Danny Healy-Rae
Question:4. Deputy Danny Healy-Rae asked the Minister for Social Protection the reason that persons on benefit payments are still not eligible for the fuel allowance. [51021/22]
View answerSocial Welfare Benefits
Questions (4)
Written answers
The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, which is currently supporting more than 370,000 households at an estimated cost of €366 million.
As part of the overall welfare Budget 2023 package of €2.2 Billion, a number of significant reforms were made to the Fuel Allowance scheme. Up to 81,000 new households will benefit from a major expansion of Fuel Allowance Scheme from January 2023. These reforms include:
- A new means threshold will be introduced for people aged 70 years and over. The new means threshold will be €500 for a single person and €1,000 for a couple.
- The weekly means threshold for those aged under 70 will be increased by €80 to €200 above the appropriate rate of State Pension (Contributory).
- The Disablement Benefit payment will be disregarded when assessing means for Fuel Allowance purposes. A household will also no longer be debarred from receiving Fuel Allowance because a person in the household is in receipt of Disablement Benefit.
- The Half-Rate Carer's Allowance payment will be disregarded when assessing means for Fuel Allowance purposes.
It is incorrect to say that the Fuel Allowance is not available to Benefit recipients. In fact, it is available to recipients of long-term benefit payments including pensioners and people with disabilities and the changes I have just listed will increase the number of households on these schemes that will benefit from the payment.
Some short-term benefit payments such as Jobseeker's Benefit, Illness benefit and Maternity Benefit are not, however, qualifying payments for Fuel Allowance. The reason for this is that Fuel Allowance is intended as a support for households with a long-term dependence on welfare payments. The schemes just mentioned are short-term payments for those who suffer a short period of interruption to their employment. These payments are not means-tested; the recipients still have an attachment to the labour force and there is an expectation that they will return to the workforce.It is also important to note that households in receipt of benefit payments, including those not eligible for Fuel Allowance, will benefit from the enhanced electricity credit of €600 which will be applied to electricity bills, €200 before Christmas and the remainder (in two tranches) early in the New Year. These households will also benefit from the double week in social welfare payments in October and December.
Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Service.
Questions Nos. 5 to 12, inclusive, answered orally.
Social Welfare Benefits
Questions (13, 49)
Niamh Smyth
Question:13. Deputy Niamh Smyth asked the Minister for Social Protection the number of working family payment applications currently awaiting a decision per county in tabular form; the steps that her Department is taking to clear this backlog; and if she will make a statement on the matter. [50271/22]
View answer
Jennifer Carroll MacNeill
Question:49. Deputy Jennifer Carroll MacNeill asked the Minister for Social Protection if she will detail the specifics of the extension of the working family payment; if there is an estimate of the number of additional families that will now be eligible; and if she will make a statement on the matter. [49480/22]
View answerWritten answers
I propose to take Questions Nos. 13 and 49 together.
The Working Family Payment (WFP) is a weekly tax-free payment for employees with children which supports people in low paid employment. The WFP is designed to prevent in-work poverty for low paid workers with child dependents, and to offer a financial incentive to take up employment.
It is a targeted measure that is directly linked to household income and therefore directly supports low-income working families. There are approximately 45,000 families with 99,000 children who are currently in receipt of WFP. The estimated spend of WFP in 2022 is €349 million.
Budget 2023 included the provision of a once off €500 cost of living lump sum payment to all WFP recipients and is due to be paid in the week commencing 14th November.
An increase in the income thresholds applicable to WFP customers was also announced in Budget 2023. This increase will take effect from 5th January 2023 and will see the income limit for all family sizes increase by €40. This will see an increase in payment across all awarded claims of €24 per week while also increasing the income qualification thresholds for claimants.
The number of applications for the Working Family Payment reduced during the pandemic but since January 2022 applications have returned to pre pandemic levels.
There is no fixed payment rate for the Working Family Payment with the payment to each applicant being dependent on their employment earnings and their household composition. Each applicant receives a payment unique to their own circumstances. Therefore, each application needs to be reviewed carefully to calculate this payment and evidence of earnings must be submitted and verified.
There are currently 5,531 new applications pending. The average processing time for new Working Family Payment applications is currently 4 weeks and over 97% are cleared within 6 weeks. This represents an improvement of 2 weeks in average processing time compared to the pre-covid, 2019 performance. Renewal applications are processed prior to the expiry of the current claim.
The easiest and fastest ways for customers to make an application for Working Family Payment is online via mywelfare.ie.
