Written Answers Nos. 26-35
27. Deputy Thomas P. Broughan asked the Minister for Social Protection if his attention has been drawn to the fact that jobseekers and local development groups find the JobsIreland website cumbersome and difficult to navigate; if his Department will review the site to simplify procedures for job applicants and job providers; and if he will make a statement on the matter. [28742/16]
View answerJobsIreland.ie is a free online jobs site that enables employers to post job opportunities and jobseekers to search and apply for these opportunities online. Over 5,000 job vacancies are currently advertised on the site.
Jobs Ireland was first developed 20 years ago and was showing its age in comparison to job sites operated by other public employment services in recent years. For example, although it enabled jobseekers to search for job opportunities based on job type and location, it wasn’t possible for employers to search for suitable jobseekers on the site – they had to rely on candidates finding and applying for a job from among the many thousands hosted on the system.
Accordingly, the Department issued a tender last year for the development and implementation of a new Jobs Ireland service that would enable both employers and jobseekers to search for each other using competencies and skillsets as well as the traditional job-type classifications. As part of the new service, candidate profiles will be automatically matched to job specifications posted by employers with both candidate and the employer notified via email and/or SMS when a suitable match is found. Candidates can also use the site to apply for the jobs advertised. The system will also integrate with the Department of Social Protection’s Intreo service and will include other new features such as allowing jobseekers to post CVs and video profiles if they wish.
Following the procurement process, the contract was awarded to a firm that is now building and delivering the new service from a base in Cork. The service is being implemented on a phased basis which means, unfortunately, that there is some service disruption while work is ongoing. In addition the first phase implementation has not performed to specification. The Department is working with the supplier to address the service issues and add new functionality over the coming weeks.
Employers or any person experiencing difficulties with the website can contact the Department’s National Contact Centre on 1890 800 024 for assistance. Additional resources have been assigned to the unit to expedite the resolution of queries.
28. Deputy Maureen O'Sullivan asked the Minister for Social Protection if he will review the 52-week basis of family income supplement allocation as it does not take into account changes in a person's working circumstances within the 52 weeks. [28736/16]
View answerThe Family Income Supplement (FIS) is an in-work support which provides an income top-up for employees on low earnings with children. FIS is designed to tackle child and family poverty and to offer a financial incentive to take up employment as compared to social welfare payments. There are over 55,000 families with almost 123,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €410 million, an increase of around €60 million on last year.
An integral part of FIS is that the payment continues at the same rate for a period of 52 weeks, assuming the eligibility requirements continue to be met, except in the following circumstances:
- If a claimant starts to care for an additional child in the course of the 52 weeks.
- If a claimant was getting a one-parent family payment and this payment was stopped because their youngest child reached the relevant age limit.
The rate of payment will not change if there is an increase or decrease in earnings. This aspect of the FIS scheme is important in speeding up processing times for claims, which could otherwise be subject to delays due to periodic reviews. It also ensures that people who transition from welfare into employment have quick access to an in work benefit, which could be an important factor in their decision to take up employment.
However, the key advantage of this approach, which is unique to the FIS scheme, is that claimants will receive a guaranteed level of income support throughout the period. This certainty is important to the success of the scheme as it provides an incentive to claimants to maximise their earnings from employment (e.g. more hours, higher wages). In view of the above, I have no plans to change the legislation.
29. Deputy Paul Murphy asked the Minister for Social Protection when his Department will publish the Millar report on the situation of lone parents; his views on reported leaks of the report which indicate that the report finds that cuts have made lone parents worse off and that this has contributed to child poverty; and if he will make a statement on the matter. [28791/16]
View answerI wish to clarify that the Millar report was not directly commissioned by my Department. It was, rather supported by a research grant arrangement from my Department under the Government of Ireland Research Project Grants Scheme, which is administered by the Irish Research Council (IRC). Under this Scheme my Department supports small-scale research projects, or week long academic summer schools, under a programme of research innovation awards known as the Department of Social Protection Research Innovation Awards (DSPRIA).
Awards under this programme are confined to academics and researchers in third level institutions, with applications for awards assessed by an independent board of the IRC. In September 2014 the IRC issued a DSPRIA call for proposals under the theme “An Active Inclusion Approach to Lone Parents”. The successful applicant, selected by the IRC in November 2014, was Dr. Michelle Millar of NUI Galway for her proposed study “Lone Parents and Activation, What Works and Why: A Review of the International Evidence in the Irish Context”.
