Written Answers Nos. 1-66
58. Deputy Mick Wallace asked the Minister for Social Protection his views on the increasing numbers of low paid or part-time workers and the impact of this on wage inequality here, which according to research carried out by UNITE is the second highest in the EU-15, and in view of the recent decrease in the number of persons on the live register; and if he will make a statement on the matter. [2777/17]
View answerMy colleague the Minister for Jobs Enterprise and Innovation has responsibility for legislation and regulation in relation to statutory minimum wage levels and to conditions of employment.
However, I can say that it is not accurate to suggest that part-time work has been an important element in recent employment growth. In the four years ending in the third quarter of 2016, employment increased by 199,000. Within this total, full-time employment increased by 184,000 while part-time employment grew by only 15,000. Indeed the number of part-time workers who describe themselves as “under-employed” – in other words, working part-time because they could not find full-time work – actually fell by 47,000 during this period. The fall in unemployment (and in the Live Register) in recent years is therefore primarily due to growth in full-time, not in part-time employment.
In relation to wages, wage inequality in Ireland is above the average for the EU member states. Eurostat data for 2014 indicate that 21% of workers here earn an hourly wage which is less than two-thirds of the median wage – defined in the data as “low-paid”. On this particular measure of inequality, Ireland ranks seventh highest in the EU, and second-highest in the EU-15.
However, under this Eurostat definition, the threshold for low pay is set relative to the level of earnings in an individual country, rather than to the absolute value of the wage itself. Because median wages in Ireland are among the highest in the EU, the “low-pay threshold” is also relatively high – at €13.44 per hour, as compared with €8.80 per hour for the EU overall, and, for example, €9.96 in France or €9.87 in the UK. The low-pay threshold in Ireland is in fact close to the median wage in either of the two countries mentioned.
Finally, it should also be noted that, while inequality in market incomes in Ireland is relatively high, the Irish tax and welfare system does more to offset this inequality than is the case elsewhere in the EU.
59. Deputy Willie O'Dea asked the Minister for Social Protection the specific measures his Department plans to introduce to tackle unemployment for those persons aged 50 years of age and over; and if he will make a statement on the matter. [2726/17]
View answerGovernment policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs and second, through Pathways to Work to ensure that as many of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, including people over 50 years of age. These policies have seen a significant reduction in unemployment over the last few years.
People of all ages have benefited from this reduction none more so than people over 50 years of age. The unemployment rate for persons aged 50 and over has fallen by almost half, from 11.7% at its peak in the third quarter of 2012 to 6.1% in the third quarter of 2016. The unemployment rate for older members of the labour force is also lower than for those in younger age groups. Quarterly National Household Survey Data data show that in the third quarter of 2016, the most recent period for which disaggregated data is available, the unemployment rate for those aged 50-64 was 6.1%, as compared with 7.5% for those aged 25-49 and 17.7% for those aged under 25.
This pattern – of lower relative unemployment among those in the older age-groups – has been a consistent one over time and current trends suggest that older unemployed people will continue to benefit from the improving labour market conditions.
With regard to the question of targeting the over 50 age group through specific measures, the Department already prioritises two groups for activation support. People aged under 25 are prioritised given the higher rate of unemployment among young people, and people who are long-term unemployed are prioritised given their relatively low progression to employment rates. With the exception of these two groups the prioritisation of resources for employment and activation purposes within the Department is based on a range of factors using a jobseeker profiling and assessment method developed in conjunction with the ESRI. Age is one of the factors taken into account in this model, as are gender, nationality, level of educational attainment, family circumstances and prior employment experience. This holistic approach is in line with best international practice and ensures that resources are targeted in a more precise way than using broadly based indicators such as age alone.
Given that the underlying unemployment data do not indicate a requirement for specific measures targeted at the over 50s it is not proposed to introduce new measures aimed specifically at the older unemployed at this time.
60. Deputy Tony McLoughlin asked the Minister for Social Protection the action he is taking to combat welfare fraud; and if he will make a statement on the matter. [2737/17]
View answerThe majority of people in receipt of a payment from the Department of Social Protection receive what they are entitled to be paid. Nevertheless, my Department recognises that abuse of the welfare system is an ongoing reality and must be tackled. Anti-fraud measures are set out in the Department’s Compliance and Anti-Fraud Strategy 2014 – 2018 and are designed to prevent and detect fraud, to ensure effective oversight of schemes, to pursue prosecution of offenders and the recovery of any overpaid entitlements identified. I will be publishing the report on the implementation of the Strategy for the year 2016 before the end of March.
