Tuesday, 21 Mar 2017

Written Answers Nos. 559-580

Child Benefit Data

Questions (559)

John Brady

Question:

559. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of increasing child benefit by €3, €5 and €10 for children aged 12 and over. [13853/17]

Written answers

Minister for Social Protection

Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a disability.

Child Benefit is currently paid to around 627,000 families in respect of some 1.2 million children, with an estimated expenditure in the order of over €2 billion in 2017.

The estimated annual costs of increasing Child Benefit by €3, €5 and €10 for children aged 12 and over is as follows:-

€3 increase: €13.4 million

€5 increase: €22.4 million

€10 increase: €44.8 million.

A targeted increase to children aged 12 years and over, while welcome to families with children in this category, would possibly create an expectation of a similar rate increase to families with younger children under 12 years.

Furthermore, from an operational perspective significant administrative resources would be required as in effect a two-tier system is being introduced, which is not possible to cost or estimate accurately at present.

Any changes to the eligibility criteria for Child Benefit have to be considered in an overall budgetary context.

Questions No. 560 answered with Question No. 550.

One-Parent Family Payment Expenditure

Questions (561)

John Brady

Question:

561. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of raising the cut-off age of the one-parent family payment to 12 years and increase the earnings disregard to €120. [13856/17]

Written answers

Minister for Social Protection

The information that the Deputy has requested is currently not available in my Department. Given the complex nature of the request, my Department will provide the information directly to the Deputy in due course.

Question No. 562 answered with Question No. 550.

State Pensions

Questions (563)

John Brady

Question:

563. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of restoring the State pension band rates to their pre-September 2012 position. [13858/17]

Written answers

Minister for Social Protection

The overall concern in recent years has been to protect the value of weekly social welfare rates. Expenditure on pensions is approximately €7 billion per annum. Due to demographic changes, my Department's spending on older people is increasing year on year at an approximate rate of €1 billion every 5 years. Maintaining the rate of the State pension and other payments is critical in protecting people from poverty.

As provided for in Budget 2012, from September 2012, new rate bands for State pension (contributory) were introduced. These bands replaced the previous structure, introduced in 2000. They 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, subject to the safety nets in place for those with no other means.

Entitlement is banded based on the average yearly contributions made during a working life. Those with a yearly average of 48+ contributions receive a 100% pension, where, for example, those with only a yearly average of 20 contributions receive an 85% pension (not means-tested).

It is estimated that reverting the contributory pension rate bands, to the percentages effective from 2000-2012, would cost over €60 million next year, and this annual cost would rise at a rate of approximately €10 million per annum. If such a change was introduced, it would mainly benefit pensioners with additional income above the State pension, and not those solely dependent upon it. It would also significantly reduce the funds available for across-the-board pension increases, which were instead introduced in the 2016 and 2017 Budgets, and which benefit all pensioners, including those most at risk of poverty.

Reforms and increases in the pension age have safeguarded the pension system and its core rates, despite huge demographic pressures and the economic crisis. By achieving this, even in such difficult circumstances, the Government has shown its commitment to supporting older people, as evidenced by CSO figures which show pensioners far less likely to experience consistent poverty than the general population.

Where someone does not qualify for a full rate contributory pension there are supports available in the overall State pension system which assists qualification for a contributory payment, based on factors such as the contributions made by their spouse, and/or other factors likely to impact upon their needs. These include:

- The Homemaker’s scheme, which was introduced to make qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties.

- Widows generally qualify for a full-rate Widows Contributory Pension.

- Increases for Qualified Adults.

- Credits for periods of unemployment and illness.

For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €227 (over 95% of the maximum rate of the contributory pension).

I hope this clarifies the matter for the Deputy.

Family Income Supplement Expenditure

Questions (564)

John Brady

Question:

564. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of extending the family income supplement payment to those engaged on job activation schemes. [13859/17]

Written answers

Minister for Social Protection

The 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 prevent in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment. There are currently over 57,000 families with more than 126,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €422 million.

To qualify for FIS, a person must be engaged in full-time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. A couple may combine their hours of employment to meet the qualification criteria. The applicant must also have at least one qualified child who normally resides with them or is supported by them. Furthermore, the average family income must be below a specified amount, which varies according to the number of qualified children in the family.

My Department provides a range of activation supports catering for long-term unemployed jobseekers. These supports include employment schemes such as Community Employment (CE), Tús, and Gateway. These schemes provide part-time temporary work in local communities, as a stepping stone back to employment. The objective of these schemes is to break the cycle of unemployment and maintain work readiness, thereby improving a person’s opportunities to return to the labour market. It is possible for a household to receive a FIS payment where the spouse or partner of the FIS applicant is engaged on one of these schemes. However, to pay FIS directly to someone who is participating in one of these schemes would reduce the incentive for that person to move off a supported employment programme and into full-time remunerative employment.

