Claire Kerrane
Question:799. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of running the Low Pay Commission. [19996/20]
View answerLow Pay Commission
Questions (799)
Written answers
The Low Pay Commission was established on 26th February 2015 through the National Minimum Wage (Low Pay Commission) Act 2015. Its principal function is, once each year, to examine the national minimum hourly rate of pay and to make a recommendation to the Minister respecting the rate, ensuring that all decisions are evidence based, fair and sustainable, and do not create significant adverse consequences for employment or competitiveness.
A breakdown of the Commissions expenditure since its establishment has recently been published in its three year report and is set out below:
|
Expenditure Item |
2015* |
2016 |
2017 |
2018 |
|
Salaries |
€94,000 |
€150,000 |
€112,000 |
€149,200 |
|
Fees |
€61,400 |
€81,000 |
€60,000 |
€75,300 |
|
Research |
€75,000 |
€55,000 |
€84,000 |
€55,000 |
|
Administration* |
€20,300 |
€21,000 |
€15,000 |
€27,600 |
|
Total |
€250,700 |
€307,000 |
€271,000 |
€307,100 |
|
of which: |
|
|
|
|
|
Pay |
€155,400 |
€231,000 |
€172,000 |
€224,500 |
|
Non-Pay |
€95,300 |
€76,000 |
€99,000 |
€82,600 |
* This includes payments during the Commission’s interim period of operations from February 2015. The first full year of operation was 2016.
The 2019 allocated budget for the Low Pay Commission is €490,000, with a split of €260,000 pay and €230,000 non-pay. The estimated outturn for 2019 is €363,296, with a split of €193,192 pay (salaries and fees) and €169,902 non pay.
The three year report from the Low Pay Commission demonstrates the work that has been done by the Commission since it was established in 2015. Alongside its core task of making recommendations each year to Government on the appropriate rate for the National Minimum Wage, the Commission has examined and reported on matters as diverse as the sub minimum rates of the National Minimum Wage, the preponderance of women on the National Minimum Wage, and the allowances provided for Board and Lodgings under the National Minimum Wage.
The Commission’s minimum wage rate recommendations to date have been accepted by Government, resulting in an increase in the National Minimum Wage between January 2016 and February 2020 of 16.7% (from €8.65 to €10.10 per hour).
Social Welfare Schemes
Questions (800)
Claire Kerrane
Question:800. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing each weekly social welfare scheme by €1 per week in tabular form. [19997/20]
View answerWritten answers
The estimated full year cost of increasing each weekly social welfare scheme by €1 per week is as follows;
|
Scheme |
Full year cost of a €1 increase €m |
|
Social Insurance Schemes |
|
|
|
|
|
Pension Payments |
|
|
State Pension (Contributory) |
24.02 |
|
Widow/er's Contributory Pension (Aged 66 and over) |
4.61 |
|
Deserted Wife's Benefit (Aged 66 and over) |
0.16 |
|
Death Benefit Pension (Aged 66 and over) |
0.03 |
|
|
|
|
Working Age Payments |
|
|
Widow/er's or Surviving Civil Partner's (Con) Pension |
1.52 |
|
Deserted Wife's Benefit |
0.14 |
|
Invalidity Pension |
3.26 |
|
Partial Capacity Benefit |
0.11 |
|
Guardian's Payment (Contributory) |
0.06 |
|
Disablement Pension |
0.26 |
|
Illness Benefit |
2.64 |
|
Injury Benefit |
0.05 |
|
Incapacity Supplement |
0.05 |
|
Jobseeker's Benefit |
2.90 |
|
Carer's Benefit |
0.15 |
|
Maternity & Adoptive Benefit |
1.08 |
|
Paternity Benefit |
0.06 |
|
Parent’s Benefit |
0.09 |
|
Total Social Insurance Schemes |
41.19 |
|
Scheme |
Full year cost of a €1 increase €m |
|
Social Assistance Schemes |
|
|
|
|
|
Pension Payments |
|
|
State Pension (Non Con) |
5.07 |
|
Carer's Allowance (Aged 66 and over) |
0.10 |
|
Half Rate Carer's Allowance (Aged 66 and over) |
0.37 |
|
|
|
|
Working Age Payments |