All Departmental staff exercise a control and compliance function in processing new applications and reviewing existing entitlements. The systems used to support schemes are designed to detect wrongful claiming and to highlight anomalies. In addition, the Department’s inspectorate undertakes detailed examination of claims on a risk assessed and random basis. This is supplemented by at least three fraud and error surveys of Departmental schemes annually and by the use of data matching and data analytics techniques.
In addition, my Department’s Special Investigation Unit, which comprises trained inspectors and Garda officers, is tasked with undertaking targeted and systematic examination of claims to tackle fraud and to work with other enforcement agencies to identify more serious breaches of the law.
Cross-functional and targeted actions are undertaken - both internally and in joint operations with other national and international agencies - to ensure a strategic response to high risk sectors or where fraud is considered to be most prevalent. In particular, actions are focused on sectors of the economy where there is a risk of concurrent working and claiming social welfare payments. New forms of fraud continue to be identified and the approach of the Department needs to be sufficiently flexible to combat all threats.
Overall, my Department conducts around one million claim reviews annually comprising customer entitlement enquiries, inspections and special investigations. Early indications for 2016 are that these activities have prevented incorrect expenditure of over half a billion euro, in what my Department refers to as control savings.
The continued roll-out of the Public Services Card has considerably reduced the potential for identity fraud and my Department has deployed identity and analytics software and other intelligence systems to reinforce its fraud prevention work. Members of the public also play an important role in supporting these anti-fraud activities and some 19,000 reports from concerned citizens have been received during 2016. To this end, I plan to launch a fraud awareness campaign over the coming months in recognition of the important role the public plays in this regard.
The value of overpayments recovered has increased steadily in recent years and indications are that approx. €82m was recovered in 2016. This figure is subject to verification.
I am looking at a number of additional anti-fraud measures that I hope to introduce in 2017. These include publishing the names of persons who are convicted of social welfare fraud and applying surcharges on overpayments resulting from fraud.
I hope this clarifies the matter for the Deputy.
61. Deputy John Brady asked the Minister for Social Protection the reason for the drop in supplementary welfare allowance scheme payments being issued from community welfare offices in recent years; and if he will make a statement on the matter. [2766/17]
View answerThe supplementary welfare allowance (SWA) scheme can consist of a basic weekly payment and/or a weekly/monthly supplement in respect of certain expenses, including rent, as well as single exceptional needs payments (ENPs) and urgent needs payments (UNPs). Some €378 million has been provided for the SWA scheme in 2017 including €31.5 million for ENPs & UNPs. The SWA schemes are subject to a means test and are demand led. The reductions in numbers receiving support under SWA can be attributed to the overall improvement in the economy, improvements in administration and policy changes in recent years. The numbers on the Live Register have dropped significantly from a peak of almost 450,000 in 2011 to a current figure of some 280,000 - a drop of almost 38%. For example, to focus on ENPs, expenditure has been stabilising in recent years at between €30 million and €32 million with some 100,000 ENPs made in 2016.
The ENP guidelines issued to staff in 2012 and 2013 have contributed to more streamlined and consistent approaches being taken to applications across the country. The guidelines do not affect the statutory discretion available to officers administering the scheme in issuing an ENP to assist an individual or household in any particular hardship situation which may arise. Separately, my Department is leading on the provision of extra supports for vulnerable people in the development of the Personal Micro Credit (PMS) scheme which aims to move people to legitimate, low cost, locally available alternative access to credit. To date, 95 Credit Unions, representing 180 credit union locations, have signed up as participants of the scheme.
I can assure the Deputy that the SWA scheme is kept under review to ensure that the CWS continues to support those most in need of assistance.
63. Deputy Jim Daly asked the Minister for Social Protection if he will consider the introduction of travel vouchers for persons living in rural Ireland with no access to public transport and relying on private transport providers for essential weekly journeys; and if he will make a statement on the matter. [2752/17]
View answerThe free travel scheme provides free travel for those with eligibility on the main public and private transport services which includes road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann, Iarnród Éireann, Luas and services provided by over 80 private transport operators who operate mainly in rural areas. There are currently approximately 873,000 customers with direct eligibility with an annual allocation of €80 million. My Department also provides annual funding of €1.5 million towards the Rural Transport Programme which provides services to people whose travel needs are not met by existing bus or train services.
I have no plans at this time to introduce travel vouchers for persons living in rural Ireland with no access to public transport. Any decision to do so would significantly change the nature of the free travel scheme and would have budgetary consequences.
Various alternatives to the existing system, including the use of vouchers, have been examined previously by my Department which concluded that a voucher type system, which would be open to a wide range of transport providers including taxis, would be extremely difficult to administer, open to misuse and unlikely to be sufficient to provide for an acceptable amount of travel.