Research from the ESRI shows that people are better off in work, the results, based on an analysis of current incomes, benefits and taxes, suggest that more than eight out of ten of these unemployed jobseekers would see their income increase by at least 40 per cent upon taking up employment. FIS helps recipients to gain a firm foothold in work and build a better future for their families.

My Department does not have definitive up-to-date data on the household income relating to the households on the various job activation schemes. Therefore it has no way of predicting with any accuracy the potential additional estimated full year cost of extending the family income supplement payment to those engaged on job activation schemes.

Finally, any changes to the FIS scheme would have to be considered in an overall Budgetary context.

Question No. 565 answered with Question No. 550.

Household Benefits Scheme

Questions (566)

John Curran

Question:

566. Deputy John Curran asked the Minister for Social Protection the estimated full-year cost of reinstating the household benefits package in full. [13875/17]

Written answers

Minister for Social Protection

The household benefits package comprises the electricity/gas allowance (€35 per month) and the free television licence scheme (€160 per annum). At present, it is paid to some 425,000 customers, with expenditure estimated at €232 million for 2017.

There has been no reduction in the household benefits scheme in recent budgets. However, there were considerable changes in the scheme in previous years, not just in terms of the various levels of benefits that have been made available under the scheme at different points in time, but also the basis upon which they are paid, e.g., whether they are a payment for units or a cash payment.

The cost, therefore, would depend on a number of factors, including whether all of these changes would be reversed, the particular levels of benefit which would be restored, whether there would be an adjustment for inflation, the increased claim load among those who qualify, and take-up for the various benefits.

In Budget 2011 the number of free units provided under the electricity and gas allowance was reduced to the level at the start of 2007 (from 2,400 to 1,800). This change was effective from September 2011. In Budget 2013 the electricity allowance was restructured and is now based on the average best rate (minus the PSO) available for 150 units per month from Electric Ireland, Bord Gáis Éireann and Airtricity which resulted in electricity and gas allowances rate of €35 per month or €420 a year. Based on a rate of 2,400 units a year this could give a rate of €560 a year.

In August 2007 the value of the telephone allowance was increased with general price increases from €296 per annum to €310.80 per annum. Following a number of reductions in the rate, the telephone allowance element of the household benefits scheme was discontinued in 2014. At the time it was discontinued 77 per cent of people receiving household benefits were receiving the telephone allowance.

It is estimated that restoring both these benefits to their earlier levels would be likely to cost in the region of €160-€190 million in a full year.

The Government is keenly aware of the impact of Budget decisions on the Department’s clients, and strives to ensure that the money available is targeted in the most effective way. Over the past two Budgets, the maximum weekly rate for State Pensions has increased by €8 per week, which is the equivalent of nearly €35 per month. This has increased the personal rate of the non-contributory pension to €227, and that of the contributory pension to €238.30. There was also a €2.50 increase in the rate of the Fuel Allowance last year, from €20 to €22.50 per week. It is worth noting that the value of these increases is in excess of the value of the household benefits previously provided.

Any decision to increase the benefits under the household benefits package would have to be considered in the context of overall budgetary negotiations. On the occasion of the most recent budgets, the Government has chosen to concentrate resources on increasing the rate of the pension and other weekly payments.

I hope this clarifies the matter for the Deputy.

Community Care Provision

Questions (567)

John Brassil

Question:

567. Deputy John Brassil asked the Minister for Social Protection if he will assess the feasibility and costs for the provision of a nationwide database that would co-ordinate service providers, both public bodies and community organisations, that provide community services, most especially for the care of the old and vulnerable, in order to properly identify persons who need help, and inform them of the help that is required and the body which can and will provide that help; and if he will make a statement on the matter. [13910/17]

Written answers

Minister for Social Protection

The Health Service Executive (HSE) provides a wide range of services for people growing older in Ireland and is committed to the protection and promotion of the rights of older people, their dignity, diversity and independence.

The specific issue raised in your parliamentary question concerning services for older people and persons deemed as vulnerable would appear to be more appropriate for my colleague, the Minister for Health and also for the HSE.

I trust this clarifies the matter for the Deputy.

Labour Activation Projects

Questions (568)

Jackie Cahill

Question:

568. Deputy Jackie Cahill asked the Minister for Social Protection if a person (details supplied) can be released from their obligations to Turas Nua; and if he will make a statement on the matter. [13912/17]

Written answers

Minister for Social Protection

All jobseekers referred to JobPath must have been registered as unemployed and available for work for at least 12 months. Participation with the JobPath service is mandatory as is the case for the activation services provided for jobseekers by Intreo and the Local Employment Services

I understand that the customer has not yet informed my Department regarding his ill health and I have asked my officials to contact the customer to discuss his options.

I hope this clarifies the matter for the Deputy.

