose of the scheme is to provide immediate and flexible assistance for those in need who do not qualify for payment under other state schemes.

Any changes to the contribution conditions for social welfare insurance based schemes could have significant cost implications for the Social Insurance Fund and would need to be carefully considered by Government in a budgetary context.

Exceptional Needs Payments

Questions (730)

Bernard Durkan

Question:

730. Deputy Bernard J. Durkan asked the Minister for Social Protection when an exceptional needs payment will be made in the case of a person (details supplied); and if he will make a statement on the matter. [25339/16]

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Written answers

No application for Supplementary Welfare Allowance has been received to date from the person concerned regarding an Exceptional Needs Payment towards housing costs. In order to initiate an application, the person concerned should contact the Community Welfare Officer for their area at 087 9638588. I note that a Rent Supplement has been in payment since 6 June 2015.

I trust this clarifies the matter.

Tax Data

Questions (731)

Ruth Coppinger

Question:

731. Deputy Ruth Coppinger asked the Minister for Social Protection the amount that has been raised from PRSI on rental income since its introduction. [25367/16]

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Written answers

The self-employed have been liable to pay Class S PRSI on rental income since the introduction of social insurance for the self-employed in 1988. Employees who also have unearned income, including rental income, pay PRSI on that unearned income, at the Class K rate of 4% since 2014.

The Department of Social Protection does not receive data on the individual sources of self-employed or unearned income. It is, therefore, not possible to provide details of the amount of PRSI charged on rental income.

Tax Yield

Questions (732)

Ruth Coppinger

Question:

732. Deputy Ruth Coppinger asked the Minister for Social Protection the amount that could be raised from increasing employers’ PRSI towards the EU effective average rate of 20% that is by increasing the effective rate by 1%, 2% or 5%. [25368/16]

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Written answers

Currently, 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 increase in the PRSI yield to the Social Insurance Fund from increasing the class A employer PRSI rates by 1%, 2% and 5%, is contained in the following table:

Rate of Employer PRSI

Increased Yield from Increase in 8.5% Lower Rate

Increased Yield from Increase in 10.75% Higher Rate

Total Increased Yield

Employments Affected

1%

€37.3m

€634.1m

€671.4m

2,433,475

2%

€74.6m

€1,268.2m

€1342.8m

2,433,475

5%

€186.5m

€3,170.6m

€3,357.1m

2,433,475

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.

JobPath Implementation

Questions (733, 734, 735, 736)

Clare Daly

Question:

733. Deputy Clare Daly asked the Minister for Social Protection if he will investigate the practices of a company (details supplied) which has been engaged by the State to work on the JobPath scheme. [25406/16]

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Clare Daly

Question:

734. Deputy Clare Daly asked the Minister for Social Protection if he will investigate allegations that a company (details supplied) is demanding that JobPath participants apply for jobs from the company's office as a means to get the contact details of the persons responsible for recruiting in companies from those participants, with the intention of using that data for their own ends. [25407/16]

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Clare Daly

Question:

735. Deputy Clare Daly asked the Minister for Social Protection the legal minimum number of job applications per week for persons receiving jobseeker's allowance; and if it is legal for private companies involved in JobPath to threaten participants with their social protection payments ceasing if they do not make a certain number of job applications per week. [25408/16]

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Clare Daly

Question:

736. Deputy Clare Daly asked the Minister for Social Protection the options for jobseekers to leave JobPath if they are not satisfied with the scheme. [25409/16]

View answer

Written answers

I propose to take Questions Nos. 733 to 736, inclusive, together.

JobPath is an employment activation service that supports people who are long-term unemployed and those most distant from the labour market to secure and sustain full-time paid employment. Two companies - Turas Nua Limited and Seetec Limited have been contracted to provide the service on behalf of my Department. The companies deliver services directly and have also engaged a range of partners (one of which is the company in question) to deliver the service in areas where they do not have a presence.

Participants on JobPath receive intensive individual support to help them tackle barriers to employment and to assist them in finding jobs. Each person is assigned to a personal adviser who assesses a person’s skills, experience, challenges and work goals. The personal adviser works with the jobseeker to agree a personal progression plan that includes a schedule of activities, actions and job focused targets. Participants are also provided with a range of training and development supports including online modules, career advice, CV preparation and interview skills. Participants receive the JobPath job search assistance and support service for a period of 12 months (which can be extended by up to six months to facilitate the jobseeker completing training programmes) or until such time as they find employment whichever is the soonest. If the jobseeker secures employment during this period they will continue to receive support for at least three months and up to twelve months while in employment.

The JobPath providers are obliged to provide a baseline level of support to each participant but are free to increase that support in individual cases, provided that it is not unduly onerous. The JobPath contracts provide that a person should not have to travel more than 60 minutes in normal circumstances to attend an appointment. Where a person has transport difficulties the JobPath company can assist the person with travel arrangements including the reimbursement of reasonable travel costs.

While there is nothing to prevent a person from applying for jobs from their own home the JobPath companies offer expert job application advice and assistance. The JobPath companies work closely with employers to try to match jobseekers with available jobs. It is in the interests of JobPath participants that the JobPath companies can engage with the appropriate person in a company to build a good relationship and thus enhance the prospects of securing jobs for them and other JobPath participants.

There is no legal minimum number of job applications that participants must make in order for them to continue receiving a jobseeker’s payment. All jobseekers are required to engage with the department’s activation service and this obligation applies irrespective of whether the service is provided by the department’s own case officers or those employed by the Local Employment Service or by JobPath. A jobseeker’s payment is conditional on a person seeking employment and being willing to take up suitable employment. All decisions regarding welfare entitlements of JobPath participants are taken only by departmental officials and not by the JobPath companies.

The JobPath providers are subject to regular on-site checks and inspections to ensure that JobPath is delivered in accordance with contractual obligations. My Department is also commissioning independent customer satisfaction surveys to assess if jobseekers are satisfied with the level, and quality, of service delivered by the providers. Failure by the providers to satisfy my Department’s inspectors or to achieve a satisfactory score in the independent survey will result in payment penalties being applied.

I hope this clarifies the matter for the Deputy.

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