Tuesday, 25 Jul 2023

Written Answers Nos. 697-711

Pension Provisions

Questions (697)

Paul Kehoe

Question:

697. Deputy Paul Kehoe asked the Minister for Social Protection her plans to review the anomaly for those making contributory pension applications that have no credited contributions whilst on farm assist in view of the fact they were paying S contributions previously, and at that time were not entitled to make voluntary contributions, and are now being penalised with reduced pensions; the number of these farmers that have been affected by the anomaly; if a review of these cases will be carried out; and if she will make a statement on the matter. [36123/23]

Written answers

Minister for Social Protection

Currently, PRSI-credited contributions or credits are awarded to former employees only, to cover gaps in social insurance where they are not in a position to pay PRSI contributions, such as during periods of unemployment or illness.  Self-employed workers do not qualify for credits as one social insurance payment per annum provides the full 52 contributions for that year.

The farm assist scheme was introduced in 1999 to provide income support for low-income farmers.  It replaced the former smallholder's unemployment assistance payment, in line with the then arrangement for unemployment assistance, including the smallholder's unemployment assistance and the pre-retirement allowance.  The non-welfare income of farm assist payment recipients was exempt from the payment of class S PRSI for self-employed workers.  Recipients of the farm assist payment who had previously paid class S social insurance contributions had the option of making voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions to do so and many chose to do so.

Since 1 January 2007, the exemption from class S PRSI has been removed and those self-employed persons receiving jobseeker's allowance or the farm assist payment are subject to class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.  Any self-employed person, including farmers, with an annual income of less than €5,000 can make voluntary contributions to maintain his or her social insurance record for pension purposes, once qualified to do so.

Recipients of Farm Assist have, and always had, the option of paying Voluntary Contributions, subject to satisfying the qualifying conditions to do so.  In the period 1999 to 2006, the paid contribution requirement for entitlement to avail of the Voluntary Contributions scheme was a minimum of 260 weeks PRSI contributions in either employment or self-employment.   

While a person must have paid at least 520 weeks PRSI contributions and apply within 60 months of the end of the contribution year in which they last paid PRSI contributions to qualify to become a voluntary contributor, in exceptional circumstances, this rule may be relaxed where a person can demonstrate that an application was not feasible within the time limit.    

An application to become a voluntary contributor submitted by a Farm Assist recipient who was exempted from making PRSI contributions over the period from 1999 to 2006, can be examined on a case by case basis, under the relevant provisions.

In the absence of exact numbers of farm assist recipients with annual income in excess of the income threshold for paying class S PRSI prior to 2007 (i.e. €3,174 pa), it is not possible to estimate the numbers of persons affected. 

A person aged 66 or over with insufficient PRSI contributions to qualify for a full State Pension (Contributory) may claim a State Pension (Non-contributory) if he or she has an income need.  The maximum weekly personal rate is €254, which is more than 95% of the maximum State Pension (Contributory) rate.  While it is means-tested, there are very significant disregards to the benefit of claimants and a significant majority of such pensioners are paid at the full rate.

I hope this clarifies the matter for the Deputy.

Social Welfare Benefits

Questions (698)

Brendan Howlin

Question:

698. Deputy Brendan Howlin asked the Minister for Social Protection if she will personally intervene in a case of an overpayment of carer's allowance for a person (details supplied) whose overpayment arose because they were required to work additional hours as a nurse in the early stages of the Covid pandemic; if, in these circumstances, she will ensure that this person's appeal is allowed; and if she will make a statement on the matter. [36140/23]

Written answers

Minister for Social Protection

The Social Welfare Appeals Office is an Office of the Department of Social Protection which is responsible for determining appeals against decisions in relation to social welfare entitlements.  Appeals Officers are independent in their decision making functions. 

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered on the 17th July 2023.  It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. 

When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if necessary, hold an oral appeal hearing.

I trust this clarifies the matter for the Deputy.

Pensions Reform

Questions (699, 700, 702)

Patrick Costello

Question:

699. Deputy Patrick Costello asked the Minister for Social Protection if she will guarantee that the auto-enrolled pension scheme will be prohibited from investing in fossil fuels or the arms industry, as outlined in the Oireachtas Joint Committee on Social Protection report; and if she will make a statement on the matter. [36141/23]

Patrick Costello

Question:

700. Deputy Patrick Costello asked the Minister for Social Protection for an update on the implementation of the recommendations for the auto-enrolled pension scheme as outlined in the Oireachtas Joint Committee on Social Protection report; and if she will make a statement on the matter. [36142/23]

Patrick Costello

Question:

702. Deputy Patrick Costello asked the Minister for Social Protection if she will guarantee that a minimum percentage of the funds from the auto-enrolled pension scheme should be invested in Irish renewable energy developments in order to ensure Ireland’s climate action obligations; and if she will make a statement on the matter. [36144/23]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 699, 700 and 702 together.

The introduction of a pensions auto-enrolment system is a Programme for Government commitment, and a key priority for me as Minister for Social Protection.

Last year, I published 'The Design Principles for Ireland’s Automatic Enrolment Retirement Savings System', which set out the new system in detail.

A dedicated project team in the Department of Social Protection is solely focused on implementing the agreed design, including by drafting the necessary legislation that will underpin it, designing the organisational structures and the technical system to operate it, and communicating this landmark reform to stakeholders and the public.

Several workstreams are being progressed in parallel, among which is the drafting of the AE Bill in conjunction with the Office of Parliamentary Counsel, which I expect to publish in the autumn.