Social Welfare Offices
Questions (14)
Sorca Clarke
Question:14. Deputy Sorca Clarke asked the Minister for Social Protection if additional staff have been recruited or seconded to community welfare sections in INTREO offices to deal with the additional applications for supplementary welfare allowances; and if not, if she plans to bring in additional staff to deal with the extra workload. [50731/22]
View answerWritten answers
As I outlined in my earlier reply, I and my Department are committed to the provision of in-person Community Welfare Services around the country. This is clear from the fact that staffing levels have been maintained in the Community Welfare Service nationwide in recent years, even as demands on the service decreased due to the transfer of most rent allowances to the local authorities and the general improvement in economic conditions. This reflects my commitment to continue to support the delivery of in-person services to citizens. There are currently over 400 staff working in the Community Welfare Service throughout the country.
My Department has also introduced a number of innovations this year with the aim of increasing service capacity and modernising and improving the Community Welfare Service. The measures introduced are intended to ensure a permanent full-time CWO presence in over 50 of our local offices, expand the range of service access options for clients, and reduce the administrative workload on CWOS, so freeing up front line staff to make them available to deal personally with clients.
These changes together with the maintenance of staffing levels has led to the CWS being in a stronger position to respond to increases in the demand for the service than might otherwise have been the case.
This is important given that there has been a significant increase, of about 60%, this year in the level of applications received for Additional Needs Payments. While people will always question process and organisation change the fact that the service has delivered over 60% more payments this year than last and that 75% of claims received via the new national freephone line are determined without the need for a client to ever visit a physical office bear testimony to the effectiveness of the changes.
In addition to improving the accessibility and capacity of the service we are also concerned to ensure that it is adequately staffed. Accordingly, I am pleased to say that as part of the estimates process the Department secured approval for an additional 289 staff in 2023. It is intended that some of these staff will be allocated to help further improve CWS capacity. I expect recruitment for these posts to begin shortly.
It is timely to acknowledge the huge efforts of our network of Community Welfare Officers throughout the country to support people at what is a very difficult time and I know too that they have been assisting following the tragedy in Creeslough last Friday.
I want to be absolutely clear that the service continues to provide local access to local CWOs in local areas across the country and that there are no plans to change this.
Pension Provisions
Questions (15)
Neale Richmond
Question:15. Deputy Neale Richmond asked the Minister for Social Protection if she will provide an update on the auto-enrolment workplace pension scheme; and if she will make a statement on the matter. [49690/22]
View answerWritten answers
In March I announced that Government approval had been given to the final design principles for the auto-enrolment (AE) retirement savings system. A detailed explanatory paper on the new system has been published on www.gov.ie.The system is expected to become operational in early 2024 and will automatically enrol approximately 750,000 employees at the outset. These are employees who are aged between 23 and 60 years, earning over €20,000 across all their employments, and who are not already enrolled in an occupational pension scheme.
The implementation phase is now well underway, with a project team in the Department of Social Protection progressing a range of individual elements of a detailed project plan, which includes setting out the system’s operational design and drafting the legislation that will be required to underpin the new system. In terms of the legislative elements of the project, the Government recently approved a General Scheme for an Automatic Enrolment Bill. This General Scheme has been drafted in line with the final design principles document that I announced last March. Just last week, I wrote to the Joint Oireachtas Committee for Social Protection, Community and Rural Development and the Islands, in order for that Committee to commence pre-legislative scrutiny of the Heads of the Bill.
In tandem with this process, my officials are working with the Office of Parliamentary Counsel to draft the Automatic Enrolment Bill, which I hope to introduce to the Oireachtas as soon as possible following completion by the Committee of its work.
I hope this clarifies the matter for the Deputy.
Energy Prices
Questions (16)
Mick Barry
Question:16. Deputy Mick Barry asked the Minister for Social Protection the instructions that have been issued to community welfare officers in relation to people who present to them seeking assistance due to having difficulties in keeping their prepaid gas or electricity meter topped up; the criteria that will be applied to assess claims; and if she will make a statement on the matter. [50714/22]
View answerWritten answers
To address the impact that the recent increases in global energy prices is having on households, the Government, earlier this year, introduced a €2.4 billion package of supports, with a further package of one-off measures worth €2.5 billion in Budget 2023. This includes a new Electricity Cost Emergency Benefit Scheme through which energy credits totalling €600 will credited to each domestic electricity account, including Pay as You Go accounts, in November 2022, January 2023 and March 2023.