|
|
Blind Pension |
0.06 |
|
Widow/ers or Surviving Civil Partner's (Non-Con) Pension |
0.07 |
|
Deserted Wife's Allowance |
0.00 |
|
One-Parent Family Payment |
2.05 |
|
Carer's Allowance |
2.34 |
|
Half Rate Carer's Allowance |
0.64 |
|
Guardian's Payment (Non-Contributory) |
0.03 |
|
Jobseeker's Allowance |
14.26 |
|
Jobseeker's Allowance - for those aged 18 to 24 years of age |
0.8 |
|
Disability Allowance |
8.22 |
|
Farm Assist |
0.36 |
|
Back to Education Allowance |
0.25 |
|
Back to Work Enterprise Allowance |
0.19 |
|
Community Employment |
1.31 |
|
TÚS |
0.34 |
|
Rural Social Scheme |
0.22 |
|
Supplementary Welfare Allowance |
0.95 |
|
Total Social Assistance Schemes |
37.63 |
|
*Overall Total |
78.82 |
*Rounding may impact totals
The costs shown above are on a full year basis and are based on the estimated number of recipients in 2020. It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.
It should also be noted that these costings include proportionate increases for qualified adults and including Social Welfare Allowance payments, where relevant.
Social Welfare Benefits
Questions (801, 849)
Claire Kerrane
Question:801. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing each weekly social welfare payment to meet the minimum essential standard of living as detailed by an organisation (details supplied). [19998/20]
View answerClaire Kerrane
Question:849. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection if she will examine linking social welfare payments to adequacy in order to ensure that households relying on social welfare supports achieve an income that meets the minimum essential standard of living as determined by an organisation (details supplied). [20091/20]
View answerWritten answers
I propose to take Questions Nos. 801 and 849 together.
The Minimum Essential Standard of Living (MESL) is an assessment, developed by the Vincentian Partnership for Social Justice, of the minimum income needed to live and partake in the social and economic norms of everyday life for various household types.
The model produces a minimum income standard which is dependent on whether the household is, among other factors:
(i) in a rural or urban location;
(ii) composed of a single working age person, a couple, a single- or two-parent family, a single pensioner or a pensioner couple; and
(iii) living in private rented accommodation, social housing or is an owner-occupier.
It should be noted that the MESL for welfare households assumes that households are eligible for a medical card and, as such, health and insurance costs are reduced accordingly. While the model assumes that pensioners have the Free Travel pass and the Household Benefits package, it does not assume this for working age people. Certain working age recipients of welfare payments do qualify for Free Travel – recipients of Disability Allowance, Invalidity Pension, and Carer’s Allowance, for example.
Bringing weekly working age social welfare rates in line with the MESL entails increasing the maximum personal rate to €250 and the Qualified Child Increase to €48.20 for children under 12 and €94.70 for children aged 12 and over. There would be no proportionate increase in the current rate for Qualified Adults in order to meet the MESL.
The estimated full year cost of implementing these measures is €2.51 billion. This costing is subject to change in the context of emerging trends and associated revisions of the estimated numbers of recipients.
Any change to the current process of setting social welfare rates would require Government approval and would have to be considered in the overall policy and budgetary context. This would include taking account of stakeholder views, as well as considerations of cost, work incentives, poverty alleviation, policy alignments and the administration of any proposed system.