The manner and timing of publication of a study report in these circumstances are matters for the researchers. I understand that the report was published on 29th September by the authors in accordance with normal arrangements that apply to such grant-aided studies administered by IRC.
I wish to acknowledge the amount of time and effort Dr Millar and her team undertook in completing this study.
The report will be helpful to my Department to see what can be learned from other countries about the active inclusion approach and where best practice lies. The report does not purport to be an analysis of the lone parent reforms. The qualitative interviews in the report will add to our knowledge but the sample size is small and the period of implementation of the reforms is very short. It is too soon to draw definitive conclusions about the outcome of these reforms.
The report references CSO Survey on Income and Living Conditions (SILC) data on child poverty figures for 2013, which state that 11.7% of children were in consistent poverty. However, the most recent SILC data for 2014 shows that there has been a slight decrease in this figure to 11.2%. Furthermore the consistent poverty rate of lone parents has decreased from 23% in 2013 to 22.1% in 2014.
The full impact of the recovery is not yet reflected in these figures. Ireland has returned to strong economic and employment growth. The unemployment rate in April 2016 was 8.4%, down from a peak of 15% in 2012. As unemployment is strongly linked to poverty, we can expect further decreases in poverty as the figures for 2015 and 2016 become available.
30. Deputy Willie O'Dea asked the Minister for Social Protection his views on the national pensions framework, which commits to sustain the value of the State pension at 35% of average weekly earnings to prevent poverty among older persons; and if he will make a statement on the matter. [28746/16]
View answerThe National Pensions Framework (NPF) was published in March 2010. It stated that “In order to maintain this aim of preventing poverty for older people, the Government will seek to sustain the value of the State Pension at 35% of average weekly earnings and will support this through the PRSI contribution system.”
The aspirational tone of this commitment recognised that a great many factors can intervene in such a target, notably the rise (and in some recent years fall) of workers' earnings, which also in turn impacts upon workers’ capacity to pay extra PRSI. The text also indicates that any increases in payments required to reach this target would come through the Social Insurance Fund, rather than through Exchequer subvention.
The most recent CSO release on Average Earnings was on 25 August 2016, which stated that average weekly earnings in Q2 of 2016 were €703.83, making the State pension (personal) rate 33.15% of that figure, or 1.85% below the target of 35%. This does not include allowances such as the Living Alone Allowance, the over 80s Allowance, Fuel Allowance, or the Household Benefits package.
There are three measures used by the CSO Survey of Income and Living Conditions which measure poverty among older people and the general population. The most recent survey, which relates to 2014, was released in November 2015. This showed that the percentage of those over 65 at risk of poverty is currently 10.3%, compared to 16.3% of the total population. The rate of consistent poverty among those over 65 is 2.1%, compared to 8.0% of the population.
Any decision to increase the State pension rate will be considered in the context of the Budget.
I hope this clarifies the matter for the Deputy.
31. Deputy Brendan Smith asked the Minister for Social Protection the provisions in place to ensure that persons living in this State and in receipt of a British social security payment are compensated when the value of sterling declines, and if such provisions ensure that those persons, if eligible for an Irish payment, receive an appropriate top-up payment; and if he will make a statement on the matter. [28737/16]
View answerSocial assistance payments act as a safety net for people who have insufficient income and who do not qualify for a contributory payment. The use of a means test is to ensure that resources are directed to those in greatest need.
Payments from the United Kingdom (UK) are assessed as income under current legislation. If the person applying for a Social Assistance payment has a UK pension, it is assessable, together with all other means such as savings and investments, when determining the rate of payment. In assessing means derived from payments received from non-European Monetary Union (EMU) States, the Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers. Under this mechanism the conversion rate used for means testing purposes is derived from the average of the daily exchange rates in the first month of a quarter. This rate is then used in all conversions during the course of the succeeding quarter. The exchange rates for converting sterling and other non EMU currencies are published quarterly in the Official Journal of the European Union, and take account of currency fluctuations. The Department obtains this rate at the beginning of each quarter.
Following the outcome of the UK referendum, negotiations on the UK’s future relationship with the EU will take time. In the interim, it is important to stress that all payments made by the Department of Social Protection, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.
My Department is keeping the currency situation under review. It is open to any person in receipt of a social assistance payment to request that his/her entitlement be reviewed if they wish. It is important to note, however, that any such review will involve a full reassessment of all of the customer’s means to ensure that the person continues to receive the correct payment in line with their overall entitlement.
I hope this clarifies the matter for the Deputy.