I want to be clear that pay-as-you go customers will benefit from these credits. They will be applied to their pay-as-you-go account just as they were earlier this year.
I also understand that a protocol is in place via MABS whereby vulnerable pay-as you go customers will not be disconnected by their supplier if they cannot top-up their pay-as-you-go card.
In response to the on-going cost-of-living pressures, as part of Budget 2023, I secured a social welfare package of €2.1billion, the largest Social Protection package in the history of the state. Some €1.1billion of this package has been targeted to provide a wide range of lump-sum payments in order to help people in the coming months, in addition to a wide range of increases which will come into effect from January 2023.
Post budget analysis from the ESRI shows that the combination of these payments plus the energy credits will serve to compensate low-income households from previous and projected energy price increases.
There may of course be exceptions. Accordingly, Minister Ryan is meeting with the Commission for the Regulation of Utilities and with all energy suppliers over the coming weeks on a range of issues, including the importance of customer protection and supports. The position of pay-as-you-go customers will be raised at these meetings and Minister Ryan will be looking for assurances and practical ways in which they can be protected.
Additional guidance was issued in June to the Community Welfare staff of my Department on the administration of additional payments recommending that a flexible approach be taken to meet the income needs of vulnerable individuals and families who find themselves in difficulty meeting the higher costs of fuel and energy. A public information campaign was also initiated to assist those who are experiencing financial difficulty to access help through Additional Needs Payments.
Given the significant level of support provided for in the Budget, I expect that the vast majority of people will not need further support. However, the Additional Needs Payments are available for those who need it.
Social Welfare Benefits
Questions (17)
Claire Kerrane
Question:17. Deputy Claire Kerrane asked the Minister for Social Protection if she will review means testing for the carer’s allowance including a review of the removal of means testing requirements to qualify for these payments; and if she will make a statement on the matter. [50414/22]
View answerWritten answers
The Government recognises the important role that family carers play in Irish society and is fully committed to supporting them through a range of payments and services.
The main income supports to carers provided by my Department include Carer's Allowance, Carer's Benefit, Domiciliary Care Allowance and the Carers Support Grant. Spending on these payments in 2022 is expected to exceed €1.5 billion.
The means test for Carer’s Allowance not only ensures that the recipient has a verifiable income need but that resources are targeted to those with the greatest need.
Based on the number of carers identified as part of Census 2016, it is estimated that a universal, non-means tested, carer’s payment could cost an additional €1.2 billion per annum. In Budget 2022, I announced significant improvements to the means test for Carer’s Allowance. The weekly income disregard was increased from €332.50 to €350 a week for single carers and from €665 to €750 for carers with a spouse or partner. These are the highest income disregards in the social welfare system and this increase enables more carers with modest incomes to become eligible for the scheme.
The capital disregard was also increased from €20,000 to €50,000. This allows carers who have accumulated savings to retain an entitlement to Carer's Allowance. These changes, which came into effect in June this year, were the first changes that had been made to the Carer's Allowance means test in 14 years.
As part of the Budget 2023 cost of living package, Carer's Allowance recipients will benefit from two double week payments valued, for full-time carers at a minimum of €448 as well as a €500 lump sum, over the coming months. There will also be an increase of €12 in the weekly payment from January.
Given the need to target available resources fairly and equitably to those in most need, any further changes to the Carer's Allowance means test would have to be considered in an overall policy and Budgetary context.
I and my officials will continue to meet and discuss issues facing carers through our ongoing bilateral discussions with the community and voluntary sector and representative groups.
Rural Schemes
Questions (18)
Seán Canney
Question:18. Deputy Seán Canney asked the Minister for Social Protection if she intends to increase the number of participants on rural social schemes to meet the demand for the services delivered by the rural social schemes; and if she will make a statement on the matter. [44769/22]
View answerWritten answers
As the Deputy will be aware, the Rural Development Policy 2021-2025 - Our Rural Future, was published in 2021; and represents a new milestone in the approach to rural development in Ireland. The Policy is supported by 150 commitments across Government, which will address the challenges facing communities and deliver new opportunities for people living in rural areas.
The policy will help rural Ireland to recover from the impacts of Covid-19, enable long-term development of rural areas, and create more resilient rural economies and communities for the future. It is an ambitious five year whole of Government policy for the future development of rural Ireland.
The Rural Social Scheme (RSS) is an income support scheme for farmers and fishers who are in receipt of specified social welfare payments, and who are underemployed in their primary occupation. The scheme offers participants the opportunity to gain valuable work experience, while providing services to local communities. To qualify for RSS, a person must be actively farming or fishing, and satisfy the means test assessment required to qualify for the Farm Assist (FA) payment.