Under the supplementary welfare allowance scheme my Department 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.
I hope this clarifies the matter for the Deputy.
64. Deputy Willie Penrose asked the Minister for Social Protection his plans to reform and recalibrate local activation programmes such as community employment, Tús and Gateway as announced in his statement of 2017 priorities. [2755/17]
View answerMy Department provides a range of activation supports and programmes catering for long-term unemployed jobseekers and those most distant from the labour market. These include programmes such as Community Employment (CE), Tús and Gateway. These schemes help to break the cycle of unemployment and improve a person’s chances of returning to the labour market. My Department is also very conscious of the valuable contribution the schemes are making in the provision of services to individuals and communities across Ireland.
As the Deputy will be aware, these employment schemes provide part-time temporary work in local communities, including opportunities for training and development as a stepping-stone back to employment, for people in receipt of a range of social welfare payments, including those on a long-term jobseeker’s payment.
With the ongoing welcome reductions in the Live Register, issues such as the appropriate level of expenditure, the number of places and the criteria for participation on employment schemes are all being considered. I hope to bring a Memorandum to Government on these matters in the coming weeks. If there are any changes to be made, consultations with stakeholders will be facilitated.
I hope this clarifies the matter for the Deputy.
65. Deputy Martin Heydon asked the Minister for Social Protection the measures that his Department will take in the future to further support self-employed persons following the changes announced in budget 2017; and if he will make a statement on the matter. [2769/17]
View answerThe Government is committed to encouraging self-employment and entrepreneurship. This includes enhancing the position of the self-employed through a supportive tax regime, improving the level of PRSI based benefits available to self-employed workers and providing a better safety net for low income self-employed farmers.
As part of the Government’s commitment to rural Ireland, I am announce the total reversal of cuts to the means test for the Farm Assist scheme, a programme which helps over 7,800 self-employed farm families. At a time of falling farm incomes, it’s essential that we strengthen the safety net for farmers who are on the margin. The introduction of additional income disregards for farmers with children further ensures that farm families with children will benefit.
Also, in recognition of the crucial work undertaken in rural communities by the Rural Social Scheme, an additional 500 places will be made available to low-income farmers on the scheme this year. This will bring the total number of places on the scheme up from 2,600 to 3,100 in 2017.
Improving the PRSI system has been one of my key priorities since becoming Minister in this Department. On Budget Day, I was pleased to announce important measures which will directly benefit the self-employed.
From March 2017, the self-employed will have access to the treatment benefit scheme which includes free eye and dental examinations, and contributions towards the cost of hearings aids. Treatment benefit entitlements will also be extended from October 2017 so as to provide further dental and optical benefits. This improvement will benefit both the self-employed and employees.
Even more significantly, self-employed contributors will be eligible for the Invalidity Pension from December 2017. For the first time, this will give the self-employed access to the safety-net of State income supports if they become permanently incapable of work as a result of an illness or disability without having to go through a means test. This is a real advance in the level of cover available to the self-employed.
I plan to continue extending cover for the self-employed to other benefits on a phased basis in future Budgets. In 2017, my Department will examine the extension of social insurance to cover new risks and contingencies, including developing proposals on a form of jobseeker’s benefit where a person's business fails or they can no longer continue working in their profession or trade.
I look forward to making further improvements for the self-employed in future Budgets.
66. Deputy John Brady asked the Minister for Social Protection the action his Department is taking to tackle fuel poverty; and if he will make a statement on the matter. [2764/17]
View answerThe risk of fuel poverty is influenced by a combination of fuel prices, weather, income and the heat efficiency of housing. My Department will continue to ensure that those on low incomes and those who are more vulnerable to energy poverty are supported through the fuel allowance and the household benefits package. The fuel allowance is a payment of €22.50 per week for 26 weeks from October to April, to over 379,000 low income households, at an estimated cost of €229 million in 2017. This payment assists these households with the higher energy costs that arise in that period. It is a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
My Department also pays an electricity or gas allowance as part of the household benefits package to over 424,000 customers, at an estimated cost of €232 million in 2017.
Under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances who have special heating needs due to ill health or infirmity. Exceptional needs payments may also be made to help meet an essential, once-off cost which a person is unable to meet from his/her own resources.
The Government’s affordable energy strategy indicated that the best measure to address energy poverty is to improve the thermal efficiency of homes. The Better Energy Warmer Homes scheme, administered by the Sustainable Energy Authority of Ireland, funds energy efficiency improvements in the homes of the elderly and vulnerable, making the homes more comfortable, healthier and more cost effective to heat.
I hope this clarifies the matter for the Deputy.