The costings sought by the Deputy are presented in the table below:
|
Scheme |
Full year cost of bringing rates in line with MESL |
|
Social Insurance Schemes |
|
|
State Pension Contributory |
35.15 |
|
Widow/er's or Surviving Civil Partner's (Con) Pension |
70.46 |
|
Deserted Wife's Benefit |
6.16 |
|
Death Benefit |
0.18 |
|
Invalidity Pension |
125.87 |
|
Partial Capacity Benefit |
4.07 |
|
Guardian's Payment (Contributory) |
4.01 |
|
Disablement Pension |
4.22 |
|
Illness Benefit |
119.51 |
|
Injury Benefit |
2.06 |
|
Incapacity Supplement |
2.01 |
|
Jobseeker's Benefit |
128.00 |
|
Carer's Benefit |
4.45 |
|
Health and Safety Benefit |
0.8 |
|
Maternity & Adoptive Benefit |
5.42 |
|
Paternity Benefit |
0.03 |
|
Parents Benefit |
0.44 |
|
Total Social Insurance Schemes |
512.66 |
|
Scheme |
Full year cost of of bringing rates in line with MESL |
|
|
€m |
|
Social Assistance Schemes |
|
|
State Pension Non-Contributory |
64.46 |
|
Blind Pension |
2.78 |
|
Widow/ers or Surviving Civil Partner's (Non-Con) Pension |
3.11 |
|
Deserted Wife's Allowance |
0.20 |
|
One-Parent Family Payment |
96.29 |
|
Carer's Allowance |
92.38 |
|
Guardian's Payment (Non-Contributory) |
1.75 |
|
Jobseeker's Allowance |
576.49 |
|
Jobseeker's Allowance - for those aged 18 to 24 years of age |
109.89 |
|
Disability Allowance |
359.32 |
|
Farm Assist |
13.36 |
|
Back to Education Allowance |
10.89 |
|
Back to Work Enterprise Allowance |
7.12 |
|
Community Employment |
27.86 |
|
TÚS |
7.41 |
|
Rural Social Scheme |
4.20 |
|
Supplementary Welfare Allowance |
42.25 |
|
Part-Time Job Incentive |
0.80 |
|
|
|
|
Total Social Assistance Schemes |
1,420.56 |
|
Total Social Assistance and Insurance Personal Rates |
1,933.22 |
|
|
|
|
Total Qualified Child Increase |
574.53 |
|
Overall Total |
2,507.75 |
Qualified Child Allowance
Questions (802, 803)
Claire Kerrane
Question:802. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the qualified child increase for the over 12s by €5. [19999/20]
View answerClaire Kerrane
Question:803. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the qualified child increase for the under 12s by €5. [20000/20]
View answerWritten answers
I propose to take Questions Nos. 802 and 803 together.
The estimated full year cost of increasing the Qualified Child Increase for children age under 12 by €5 is €61.46 million. The full year cost of increasing the Qualified Child Increase for children age 12 and over by €5 is estimated to be €38.81 million.
The costs shown above are on a full year basis and are based on the estimated number of recipients in 2020. It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.
It should also be noted that these costings include Back to Work Family Dividend payments, where relevant.
One-Parent Family Payment
Questions (804)
Claire Kerrane
Question:804. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the age limit for the one-parent family payment to 14 years. [20001/20]
View answerWritten answers
The full year cost of increasing the age limit of the One-Parent Family Payment (OFP) to 14 would be very difficult to estimate with any great accuracy.
There are a number of significant barriers to undertaking such a costing exercise. Firstly, an increase in the age limits could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible and therefore moving onto a social welfare payment. As members of this cohort are not currently in receipt of a social welfare payment it would be difficult to for the Department to estimate the numbers involved.
Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult for the Department to estimate the magnitude of this flow between schemes with any degree of accuracy.
Thirdly, such changes would also increase the incidence of dual payments of OFP and the Working Family Payment (WFP). It is not possible to predict the impact on payments as a result of the interaction between both schemes without having detailed knowledge of individuals’ working patterns and the degree to which these might change.
These factors are critical to providing a reliable costing. The Department is therefore not in a position to provide the costing requested.