During 2017 and 2018 the number of places available on RSS was increased by 750, bringing the total number of places available up to 3,350. As at the end of September 2022, there were 2,869 participants availing of RSS with some 481 RSS places still available. Intreo offices continue to promote RSS - but it is primarily a demand led scheme. Current participation rates indicate that the number of available places is sufficient to meet current demand for places on the scheme.
Last June, Minister Humphreys and I introduced a series of reforms to support CE and RSS schemes and participants. These included removing the six year time limit for participants on RSS, which will benefit 920 participants and will ensure that schemes can retain current participants who are delivering important services in rural communities.
My Department will continue to monitor RSS and the numbers of participants availing of this valuable income support programme, including qualifying criteria. Should the demand for RSS places exceed the number of places available during the course of the Rural Development Plan, then my officials will seek to raise the matter with the Department of Public Expenditure and Reform to consider any additional funding required to further expand the RSS and build on the good work.
My Department continues to review all aspects of its income and employment support programmes to ensure their most effective delivery and the best outcomes for both participants and communities.
We will be starting a process before the end of the year on a wider review of RSS and part of that will be exploring opportunities to grow the scheme.
Pension Provisions
Questions (19)
Bernard Durkan
Question:19. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which she and her Department remain sensitive to any issues arising from the availability of an adequate pension where applicants are factually deemed not to be unable to continue in employment and may not qualify for an appropriate pension on whatever grounds; and if she will make a statement on the matter. [50593/22]
View answerWritten answers
The State Pension (Contributory) is a PRSI-based pension, financed by contributions made by current workers and their employers, and paid to pensioners, at a rate based upon their PRSI record.
A person is required to have a minimum of 520 paid reckonable PRSI contributions in order to qualify for the State Pension (Contributory). As the actuarial value of the State Pension is currently estimated at approximately €380,000, it is reasonable to require people claiming a contributory pension to have made at least 10 years of paid contributions over the term of their working life, before qualifying for a payment. The requirement for eligibility criteria in order to qualify for the State Pension (Contributory) was endorsed by the Commission on Pensions.
It should be noted that, if a person does not satisfy the conditionality to qualify for a contributory State Pension, he or she may qualify for the means-tested State Pension (Non-Contributory), the maximum rate of which is over 95% of the rate of the State Pension (Contributory).
Alternatively, an Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent who does not have enough contributions to claim a maximum rate contributory State Pension his or her own right. The payment rate for the IQA is up to 90% of a full contributory pension. The most advantageous payment for a pensioner will depend upon their individual circumstances
In September, I announced a series of landmark reforms to the State Pension system in response to the recommendations from the Commission on Pensions. The set of measures represent the biggest ever structural reform of the Irish State Pension system.
One of the key measures is the introduction of a flexible pension system in Ireland. Under this new system, from January 2024, people will still be able to retire at 66 and draw-down their pension in exactly the same way as they can today. In addition, there will be new flexibility so that people can choose to defer their pension, work longer and receive a higher pension payment.
The flexible State Pension system is about providing people with choice. People will decide for themselves what best suits their needs and circumstances. For example, in the case of a person who reaches age 66 and does not have sufficient contributions to qualify for a full pension, they will now have the option to work for longer to build up additional entitlements. If a person has less than 10 years PRSI reckonable paid contributions, they can use this period to establish entitlement. A person will also have the option to continue working between age 66 and 70 and receive an actuarially based increase in their weekly payment rate.
In addition, I have also indicated my intention and secured Government approval to examine options to provide early access to a pension for a person with a long work history who cannot, for health reasons, remain in their current occupation. I expect to bring forward proposals on this matter in 2023.
In the meantime, people under the age of 66 who cannot work for health reasons can apply to avail of the Invalidity Pension and Disability Allowance schemes.
I hope this clarifies matters for the Deputy.
Energy Prices
Questions (20)
Thomas Gould
Question:20. Deputy Thomas Gould asked the Minister for Social Protection the way in which additional needs payments will be used to ensure that those with pay-as-you-go electricity meters do not face disconnection this winter. [49679/22]
View answerWritten answers
At the outset I wish to be clear that pay-as-you go customers will benefit from the energy credits of €600 to be provided by the State. These credits will be added to their pay-as-you-go account in the same manner that the energy credit from Spring of this year was provided.
I also understand that a protocol is in place, via MABS, whereby vulnerable pay-as you go customers will not be disconnected by their supplier if they cannot top-up their pay-as-you-go card.
