Written Answers Nos. 314-323
314. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of extending eligibility for carer's benefit to the self-employed, taking into account increases announced in budget 2019; and if she will make a statement on the matter. [42782/18]
View answerThe most recent Actuarial Review of the Social Insurance Fund estimated that extending carer's benefit to the self-employed would cost €3m in the first year rising to €21m by 2071. It is estimated that applying the recently announced budget increases would increase the cost by €0.07m in the first year and in 2071 the cost would increase by €0.5m.
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, treatment benefit (from March 2017). Entitlement to invalidity pension was extended to the self-employed from December 2017. In Budget 2019, it was announced that self-employed workers will become eligible for jobseeker's benefit from Quarter 4, 2019.
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. However, this will reduce over the next two years and will return to a small shortfall in 2020. The annual shortfalls are projected to increase from 2021 onwards 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 were to be eligible to apply for invalidity pension from December 2017, the cost of this introduction has been 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.
315. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of extending the free travel scheme to children in receipt of the domiciliary care allowance, taking into account increases announced in budget 2019; and if she will make a statement on the matter. [42783/18]
View answerThe free travel scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 80 private transport operators. There are currently approx. 922,000 customers with direct eligibility. Following recent announcements in Budget 2019 the funding for the free travel scheme was increased by €5 million to a total of €95 million.
Providing an estimate of the cost of extending the free travel scheme to all children in receipt of domiciliary care allowance, taking into account increases announced in Budget 2019 is very difficult as the cost is determined by the usage of the extra passes provided and not by the increased number. The fact that many operators have reduced fares for children and that in some cases children under five years of age can travel for free would also have to be taken into account. Taking all of this into consideration the yearly cost of the measure suggested by the Deputy could be as high as €5 million.
Any decision to extend the free travel scheme to all children that are in receipt of a domiciliary care allowance would require additional funding for the free travel scheme and would have to be considered in the context of overall budgetary negotiations, and funding priorities for the Free Travel Scheme generally.
Domiciliary care allowance is a monthly payment of €309.50 to the carer of a child with a disability. The allowance may be used for the additional costs involved in caring for the child and this may include additional transport costs.
Under the supplementary welfare allowance scheme (SWA) the Department of Employment Affairs and Social Protection 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.
316. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the income disregard for carer's allowance from €332.50 to €665, single, and from €450 to €900, taking into account increases announced in budget 2019; and if she will make a statement on the matter. [42784/18]
View answerThe Government acknowledges the crucial role that family carers play and is fully committed to supporting carers in that role. This commitment is recognised in both the Programme for a Partnership Government and the National Carers’ Strategy.
Carer's allowance (CA) is a means tested payment, made to people who are providing full-time care and attention to elderly people or to people with disabilities and whose income falls below certain limits. The principal conditions for receipt of the allowance are that full time care and attention is required and being provided and that the means test which applies is satisfied.
The conditions attached to payment of CA are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency - be that illness/disability, unemployment or caring.
The means test for Carer's Allowance is already one of the most generous in the social protection system in that €332.50 of gross weekly income is disregarded in the calculation of means for a single person; the equivalent for someone who is married, in a civil partnership or cohabiting is €665 of combined gross weekly income. A married couple with 2 children could have weekly earnings of €734 net of PRSI, superannuation and union subscription costs and still qualify for the full rate of Carer's Allowance. This is equivalent to over €38,000 per annum.
CA is a demand-led schemes and doubling the earnings disregard would be expected to increase the demand for these payments and lead to additional programme and administration costs. It is not possible in the time available to make robust estimates using administrative data of the level of additional programme costs particularly as such a change would be highly sensitive to the income distribution in households at the time it was implemented.
My department did make an estimate in 2017 of the estimated cost of increasing the weekly income disregards for Carer’s Allowance from €665 to €716 (+€51) (couple) and €332.50 to €358 (+€25.5)(single )using administrative records and various assumptions. This analysis suggested that it would cost in the region of €51 million in 2017 (an increase of 7.3% on the programme allocation at the time). The estimated cost of the higher increase specified in the question might be expected to be several multiples of this amount.
I hope that this answers the Deputy’s question.
317. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing all carer payments by €20, taking into account increases announced in budget 2019; and if she will make a statement on the matter. [42785/18]
View answer320. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing all social insurance payments by €5, €10, €15, €20, €25 and €30, respectively, taking into account increases announced in budget 2019 by the name of each payment in tabular form; and if she will make a statement on the matter. [42788/18]
View answer321. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing all social assistance payments by €5, €10, €15, €20, €25 and €30, respectively, taking into account increases announced in budget 2019 by the name of each payment, in tabular form; and if she will make a statement on the matter. [42789/18]
View answerI propose to take Questions Nos. 317, 320 and 321 together.
