Written Answers Nos. 291-310
291. Deputy Catherine Murphy asked the Minister for Social Protection the estimated cost of applying the €5 increase to persons under 26 years of age for 2017 and in a full year; the reason this category of claimants was included at a lower rate; and if he will make a statement on the matter. [31515/16]
View answer305. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the savings made to the State by providing the pro rata rate increase in jobseeker's allowance for persons under 26 years of age as opposed to the standard increase of €5 given to persons of 26 years of age and older; his reasoning in deciding to apply a pro rata increase as opposed to a standard increase; and if he will make a statement on the matter. [31538/16]
View answerI propose to take Questions Nos. 291 and 305 together.
On Budget Day, I announced the first general increase in the weekly rates of payment since 2009. A €5 increase in the weekly rates of payment for all social welfare payments will commence from March, with proportionate increases for qualified adults and those on reduced rates of payment (including jobseekers on age-related reduced rates of payment).
Approximately 1.5 million people will benefit from this increase, from pensioners, people with disabilities, carers, lone parents, maternity and paternity benefit recipients and jobseekers.
Jobseeker's allowance (JA) and Supplementary Welfare Allowance claimants under the age of 26 generally receive age-related reduced rates of payment. Age-related reduced rates of payment do not apply in certain circumstances, however, such as when the claimant has a dependent child, or transferred to JA from Disability Allowance, or was in State care during the 12 months prior to applying for JA.
Increasing the €100 and €144 rates by €5 per week, instead of proportionate increases, would cost an additional €3 million in a full year. This includes the cost of increasing the qualified adult rates from €100 to €105 per week in the case of those on the €100 rate, and from €124.80 to €128.10 per week, for those on the €144 rate.
The long-standing practice of my Department is to award proportionate increases for people who are on reduced rates of payment and for qualified adults. If the full increase was awarded to some categories of people on reduced rates, and not to others, this would not be fair to others on reduced rates of payment.
The rationale for having reduced rates of payment for young jobseekers in receipt of a means-tested jobseeker's payment is to prevent young people from entering welfare dependency by providing a strong financial incentive to take up a job, or a training or education programme.
Financial incentives already exist for young people taking up education, training and employment supports. Young people participating in employment programmes such as Community Employment, Tús and Gateway already receive the full adult rate of payment, which is currently €210.50 per week and will rise to €215.50 next year.
From next September, when a young jobseeker participates in my Department's Back to Education scheme, he or she will be entitled to receive the full maximum rate of jobseeker's payment which will then be €193 per week (for people of any age), as against the €160 which they are currently on.
This 21% increase represents an extra €33 a week, and demonstrates the State's support for young jobseekers who seek to enhance their skills. The rate payable to young jobseeker's who participate on Solas training courses is a matter for the Minister for Education and Skills.
The number of young people on the Live Register on jobseekers payments was close to 90,000 in 2010 and is now down to 34,000. There is a continuing strong downward trend this year with the numbers down from 42,000 to 34,000 since the beginning of 2016.
Youth unemployment has fallen by 5 percentage points in the last year alone and it is now below the EU average. Of course more remains to be done and I am determined that we help more young people in the most effective way possible, by helping them into the workforce or education.
292. Deputy Maurice Quinlivan asked the Minister for Social Protection the action his Department has taken to assist the credit unions in the roll out and extension of the personal microcredit scheme, as promised in the programme for Government. [32105/16]
View answerA Personal Micro Credit Scheme providing for small scale loans by Credit Unions to borrowers who have difficulty accessing low cost credit has been piloted in 30 credit unions. The loans under the scheme range from €100 to a maximum of €2,000, and have a maximum interest rate of 12% per annum. Over 1,200 loans were drawn down under the Scheme during the pilot with an overall value of over €720,000. The average individual loan value drawn down was €500. The focus of the pilot scheme was social welfare recipients who availed of the loans from their Credit Union and were facilitated, with their consent, in the repayment of such loans through the Household Budgeting facility, operated by An Post. The deductions from their weekly social welfare payments were then transmitted on to the relevant Credit Union.
The Programme for a Partnership Government provides for the rollout and extension of the Personal Microcredit Scheme. Following an evaluation of the pilot, the Implementation Group, which is chaired by my Department and comprises all relevant stakeholders, is working towards this aim. Incremental progress is being made towards extending the geographical coverage of the loan scheme through efforts to recruit Credit Unions to participate in the scheme. To help advance this aim, I have written to all Credit Union Chairpersons and Managers, to encourage their participation.
