Tuesday, 24 Jan 2017

Written Answers Nos. 67-76

Departmental Contracts

Questions (67)

Mick Wallace

Question:

67. Deputy Mick Wallace asked the Minister for Social Protection the measures his Department has in place to ensure that the contracting out of public employment services to private companies, Turas Nua and Seetec, will not push claimants into low-paid, low quality and temporary employment; if he has read the report The Impact of Sanctions (details supplied); his views on the reported negative impact of financial sanctions on unemployed persons if they do not enter into employment or take up an internship quickly; and if he will make a statement on the matter. [2776/17]

Written answers

Minister for Social Protection

The Department was careful in designing the JobPath service to ensure that payments to contractors are conditional on people not just finding a job but staying in the job and that the job is a full-time job. Contractors are paid quarterly in arrears for each 13 week period of sustained employment of at least 30 hours per week and will only get full payments if the jobseeker stays in employment for 12 months. Suitability of employment is a key factor in ensuring that jobs are sustainable. If people are placed into unsuitable jobs they are less likely to remain in employment and as a consequence the providers fees will be reduced.

The JobPath providers work closely with employers to provide them with the best possible candidates for available jobs. It is not in the interests of the JobPath companies to place unsuitable candidates into inappropriate jobs as this will have adverse effects on the companies’ ability to secure jobs for its other clients.

The report which the Deputy has referred to is limited to very small sample (55 interviews over a three year period). The findings are at variance with findings from a recently completed large-scale survey of Intreo centre clients carried out by an independent external agency in 2016. In summary, this survey which will be published shortly, found that jobseekers rated the service highly and on the key aspects of premises, staff, services and processes, the view of jobseekers was almost uniformly positive. These results echo the results of a similar survey completed in 2015.

With regard to the issue of penalty rates of payment, jobseeker payments are conditional on jobseekers being genuinely available for work. The activation and employment support services provided by the Department, at significant expense, are designed to help jobseekers secure employment. In line with the principle of rights and responsibilities jobseekers are entitled to be provided with these services but are also required to engage with the services when they are made available. This obligation applies irrespective of whether the service is provided by my Department’s own case officers, those employed by the Local Employment Service or by JobPath. Failure, without good cause, to engage with the services can result in a reduction in the payment to the jobseeker. However reductions are only applied after the jobseeker has been given due notice on two occasions and an opportunity to provide an explanation for their non-engagement and to re-engage with the services. All decisions on the application of a reduced rate of payment are made by staff of the Department. This process is very different to the process in the UK which seemed to inform much of the commentary in the report referenced in the question.

Currently across the country less than 1% of jobseekers are on a reduced rate of payment relating to their non-engagement with the Department’s activation services. Again this contrasts with the UK rate of 16% rate quoted in the report referenced in the question.

With regard to the quality of service delivered by the JobPath providers, an independent survey of a representative sample of over 2,000 participants shows that the majority of jobseekers feel that:

- They are receiving a good service under JobPath (76 – 81% satisfaction vs 5 – 8% dissatisfaction).

- JobPath staff make them feel valued (90%+) and they have a good relationship with their JobPath advisor (90%+).

- The JobPath service has improved their chances of getting a job (68% - 77%).

- The service is as good as or better than the service provided in Intreo centres (80%+).

A separate analysis of employment outcomes for JobPath participants show that they have a higher chance of securing and remaining in a job than participants of a similar duration of unemployment. Given that only a small number of people have completed their full engagement with the JobPath service these results can only be treated as indicative, nevertheless they are encouraging. The results together with a copy of the survey findings together are available at http://www.welfare.ie/en/pressoffice/pdf/pr170117.pdf

I hope this clarifies the matter for the Deputy.

Social Welfare Benefits

Questions (68)

Richard Boyd Barrett

Question:

68. Deputy Richard Boyd Barrett asked the Minister for Social Protection if he will revise the rules to ensure that all recipients of social protection payments receive the Christmas bonus; and if he will make a statement on the matter. [2773/17]

Written answers

Minister for Social Protection

The Christmas bonus was introduced in 1980 for certain welfare schemes and was extended to long-term jobseekers in 1985. Payment of the bonus was abolished in 2009. It was re-instated at a rate of 25% by the previous Government in 2014 and was increased to 75% in 2015. I was pleased to be able to increase the rate of Bonus payable to 85% last December. This payment recognises the needs of people who are long-term financially dependent on their social welfare payment for all or most of their income, such as pensioners, people with disabilities and carers. It was paid to over 1.2 million beneficiaries in December last at a cost of circa €220 million.