32. Deputy Bríd Smith asked the Minister for Social Protection if, further to the finding of the Millar report, he will reverse lone parent allowance cuts; and if he will make a statement on the matter. [28755/16]
View answerI wish to acknowledge the amount of time and effort Dr Millar and her team undertook in completing this study. My Department values social policy research and the contribution it makes in assisting the Department in terms of informing policy across its broad remit.
The report will be helpful to my Department to see what can be learned from other countries about the active inclusion approach and where best practice lies. The report does not purport to be an analysis of the lone parent reforms.
The qualitative interviews in the report will add to our knowledge but the sample size is small and the period of implementation of the reforms is very short and there have already been adjustments since they were introduced. It is too soon to draw definitive conclusions about the outcome of these reforms.
However, the overall direction remains the activation of lone parents, and I believe that this report supports this principle also. Data shows that being at work reduces consistent poverty among lone parent families; those at work have consistent poverty rates of 9.6% compared to 35.5% for those not at work. Therefore the key to ensuring lone parents are lifted out of poverty is to aim to support lone parents into employment.
The report highlights the critical nature of the Case Officer role within my Department and the importance of a package of supports including pre-employment, employment, financial and childcare.
It is too early to determine the full impact of the reforms. Initial indicative data from the latest Quarterly National Household Survey shows that there has been a significant increase in the percentage of lone parents in employment in the year since the end of June 2016. This increase relates to all lone parents in the State and reflects the increase in economic and employment growth generally. The magnitude of the increase for lone parents specifically, many of whom would have been affected last July by the reforms, is clearly significant and cannot be dismissed.
33. Deputy Joan Collins asked the Minister for Social Protection if he will reverse the conditionalities introduced regarding working lone parents that have resulted in an up to 18% cut in their weekly income. [28783/16]
View answerThe most recent Survey on Income and Living Conditions relates to 2014. In 2014, lone parents were two-and-a-half times more at risk of poverty than the rest of the population. However, in 2004, during the economic boom, lone parents were over four-and-a-half times more at risk of poverty than the rest of the population. These figures are of course not acceptable but they show the long standing problem we have of lone parents being in poverty.
Research shows that being at work reduces the at-risk-of-poverty rate for lone parents by three-quarters, compared to those who do not work, highlighting that the best way to tackle poverty among lone parents is to assist them into employment.
Access to my Department’s Intreo service is critical to achieve this outcome. Any reversal of these reforms would delay access to this essential service and would be a retrograde step in terms of tackling poverty among lone parents.
The positive outcome of the reforms can be seen from the increase in the number of lone parents becoming new family income supplement recipients. Of the lone parents affected by the reforms since July 2015, more than 3,000 became new family income supplement recipients by the end of 2015. This indicates that these customers entered or increased their employment. These customers are also eligible for the Back to Work Family Dividend. There are currently over 7,100 lone parents in receipt of the Back to Work Family Dividend.
It is also important to highlight that the social impact assessment of Budget 2016 showed that the measures contained in the Budget increased average household incomes by 1.6%. This analysis showed that incomes for non-working lone parents increased above average, gaining 1.8% and working lone parents gained the most with their average incomes gaining by 2%.
As such, I have no plans to reverse the change in conditions the Deputy refers to.
35. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which evaluation has been done as to the number of women in both the public and private sectors who for family or other reasons retired from the workplace while rearing their families and who now find themselves ineligible or partly eligible for a contributory pension, with particular reference to addressing this injustice and identifying the cost involved; and if he will make a statement on the matter. [28780/16]
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.
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. 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 to up to 95% of the maximum contributory pension rate.
There are a number of reasons why someone might not have sufficient contributions paid to qualify for a State pension (contributory). Some would have been employed in the public service, others would have worked abroad and qualified for a foreign pension based on foreign contributions, and some would have spent significant periods out of the labour force altogether for a number of reasons, e.g. caring for children or elderly relatives, prolonged periods of unemployment or incapacity and other circumstances. In some cases, a person might never have been in insurable employment. If such people do not claim a State pension, their details will not form part of the statistics generated by management of those schemes.
Therefore there are no statistics available to my Department detailing the number of people who spent period(s) outside the Irish labour market, and who, as a direct result of those periods, would not qualify for a State pension. Such statistics would comprise largely of people who have not paid PRSI for many decades, and who in many cases would not have made a claim under the State pension system.
Public service pensions are a matter for the Minister for Public Expenditure and Reform.
I hope this clarifies the matter for the Deputy.