The list of credit unions offering the scheme is updated regularly and is available at the attached link www.itmakessenseloan.ie/participating-credit-unions and on the It Makes Sense Facebook page.
I hope this clarifies the matter for the Deputy.
293. Deputy Tom Neville asked the Minister for Social Protection when arrears will be paid in respect of an invalidity pension in the case of a person (details supplied); and if he will make a statement on the matter. [31457/16]
View answerThe lady referred to has been awarded invalidity pension with effect from the 8 September 2016 and the first payment issued to her nominated bank account on the 13 October 2016. Arrears due from 8 September 2016 to 12 October 2016 (less any overlapping social welfare payment and/or outstanding overpayment) issued to her nominated bank account on the 20 October 2016.
I hope this clarifies the matter for the Deputy.
294. Deputy Brendan Griffin asked the Minister for Social Protection the annual costs of the State pension, contributory and non-contributory, in tabular form over the past ten years; and if he will make a statement on the matter. [31459/16]
View answerExpenditure on the State Pension Contributory and Non-Contributory over the past ten years, including the 2016 provision in the Revised Estimates, is provided in tabular form below.
|
Year |
State Pension (Contributory) Expenditure - €m |
State Pension (Non Contributory) Expenditure - €m |
|
2007 |
2,754.7 |
920.2 |
|
2008 |
3,117.9 |
972.8 |
|
2009 |
3,367.7 |
1,000.5 |
|
2010 |
3,451.5 |
977.3 |
|
2011 |
3,622.7 |
971.8 |
|
2012 |
3,802.8 |
963.2 |
|
2013 |
3,983.3 |
952.5 |
|
2014 |
4,185.2 |
954.4 |
|
2015 |
4,475.7 |
972.2 |
|
2016 REV |
4,610.1 |
955.8 |
295. Deputy Martin Kenny asked the Minister for Social Protection the rationale behind the demand for the long version of birth certificates from persons who are already in the system but who are making a new claim, despite possession of other documents such as passports, driving licences and short version of birth certificates, in the context that applicants do not necessarily want to reveal all the details included in the long version of the birth certificate, for example, the fact that they were adopted. [31469/16]
View answerThe Deputy has confirmed that this question relates to jobseeker's applications. Where a person makes a claim for a jobseeker's payment, they must satisfy the deciding officer as to their identity.
Holders of a Public Services Card (PSC) do not need to produce any further documentation in relation to identity. Where an applicant does not yet hold a PSC, they can be asked to produce other documents such as a passport or driving licence. Their photograph and signature would then be captured as part of the claim appointment with a view to issuing a PSC.
Customers with valid passports or driving licences would not normally be asked to submit long birth certificates.
I hope this clarifies the matter for the Deputy.
296. Deputy Catherine Murphy asked the Minister for Social Protection when a pension application in respect of a person (details supplied) will be finalised; the reason no acknowledgement or correspondence was issued in response to the application; if this is standard practice; the cause of the delay; the number of pension applications currently awaiting a decision for more than three months; and if he will make a statement on the matter. [31495/16]
View answerAn application for state pension contributory (SPC) was received from the person concerned on 10 May 2016. The application was registered and an acknowledgement automatically issued by SMS text message on 12 May 2016. SMS text messages are now used as standard for application acknowledgements where the applicant provides a mobile telephone number.
The applicant concerned highlighted a period of insurable employment as a Civil Servant in the application. As the Department does not hold records in respect of pre-1979 employments in Government Departments, the Deciding Officer sought to obtain the necessary details from the applicant's employer on 1 June 2016. On foot of a reminder, the social insurance details were received on 11 October 2016. The application was decided and the person awarded state pension (contributory) with effect from 4 July 2016 (i.e., the applicant's 66th birthday), the due date of pension entitlement. A notification of the decision issued on 20 October 2016, together with payment of the due arrears.
The Department is committed to ensuring that state pension (contributory) claims are processed as expeditiously as possible. In general, the Department achieves its operational target of ensuring that over 90% of timely applications for state pension (contributory) are awarded, where entitled, by the applicants' 66th birthday. Delays can occur where additional documentary evidence is required from an applicant, where the applicant has been self-employed, where they have been in public sector employment or where they have had period(s) of social insurance recorded in another country.
