Written Answers Nos. 575-592
575. Deputy Charlie McConalogue asked the Minister for Rural and Community Development the breakdown between funds expended on preparatory support costs, administration costs and project costs on the LEADER programme in each year of the Rural Development Programme 2014-2020 and to date in 2018 per each local action group, in tabular form. [39426/18]
View answerLEADER is a multi-annual programme for the period 2014-2020 and has a total budget of €250 million over that period. Tables 1-3 below detail the expenditure incurred in each of the years 2015 to 2017, and to date in 2018 per each Local Action Group (LAG) area. The expenditure relates to:
- the costs incurred in each LAG area in relation to development of the Local Development Strategies (Preparatory Support),
- the administration costs of the LAGs and the costs of their engagement with communities to generate projects; and,
- expenditure incurred on projects.
The level of project activity under the LEADER programme has increased significantly in recent months, with 1,318 projects being approved for funding of over €40 million. A further 331 project applications with a combined value of in excess of €21 million are at various stages in the approval process.
Project payments have increased significantly in recent months as approved works are completed and claims for payment are submitted by the project promoters. Over €6 million of project expenditure has been incurred in 2018 compared with just €600,000 in 2017.
The progress now being made by the Local Action Groups in approving projects will result in a continued increase in project approvals and payments under the LEADER programme for the remainder of the year. This progress has been assisted by improvements made by my Department in the last year to the applications and approvals process, in consultation with the LAGs.
Table 1: LEADER 2014-2020 Preparatory Support expenditure by year as of 24 th September 2018
|
Local Action Group Area |
2015 |
2016 |
2017 |
2018 |
|
Carlow |
€20,000 |
€0 |
€0 |
€0 |
|
Cavan |
€50,000 |
€0 |
€0 |
€0 |
|
Clare |
€71,000 |
€12,336 |
€0 |
€0 |
|
Cork North |
€15,000 |
€0 |
€0 |
€0 |
|
Cork South |
€65,000 |
€0 |
€0 |
€0 |
|
Cork West |
€135,240 |
€0 |
€0 |
€0 |
|
Donegal |
€57,594 |
€0 |
€0 |
€0 |
|
Dublin Rural |
€55,000 |
€0 |
€0 |
€0 |
|
Galway East |
€0 |
€58,214 |
€97,142 |
€0 |
|
Galway West |
€75,000 |
€0 |
€0 |
€0 |
|
Kerry |
€15,000 |
€1,344 |
€0 |
€0 |
|
Kildare |
€50,000 |
€0 |
€0 |
€0 |
|
Kilkenny |
€54,725 |
€2,570 |
€0 |
€0 |
|
Laois |
€25,000 |
€10,191 |
€0 |
€0 |
|
Leitrim |
€25,000 |
€0 |
€0 |
€0 |
|
Limerick |
€22,187 |
€0 |
€0 |
€0 |
|
Longford |
€30,000 |
€0 |
€0 |
€0 |
|
Louth |
€28,000 |
€0 |
€0 |
€0 |
|
Mayo |
€107,000 |
€12,238 |
€0 |
€0 |
|
Meath |
€40,000 |
€0 |
€0 |
€0 |
|
Monaghan |
€58,296 |
€0 |
€0 |
€0 |
|
Offaly |
€30,000 |
€0 |
€0 |
€0 |
|
Roscommon |
€58,213 |
€0 |
€0 |
€0 |
|
Sligo |
€15,000 |
€0 |
€0 |
€0 |
|
Tipperary |
€20,000 |
€0 |
€0 |
€0 |
|
Waterford |
€63,430 |
€11,997 |
€0 |
€0 |
|
Westmeath |
€25,500 |
€102 |
€0 |
€0 |
|
Wexford |
€15,000 |
€0 |
€0 |
€0 |
|
Wicklow |
€25,000 |
€10,794 |
€0 |
€0 |
|
Totals |
€1,251,185 |
€119,785 |
€97,142 |
€0 |
Table 2: LEADER 2014-2020 Administration Expenditure by year as of 24 th September 2018
|
Local Action Group Area |
2015 |
2016 |
2017 |
2018 |
|
Carlow |
€0 |
€0 |
€206,148 |
€196,163 |
|
Cavan |
€0 |
€62,741 |