Jobseeker's Payments
Questions (805)
Claire Kerrane
Question:805. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing jobseeker’s payments for those aged under 24 years of age to the full maximum rate of €203. [20002/20]
View answerWritten answers
An age related jobseeker’s allowance rate of €112.70 generally applies to young jobseekers aged 18-24 to incentivise them to engage in education or training to improve their chances of obtaining full time sustainable employment. If a young jobseeker participates in education or training they can receive the maximum weekly personal rate of up to €203. The Youth Employment Support Scheme (YESS) is a work experience placement programme which is specifically targeted at young jobseekers aged 18-24 years of age who are long-term unemployed or who face barriers to employment. Young jobseekers who participate in this scheme receive a maximum weekly payment of €229.20.
Reduced rates do not apply to all young people under 25 including those with a qualified child, those who were in the care of the Child and Family Agency, or TUSLA, during the 12 months before they reached 18 or those who are living independently and in receipt of State housing supports.
The full year cost of restoring young persons under 25 years of age on the reduced rates of jobseeker’s allowance, based on existing recipients, to the rate of €203 per week would be approximately €76 million.
I trust that this clarifies the matter for the Deputy.
Child Benefit
Questions (806)
Claire Kerrane
Question:806. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of making a one-off annual double payment of child benefit to recipients. [20003/20]
View answerWritten answers
The estimated cost of providing a one-off double monthly payment of Child Benefit is €172.7m.
The cost provided is based on a double monthly child benefit payment in one month of the year and is based on the estimated number of recipients in 2020.
Child Benefit
Questions (807)
Claire Kerrane
Question:807. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of extending child benefit to 18 year olds still in secondary school. [20004/20]
View answerWritten answers
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 until their 18th birthday who are in full-time education, or who have a disability. Child benefit is currently paid, as of end-June 2020, to over 639,300 families in respect of over 1.2 million children. The estimated expenditure on Child Benefit in 2019 is in excess of €2 billion.
Analysis of data from the Department of Education and Skills, and Child Benefit data, indicate that there were up to 25,901 students aged 17 & 18 year in full-time secondary education during the 2019/2020 academic year. Based on these figures, the estimated annual cost of extending eligibility for Child Benefit to include 18 year olds in full-time secondary education is in the region of €56.1 million.
Any change to Child Benefit involves significant cost implications, and would have to be considered in an overall budgetary context.
Carer's Support Grant
Questions (808)
Claire Kerrane
Question:808. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the carer’s support grant to €2,000. [20005/20]
View answerWritten answers
The estimated full year cost of increasing the Carer's Support Grant from €1700 to €2000 is €41.9 million. This cost is subject to change in line with emerging trends.
Jobseeker's Payments
Questions (809)
Claire Kerrane
Question:809. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the cut-off age of the jobseeker’s transitional payment to 18. [20006/20]
View answerWritten answers
My Department provides a number of options for income support to lone parents once their entitlement to the One-Parent Family Payment (OFP) ceases. These include the Jobseeker’s Transitional Payment (JST) payment where the youngest child is aged 7-13 years (inclusive) and the Jobseeker’s Allowance (JA) payment which may be paid to lone parents where the youngest child is aged 14 or over. The Working Family Payment (WFP), is also available to lone parents who are working 19 or more hours per week. Lone parents who move to WFP may also apply for the Back to Work Family Dividend (BTWFD).
I am advised that the cost of increasing the age limit for a qualified child for the jobseeker's transitional payment (JST) until the youngest child reaches 18 is not easily estimated as there are significant barriers to undertaking such an exercise. For example, customers may no longer be within the welfare system, while others could seek to move from alternative payments such as Jobseekers Allowance (JA), the Working Family Payment (WFP) and the Back to Work Family Dividend (BTWFD) back to JST. It would be difficult for my Department to estimate the magnitude of this flow into and between schemes with any degree of accuracy.
Likewise, I am advised that the number of young people who are 18 years of age and over who are still in secondary education, and the proportion of those who are the children of lone parents in receipt of benefits, is not readily available or easily estimated. As these unknown factors are critical to providing a reliable estimate, the Department is not in a position to provide a full-year cost as requested by the Deputy.