On Budget Day, I was pleased to announce a €5 increase in the maximum rates of all weekly social assistance and social insurance payments, with proportionate increases for those on reduced rates and for qualified adults. Young jobseekers on age-related reduced rates of payment will benefit from the full €5 increase. These weekly rate increases will take effect from the week commencing 25th March 2019.
The estimated full year cost of increasing carer payments by €20 is as follows;
|
Payment |
Cost €million |
|
Carer's Allowance and Benefit (€20 per week) |
68.15 |
|
Domiciliary Care Allowance (€20 per month) |
11.77 |
|
Carer's Support Grant (€20 per year) |
2.36 |
The other costings sought by the Deputy are detailed in the following tables:
Cost of varying increases in all weekly social insurance payments
|
Scheme |
Full year cost of a €5 increase |
Full year cost of a €10 increase |
Full year cost of a €15 increase |
Full year cost of a €20 increase |
Full year cost of a €25 increase |
Full year cost of a €30 increase |
|
Social Insurance Schemes |
€m |
€m |
€m |
€m |
€m |
€m |
|
Pension Payments |
||||||
|
State Pension (Contributory) |
112.24 |
224.91 |
336.90 |
449.41 |
561.71 |
674.24 |
|
Widow/er's Contributory Pension (Aged 66 and over) |
24.76 |
49.59 |
74.35 |
99.09 |
123.85 |
148.61 |
|
Deserted Wife's Benefit (Aged 66 and over) |
1.53 |
3.06 |
4.59 |
6.11 |
7.64 |
9.17 |
|
Death Benefit Pension |
0.19 |
0.38 |
0.58 |
0.77 |
0.96 |
1.15 |
|
Working Age Payments |
||||||
|
Widow/er's or Surviving Civil Partner's (Con) Pension |
7.74 |
15.50 |
23.24 |
30.98 |
38.72 |
46.49 |
|
Deserted Wife's Benefit |
0.82 |
1.63 |
2.45 |
3.26 |
4.08 |
4.90 |
|
Invalidity Pension |
16.28 |
32.52 |
48.80 |
65.08 |
81.36 |
97.60 |
|
Partial Capacity Benefit |
0.43 |
0.87 |
1.30 |
1.73 |
2.17 |
2.60 |
|
Guardian's Payment (Contributory) |
0.31 |
0.61 |
0.92 |
1.22 |
1.53 |
1.83 |
|
Disablement Pension |
1.29 |
2.57 |
3.86 |
5.14 |
6.43 |
7.72 |
|
Illness Benefit |
13.72 |
27.48 |
41.24 |
54.97 |
68.70 |
82.45 |
|
Injury Benefit |
0.41 |
0.83 |
1.24 |
1.65 |
2.07 |
2.48 |
|
Incapacity Supplement |
0.28 |
0.56 |
0.84 |
1.11 |
1.39 |
1.67 |
|
Jobseeker's Benefit |
8.52 |
17.05 |
25.60 |
34.12 |
42.64 |
51.18 |
|
Carer's Benefit |
0.72 |
1.44 |
2.15 |
2.87 |
3.59 |
4.31 |
|
Health and Safety Benefit |
0.01 |
0.02 |
0.04 |
0.05 |
0.06 |
0.07 |
|
Maternity & Adoptive Benefit |
5.16 |
10.32 |
15.48 |
20.63 |
25.79 |
30.95 |
|
Paternity Benefit |
0.22 |
0.45 |
0.67 |
0.89 |
1.12 |
1.34 |
|
Total Social Insurance Schemes |
194.63 |
389.79 |
584.23 |
779.11 |
973.81 |
1,168.75 |
Cost of varying increases in all weekly social assistance payments
|
Scheme |
Full year cost of a €5 increase |
Full year cost of a €10 increase |
Full year cost of a €15 increase |
Full year cost of a €20 increase |
Full year cost of a €25 increase |
Full year cost of a €30 increase |
|
Social Assistance Schemes |
€m |
€m |
€m |
€m |
€m |
€m |
|
Pension Payments |
||||||
|
State Pension (Non Con) |
25.14 |
50.28 |
75.42 |
100.56 |
125.70 |
150.83 |
|
Carer's Allowance (Aged 66 and over) |
0.45 |
0.91 |
1.36 |
1.82 |
2.27 |
2.73 |
|
Half Rate Carer's Allowance (Aged 66 and over) |
1.48 |
2.97 |
4.45 |
5.94 |
7.42 |
8.91 |
|
Working Age Payments |
||||||
|
Blind Pension |
0.33 |
0.67 |
1.00 |
1.33 |
1.66 |
2.00 |
|
Widow/ers or Surviving Civil Partner's (Non-Con) Pension |
0.36 |
0.72 |
1.08 |
1.44 |
1.79 |
2.15 |
|
Deserted Wife's Allowance |
0.02 |
0.05 |
0.07 |
0.10 |
0.12 |
0.15 |
|
One-Parent Family Payment |
10.22 |
20.45 |
30.67 |
40.90 |
51.12 |
61.35 |
|
Carer's Allowance |
11.22 |
22.45 |
33.67 |
44.90 |
56.12 |
67.34 |
|
Half Rate Carer's Allowance |
3.16 |
6.31 |
9.47 |
12.63 |
15.78 |
18.94 |
|
Guardian's Payment (Non-Contributory) |