€264,138 |
€173,117 |
|
Clare |
€0 |
€190,000 |
€525,000 |
€247,000 |
|
Cork North |
€0 |
€19,456 |
€422,197 |
€251,099 |
|
Cork South |
€0 |
€0 |
€261,234 |
€176,731 |
|
Cork West |
€0 |
€0 |
€362,953 |
€245,057 |
|
Donegal |
€0 |
€35,362 |
€747,483 |
€476,015 |
|
Dublin Rural |
€0 |
€0 |
€290,992 |
€205,032 |
|
Galway East |
€0 |
€60,000 |
€330,000 |
€205,000 |
|
Galway West |
€0 |
€0 |
€180,000 |
€90,000 |
|
Kerry |
€0 |
€0 |
€811,249 |
€456,634 |
|
Kildare |
€0 |
€0 |
€163,910 |
€192,710 |
|
Kilkenny |
€0 |
€180,000 |
€525,000 |
€240,000 |
|
Laois |
€0 |
€25,051 |
€270,386 |
€210,298 |
|
Leitrim |
€0 |
€32,134 |
€298,277 |
€203,032 |
|
Limerick |
€0 |
€26,267 |
€670,442 |
€401,074 |
|
Longford |
€0 |
€0 |
€266,711 |
€244,926 |
|
Louth |
€0 |
€21,913 |
€327,734 |
€206,715 |
|
Mayo |
€0 |
€31,484 |
€839,410 |
€314,451 |
|
Meath |
€0 |
€99,961 |
€307,133 |
€294,316 |
|
Monaghan |
€0 |
€45,042 |
€260,822 |
€200,548 |
|
Offaly |
€0 |
€43,481 |
€414,017 |
€301,107 |
|
Roscommon |
€0 |
€70,559 |
€325,968 |
€185,906 |
|
Sligo |
€0 |
€57,268 |
€264,697 |
€158,949 |
|
Tipperary |
€0 |
€16,443 |
€525,103 |
€282,719 |
|
Waterford |
€0 |
€43,782 |
€385,789 |
€261,688 |
|
Westmeath |
€0 |
€26,769 |
€345,928 |
€242,968 |
|
Wexford |
€0 |
€21,129 |
€443,303 |
€220,662 |
|
Wicklow |
€0 |
€32,295 |
€328,839 |
€211,177 |
|
Totals |
€0 |
€1,141,135 |
€11,364,865 |
€7,095,092 |
Table 3: LEADER 2014-2020 Project Expenditure by year as of 24 th September 2018
|
Local Action Group Area |
2015 |
2016 |
2017 |
2018 |
|
Carlow |
€0 |
€0 |
€50,000 |
€444,756 |
|
Cavan |
€0 |
€0 |
€0 |
€216,589 |
|
Clare |
€0 |
€0 |
€0 |
€279,876 |
|
Cork North |
€0 |
€0 |
€0 |
€206,246 |
|
Cork South |
€0 |
€0 |
€132,333 |
|
|
Cork West |
€0 |
€0 |
€0 |
€20,933 |
|
Donegal |
€0 |
€0 |
€30,844 |
€1,072,714 |
|
Dublin Rural |
€0 |
€0 |
€0 |
€83,818 |
|
Galway East |
€0 |
€0 |
€0 |
€0 |
|
Galway West |
€0 |
€0 |
€0 |
€5,042 |
|
Kerry |
€0 |
€0 |
€0 |
€496,151 |
|
Kildare |
€0 |
€0 |
€0 |
€0 |
|
Kilkenny |
€0 |
€0 |
€75,559 |
€240,219 |
|
Laois |
€0 |
€0 |
€12,250 |
€68,692 |
|
Leitrim |
€0 |
€0 |
€0 |
€103,485 |
|
Limerick |
€0 |
€0 |
€0 |
€0 |
|
Longford |
€0 |
€0 |
€0 |
€7,692 |
|
Louth |
€0 |
€0 |
€12,450 |
€78,195 |
|
Mayo |
€0 |
€0 |
€57,143 |
€300,948 |
|
Meath |
€0 |
€0 |
€10,770 |
€23,429 |
|
Monaghan |
€0 |
€0 |
€0 |
€241,671 |
|
Offaly |
€0 |
€0 |
€64,051 |
€475,070 |
|
Roscommon |
€0 |
€0 |
€0 |
€57,762 |
|
Sligo |
€0 |
€0 |
€237,708 |
€263,873 |
|
Tipperary |
€0 |
€0 |
€0 |
€319,225 |
|
Waterford |
€0 |
€0 |
€111,069 |
€788,370 |
|
Westmeath |
€0 |
€0 |
€0 |
€129,575 |
|
Wexford |
€0 |
€0 |
€0 |
€260,367 |
|
Wicklow |
€0 |
€0 |
€0 |
€19,856 |
|
Totals |
€0 |
€0 |
€661,844 |
€6,336,886 |
576. Deputy Brendan Griffin asked the Minister for Rural and Community Development if a review of the criteria will be carried out in order to allow childcare providers to apply for LEADER grants; and if he will make a statement on the matter. [39521/18]
View answerFunding under the LEADER Programme is targeted at innovative approaches to addressing the needs of rural areas as identified in the Local Development Strategies prepared for each sub-regional area. The funding can be provided under a broad range of themes, including enterprise development and social inclusion. It is important, however, to ensure that the available funding is targeted at policy areas where it can provide the greatest added value.