The bonus paid over the last 3 years applied to all of the schemes to which it previously applied as well as the new back to work family dividend in 2015. The bonus was never paid to short-term welfare recipients including jobseekers with a duration of less than 15 months and illness benefit recipients generally. These arrangements have been continued.

Payment of a Christmas Bonus in December 2017 will be considered later this year. It should be noted that payment to those weekly welfare recipients who have not historically received a Bonus would cost in the region of €33 million (based on 2016 data).

Defined Benefit Pension Schemes

Questions (69, 76)

Clare Daly

Question:

69. Deputy Clare Daly asked the Minister for Social Protection his views regarding the future viability of defined benefit schemes here in view of the planned closure of a defined benefit pension scheme (details supplied); his plans to address the crisis in this sector; and if he will make a statement on the matter. [2600/17]

Clare Daly

Question:

76. Deputy Clare Daly asked the Minister for Social Protection the steps he plans to take to prevent solvent and profitable companies from closing their defined benefit pension schemes and moving pension risk to employees which is a growing issue in pension schemes across different employments here. [2601/17]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 69 and 76 together.

While it is not appropriate for me to comment on matters relating to an individual pension scheme, the Deputy will be aware that the number of defined benefit (DB) pension schemes in Ireland has dropped significantly in the last two decades. During the financial crisis the decline of defined benefit pension schemes accelerated. Occupational pension schemes are generally set up under trust and are contributed to by the employer on a voluntary basis. Almost all Irish defined benefit schemes have a rule that allows the employer to cease contributions, usually after a notice period. Neither the Minister for Social Protection nor the Pensions Authority has the power under legislation to intervene to freeze the winding up of a scheme or to compel the employer to make contributions to a scheme. Neither is there an obligation on the employer to give notice to members or to consult in advance of ceasing contributions. However, in the case where a restructuring of benefits is proposed, pensioners, deferred scheme members and unions must be kept informed by trustees. Furthermore, changes made in 2015 require trustees to notify groups representing the interests of pensioners and deferred scheme members in a scheme in such a situation.

While there are strong arguments for the introduction of greater employer obligations, it is also the case that certain less desirable side effects may result. Any changes to the Pensions Act that legislatively alters the relationship between a pension scheme and its sponsoring employer could have far-reaching implications for pensioners and the pension sector as a whole, as well as the employers. These could include prompting well-funded schemes to wind up to avoid new obligations; threatening a company’s financial stability; rendering some employers insolvent; and/or giving a competitive advantage to employers who either never provided a pension and/or put defined contribution schemes in place.

My Department and the Pensions Authority are currently working on proposals for the reform and simplification of pensions, the purpose of which is to impose higher standards on all occupational schemes.

I would like to assure the Deputy that my Department and the Pensions Authority are closely monitoring developments in the DB sector and keep the need for legislative change under continuous review.

I hope this clarifies the matter for the Deputy.

State Pensions

Questions (70)

Fiona O'Loughlin

Question:

70. Deputy Fiona O'Loughlin asked the Minister for Social Protection the progress that has been made on achieving equality in pension entitlements for those persons who have taken time out of their paid career to care for family members; and if he will make a statement on the matter. [2573/17]

Written answers

Minister for Social Protection

There are a number of ways to qualify for a State pension the rate of payment under the State pension (contributory) scheme is related to contributions paid over the years into the Social Insurance Fund, and credited contributions where applicable. As such, those with a stronger attachment to the workforce, who have paid more into that fund, are more likely to be paid at a higher rate under that scheme, than those with more intermittent contributions made during their working life. Since the contributory pension was introduced in 1961, the ‘yearly average’ contributions test has been used in calculating the level of pension entitlement, where the total contributions paid or credited are divided by the number of years of the working life (from their entry into insurable employment up to the year prior to their reaching State pension age). There are a number of criteria which must be satisfied in order to qualify for a State pension (contributory), whether at full or reduced level. These include that the person must be aged 66 or over, and that they have at least 520 paid contributions. Payment rates are banded. For example, someone with a yearly average of 48 contributions will qualify for a full pension, whereas someone with a lower yearly average of 40 will qualify for a pension at the 98% rate.