In addition, Minister Ryan, whose Department has overarching responsibility for the regulation of energy utilities, is meeting with the Commission for the Regulation of Utilities and with all energy suppliers over the coming weeks on a range of issues, including the importance of customer protection and supports. The vulnerability of pay-as-you-go customers will be discussed at these meetings and Minister Ryan will be looking for assurances and practical ways in which they can be protected.As part of Budget 2023, I secured €2.1billion, the largest Social Protection package in the history of the state. Some €1.1billion of this package has been targeted to provide a wide range of lump-sum payments in order to help people in the coming months, in addition to a wide range of increases which will come into effect from January 2023. The Budget measures include:
- The Autumn Cost-of-Living Double Week Payment to most Social protection schemes which will be paid during the week commencing 17th of October 2022;
- The Double Payment of Child Benefit to support families with children will be paid alongside the regular Child Benefit Payment in November 2022;
- A €400 Lump Sum Fuel Allowance Payment to all households receiving the Fuel Allowance;
- A €200 Lump Sum Payment for pensioners and people with a disability receiving the Living Alone Allowance;
- A €500 Lump Sum Payment to families in receipt of the Working Family Payment;
- A €500 Lump Sum Payment to those on Disability Allowance, Blind Pension and Invalidity Pension;
- A €500 Lump Sum Payment to those in receipt of the Carer's Support Grant.
In addition, a 100% Christmas Bonus will be paid to all long-term social welfare recipients in December 2022.
Analysis from the ESRI indicates that the combination of these payments and the energy credits insulates low-income households from the effects of inflation, including energy price increases.Under the supplementary welfare allowance scheme, my Department can make additional needs payments to help meet expenses that a person cannot pay from their weekly income. Additional guidance was issued in June to the Community Welfare Service staff of my Department on the administration of additional needs payments recommending that a flexible approach be taken to meet the income needs of vulnerable individuals and families who find themselves in difficulty meeting the higher costs of fuel and energy.
Any person who considers they may have an entitlement to an additional needs payment is encouraged to contact their local community welfare service. There is a National Community Welfare Contact Centre in place which will direct callers to the appropriate office.
I trust this clarifies the matter for the Deputy.
Social Welfare Benefits
Questions (21, 25)
Brendan Smith
Question:21. Deputy Brendan Smith asked the Minister for Social Protection if she will improve the criteria for the free fuel allowance in circumstances where a family member returns to live on a temporary basis with a parent or a sibling who are in receipt of the free fuel allowance and ensure the continuation of this payment where the changed household composition is of a temporary nature; and if she will make a statement on the matter. [50388/22]
View answerBrendan Smith
Question:25. Deputy Brendan Smith asked the Minister for Social Protection the proposals to improve the criteria for the free fuel allowance in cases in which a family member, due to housing or domestic difficulties, may return to live with a parent on a temporary basis and that parent normally resides on their own and had been in receipt of free fuel allowance; if she will ensure that such a recipient of this allowance will continue to receive this payment; and if she will make a statement on the matter. [50387/22]
View answerWritten answers
I propose to take Questions Nos. 21 and 25 together.
The Fuel Allowance is a payment of €33 per week for 28 weeks - or a total of €924 each year - from late September to April, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. Only one allowance is paid per household.The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. To qualify for the Fuel Allowance payment, a person must satisfy all the qualifying criteria including the household composition criteria. This ensures that the Fuel Allowance payment goes to those who are more vulnerable to fuel poverty, including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.
An adult child of a householder moving back into the family home may result in a reduction of additional allowances such as the Fuel Allowance payment previously held by the householder. However, the economies of scale from living together should mean that a contribution towards household costs by the person moving in would compensate for any such reduction in payments from my Department.
A change in the qualifying criteria such as that proposed by the Deputy, disregarding the income of the returning family member, would change the targeted nature of the scheme and would likely result in payments being directed to households with significant income.
Therefore, my Department is not considering any proposals to amend the Fuel Allowance qualifying criteria in the manner outlined by the Deputy.
There will always be exceptional cases and it is for this reason that the Supplementary Welfare Allowance scheme was introduced. In the event that the return of a family member into the household results in a reduction in Fuel Allowance payment, with no compensating contribution by the family member, then a payment may be made in the form of a heating supplement under this scheme.I hope this clarifies the matter for the Deputy.