Provision of funding supports for childcare providers is available through the Department of Children and Youth Affairs and the City and County Childcare Committee. It is not, therefore, proposed to extend the LEADER Programme to include the provision of childcare facilities at present.
577. Deputy Micheál Martin asked the Minister for Rural and Community Development the cost of each seminar held on Project Ireland 2040 up to and including September 2018 by his Department; and if he will make a statement on the matter. [39589/18]
View answerMy colleague, the Minister for Agriculture, Food and the Marine, and I hosted a Special Forum attended by over 220 stakeholders on the theme of Creating Stronger Rural Economies and Communities, in the Town Hall Theatre in Westport on 13 July 2018. This was part of the Government’s engagement with the public on Project Ireland 2040. €11,704 in costs has paid out to date in relation to the Westport event, which will be shared between my Department and the Department of Agriculture, Food and Marine.
My Department also participated in a number of regional information sessions for the public relating to the Rural Regeneration and Development Fund (which is being overseen by my Department) in September. The sessions were also attended by the Department of Housing, Planning and Local Government, as it related to their role overseeing the Urban Regeneration and Development Fund. Both funds were established on foot of the €4 billion in funding set aside under Project Ireland 2040 funds for rural development, urban regeneration, climate action and innovation. The information sessions were held in Cork, Carrick on Shannon, Tullamore and Drogheda and were hosted by the three Regional Assemblies and the Irish Local Development Network. As such, no hosting or organisational costs were incurred by my Department in relation to these events.
578. Deputy Catherine Murphy asked the Minister for Rural and Community Development the amount spent by his Department on third party public relations advice, communications advice, online advertising and public awareness campaigns to date in 2018, by month and company engaged in tabular form; and if he will make a statement on the matter. [39645/18]
View answerA total of €7,492 has been expended to date by my Department in relation to online advertising and public awareness campaigns.
This expenditure related to a call for proposals in respect of the Project Ireland 2040 Rural Regeneration and Development Fund which was placed in the national press as well as consultation on the drafting of the Department's Irish language Scheme which was advertised online and in an Irish language publication. Details are set out in the table below.
|
Company |
Date |
Amount |
|
Spark Foundry |
August 2018 (RRDF) |
€6,407 |
|
Spark Foundry |
September 2018 (Irish Language Scheme) |
€1,084 |
Agencies under my Department may also undertake public awareness campaigns; of particular note is the work undertaken by Irish Water Safety to raise the awareness of measures to be taken to prevent drownings. Total funding of €700k was allocated in 2018 to Irish Water Safety to support drowning prevention measures.
In view of the prolonged period of exceptional warm weather conditions during summer this year, which resulting in much greater numbers of people using our beaches, rivers and lakes for leisure swimming, the media campaign run by Irish Water Safety was extended to run throughout the summer.
My Department has not expended any funds on third party public relations advice or communications advice.
579. Deputy Mattie McGrath asked the Minister for Rural and Community Development the funding provided to the LEADER programme in County Tipperary in each of the years 2007 to 2017, inclusive, and to date in 2018; and if he will make a statement on the matter. [39721/18]
View answerThe period referred to by the Deputy includes both the LEADER 2007–2013 and the LEADER 2014-2020 programmes.