The home-makers scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years after that date spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person’s social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for State pension contributory also being satisfied. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of their pension, amounting up to 95% of the maximum contributory pension rate.

The Department is currently working on the development of a “Total Contributions Approach” (TCA) to replace the yearly average approach. The aim of this approach is to make the rate of contributory pension more closely match contributions made by a person with a view to making proposals for consideration later in the year. It is worth noting that this is a very significant reform with considerable legal, administrative, and technical elements in its implementation. An important element in the final design of the scheme will be the position of people who have gaps in their contribution records for various reasons, and this factor is being considered very carefully in developing this reform.

The Deputy should note that, on an actuarial basis, it is a fact that women generally get more back from their PRSI contributions than men. This is particularly true for women with lower earnings and shorter contribution years. The Actuarial Review of the Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors. This is due to the redistributive nature of the Fund. The forthcoming Actuarial Review of the Social Insurance Fund will provide data that will allow officials to accurately cost and project various options available under the TCA reform.

I hope this clarifies the matter for the Deputy.

Social Welfare Benefits

Questions (71)

Willie Penrose

Question:

71. Deputy Willie Penrose asked the Minister for Social Protection when he will consult on options for the introduction of a working family payment; and if the family income supplement will be replaced in his reforms. [2753/17]

Written answers

Minister for Social Protection

The Programme for Government contains a number of commitments to improve the take-home pay of families on low incomes. One such commitment is the proposed “Working Family Payment” targeted at low-income families. My Department’s approach to developing the Working Family Payment will be guided by two principles. First, that it should ensure that work pays and that no family is better off on welfare than at work, and second, though equally important, that it have a positive effect on child poverty. An open call for submissions on the Working Family Payment will issue shortly on the Department's website. An Interdepartmental Working Group is in place to assist the work of my officials in developing proposals. This work will also be informed by the consultation process.

Considerable work and analysis needs to be completed along with the consultation. It is intended that developed proposals will be prepared and will be considered in the context of discussions for Budget 2018.

There are no plans that the proposals will replace the Family Income Supplement.

Social Welfare Benefits Eligibility

Questions (72, 83)

Bríd Smith

Question:

72. Deputy Bríd Smith asked the Minister for Social Protection the amount of unclaimed social protection entitlements that persons are entitled to claim but for whatever reason do not claim. [2774/17]

Bríd Smith

Question:

83. Deputy Bríd Smith asked the Minister for Social Protection his plans to publicise or launch campaigns to ensure persons are fully aware of their entitlements to social protection payments in various circumstances; and if he will make a statement on the matter. [2775/17]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 72 and 83 together.

The Department’s Customer Charter and Action Plan 2016-2018 sets out the level of service customers can expect when dealing with the Department, including a commitment to providing clear, accurate and comprehensive information.

Whilst the Department does not gather information on the amount of unclaimed social welfare entitlements, it makes every effort to ensure that anyone who has an entitlement, and wishes to submit an application form, may do so.

The Department’s website, www.welfare.ie, is the central repository of information on all of the Department’s schemes and services, and is complemented by telephone contact centres and enquiry facilities should a person wish to enquire about their potential entitlement.

The national network of Citizen Information Services also provides key advice, information and assistance to customers seeking such on my Department’s schemes.

In addition, the Department holds regular meetings with customer representative groups, which are used as a mean of communicating new information of schemes, as well as providing an opportunity to consult and receive feedback on proposed communication strategies, in order to maximise the effectiveness of those strategies for my Department’s customers. For example, in 2016, I launched a public awareness campaign to highlight the availability of the Paternity Benefit scheme in order that members of the public, who may not have previously been customers of the Department, were made aware of the availability of the scheme.

The Department is currently reviewing its communications strategy with a view to ensuring that customers are aware of the types of assistance available to them depending on their circumstances.

I hope this clarifies the matter for the Deputy.

JobPath Implementation

Questions (73)

Willie Penrose

Question:

73. Deputy Willie Penrose asked the Minister for Social Protection if he has satisfied himself with the operation of JobPath; and if he plans to wind down this scheme with unemployment continuing to fall. [2757/17]

Written answers

Minister for Social Protection

Ireland’s Public Employment Service (PES) is managed by the Department of Social Protection (DSP) and delivered directly by its own Intreo service as well as by contracted private companies, such as JobPath, Local Employment Service (LES) and Job Club providers. With JobPath the department has procured additional resources to enable it to provide a high quality case managed employment support service to people who are long term unemployed and those most at risk of becoming long-term unemployed.