There are currently in excess of 372,000 recipients of state pension (contributory). In each of the past two years, an average of 39,000 new applications has been received. Of the state pension (contributory) claims received prior to 30 June 2016, there are currently 555 applications awaiting finalisation (representing less than 1% of the total 2014 - 2016 claims intake). Of these, 65 are currently in receipt of, or the beneficiary of, another social welfare payment. The balance includes a number of cases where additional information from the applicant, a previous employer or a foreign social security institution is awaited.
I hope this clarifies the matter for the Deputy.
297. Deputy Bernard J. Durkan asked the Minister for Social Protection the number and value of awards made under the exceptional needs payment scheme to families since the scheme replaced the previous bereavement grant scheme; the way the total expenditure compares with the combined exceptional needs and bereavement schemes in the previous relevant similar period; and if he will make a statement on the matter. [31508/16]
View answerUnder the supplementary welfare allowance (SWA) scheme, my Department may make a single exceptional needs payment (ENP) to help meet essential, once-off and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. The Government has provided €30.3 million for the ENP scheme in 2016.
ENP payments are made at the discretion of the Department's officers administering the scheme taking into account the requirements of the legislation and all the relevant circumstances of the individual or family in order to ensure that the payments target those most in need of assistance. An application can be made under the ENP scheme for assistance with funeral and burial expenses where there is an inability to pay these costs, in part or in full, by the family of the deceased person without causing hardship.
The bereavement grant was discontinued for deaths occurring after 1st January 2014. Expenditure on that scheme in 2013 was almost €20.3 million. In the same year, almost 133,000 payments issued under the ENP scheme at a cost of some €35.7 million, of which 3,200 payments at a cost of €4.4 million was recorded as assistance towards funerals.
Since the closure of the bereavement grant, over 107,000 payments issued under the ENP scheme at a cost of €30.1 million in 2014, and in 2015 over 96,200 payments issued at a cost of €31 million. The numbers of payments towards funeral related costs in 2014 and 2015 was 3,000 and 2,700, at a cost of €4.6 million and €4.7 million respectively.
As I advised the Deputy in my reply on 6 October to his previous questions on this matter, assistance with funeral costs is a long-standing feature of the ENP scheme, rather than a replacement for the discontinued PRSI-based bereavement grant, and is part of a range of supports available from my Department for people following bereavement.
I trust this clarifies the matter for the Deputy.
298. Deputy Bernard J. Durkan asked the Minister for Social Protection if action will be taken with a view to providing rent support to a person (details supplied); and if he will make a statement on the matter. [31509/16]
View answerThe outstanding documentation requested from the client concerned on 3rd December 2015 has not yet been received by the Department. As a result the application was subsequently closed on 21 December 2015.
If the client wishes to make a new Rent Supplement Application, they can do so but should provide the bank statements and the information requested with their application.
I trust that this clarifies the matter for the Deputy.
299. Deputy Timmy Dooley asked the Minister for Social Protection the annual cost implication for reversing the qualification criteria for the contributory pension that came into effect as a result of the 2012 budget; and if he will make a statement on the matter. [31524/16]
View answerThe overall concern in recent years has been to protect the value of weekly social welfare rates. Expenditure on pensions, at approximately €7 billion, is the largest block of expenditure in my Department in the Estimate for 2016, representing approximately 35% of overall expenditure. Due to demographic changes, my Department's spending on older people is increasing year on year. Maintaining the rate of the State pension and other payments is critical in protecting people from poverty.
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 conditions for the State pension contributory (SPC) are reviewed on an ongoing basis, and there have been a number of changes over the years which impact upon whether someone qualifies or not. The main such changes in recent years are as follows:
1. The Social Welfare and Pensions Act 2011 provided for the necessary amendments to increase the State pension age in line with the National Pensions Framework as set out in the EU/IMF Programme of Financial Support for Ireland. It provided for an increase in the age for qualification for the State Pension from 66 years to 67 years from 2021, and a further increase to 68 years from 2028. It also discontinued the State Pension (Transition) for new claimants with effect from 1 January 2014.
In 2013, the cost of the State pension (transition) was €137 million. While its abolition would not realise that saving in full, as some people who were affected would alternatively claim working age payments (although at a lower rate than that of the State pension), and some may have claimed an Increase for a Qualified Adult on their spouse's pensions, it is estimated that well over half of that cost may have been saved each year as a result of this measure.