0.14 |
0.29 |
0.43 |
0.57 |
0.72 |
0.86 |
|
Jobseeker's Allowance |
39.01 |
78.03 |
117.21 |
156.22 |
195.24 |
234.25 |
|
Jobseeker's Allowance - for those aged 18 to 24 years of age |
2.98 |
5.97 |
8.95 |
11.94 |
14.92 |
17.91 |
|
Jobseeker's Allowance - for those aged 25 years of age |
0.45 |
0.89 |
1.34 |
1.79 |
2.24 |
2.68 |
|
Disability Allowance |
40.06 |
80.12 |
120.26 |
160.33 |
200.39 |
240.45 |
|
Farm Assist |
2.17 |
4.34 |
6.52 |
8.69 |
10.86 |
13.03 |
|
Back to Education Allowance |
1.49 |
2.97 |
4.46 |
5.95 |
7.44 |
8.93 |
|
Back to Work Enterprise Allowance |
1.79 |
3.56 |
5.36 |
7.13 |
8.92 |
10.69 |
|
Community Employment |
6.32 |
12.63 |
18.96 |
25.28 |
31.59 |
37.91 |
|
TÚS |
1.95 |
3.89 |
5.84 |
7.79 |
9.74 |
11.68 |
|
Rural Social Scheme |
1.12 |
2.24 |
3.36 |
4.48 |
5.60 |
6.72 |
|
Job Initiative |
0.37 |
0.74 |
1.10 |
1.47 |
1.84 |
2.21 |
|
Supplementary Welfare Allowance |
4.35 |
8.70 |
13.07 |
17.42 |
21.77 |
26.12 |
|
Total Social Assistance Schemes |
154.64 |
309.26 |
464.23 |
618.85 |
773.49 |
928.12 |
The costs shown above are on a full year basis and are based on the estimated number of recipients in 2019. It should be noted that these costs are subject to change in the context of emerging trends.
It should also be noted that these costings include proportionate increases for qualified adults and for those on reduced rates of payment, where relevant.
318. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if she has examined the position of full-time carers who due to their full-time duties as a carer may not qualify for a State pension; and if she will make a statement on the matter. [42786/18]
View answerThrough the commitments contained in both the Programme for Government and in the National Carers’ Strategy, the Government recognises the crucial role that family carers play in Irish society and is fully committed to their support through a range of supports and services. The main income supports provided by my Department include Carer's Benefit, Carer's Allowance, Domiciliary Care Allowance, and the Carer's Support Grant. Spending on these payments in 2018 is expected to amount to almost €1.2 billion.
Credited contributions, normally known as credits, are awarded to recipients of Carer’s Benefit and of Carer’s Allowance where they have an underlying entitlement to credits. Recipients of these payments qualify for credits where they have at least one paid contribution in the previous two years or have had credited contributions in that period. Credits are also awarded to workers who take unpaid Carer’s Leave from work.
Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as during periods spent caring. In combination with paid PRSI contributions, credits assist employees in qualifying for short-term schemes and enhance the level of benefit for long-term schemes.
In addition, all carers, including those who do not qualify for a payment or for credits, may qualify for the homemaker scheme. The homemaker’s scheme, which was introduced in and from 1994, is designed to help homemakers and carers qualify for State pension (contributory). Years spent caring on a full-time basis are disregarded when calculating the State pension (contributory) rate of payment when the rate of pension is calculating using the Yearly Average method. In January this year the Government announced that those affected by the rate band changes made in September 2012 would see their entitlement calculated using a Total Contributions Approach. This would involve the award of credits for periods of up to 20 years spent as a HomeCarer. If the pensioners payment was to be increased, they would be backdated to March 2018 and it is expected to make first payments in early 2019.