School Meals Programme
Questions (22)
Catherine Connolly
Question:22. Deputy Catherine Connolly asked the Minister for Social Protection the status of the review of the school meals programme; the timeline for the completion and publication of the review; and if she will make a statement on the matter. [50745/22]
View answerWritten answers
The School Meals Programme provides funding towards the provision of food services to some 1,700 schools and organisations and benefitting 260,000 children. The objective of the programme is to provide regular, nutritious food to children who are unable, due to lack of good quality food, to take full advantage of the education provided to them. The programme is an important component of policies to encourage school attendance and extra educational achievement.
Budget 2022 provided €68.1 million for the programme with an additional €9m provided to allow access to all new DEIS schools from September 2022. Additional funding for the programme has been provided for 2023 bringing the total to €91.6m.
Funding under the school meals programme can be provided for breakfast, snack, cold lunch, dinner, hot school meals and afterschool clubs and is based on a maximum rate per child per day, depending on the type of meal being provided. I am committed to continuing to expand the school meals programme and building further on the significant extension of the programme in recent years. In this regard, I commissioned the evaluation of the school meals programme to review all elements of the programme. The final report is due to be completed in November 2022 and will be published thereafter.
I trust this clarifies the matter.
Social Welfare Benefits
Questions (23, 76)
Paul Kehoe
Question:23. Deputy Paul Kehoe asked the Minister for Social Protection if her Department will pre-process applications for fuel allowance for new applicants who will qualify in January 2023 as a result of measures included in Budget 2023 to avoid any backlog; and if she will make a statement on the matter. [50286/22]
View answer
Paul McAuliffe
Question:76. Deputy Paul McAuliffe asked the Minister for Social Protection her plans to quickly expedite the large number of persons over 70 years who will be eligible for fuel allowance come January 2023 following changes in Budget 2023; and if she will make a statement on the matter. [50613/22]
View answerWritten answers
As part of the overall social welfare Budget 2023 package of almost €2.2 Billion, I was pleased to secure a major expansion of the Fuel Allowance Scheme, which will benefit up to 81,000 households.
From January 2023, the allowable means threshold for those aged under 70 will increase by €80 from €120 to €200 per week above the appropriate rate of State Pension (Contributory). Disablement Benefit will be disregarded when assessing means for Fuel Allowance purposes and will no longer result in a household being disqualified because a person in the household is in receipt of that payment. In addition, Half-rate Carer’s Allowance payments will be disregarded for Fuel Allowance means assessment purposes.
From January 2023, there will be a new means threshold for people aged 70 and over, of €500 for a single person and €1,000 for a couple. This represents a significant expansion of the means test for this cohort. Applicants aged 70 and over no longer have to be in receipt of a qualifying payment to access Fuel Allowance, provided they satisfy the means test and the household composition rules.
Many of these households will also benefit from the additional cost of living payments which will be paid between now and the end of the year. The enhanced electricity credit of €600 is a further Government measure that will benefit those in households to whom access to Fuel Allowance is extended from January 2023, with the first €200 to be applied to electricity bills before Christmas.
Officials at my Department are working on the operational requirements for the implementation of these budget measures. The priority is to make the necessary IT system changes to deliver the additional payments between now and the end of the year. These include the double-week in social welfare payments in October and December, the Fuel Allowance payment of €400 for qualified recipients in the week commencing 14 November, the living alone payment of €200 and the €500 payment for people with disabilities, for those in receipt of Working Family Payment, and for carers in November 2022. This work must take precedence.
It is anticipated that the required IT system changes to allow my officials to process applications under the new Fuel Allowance criteria will be in place from Quarter 1, with payments backdated to January 2023.
Social Welfare Rates
Questions (24)
Paul Murphy
Question:24. Deputy Paul Murphy asked the Minister for Social Protection if she considers that the €2 increase in the qualified child payment is sufficient to tackle child poverty in the context of the cost-of-living crisis; and if she will make a statement on the matter. [50725/22]
View answerWritten answers
The Government is very aware of child poverty and its impacts and has taken steps in recent Budgets to address this, through increases in payments for children in social welfare households, measures on Working Family Payment and for lone parents.
While it is good to see that the national rate of child poverty decreased significantly from 7.2% in 2020 to 5.2% in 2021, we still have a lot more to do.
I am pleased that Budget 2023 includes a Social Welfare package of almost €2.2 billion. Many of the measures we are taking will go towards families with children including:
(i) The increase for children in social welfare households. I provided for the weekly rates of the Increase for a Qualified Child to increase by €2 to €42 per week in the case of children under age 12 and by €2 to €50 per week in the case of children aged 12 or over. These increases will take effect from January at an estimated cost of €30.4 million in 2023. As a result, these rates will have increased by €6 for under 12s and by €10 for over 12s over the last three Budgets.