Working Family Payment
Questions (810)
Claire Kerrane
Question:810. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of reducing the working family payment hours threshold to lone parents from 19 to 15 hours. [20007/20]
View answerWritten answers
The Working Family Payment (WFP) is an in-work support which provides an income top-up for employees on low earnings with children. It is designed to prevent in-work poverty for low paid workers with child dependents and to offer a financial incentive to take-up employment. To qualify for Working Family Payment, 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. The average family income must also be below a specified amount which varies according to the number of qualified children in the family.
The estimated annual expenditure on Working Family Payment in 2019 is approximately €397.2 million. As of June 2020 the support is paid to approximately 50,500 families in respect of some 113,500 children.
It is important that Working Family Payment does not inadvertently subsidise unsustainably low earnings, or encourage employers to offer minimal hours of employment. The policy objective of Working Family Payment, as an incentive to take up and remain in work, could be compromised if the nature of the work taken up is not sustainable.
Reducing the “hours worked” requirement for Working Family Payment would also have significant expenditure implications due to inflows into the scheme, which are difficult to quantify and would have to be considered in an overall budgetary context. Furthermore, data regarding the number of families working between 15-18 hours and who are earning below the relevant Working Family Payment thresholds is not currently available, which means it is not possible to estimate a full year cost of reducing the hours.
A review of the operation of Working Family Payment completed by my Department in 2018 found that the current range of supports works very well for the vast majority of families and facilitates an element of choice which allows them to select the option which best suits their needs.
Working Family Payment
Questions (811)
Claire Kerrane
Question:811. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the average working family payment by 10%. [20008/20]
View answerWritten answers
The Working Family Payment is an in-work support which provides an income top-up for employees on low earnings with children. It is designed to prevent in-work poverty for low paid workers with child dependents and to offer a financial incentive to take-up employment. To qualify for Working Family Payment, 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.
The estimated annual expenditure on Working Family Payment in 2019 is approximately €397.2 million. As of June 2020 the support is paid to approximately 50,500 families in respect of some 113,500 children.
The average Working Family Payment rate is €143.84 per recipient per week. Increasing this by 10%, or €14.38, would result in an average weekly rate of €158.22. If all working family payments were to be increased by €14.38 based on the current number of recipients it is estimated it would cost approximately €37.8m per year.
A review of the operation of Working Family Payment completed by this Department in 2018 found that the current range of supports works very well for the vast majority of families and facilitates an element of choice which allows them to select the option which best suits their needs.
One-Parent Family Payment
Questions (812)
Claire Kerrane
Question:812. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full year cost of raising the cut-off age of the one parent family payment scheme to 14 years. [20009/20]
View answerWritten answers
The full year cost of increasing the age limit of the One-Parent Family Payment (OFP) to 14 would be very difficult to estimate with any great accuracy.
There are a number of significant barriers to undertaking such a costing exercise. Firstly, an increase in the age limits could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible and therefore moving onto a social welfare payment. As members of this cohort are not currently in receipt of a social welfare payment it would be difficult to for the Department to estimate the numbers involved.
Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult for the Department to estimate the magnitude of this flow between schemes with any degree of accuracy.
Thirdly, such changes would also increase the incidence of dual payments of OFP and the Working Family Payment (WFP). It is not possible to predict the impact on payments as a result of the interaction between both schemes without having detailed knowledge of individuals’ working patterns and the degree to which these might change.
These factors are critical to providing a reliable costing. The Department is therefore not in a position to provide the costing requested.
One-Parent Family Payment
Questions (813)
Claire Kerrane
Question:813. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the earnings disregard for one parent family payment to €175. [20010/20]
View answerWritten answers
The estimated full year cost of increasing the earnings disregard for the One Parent Family Payment to €175 per week is €4.6 million.
The above costing is based on the number of recipients who were working and earning in excess of €175 per week as of May 2019.
The costings do not take into account potential behavioural changes, or the inflow of new entrants, which may arise from the introduction of higher income disregards.
There would be additional costs on foot of these two factors, which are not possible to calculate and have not been factored into the above costing.