For the LEADER 2007–2013 programme, two Local Action Groups (LAGs) delivered the programme in County Tipperary - North Tipperary LEADER Partnership Company and South Tipperary Local Development Company Limited.
For the LEADER 2014–2020 programme, Tipperary Local Community Development Committee is the LAG for County Tipperary.
The expenditure incurred by the Tipperary Local Action Groups under both programmes for each of the years referenced is shown on Tables 1 and 2 below.
Table 1 LEADER 2007 – 2013 Programme - Expenditure incurred by Tipperary LAGs
|
Total Expenditure by LAG for LEADER 2007-2013 |
North Tipperary LEADER Partnership Company |
South Tipperary Local Development Company Limited |
|
2007 |
€0 |
€0 |
|
2008 |
€0 |
€0 |
|
2009 |
€206,447 |
€427,001 |
|
2010 |
€1,355,480 |
€1,290,697 |
|
2011 |
€1,763,802 |
€1,441,884 |
|
2012 |
€2,158,895 |
€2,295,621 |
|
2013 |
€2,607,127 |
€3,964,018 |
|
2014 |
€3,942,779 |
€2,207,193 |
|
2015 |
€756,203 |
€885,531 |
|
2016 |
€127,525 |
€95,351 |
Table 2 LEADER 2014 – 2020 Expenditure incurred by Tipperary LAG
|
Year |
Expenditure |
|
2014 |
€0 |
|
2015 |
€20,000 |
|
2016 |
€16,443 |
|
2017 |
€525,103 |
|
2018 to date |
€601,943 |
580. Deputy Charlie McConalogue asked the Minister for Rural and Community Development the cost of his Department's stand at the National Ploughing Championships 2018; the number of staff deployed from his Department for the week; and the cost of same. [40358/18]
View answerThe National Ploughing Championships (NPC) is one of the largest public outdoor events in Europe, and can see attendances of close to 300,000 each year. It provided the Department of Rural and Community Development in particular, as a Department which was only established in July 2017, with a unique opportunity to communicate with the general public and to let them know who we are as a Department, and more importantly, what we can do for them and their communities.
NPC 2018, in line with the event in 2017, saw the Department of Rural and Community Development (DRCD) share space with the Department of Culture, Heritage and the Gaeltacht (DCHG). The cost of the joint presence is being shared between DRCD and DCHG.
Overall, 30 of my Department’s staff members, ranging from Clerical Officer level to Principal Officer level, worked over the three-day period. Attendance at the event is viewed as part of the normal duties of staff. A number of staff were also scheduled to be deployed on the Wednesday and many had arrived but returned to base, once it became clear that the event was not taking place on the Wednesday.
Any travel and subsistence costs for staff attendance at ploughing will be claimed by staff in line with the standard Civil Service rules and rates.
The Department’s presence was also supported by over 100 staff and volunteers from agencies and bodies funded through the Department.
The table below outlines the costs to date of my Department’s presence at NPC 2018, noting that some invoices are yet to be received. The costs indicated with an ‘S’ below are costs shared with DCHG.
|
Actual Costs (* Invoices not yet received, S: Shared Costs) |
|
|
Marquee Contractor |
€122,846*(ex VAT) (S) |
|
Catering |
€2,575.94 (S) |
|
Eir (Broadband etc) |
€3,000.00* (S) |
|
NPA Site Costs |
€12,927.67 (S) |
|
Staff and Volunteer Passes |
€2,880.00 |
|
Merchandise |
€9,596.36 |
|
DRCD Departmental Booklet |
€2,330.85 |
|
Graphics (Design and Print) |
€4,218.00 |
|
Courier |
€1,000.00* (S) |
|
Staff Transport (Bus Hire) |
€1,950.00* (S) |
|
Total |
€163,324.82 |
581. Deputy Niall Collins asked the Minister for Employment Affairs and Social Protection the communications, press and public relations budget allocated to her Department for 2018; the way in which it is being spent; if it is behind or ahead of profile; and if she will make a statement on the matter. [39371/18]
View answerThe Customer Communications and Advertising Activity budget for 2018 is €1,350,000.