The JobPath service was designed to augment and complement the Department’s existing employment service capacity, including that provide by LES. The additional capacity provided through the JobPath service has allowed the department to provide the type and intensity of services required by Jobseekers, particularly those most distant from the labour market.

Prior to the introduction of Intreo and JobPath the Department had a case officer to live register ratio of approximately 1,500:1 compared to international benchmarks of less than 200:1. Today with the reduction in the unemployment rate and the increase in capacity, both internally through Intreo and externally through JobPath, the ratio is circa 230:1 and is trending downwards. Nevertheless with a ratio of 230:1 as compared with international norms of less than 200:1 JobPath continues to play a key role in the delivery of the services required by Jobseekers and is likely to do so for the next few years.

The initial data on the impact of the service is encouraging, showing high satisfaction levels among clients of the service, and that people who engage with the service are more likely to secure employment than those who do not. The results of an independent customer satisfaction survey recently undertaken (which forms part of the report) indicates that jobseekers feel that they are receiving a good service, and that JobPath has improved their chances of securing employment.

The department continues to monitor the delivery of the service and will publish performance data on a quarterly basis this year.

I hope this clarifies the matter for the Deputy.

Free Travel Scheme

Questions (74)

Jim Daly

Question:

74. Deputy Jim Daly asked the Minister for Social Protection if he will confirm the future of the free travel scheme operated under his Department; the proposed changes; and if he will make a statement on the matter. [2750/17]

Written answers

Minister for Social Protection

The 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. There are currently approximately 873,000 customers with direct eligibility with an annual allocation of €80 million.

I am aware that the free travel pass is a valuable support for older people and people with disabilities, and that it has a significant role in promoting social inclusion and preventing their isolation. In order to maintain service at existing levels funding to the free travel scheme was increased by €3 million in budget 2016. I have no plans to make any changes to the free travel scheme at this time and I am committed to its full retention.

I hope this clarifies the matter for the Deputy.

Employment Support Services

Questions (75)

Margaret Murphy O'Mahony

Question:

75. Deputy Margaret Murphy O'Mahony asked the Minister for Social Protection the specific measures he plans to introduce to address the issue of high levels of unemployment being experienced by persons with disabilities; and if he will make a statement on the matter. [2730/17]

Written answers

Minister for Social Protection

In Ireland, as in many other countries, the employment rate for people with disabilities is considerably lower than those without disabilities. The reasons for this are diverse and demand a wide-ranging response. The Comprehensive Employment Strategy (CES) for People with Disabilities sets the overall direction of the government’s response to this problem and seeks to reduce barriers to employment and improve pathways to work. My Department actively participated in the development of the strategy and takes a full part in its implementation. For instance, among the commitments contained in the CES was the setting up of an interdepartmental group, under an independent chair, to review and make recommendations to “Make Work Pay” (MWP) for people with disabilities through the examination of the complex interactions between the benefit system, the additional costs associated with work for people with disabilities and net income earnings from employment. I understand that the group is concluding its work and the report will be published soon. Of course, along with its comprehensive range of income supports, my Department provides for a range of supports to allow people with disabilities to improve their employability, to seek and take up employment. I stress that take-up of the employment supports are of a voluntary nature and are tailored to individual circumstances and a person’s capacity to engage with education, training or job-search programmes. For instance, my Department has progressively extended its Intreo service to persons with disabilities and over 60 officers have received training to enable them to interact effectively with people with disabilities. The Department of Social Protection provides a wide range of work related supports for people with disabilities.

One of the principal supports is access to the EmployAbility service, which provides job-coach support to people with disabilities in accessing jobs in the open labour market. Other supports include the provision of employment subsidies through the Wage Subsidy Scheme, workplace adaptation grants and specialist training courses that are specially designed for people with disabilities. Funding is also provided to AHEAD (Association for Higher Education Access and Disability) for the Willing Able Mentoring (WAM) programme, an employment placement programme for graduates with disabilities.

I hope this clarifies the matter for the Deputy.

Question No. 76 answered with Question No. 69.