One-Parent Family Payment
Questions (814)
Claire Kerrane
Question:814. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the earnings disregard for the one parent family payment to €175 and increasing the age limit for the payment to 14 years of age. [20011/20]
View answerWritten answers
The estimated full year cost of increasing the earnings disregard for the One Parent Family Payment to €175 per week is €4.6 million.
The above costing is based on the number of recipients who were working and earning in excess of €175 per week as of May 2019.
The costings do not take into account potential behavioural changes, or the inflow of new entrants, which may arise from the introduction of higher income disregards. There would be additional costs on foot of these two factors, which are not possible to calculate and have not been factored into the above costings.
The full year cost of increasing the age limit of the One-Parent Family Payment (OFP) to 14 would be very difficult to estimate with any great accuracy.
There are a number of significant barriers to undertaking such an exercise. Firstly, an increase in the age limits could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible and therefore moving onto a social welfare payment. As members of this cohort are not currently in receipt of a social welfare payment it would be difficult to for the Department to estimate the numbers involved.
Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult for the Department to estimate the magnitude of this flow between schemes with any degree of accuracy.
Thirdly, such changes would also increase the incidence of dual payments of OFP and the Working Family Payment (WFP). It is not possible to predict the impact on payments as a result of the interaction between both schemes without having detailed knowledge of individuals’ working patterns and the degree to which these might change.
These factors are critical to providing a reliable costing. The Department is therefore not in a position to provide the costing requested.
Child Maintenance Payments
Questions (815)
Claire Kerrane
Question:815. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of establishing a child maintenance service similar to that available in Northern Ireland. [20012/20]
View answerWritten answers
Issues relating to child maintenance are a matter for my colleague, the Minister for Justice and Equality, who has responsibility for the Family Law Acts, which govern maintenance requirements.
However, in order to address child maintenance and liable relative procedures, insofar as they relate to schemes in my Department, a Child Maintenance Review Group has been established to examine a number of issues regarding child maintenance. Specifically, the group is tasked with examining whether there is a case for the establishment of a child maintenance agency in Ireland. The group is being chaired by former Circuit Court Judge Catherine Murphy.
The purpose of the Child Maintenance Review Group is to consider and make recommendations on:
- The current treatment within the Department of Employment Affairs and Social Protection of child maintenance payments;
- The current provisions relating to the liable relatives regarding child maintenance; and
- The establishment of a State Child Maintenance Agency.
The Child Maintenance Review Group's work will get underway shortly.
It is envisaged that the Group will undertake a consultation exercise with representative groups and the public as part of its work. It is intended that the Group will submit a Report to me within twelve months of its establishment.
At present, it is impossible to estimate the cost of establishing a child maintenance service in the State as this will depend on multiple factors, including whether the Child Maintenance Review Group recommends the establishment of such an agency and any functions or remit it might have.
State Pensions
Questions (816)
Claire Kerrane
Question:816. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of reintroducing the State pension transition scheme for 65 year olds. [20013/20]
View answerWritten answers
The Social Welfare and Pensions Act 2011 provided for the abolition of the State Pension Transition (SPT) in 2014. This measure standardised the State pension age for all at 66 years.
When it existed, SPT was a scheme which allowed those who were retired to get a transitionary payment between the ages of 65 and 66 years. The SPT maximum personal rate was equivalent to the then maximum rate for the State Pension (Contributory). Eligibility was based on PRSI contributions and credits, and it was not a means tested payment. It is important to note that the conditions and eligibility requirements for SPT were different to those for the State Pension (Contributory). For example, a person had to have a minimum average of 24 contributions per annum to be eligible for the previous model of SPT whereas an average of 10 contributions per annum is required for SPC eligibility. In addition, recipients of the previous model of SPT were not eligible for Free Travel, the Household Benefits Package (electricity, gas, TV licence) or Living Alone Allowance.
Based on modelling conducted earlier this year, the Department’s best current estimate for the gross cost of reintroducing State Pension Transition (on the same basis as it previously operated) is €293 million for a full year. It is expected that these costs would be offset somewhat by savings of €166 million on Working Age Schemes (arising from recipients transferring from these schemes to SPT), giving a net cost of €127 million each year. These figures are based on current payment rates.