This budget covers all planned external communications and public information campaigns. It is also used for the development of customer information guides, customer event, reports, videos, documents, posters and other visual material for use by the Department in its engagements with customers and stakeholders. The Department also uses the budget to produce content in a range of accessible formats including plain English, Irish Sign Language and braille.
As of the end of August 2018, spend under this budget was behind profile.
582. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection when the decision was made to cease the payment of an additional six weeks of contributory pension payments following the death of a spouse in receipt of an independent contributory pension in circumstances in which the spouse who is deceased was also in receipt of a contributory based pension in his or her own right; the reason that change in the situation is not mirrored in the case of a person in receipt of a non-contributory pension; the rationale behind the decision; the financial saving she plans to make; and if she will make a statement on the matter. [39384/18]
View answerMy Department recently issued a guideline to staff clarifying the existing legislation for continuing to pay specific social welfare payments to either a customer or to a qualified dependant for a period of six weeks after death.
The Department has not made any amendments to legislation or policy in this regard. The guideline was issued because it had come to attention that the existing legislation was being applied in an inconsistent way by different sections and decision-makers.
Continued payment after death continues to apply for a six week period where the surviving spouse/partner/cohabitant was included as a qualified adult on the deceased person's claim or would have been but for the fact that they were in receipt of one of the following payments in their own right:
- State Pension Non-Contributory
- Blind Pension
- Carer’s Benefit or
- Carer’s Allowance (payable for 12 weeks).
I hope this clarifies the matter. If the Deputy has a particular case in mind she should contact my office with the details.
583. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection her plans to assist women who do not qualify for a State pension contributory due to the fact that they were forced to leave work due to the marriage bar and who do not have 520 paid contributions; and if she will make a statement on the matter. [39394/18]
View answerThere are a number of payments and pensions paid by my department to people over State pension age. One of these is the State pension (contributory), qualification for which is based on a number of criteria, including that a minimum of 520 qualifying contributions have been paid into the Social Insurance Fund. People who have not made such contributions are generally paid alternative payments, if they are not in receipt of a Public Service pension.
“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, and the necessary legislation to effect these recommendations was contained in Section 12 of the Social Welfare Act 1997. These changes reflected the very significant increase in PRSI coverage which had taken place over the previous decades, which made it easier for people to pay into the Social Insurance Fund for at least 10 years between the age of 16 and retirement.
It is generally considered reasonable to require people who seek a contributory pension to have made at least 10 years' paid contributions into the Social Insurance Fund which finances it, over the span of 50 years of working age life.
For those who do not qualify for the State Pension (contributory) (SPC) because they have paid few or no contributions into the Social Insurance Fund, there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory), which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC. Consequently, if a person doesn’t receive a State pension at pension age, they have both significant means and have made little or no contribution to the Social Insurance Fund. Awarding them a state pension would take resources away from other pensioners, most of whom either have contributed into the Social Insurance Fund most of their adult life, and/or are solely dependent upon the State pension, and have less means than the group who would benefit from such a change.
It’s worth noting that the marriage bar describes a rule that existed in most of the public service, and some private sector employments, where women were required to leave their employment upon marriage. As it was a rule rather than a general legal prohibition against employing married women, they could either return to work or take up other work, and many did. It is also worth remembering that most public servants recruited prior to 1995 are not entitled to the State pension, regardless of gender and marital status. Therefore, the marriage bar would not generally have negatively impacted on State pension entitlement, as they would not have qualified for that payment had they remained in public sector employment. The implications it had for public service pensions are a matter for the Minister for Public Expenditure & Reform.
I hope this clarifies the matter for the Deputy.
584. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the progress to date in the determination of an appeal for invalidity pension in the case of a person (details supplied); when the appeal is likely to conclude; and if she will make a statement on the matter. [39396/18]
View answerThe person concerned submitted additional medical evidence in support of their invalidity pension (IP) appeal.
Their claim was reviewed by a deciding officer and they have been awarded IP with effect from 22 February 2018.
Payment will issue to his nominated bank account on 11 October 2018. Any arrears due from 22 February 2018 to 10 October 2018 (less any overlapping social welfare payment) will issue in due course. He was notified of this decision on 27 September 2018.
I hope this clarifies the matter for the Deputy.
585. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the supports available to assist a person (details supplied); and if she will make a statement on the matter. [39403/18]
View answerCarer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.
An application for CA was received from the person concerned on 14 May 2018.
As the person concerned failed to supply any supporting documentation with their application, this was requested from them on 24 September 2018. Once the information is received the application will be processed without delay and the person concerned notified directly of the outcome.
CA recipients automatically qualify for the Carer's Support Grant, an annual payment of €1,700, which is not means-tested or taxed, Free Travel and, if they are living with the care recipient, the Household Benefits package.
They can also register for a GP Visit card through the Health Service Executive.
I hope this clarifies the matter for the Deputy.
586. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection if a disability allowance payment to a person (details supplied) will be reviewed; and if a higher rate will be awarded in view of the circumstances. [39480/18]
View answerFollowing a review of the entitlement of this lady, it was found that she had an increase in her means from her previous assessment. Based on the information provided to my department, a reduced rate of disability allowance (DA) was awarded. The reduced rate became effective from 1 August 2018. Notification of this decision issued on 21 July 2018.
The recent means information which was submitted has been passed to the relevant area for a review to be carried out. The person concerned was asked to supply further supporting documentation required by the deciding officer in order to make a decision on her eligibility. On receipt of this information a decision will be made and she will be notified of the outcome.
I trust this clarifies the matter for the Deputy.
587. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when an application will be processed for a person (details supplied); and if she will make a statement on the matter. [39489/18]
View answerMy department received an application for carer’s allowance (CA) from the person concerned on 29 January 2018.
Carer's allowance (CA) is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.
The evidence submitted in support of this application was examined and the deciding officer decided that although a certain level of care was being provided the level involved did not amount to full-time care.
The person concerned was notified on 6 June 2018 of this decision, the reason for it and of her right of review and appeal.
A review of this decision was requested and the outcome of the review was that it was decided that the requirement for full-time care and attention was satisfied.
The application was awarded to the person concerned on 7 September 2018, with effect from 1 February 2018, and the first payment issued to her nominated bank account on 13 September 2018.
Arrears of allowance due from 1 February 2018 to 12 September 2018 also issued to the person concerned on 13 September 2018.
The person concerned was notified on 7 September 2018 of this revised decision, the reason for it and of her right of review and appeal.
I hope this clarifies the matter for the Deputy.
588. Deputy Brian Stanley asked the Minister for Employment Affairs and Social Protection her plans to include the self-employed for class 5 entitlement to illness benefit in view of the fact that the current situation is causing difficulty for persons who are out of work for a considerable time due to illness or injury. [39491/18]
View answer591. Deputy Brian Stanley asked the Minister for Employment Affairs and Social Protection if she plans to include the self-employed for class 5 entitlement to illness benefit in view of the fact that the situation is causing difficulty for persons who are unemployed for a considerable time due to illness or injury. [39554/18]
View answerI propose to take Questions Nos. 588 and 591 together.
The Deputy has raised the concerns of individuals who are self-employed in relation to access to illness benefit payments from my Department. It should be noted that where an individual, whether employed or self-employed, does not qualify for a benefit payment based on their social insurance contribution status or history, my Department may be able to assist in other ways. For example, self-employed contributors can apply for a means-tested jobseeker's benefit payment or seek assistance from their Community Welfare Officer.
Self-employed workers who earn €5,000 or more in a contribution year are liable for PRSI at the class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit, paternity benefit and treatment benefit (from March 2017). Entitlement to invalidity pension was extended to the self-employed from December 2017.
This compares favourably with employees who, in general, are liable to the PRSI Class A rate of 4%. In addition their employers are liable to PRSI at the rate of 8.6% on weekly earnings up to and including €376 or at the rate of 10.85% where weekly earnings exceed €376. Accordingly the combined rate of PRSI rate paid in respect of Class A employees is 12.6% or 14.85%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.
The issue of extending additional social insurance benefits to the self-employed paying Class S PRSI was considered in the Actuarial Review of the Social Insurance fund (SIF) as at 31 December 2015, which I published in October 2017. The review, required by legislation, was carried out by independent consultants, KPMG. It examines the projected income and expenditure of the SIF over the course of the 55-year period from 2016 to 2071.
