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Social Welfare Schemes

Dáil Éireann Debate, Wednesday - 24 March 2021

Wednesday, 24 March 2021

Questions (981, 982)

Seán Canney

Question:

981. Deputy Seán Canney asked the Minister for Social Protection if her attention has been drawn to the negative effects that changes made to the partial capacity scheme are having on persons who have very significant impairments and who are trying to return to work for rehabilitative purposes; if her attention has been further drawn to the fact that persons on an invalidity pension went back to work on the understanding that they could receive a partial capacity payment and their employer would get the wage subsidy scheme only to now discover that whereas once a person could get both now it is one or the other; her views on whether the change was sufficiently communicated to both Departmental staff and would-be applicants for partial capacity payment; her plans to reverse the changes made to the regime in October 2020; and if she will make a statement on the matter. [14465/21]

View answer

Seán Canney

Question:

982. Deputy Seán Canney asked the Minister for Social Protection if she has considered the effect that changes made to the partial capacity benefit regime in September 2020 are having on persons registered blind such as a person (details supplied) but who were on an invalidity pension as opposed to disability allowance or the blind pension prior to returning to work for rehabilitative purposes; if her attention has been drawn to the fact that forcing these persons to choose between partial capacity payment or their employer receiving the wage subsidy scheme will mean that persons in this scenario may have to give up work; and if she will make a statement on the matter. [14466/21]

View answer

Written answers

I propose to take Questions Nos. 981 and 982 together.

My Department did not make any changes to the Partial Capacity Benefit (PCB) scheme in 2020.

PCB is a scheme which extends the welfare system by explicitly recognising and responding to the reality that some people with disabilities will have a capacity to engage in open market employment while continuing to need to receive income support from the State.

People in receipt of Invalidity Pension or Illness Benefit who wish to return to work are eligible for PCB if their capacity for work is reduced as a result of their medical condition.

It is important to note in relation to PCB that:

- participation on the scheme is voluntary.

- there is no requirement that a person must only undertake work that is of a ‘rehabilitative' or 'therapeutic' nature (no exemptions need to be sought from DSP).

- there is no restriction on the number of hours that can be worked.

- there are no restrictions on the amount that can be earned from employment.

- a person who participates on the PCB scheme may return to an Illness Benefit or Invalidity Pension payment if, for example, the employment ceases or if the person cannot continue to work.

- a person on the PCB scheme, with an underlying entitlement to Invalidity Pension, will retain their Free Travel Pass for a period of five years.

PCB allows people to continue to receive a percentage of their Illness Benefit or Invalidity Pension payment while working.  The personal rate of payment of PCB is based on a medical assessment of a person’s restriction regarding their capacity for work, whether the person was in receipt of Illness Benefit or Invalidity Pension and their current rate of payment.  After the medical assessment, if a person's disability is rated as moderate, severe or profound their previous payment continues at 50, 75 or 100 per cent, respectively.

As of Q1 2021, 3,222 people are in receipt of/have requested to move on to PCB.  This is an increase of 7% year on year. 

The Wage Subsidy Scheme (WSS) is comprised of a number of financial incentives aimed at private sector employers, the objective of which is to encourage such employers to employ / hire jobseekers with disabilities. 

Private sector employers may claim a subsidy against the cost incurred where a productivity shortfall arises resulting from a candidate/employee having a disability.  This is subject to certain conditions, e.g. the contract of employment offered must be for a minimum of 21 hours a week and be for a minimum duration of six months. 

The basic rate of subsidy is €5.30 per hour giving a total annual subsidy available of €10,748 per year based on a 39-hour week. 

Additional funding is also available under the WSS to encourage companies to employ more than one person who has a disability.

As of Q1 2021 there are 1,586 employers claiming subsidies in respect of 2,562 ‘employments’, this is a slight decrease of 0.91% year on year in respect of employers and a decrease of 1.61% in respect of employees.

PCB and the WSS are therefore different: the WSS provides financial incentives for private sector employers to offer employment to job seekers with disabilities, while PCB is an income support provided to individuals who are seeking to move into employment but who will require a significant level of on-going financial support from the state. 

The WSS is an administrative scheme and amendments to guidelines do not require legislative change.  When amendments are made, a Circular is issued outlining the amendment. 

To provide clarity on the existing practice, the guidelines were amended in April 2019 to explicitly note that Partial Capacity Benefit is on the list of schemes under ‘Employee Eligibility’ which an employee must not be in receipt of if an employer is to avail of a subsidy, as it is based on an underlying entitlement to Illness Benefit and Invalidity Pension.

Prior to this amendment, the Wage Subsidy Guidelines stated that a person cannot be in receipt of Illness Benefit or Invalidity Pension for the purposes of the employer subsidy scheme.  As stated above, eligibility for Partial Capacity Benefit is derived only from Illness Benefit or Invalidity Pension and the amount paid is calculated directly as a percentage of the eligible payment from which the person comes.  It is important to note, a person who participates on the PCB scheme may return to an Illness Benefit or Invalidity Pension payment if, for example, the person cannot continue to work.

For a private sector employer to qualify for a WSS subsidy for an employment position, the candidate/employee must not be claiming Illness Benefit, Invalidity Pension or Partial Capacity Benefit.  This is to avoid a situation whereby dual funding is being provided in respect of a single employment position.  Allowing the direction of two support payments to a single employment position would have significant cost implications.

I will continue to keep the Department’s employment support schemes for people with disabilities, including the Wage Subsidy Scheme, under review to ensure that they continue to meet their policy objectives.  However, any potential changes to these schemes can only be considered as part of the wider budgetary context.

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