This costing was calculated based on analysis of the observed ratio of SPT awards to State Pension (Contributory) awards for the period from 2009 to 2012, and projecting this forward in terms of estimated recipient numbers in coming years. It should be noted that these estimates are subject to change in the context of emerging trends and associated revisions of the estimated numbers of recipients.
There is no statutory retirement age in Ireland. In relation to the current position for 65 year olds, it is hoped that Irish workers, in most cases, will continue to work up to 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. Social welfare legislation states that jobseekers payments may be made until a person reaches pensionable age. If a person aged 65 has at least 156 PRSI contribution weeks paid they will continue to receive jobseekers benefit even when benefit exhausts until they reach State pension age.
Ordinarily, those in receipt of a jobseeker’s payment must engage with the Department’s activation process. These conditions do not apply to people aged 62 and over. However, they can still avail voluntarily of an array of supports, which are available from my Department if they wish to return to work, training or education. Special arrangements have also been made so that people in this age group only have to register with their Intreo Centre once a year and so they do not need to "sign on". Additionally, their payments will be paid directly into their bank accounts if they wish.
The new Programme for Government “Our Shared Future” proposes an “Early Retirement Allowance or Pension” for 65 year olds paid at the same rate as Jobseeker's Benefit without a requirement to sign on, partake in any activation measures or be available for and genuinely seeking work. The new payment will be introduced as early as possible for those who are retired from employment. Officials in the Department are currently considering the design of the scheme and assessing the necessary legislation, ICT system requirements and administrative processes required to support the introduction of this payment.
The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. Therefore, the Government will establish a Commission on Pensions to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness. The Terms of Reference for the Commission on Pensions are currently being developed and options for its membership are being considered. Proposals will be brought to Government in that regard as soon as possible. The Commission is to report to Government by June 2021 and the Government will take action, having regard to the recommendations of the Commission, within six months.
I hope this clarifies the matter for the Deputy.
State Pensions
Questions (817)
Claire Kerrane
Question:817. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of maintaining the State pension retirement age at 66. [20014/20]
View answerWritten answers
The public policy and social issues in relation to funding a sustainable and adequate State pension system are complex. Therefore, the Government is establishing a Commission on Pensions to examine a range of issues including contributions, calculation methods, sustainability, eligibility and intergenerational fairness.
The Terms of Reference for the Commission on Pensions are currently being developed and options for its membership are being considered. Proposals will be brought to Government in that regard as soon as possible. It is anticipated that the Commission will be considering submissions from a wide range of stakeholders, including key NGOs in the area.
Once it has concluded its deliberations, the Commission will report to Government by June of next year. In the meantime, pending its report and decisions taken on its recommendations, this Government has clearly stated that the state pension age will remain at 66 years and will not be increased to 67 in January 2021 as currently legislated for. This will require amendment to primary legislation and the Government will bring the necessary legislation before the Oireachtas later this year.
Based on modelling conducted earlier this year, the Department’s best current estimate for the additional net costs per annum of not increasing State Pension Age in 2021 range from c. €180 million in 2021 (due to a first year effect) to an average of over €400 million per annum thereafter, with this increasing every year. These estimates are for net costs and take into consideration additional increases or reductions arising in PRSI receipts, movements from other social welfare schemes, and secondary benefit entitlements including Free Travel, Fuel Allowance, Household Benefit Payment and Telephone Allowance. The estimates are based on current rates of payments and do not make any provision for rate increases. It should be noted that these estimates are subject to change in the context of emerging trends and associated revisions of the estimated numbers of recipients.
The cost of these estimates would be expected to double from 2028, should the State Pension Age not increase to 68, as is currently legislated for, effective 1st January 2028.
I hope this clarifies the matter for the Deputy.