(ii) The improvements to Working Family Payment. Budget 2023 provides for a €40 weekly increase in the Working Family Payment income limits for families of all sizes from January at a cost of approximately €16.8 million in 2023. I have also provided for a €500 lump sum payment to all families in receipt of the payment in November 2022 at an estimated cost of €23 million.
(iii) The double payment of Child Benefit in November which will benefit 638,000 recipients in respect of over 1.2 million children at a cost of €170 million.
Families in receipt of payments such as One-Parent Family payment will also benefit from a double payment in October as well as a double payment in December. Families in receipt of the Fuel Allowance will also receive a €400 payment in November.
In addition, the Budget provided for a €12 increase in the weekly personal rate of working age payments bringing the rate to €220 from January.
I trust this clarifies matters for the Deputy.
Question No. 25 answered with Question No. 21.
Social Welfare Benefits
Questions (26)
Paul Murphy
Question:26. Deputy Paul Murphy asked the Minister for Social Protection if she will bring forward the extension of eligibility for the fuel allowance, currently not due to come into effect until January 2023, given that the cold weather starts long before then; and if she will make a statement on the matter. [50722/22]
View answerWritten answers
The Fuel Allowance is a payment of €33 per week for 28 weeks (a total of €924 each year) from late September to April, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. Only one allowance is paid per household.
In Budget 2023, I was pleased to announce the largest ever expansion of the Fuel Allowance Scheme. As part of this, from January 2023, a new means test will be introduced for Over 70s. Under the new means test, a single person over 70 can have income of €500 per week and a couple can have income of €1,000 per week and still qualify for Fuel Allowance. This was a priority for me as part of Budget 2023 and is in recognition of the fact that older people are more vulnerable to the cold. Also, from January 2023, the standard means test for persons under 70 will be increased by €80 from €120 to €200 over the maximum State Pension Contributory. In addition, the half-rate Carer's Allowance payment and Disablement Benefit will be disregarded when assessing means for Fuel Allowance purposes. It is estimated these measures combined will bring an additional 81,000 households into the Fuel Allowance Scheme from January. My Department is already working on developing the IT systems and operational requirements to give effect to these changes.
As part of the Government's cost of living measures in Budget 2023, I announced that, in November 2022, a further lump sum payment of €400 will be paid to Fuel Allowance recipients to alleviate the burden of rising energy prices and inflation. This further lump sum payment will be available to households that have an entitlement to the fuel allowance payment on the week that the lump sum payment is paid. While the lump sum payment will not be available to households that qualify for the fuel allowance payment in January, by qualifying for the Fuel Allowance payment they will be receiving an extra €924 in a full fuel season to help with the cost of heating their home.
Some of the households to whom access is extended from January may also benefit from cost-of-living measures announced in the Budget such as the double week in social welfare payments in October and December and the living alone payment of €200 in November. The enhanced electricity credit of €600 is another important Government measure announced in the Budget. This will also benefit households to whom access to Fuel Allowance is extended to from January. The first €200 will be applied to electricity bills before Christmas. As the eligibility for Fuel Allowance has been significantly enhanced, and will require time to implement, the extended eligibility will take effect in January 2023.
Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
I hope this clarifies the matter for the Deputy.
Social Welfare Rates
Questions (27)
Joan Collins
Question:27. Deputy Joan Collins asked the Minister for Social Protection the evidence on which she based the increase of €2 per week, 30 cent per day for the qualified child increase for children under the age of 12 years. [50621/22]
View answerWritten answers
Most weekly social welfare payments include an additional payment – an Increase for a Qualified Child (IQC) – in respect of each qualified child up to the age of 18, which is extended to encompass older children to age 22 under certain circumstances. This measure provides targeted assistance that is directly linked with household income and thereby supports low-income families.
In Budget 2023 I am increasing the IQC rates by €2 – to €42 per child for under 12s and to €50 per week for over 12s. Over the last three Budgets, these rates have increased by €6 and €10 respectively.
These increases were provided in the context of an overall package which included a €12 rate increase for weekly schemes, in addition to €1.1 billion in once-off measures to help ease the cost-of-living pressures for low-income households. For example, a lone parent with two children will see a €16 increase in their weekly rate from January. The improvements to the Working Family Payment thresholds also targets low-income families with children, resulting in a weekly increase of up to €24.