The review found that the fund currently has a modest surplus of income over expenditure. In 2016 there was a surplus of €0.4 billion on expenditure of €8.8 billion and receipts of €9.2 billion. The fund is expected to return to a deficit situation in coming years as the ageing of the population impacts. Projections indicate that, in the absence of further action to tackle the shortfall, the excess of expenditure over income of the fund will increase significantly over the medium to long term. The shortfall in expenditure over income is projected to increase from €0.2 billion in 2020 to €3.3 billion by 2030 and to €22.2 billion by 2071. It should be noted that as self-employed workers would be eligible to apply for invalidity pension from December 2017, the cost of this introduction was factored into the actuarial review’s findings.
As part of the review the independent consultants were required to project the additional PRSI expenditure if invalidity pension and illness, jobseeker’s and carer’s benefits were extended to Class S self-employed workers and the PRSI contribution rates required to provide these benefits on a revenue neutral basis.
The review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for PRSI Class S contributions is estimated to be €118 million in 2018, rising steadily to €223 million in 2020. By 2025 the projected cost is €413 million and, over the period of the review the cost would rise to €1.3 billion in 2071.
The review indicates that, where these benefits are extended to the self-employed, the Class S rate of PRSI contribution would need to increase substantially in order to ensure that the benefits are delivered in a revenue-neutral manner. It estimates that when expenditure on the additional benefits is considered over the entire projection period, PRSI rates would need to increase by 94% under a scenario of no subvention from the exchequer. This is equivalent to an increase of the Class S contribution rate from the current 4% rate to 7.8%.
This increased contribution is attributable to the costs of extending these additional benefits to PRSI Class S contributors. It does not take account of the value to PRSI Class S contributors of access to the range of existing benefits, and in particular State pension contributory. The consultants estimated that the typical cost of State pension (contributory) on its own is of the order of 10% to 15%, depending on other factors including rate of average earnings and date of commencing paying PRSI. Adding in the other benefits referenced the total Class S rate of contribution to ensure revenue neutrality would be of the order of 20% per annum.
The findings of the Review will play an important role in informing the overall debate on policy developments in relation to the SIF in the years ahead, including the financial sustainability of the Fund given the expected demographic challenges and consideration of extending the scope of benefits for workers generally, including the self-employed.
I hope this information is helpful.
589. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection the reason illness benefit has stopped in the case of a person (details supplied); and if she will make a statement on the matter. [39494/18]
View answerThe Department introduced a new system for Illness Benefit as part of a programme of modernisation in the Department which took effect from Monday 6th August 2018.
Arrears due from 13th September 2018 have now issued. The Department sincerely regrets the delay in the arrears issuing.
I hope this clarifies the position for the Deputy.
590. Deputy Brendan Griffin asked the Minister for Employment Affairs and Social Protection if a decision has been made on a working family payment application in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [39522/18]
View answerWorking Family Payment (WFP) is a weekly tax-free payment which provides additional income support to employees on low earnings with children.
An application for WFP was received from the person concerned on 7th August 2018.
The applicant has been awarded WFP for 52 weeks with effect from 9th August 2018 to 7th August 2019.
The first weekly payment and all arrears owing will issue to the person's nominated bank account on Thursday 27th September 2018.
The person concerned was notified on 24th September 2018 of this decision and of their right of review & appeal.
I trust this clarifies the matter for the Deputy.
592. Deputy James Browne asked the Minister for Employment Affairs and Social Protection the position regarding the need of a person (details supplied) to return to full pay following sick leave; and if she will make a statement on the matter. [39559/18]
View answerStaff in my Department are paid sick pay in accordance with the Department of Public Expenditure and Reform Circular 05/2018 (Arrangements for Paid Sick Leave).
In accordance with the provisions of the sick pay scheme staff who exceed 183 sick days in the previous 4 years may have access to Temporary Rehabilitation Remuneration for a period of 547 days.
The officer concerned exceeded sick leave thresholds with 255 sick days and was placed on Temporary Rehabilitation Remuneration in line with arrangements for paid sick leave.
The officer returned to work 18th September 2018 from an absence which commenced 8th August 2018.
When the officer resumed duty on the 18th September 2018, in line with normal protocol an instruction was actioned to return the officer to full pay.
The officer is due to receive full pay and any arrears owing on the 5th October 2018.