Employment Support Services
Questions (818)
Claire Kerrane
Question:818. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of replicating the WALK PEER programme in each county. [20015/20]
View answerWritten answers
The Ability programme is a pre-activation programme for young people with disabilities. The funding for this programme will amount to around €16 million over a three year period and is being provided jointly under the EU's ESF Programme for Employability, Inclusion and Learning (PEIL) Operational Programme 2014-2020 and the Irish Exchequer. The programme will support over 2,600 young people with disabilities between 15 and 29 years of age. Pobal has been contracted by the Department to manage the programme.
The aim of the Ability Programme is to help bring young people with disabilities who are not work-ready closer to the labour market through engagement in training and personal development activities, which would be followed by an incremental exposure to work. The programme is being delivered by 27 community and voluntary groups from around the country, selected on foot of a competitive process. The projects being funded have been designed to assist young people in their transition from school to further education and employment. This will be undertaken using person-centred, case management approaches that support participants to achieve their desired employment goals.
The WALK PEER organisation is funded as a standalone project under the Ability Programme and not as a programme in its own right. The project aims to support 200 young people with special educational needs aged 15-24 years within 3 special schools settings to develop their employment aspirations, identify their career goals and to experience work in the open labour market. Total Ability funding of €640,848 has been awarded to WALK PEER over the course of the 3 year programme.
If the WALK PEER project was to be replicated on the same scale to an additional 25 counties, based on a simplistic calculation, this would require additional funding in excess of €5m per year.
Finally, it should be noted that Walkinstown Green Social Enterprises Limited, which is wholly owned by WALK Ltd, was also awarded €430,175 under the Ability Programme to fund the WALK REAL Project, bringing the total combined amount of funding to WALK Ltd to €1,071,023 over the course of the Ability programme.
I hope this clarifies the issue for the Deputy.
Fuel Allowance
Questions (819, 820)
Claire Kerrane
Question:819. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of extending the fuel allowance payment period by one week. [20016/20]
View answerClaire Kerrane
Question:820. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing the fuel allowance by €1. [20017/20]
View answerWritten answers
I propose to take Questions Nos. 819 and 820 together.
The estimated full year cost of extending the Fuel Allowance payment period by one week is €9.04 million. The estimated full year cost of increasing the Fuel Allowance by €1 is €10.33 million.
The costs shown above are on a full year basis and are based on the estimated number of recipients in 2020 and based on a 28 week fuel season. It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2021.
Community Employment Schemes
Questions (821, 822)
Claire Kerrane
Question:821. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of providing an occupational pension to community employment supervisors and assistant supervisors that have retired. [20018/20]
View answerClaire Kerrane
Question:822. Deputy Claire Kerrane asked the Minister for Employment Affairs and Social Protection the estimated full-year cost of providing an occupational pension to community employment supervisors and assistant supervisors that are in the role. [20019/20]
View answerWritten answers
I propose to take Questions Nos. 821 and 822 together.
The issue of pension provision was examined by a Community Sector High Level Forum, chaired by the Department of Public Expenditure and Reform from in 2017 and included representatives of various Departments with responsibility for funding the community and voluntary sector, statutory agencies and also unions representing the CE supervisors.
A detailed scoping exercise was carried out for the High Level Forum with input from the Irish Government Economic and Evaluation Service (IGEES), on the potential costs of providing Exchequer support for the establishment of such a pension scheme for employees across the Community and Voluntary sector in Ireland. This exercise estimated a potential cost to the State of between €188 million and €347 million per annum depending on the numbers involved.
This excluded any provision for immediate ex-gratia lump sum payment of pension for those imminently retiring, as sought, which could, depending on the size of the sector, give rise to a further Exchequer cost exposure of up to €318 million.
In order to estimate the cost of providing an occupational pension CE Supervisors and Assistant Supervisors alone would require additional information and analysis such as: the level of pension to be provided; the share of the cost to be borne by each of the parties including the State; the number of potential recipients; and factors such as length of service, amongst other information.
However, as stated in the High Level Forum report, the establishment of any related pension scheme will have to be considered in the wider context of employees across the Community and Voluntary sector in Ireland.