It is estimated that the net saving in 2017 is likely to be in the region of €75-80 million.
2. “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 (i.e. 10 years) 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.
At the time this measure was introduced, the Exchequer annual savings were expected to be in the region of €6m per annum in the short term, but rising substantially on a cumulative basis in the long term. It is not possible to state how much has been saved by this change now, as people who are below the current threshold will not generally make a claim to SPC.
3. As provided for in Budget 2012, from September 2012, new rate bands for SPC were introduced. The new bands, which replaced the bands which were in place from 2000-2012, more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life benefit more in retirement than those with lesser contributions.
Prior to these changes, someone with a yearly average of 47 contributions qualified for the same rate of payment (98% of the maximum rate) as someone with a yearly average of only 20 contributions, despite generally their much more significant PRSI record, and regardless of their means. A person with an average of 48-52 PRSI contributions per year over their working life received a weekly State pension of only €4.50 more than someone with a yearly average of 20 PRSI contributions.
It is estimated that the exchequer savings arising from the current rate bands (relative to the ones in place from 2000-2012) will be at least €50 million in 2017, and that this will rise at a rate of some €10m annually. This figure represents only the savings in respect of current SPC claims, and does not include savings where the person has claimed an alternative payment as a result of the bands, such as a Non-Contributory Pension or an Increase for a Qualified Adult.
For those with insufficient contributions to meet the requirements for a full rate SPC, they may qualify for a means tested State pension (non-contributory) which has a maximum personal rate of €222, which is 95% of the maximum rate of the SPC. Alternatively, if a person's spouse or civil partner is in receipt of an SPC they may instead qualify for an Increase for a Qualified Adult of up to €209, which is 90% of the maximum personal rate of the SPC.
I hope this clarifies the matter for the Deputy.
300. Deputy Brendan Griffin asked the Minister for Social Protection the estimated annual cost of providing the full rate of contributory pension to all recipients of the reduced rate of the State pension contributory; and if he will make a statement on the matter. [31529/16]
View answerThe 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.
A yearly average of 48-52 weeks contributions is required to qualify for a 100% rate pension of €233.30, and banded payments apply for those with lower yearly averages. For example, where someone entered insurable employment aged 16 and had 2,000 weekly contributions (38.5 years) paid and/or credited, they would have a yearly average of 40, and would receive a pension at 98% of the full rate (for those in the 40-47 band).
People who qualify for lower band rates may, if they satisfy the means-test, qualify for the State pension (non-contributory), the maximum rate of which is 95% that of the State pension (contributory).
It is worth noting that the most recent Actuarial Review of the Social Insurance Fund found that those with lower earnings and those with shorter contribution histories still obtain the best value from their contributions.
I am informed that the additional cost of paying all current State pension (contributory) payments at the maximum rate would amount to just over €309 million per annum. However, this would not be the full cost to the Social Insurance Fund of such a move. These costings do not take into account people who qualify for a reduced rate of State Pension Contributory, but instead are paid a State Pension (non-contributory), or an Increase for Qualified Adult payment, due to receiving a more favourable rate. It is thought that a significant number of such pensioners would qualify for a full rate State pension contributory instead, if that became payable to everyone who satisfied the relevant criteria, and that the additional cost of that change could be expected to be quite significant.
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 around 2020. This is a very significant reform with considerable legal, administrative, and technical components to be put in place prior to its implementation. The position of people who have gaps in their contribution records for various reasons will be considered very carefully in developing this reform.
I hope this clarifies the matter for the Deputy.
301. Deputy Charlie McConalogue asked the Minister for Social Protection if the new farm assist criteria announced in budget 2017 will be applied to new farm assist applications; if not, the date when the new criteria will come into effect; and if he will make a statement on the matter. [31530/16]
View answerThe farm assist scheme provides support for farmers on low incomes and is similar to jobseeker's allowance. Farm assist recipients retain the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2016 Revised Estimates for my Department provide for expenditure of €85 million on the farm assist scheme.
Budget 2017 introduces new measures in relation to the assessment of means for farm assist. These include income from off-farm self-employment which will now be assessed at 70%, down from 100%, with an additional annual disregard of €254 for each of the first two children and €381 for the third and subsequent children.
The Government has announced that these new measures contained in Budget 2017 will take effect in March 2017 for both existing and new farm assist applications.
302. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on the case of a person (details supplied) who is currently on JobPath; and if he will make a statement on the matter. [31533/16]
View answerAs the Deputy will be aware, JobPath is an employment activation service that supports people who are long-term unemployed and those most at risk of becoming long-term unemployed to secure and sustain paid employment. The person concerned commenced the JobPath service last July. She has undertaken a course to gain a Diploma in Professional Counselling and is currently working on a written assignment to complete the course. The person concerned has identified a further part-time course for which she is seeking funding. However, the Department's view is that while this course may be of benefit to her in the future in advancing her career, her new qualification should be sufficient to help her gain full time employment in her chosen field.
303. Deputy Bernard J. Durkan asked the Minister for Social Protection the progress in determination of a review concerning eligibility for carer's allowance in the case of a person (details supplied); and if he will make a statement on the matter. [31535/16]
View answerAn application for carer's allowance (CA) was received from the person concerned on 31 May 2016.
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 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.
The person concerned was notified on 26 August 2016 of this decision, the reason for it and of his right of review and appeal. A review of this decision has been requested and additional evidence has been submitted. 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.
304. Deputy Michael Ring asked the Minister for Social Protection when a decision will be made on a disability allowance application in respect of a person (details supplied) in County Mayo. [31537/16]
View answerThis lady has been awarded disability allowance with effect from 3 August 2016. The first payment will be made by her chosen payment method on 9 November 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 trust this clarifies the matter for the deputy.
306. Deputy Róisín Shortall asked the Minister for Social Protection the details of each of the expenditure savings that have been earmarked for his Department in 2017; the value of the saving in each case; the basis on which the value was estimated; and the way it differs from the 2016 mid-year expenditure report. [31542/16]
View answerMy Department's Budget Day Estimate for 2017 is €19.854 billion, compared to the 2016 Revised Estimates provision of €19.625 billion.
Most of my Department's schemes are demand-led in nature. This demand is driven by demographic trends and economic factors such as developments in the labour market. The estimates are constructed using data on trends in recipient numbers, average payment values and other relevant factors as are available for that portion of the year in which the estimate is constructed.
In this regard, there are decreases in 2017 in the allocations for Working Age Income and Employment Supports, reflecting the lower demand for many of the schemes arising from the improved labour market. Conversely, there are increases in the allocations for Pensions, Illness, Disability and Carers, and Children, reflecting demographic and other trends. This is in line with the 2016 Mid-Year Expenditure Report.
Full details of the allocations for each of my Department's schemes in 2017 compared to 2016 can be found in Vote 37 in Part III of the Expenditure Report 2017, which is available on the Departments of Finance and Public Expenditure and Reform website, budget.gov.ie.
307. Deputy Éamon Ó Cuív asked the Minister for Social Protection when it is intended to reintroduce the 30% disregard and allowances for children under the farm assist scheme; if all persons on farm assist and the RSS scheme will have their payments automatically reassessed to see if they are entitled to a higher rate of payment; when this reassessment work will begin; when persons will be notified of the changes; and if he will make a statement on the matter. [31555/16]
View answerThe new measures announced in the budget in relation to the farm assist scheme will take effect in March 2017.
Those affected by the measures will have their entitlements automatically reassessed using the information held by the Department on their current claim.
As you will appreciate, many of the operational issues have yet to be finalised including how to deal with those on farm assist who moved to RSS. Work on this project will begin over the coming weeks.
I hope this clarifies the matter for the Deputy.
308. Deputy Mattie McGrath asked the Minister for Social Protection the reason there is no option to have illness benefit paid into the post office; if he will review this policy; and if he will make a statement on the matter. [31576/16]
View answerThere is an option to pay Illness Benefit through the Post Office by way of Electronic Information Transfer (EIT). My Department is considering whether to offer this option to clients currently receiving cheque payments.
I hope this clarifies the matter for the Deputy.
309. Deputy Marc MacSharry asked the Minister for Social Protection when a person (details supplied) in County Leitrim will receive a decision on an application for disability allowance; and if he will make a statement on the matter. [31585/16]
View answerThis lady has been awarded disability allowance with effect from 20 April 2016. The first payment will be made by her chosen payment method on 9 November 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.
310. Deputy Kevin O'Keeffe asked the Minister for Social Protection the up-to-date position regarding an appeal by a person (details supplied). [31599/16]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 4th October 2016. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
I hope this clarifies the matter for the Deputy.