Disability Allowance Applications

Questions (569)

John McGuinness

Question:

569. Deputy John McGuinness asked the Minister for Social Protection if disability benefit will be approved for a person (details supplied). [13914/17]

Written answers

Minister of State at the Department of Social Protection

I confirm that an application from this lady for disability allowance (DA) was received by my Department on 1 February 2017.

The application has been referred to a Social Welfare Inspector (SWI) for a report on the person’s means and circumstances. Once the SWI has submitted his/her report to DA section, a decision will be made on the application and the person concerned will be notified directly of the outcome.

I trust this clarifies the matter for the Deputy.

Question No. 570 withdrawn.

Carer's Allowance Data

Questions (571)

John Brady

Question:

571. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of increasing the hours carers can study or work while in receipt of social welfare from 15 to 20 hours per week. [14032/17]

Written answers

Minister for Social Protection

Entitlement to a Carer's Allowance means that a person must be living with, or in a position to provide full-time care and attention to a person in need of care who does not normally live in an institution and not be engaged in employment, self-employment, training or education courses outside the home for more than 15 hours a week. During such an absence, adequate care for the person requiring full-time care and attention must be arranged. Similar conditions apply in the case of Carer’s Benefit.

Carer's benefit and carer's allowance are demand-led schemes and increasing the number of hours a carer can work from 15 hours to 20 hours per week, while continuing to be regarded as providing full-time care and attention, would be expected to increase the demand for these payments and lead to additional programme costs.

It is not feasible, based on the information currently available to my Department, to provide a reliable estimate of the additional numbers of workers and students that would qualify for carer’s income supports consequent on such an increase particularly when account is taken of the fact that changing such conditions might themselves have an impact on decisions at individual household level.

My Department will consider how best it could improve the robustness and reliability of estimates around such change as part of the overall budgetary process.

I hope that this answers the Deputy’s question.

Questions Nos. 572 to 574, inclusive, answered with Question No. 550.

Bereavement Grant

Questions (575)

John Brady

Question:

575. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of introducing a bereavement grant of €500, €700 and €1,000. [14036/17]

Written answers

Minister for Social Protection

In recent Budgets my Department has protected primary social welfare rates. Abolishing the bereavement grant provided a significant annual saving. This allowed my Department to protect other social welfare payments such as the State pension.

There are a range of supports available for people following bereavement which provide more significant support than the grant. These include a weekly-paid widow's, widower's or surviving civil partner’s (contributory and non-contributory) pensions, which are based on contributions or a means test, and a once-off widowed or surviving civil partner grant of €6,000 where there is a dependent child. A number of social welfare payments, including State pension, continue in payment for six weeks following a death. In Budget 2016, the Government increased the payment after death period to 12 weeks for carer’s allowance. Guardian payments are available where someone cares for an orphaned child. A special funeral grant of €850 is paid where a person dies because of an accident at work or occupational disease.

The supplementary welfare allowance (SWA) scheme provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependants. Under the SWA scheme, the Department of Social Protection 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 from their weekly income, which may include help with funeral and burial expenses. The Government has provided €31.5 million for exceptional and urgent needs payments in 2017.

The number of bereavement grant claims in 2013 was 23,716, and this represented a percentage increase on 2012 figure of approximately 4%. Based on a similar yearly increase each year since 2013, it is estimated that the number of bereavement grant claims that might arise in 2018, were the scheme to be reintroduced, would be in the region of 28,858, and this number would likely increase in future years. The following table sets out the estimated cost of introducing a bereavement grant at a rate of €500, €700 and €1000.

Estimate cost of introducing a Bereavement Grant in 2018

Amount	Estimated number of grants to be paid	Cost per annum
€500	28,858	€14.43 million
€700	28,858	€20.2 million
€1000	28,858	€28.86 million

I hope this clarifies the matter for the Deputy.

State Pensions

Questions (576)

John Brady

Question:

576. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of reinstating the State pension transition payment. [14037/17]

Written answers

Minister for Social Protection

The Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition) available from 65 for those who satisfied the qualifying conditions, thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and to 68 in 2028.

In most cases, it is hoped that workers will continue to work up to the new State pension age. Where this is not possible, there are specific measures which apply to someone claiming Jobseeker’s Benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.

Reversing this measure would have a significant Exchequer cost. In 2013, the cost of the State pension (transition) was €137 million. Its abolition was not expected to save that amount of expenditure in full, as some people who were affected would alternatively claim working age payments such as Jobseeker's Benefit (albeit at a lower rate than the rate of the State pension), or may claim an Increase for a Qualified Adult in respect of their spouse’s pension. However, it is anticipated that well over half of the gross cost has been saved each year as a result of this measure, and this would be expected to increase as (a) the number of 65 year olds increases, (b) the change results in a higher percentage of people working while aged 65, and (c) there have been two Budget increases in the rate of the State pension since then. It is estimated that the net saving in 2018 is likely to be in the region of €84 million, and this is expected to increase over time. The cost of reversing this decision would depend, therefore, on the effective date of such a measure, and also on any resultant changes in behaviour.