Through the award of credits, the homemaker’s scheme and the new HomeCarers credit, the social insurance system already gives significant recognition of carers in terms of the State Pension.
Any further changes made to social insurance schemes would have cost implications which would need to be considered in a budgetary context.
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 €232 (over 95% of the maximum rate of the contributory pension). This rate of payment does not include rent allowance, household benefits or fuel allowance. Alternatively, if their spouse is a State pensioner and they have significant household means, their most beneficial payment may be an Increase for a Qualified Adult, based on their personal means, and amounting up to 90% of a full contributory pension.
I can assure the Deputy that I am very aware of the key role carers play in society and I will continue to keep the range of supports available to carers under review. However, any improvements or additions to these supports can only be considered in a budgetary context and in the light of available financial resources.
I hope this clarifies the matter for the Deputy.
319. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection if she has considered the impact increasing the national minimum wage has on income disregards to qualify for payments; and if she will make a statement on the matter. [42787/18]
View answerI was pleased to announce that the National Minimum Wage will increase from €9.55 per hour to €9.80 per hour with effect from the 1st January 2019. This builds on the 2018 increase from €9.25 per hour and will benefit over 150,000 employees. According to CSO figures, on average in 2017, employees earning the National Minimum Wage or less represented 7.4% of all employees.
Across schemes in my Department, the use of earnings disregards and tapers in the assessment of earnings, and the provision of in-work supports such as the Working Family Payment and the Back to Work Family Dividend scheme, ensure that a person will be better off taking up employment.
While my Department's scheme's earnings disregards are not linked to the minimum wage, I was pleased to announce on Budget Day that the earnings disregards for the One-Parent Family Payment and Jobseeker's Transitional schemes will increase by €20 per week, from €130 to €150 per week, from the end of March 2019. This will bring these earnings disregards to their highest ever level.
In addition, the €5 increase in the maximum weekly rates of payment from end-March will also work to increase the level of means a person can have, including from earnings, and still qualify for a payment. For instance, a single person in receipt of Jobseeker's Allowance (JA) and working 18 hours on the minimum wage over 3 days currently qualifies for a JA payment of €132 per week plus earnings of €171.90 per week (total income of €303.90 per week). With the increase in the weekly rates of payment and in the minimum wage, the person will qualify for a JA payment of €134 per week plus weekly earnings of €176.40 (total income of €310.40). This is an increase of €6.50 per week, or 2.1%.
322. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection if the onus is on a casual worker to get their employer to fill out the COE1 form; the steps a person should take in the instance that the employer does not comply with requests to fill out the form; and if she will make a statement on the matter. [42794/18]
View answerRecords of people who have commenced employment are forwarded by the Revenue Commissioners to my Department on an on-going basis. As part of its range of control activities, such records are matched against details of those who are in receipt of a social welfare payment.
If a match is found, my Department sends a Commencement of Employment enquiry form (COE1) to the relevant person. This form has two parts - part one is to be completed by the employer and part two by the person to whom the form is issued.
The purpose of this enquiry is to establish:
- If the person concerned has a continuing entitlement to a social welfare payment; and
- The relevant dates and other details of the employment.
Section 255(1) of the Social Welfare (Consolidation) Act 2005, as amended, imposes a requirement on the employer to provide information in writing in respect of any person who is or was in employment. On the rare occasion that an employer fails to provide the required information, the customer should return the incomplete form to her or his Intreo Office and explain the employer’s refusal to complete it.
Where a jobseeker’s has advised the Department that they are commencing employment in a part-time capacity, the employer will need to provide information to help determine, among other elements, the details of the employment and the means assessable from that employment (where applicable).
An employer who fails to comply with this requirement is guilty of an offence under Section 255(3) of the 2005 Act.
I trust that this clarifies the matter for the Deputy.
323. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection if she will address a matter (details supplied) regarding the case of a person; and if she will make a statement on the matter. [42803/18]
View answerIn recent weeks, the Department experienced some delays following the introduction of a new system for Illness Benefit. The change is part of a programme of modernisation in the Department which took effect from Monday 6th August.
The person concerned is certified by her GP and paid by my Department up to the 10th October 2018. Her next medical certificate was due on 11th October 2018 and when this has been submitted, payment of Illness Benefit will resume.
I trust this clarifies the matter for the Deputy.