Families will also be assisted before January. They will receive a cost-of-living double payment later this month, and again in December via the Christmas bonus. In November, an additional Child Benefit payment will be made. Households in receipt of the fuel allowance will receive a €400 lump sum, and people in receipt of the Working Family Payment will receive a lump sum of €500. All households will also benefit from €600 of Energy Credits in the coming months.
The ESRI post-Budget analysis shows that Budget 2023, combined with one-off measures to reduce the cost of living, will be effective in protecting most households from rising prices this winter.
The analysis further shows that the income of lone parent households will remain essentially stable as a consequence of Budget 2023 measures which indicates that the Government measures are, in the main, effective at protecting lone parent households from the impact of significant levels of inflation.
I trust this clarifies the matter for the Deputy.
Budget 2023
Questions (28)
Fergus O'Dowd
Question:28. Deputy Fergus O'Dowd asked the Minister for Social Protection if she will provide an update on the announcement made to support carers in Budget 2023; if she will also provide an update on plans to allow carers to qualify for contributions for State pensions for the first time; and if she will make a statement on the matter. [49596/22]
View answerWritten answers
As part of Budget 2023, I announced a number of measures in relation to supports provided by my Department for carers. These measures acknowledge the important role that family carers play in our society and the particular challenges they face in light of the current cost of living crisis.
The measures benefitting family carers directly include:
- €500 Cost of Living lump sum payment to be paid in November.
- Cost of Living Double Payment to carers in be paid in October.
- Carers will also receive the Christmas Bonus Double Payment in early December.
- €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit with effect from January 2023, with proportionate increases for people receiving a reduced rate.
- The Half-rate Carer’s Allowance will be disregarded in the means assessment for Fuel Allowance with effect from January 2023.
With regard to pension provision for carers, I announced a series of landmark reforms to the State Pension system, which were approved by Cabinet, on 20th September 2022.
One of the reforms agreed by Government, is enhanced State Pension provision for long-term carers (in excess of 20 years), as recommended by the Pensions Commission, and to be introduced from January 2024. This will be implemented:
- through a scheme to ensure that long-term carers can be attributed with contributions for gaps in their contribution record arising from their time spent caring; and
- through the establishment of a ‘Family Carer Register'.
My officials will work to implement the reforms, including the drafting of legislation and development of administrative and IT systems as necessary. As part of the work to implement the new scheme, relevant Government Departments, and other stakeholders, will examine options for the creation of a statutory ‘Family Carer Register’.
I trust this clarifies the matter for the Deputy.
Question No. 29 answered with Question No. 8.
Legislative Measures
Questions (30)
Éamon Ó Cuív
Question:30. Deputy Éamon Ó Cuív asked the Minister for Social Protection if she intends to introduce reforms to social welfare means testing in the Social Welfare Bill 2022; and if she will make a statement on the matter. [50319/22]
View answerWritten answers
Means tests and income thresholds are kept under regular review and a number of significant changes have been made in recent years. In particular, I have introduced a number of changes to means testing which provide for higher income disregards. These disregards ensure that, where people are in receipt of a social assistance payment and are working, a certain level of income from that work is not assessed in the means test
On foot of the commitment in the Programme for Government and in the Rural Development Policy 2021-2025, my Department reviewed the means assessment disregards for Farm Assist. The report is available on the Government's website. One of the key recommendations of the report was to provide for an extensive expansion to the list of agri-environmental schemes that qualify for a disregard - a policy which I introduced with effect from June 2022.
As part of Budget 2023, I increased the disregard from these agri-environmental schemes from €2,540 to €5,000. I have also introduced several measures which aim to encourage and support people with disabilities to pursue their employment goals. This included a higher earnings disregard for Disability Allowance and Blind Pension.
Other important relevant measures which I announced were in relation to Fuel Allowance - broadening eligibility to an additional 80,000 households. These include:
- a new allowable means threshold will be introduced for people aged 70 years and over. The new threshold will be €500 per week for a single person and €1,000 per week for a couple;
- the weekly means threshold for those aged under 70 will be increased by €80 per week, from €120 to €200 above the appropriate weekly rate of State Pension (Contributory);
- the Disablement Benefit payment will be disregarded when assessing means for Fuel Allowance purposes; and
- Half-Rate Carer’s Allowance payment will be disregarded when assessing means for Fuel Allowance purposes.
In addition, from January 2023, the income thresholds on Working Family Payment will be increased by €40 per week.
I trust this clarifies the matter for the Deputy.