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 year on year. 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. This sustainability is vital, if the current workers, who fund State pension payments through their PRSI, are to receive a pension themselves when they reach retirement age.

The Deputy should note that there is no legally mandated retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may have been entered into with a retirement date of 65, in the context of the previous State pension arrangements, there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so.

I hope this clarifies the matter for the Deputy.

Question No. 577 answered with Question No. 550.

Fuel Allowance Expenditure

Questions (578)

John Brady

Question:

578. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of increasing the fuel allowance payment by €3 and €5. [14039/17]

Written answers

Minister for Social Protection

The fuel allowance is a payment of €22.50 per week for 26 weeks from October to April, to 378,000 low income households, at an estimated cost of €229 million in 2017. The purpose of this payment is to assist these households with their energy costs. It represents a contribution towards those costs and is not intended to meet them 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 approximately 425,000 customers, at an estimated cost of €232 million in 2017.

Given the 2017 estimated cost of fuel allowance is €229 million based on a weekly fuel allowance rate of €22.50, the estimated cost of increasing the fuel allowance by €3 a week to €25.50 would be €30.5 million and of increasing it by €5 a week to €27.50 would be €50.9 million.

The best way to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling. My Department works closely with the Department of Communications, Energy and Natural Resources on these issues and in moving forward the actions agreed in the Energy Affordability Strategy. In that regard, the Better Energy Homes scheme provides support towards the installation of attic and wall insulation, and heating system upgrades.

I hope this clarifies the matter for the Deputy.

Departmental Staff Data

Questions (579)

Richard Boyd Barrett

Question:

579. Deputy Richard Boyd Barrett asked the Minister for Social Protection further to Parliamentary Question No. 260 of 23 February 2017, if he will provide details with regard to the five members of staff currently suspended in his Department, in tabular form (details supplied). [14057/17]

Written answers

Minister for Social Protection

The details of the 5 members of staff of my Department currently suspended with pay pending the completion of the disciplinary investigation process are as follows.

-	Grade	Salary Point	Suspended From	Reason for Suspension	Date Investigation commenced	Expected date of completion of investigation
1.	HEO	€57,246	August 2012	Alleged Fraud	See below	Unknown
2.	HEO	€57,246	October 2012	Alleged Fraud	See below	Unknown
3.	EO	€44,187	June 2015	Alleged Inappropriate Behaviour	June 2015	Complete
4.	HEO	€55,415	September 2015	Alleged Inappropriate Behaviour	September 2015	Complete
5.	EO	€37,588	November 2015	Alleged Inappropriate Behaviour	November 2015	Pending

In relation to cases 1 and 2 above these are being dealt with by the Gardaí, who have requested that the Department delay action until completion of their investigations.

In relation to cases 3 and 4 above, the investigations are now complete and appropriate action is being taken in accordance with the Civil Service Disciplinary Code. In relation to case 5, the investigation is nearing completion, with the delay due to the absence of a key witness.

There is no cost associated with each of the investigations and no replacement salary costs are applicable for any of the members of staff. While the salary costs for each month of suspension are not available, the annual salary point applied to each staff is indicated in the table.

Departmental Surveys

Questions (580)

Mattie McGrath

Question:

580. Deputy Mattie McGrath asked the Minister for Social Protection the details of the survey he has issued to a number of self-employed persons in relation to extending social welfare entitlements to the self-employed; the number of recipients of this survey; the way in which the participants were chosen to participate; the reason for sending this survey; and if he will make a statement on the matter. [14099/17]

Written answers

Minister for Social Protection

In August 2016, the Department of Social Protection conducted a survey of 20,022 people – largely self-employed workers including farmers, as well as certain company directors – who relied on Class S Pay-Related Social Insurance (PRSI) contributions to qualify for social insurance benefits in the tax year 2014.

The survey was undertaken to understand how the PRSI system is working for self-employed people, in order to inform consideration of possible changes to the system, in line with the commitment in the Programme for a Partnership Government to "seek to introduce a PRSI scheme for the self-employed and provide a supportive tax regime for entrepreneurs and the self-employed".

The Statistics and Business Intelligence Unit of this Department conducted the survey in accordance with the principles of the Irish Statistical System Code of Practice. First, a stratified random sample of 20,022 people was generated from the population of people who paid PRSI contributions under Class S (and no other class) in 2014. These people were then surveyed via a postal questionnaire to elicit their views on the social insurance system as it applies to them, their satisfaction with its range of coverage, and their suggestions on how the range of benefits might be extended.

An analysis of the responses has been completed and is being reviewed prior to publication.