The Joint Oireachtas Committee on Social Protection has now published its report on the pre-legislative scrutiny of the Heads of Bill to establish the AE system, setting out 21 observations and recommendations.  I am considering these recommendations in the drafting of the Bill, but would note that several of them are already incorporated in the design agreed by Government for implementation in a later phase once the system is bedded in.  Other recommendations cannot be accommodated as they would require considerable change to the design already agreed by Government.  The completion of the Committee’s scrutiny of the AE Heads of Bill nevertheless represents an important step in the legislative process.

Among the recommendations of the JOC are some relating to environmental concerns and the arms industry.  In that context, it is important to state that the primary aim of investing AE participants’ funds is to provide a good financial return for them, so that they may have an adequate supplementary income that is over and above the level of the State Pension when they retire.

To manage and administer the AE system, a Central Processing Authority (CPA) will be established.  It will procure, through the open financial services market, investment management services on behalf of AE participants.  I want to make it clear to the Deputy that the CPA will not be administering a new State fund, but rather will be administering hundreds of thousands of individual savings accounts that are, and will remain, the personal property of the AE participants.  The AE project is, in that sense, a State-incentivised personal savings scheme for individuals rather than a new national fund.  In that context, the CPA and investment managers will have a duty to, first and foremost, get a good financial return for participants.

In designing high level investment strategies and in contracting for investment services, the Board of the CPA will be guided by both the prudent person principle as well as the need to ensure investments take account of environmental, social and governance (ESG) principles.  Such principles would include taking pollution caused by fossil fuels and concerns relating to the arms industry into consideration as part of the overarching, long-term strategy.

I hope this clarifies matters for the Deputy.

Question No. 700 answered with Question No. 699.

Pensions Reform

Questions (701)

Patrick Costello

Question:

701. Deputy Patrick Costello asked the Minister for Social Protection the timeline for the creation of the central processing authority being established to manage the auto-enrolled pension scheme; and if she will make a statement on the matter. [36143/23]

Written answers

Minister for Social Protection

The introduction of a pensions auto-enrolment system is a Programme for Government commitment, and a key priority for me as Minister for Social Protection.

Last year, I published 'The Design Principles for Ireland’s Automatic Enrolment Retirement Savings System', which set out the new system in detail.  It envisages that the enrolment of the first AE participants will commence in 2024. 

A key element of this design is the establishment of a Central Processing Authority (CPA), which will be established to manage and administer the AE system on behalf of the participants.  The CPA will initially operate on an administrative basis within the Department of Social Protection.  In time, the CPA will become a statutorily independent public agency operating under the auspices of the Minister for Social Protection. 

The legislation to underpin the establishment of the CPA is currently being drafted, with my officials working with the Office of Parliamentary Counsel.  I expect to be in a position to publish the AE Bill in the Autumn and to commence its passage through the Oireachtas immediately thereafter.  Enactment of the AE Bill will then facilitate the AE system to start in the second half of 2024. 

I hope this clarifies the matter for the Deputy.

Question No. 702 answered with Question No. 699.

Question No. 703 answered with Question No. 670.

Social Welfare Benefits

Questions (704)

Richard Bruton

Question:

704. Deputy Richard Bruton asked the Minister for Social Protection if she will consider relaxing the rule whereby a substantial period of time must elapse before a back-to-work enterprise application may be approved, given the huge disruption caused to fledgling businesses as a consequence of Covid; and if she will make a statement on the matter. [36171/23]

Written answers

Minister for Social Protection

The Back to Work Enterprise Allowance scheme (BTWEA) offers support for people who are long-term unemployed and who are interested in self-employment as a route to entering the labour market.  The scheme supports people in receipt of a qualifying social welfare payment to develop a business while allowing them to retain a reducing proportion of their payment over two years.  The scheme supports the development of new enterprises.  

The Government has provided funding of €34.8 million for the scheme in 2023. 

The qualifying period for the Back to Work Enterprise Allowance is 9 months in receipt of a jobseekers or other qualifying social welfare payment.  This was reduced from 12 months in 2017 to provide access to this support at an earlier stage of a person's unemployment.    

It is a key priority to encourage people back into employment and supports are kept under review in the context of the overall improving labour market and commitments under the Pathways to Work Strategy.  There are no plans to reduce the qualifying period for this scheme. 

I trust this clarifies the matter for the Deputy at this time.

Social Welfare Benefits

Questions (705)

Colm Burke

Question:

705. Deputy Colm Burke asked the Minister for Social Protection if she will give due consideration to ending the ‘four-over-seven-day rule’, which prevents home support workers from claiming part-time jobseeker’s allowance; and if she will make a statement on the matter. [36176/23]

Written answers

Minister for Social Protection

My Department supports part-time working through a number of schemes, including casual and systematic short-time work arrangements for people on jobseeker payments.  Under the current system a person can work up to three days and still receive a partial jobseeker payment.  This provision applies to all recipients, regardless of the type of employment or profession.  In addition, the Department provides the Working Family Payment for working families on low incomes, which is not based on days worked. 

The Government is conscious of the recruitment and retention challenges in the home and community care sector and is supportive of properly informed measures to increase capacity in the sector.  Towards this end, it established a Strategic Workforce Advisory Group to look at the labour force challenges facing providers of home-care services.  The Group’s Report was published in October 2022, following extensive consultation, and found a range of issues impacting on the shortages in home carers and nursing home healthcare assistants, including the need for improvements in recruitment processes, pay and conditions of employment, training and career prospects, and wider sectoral reform.

In line with Programme for Government commitments, I recently issued a Strawman proposal for public consultation in relation to a new Pay-Related Jobseeker's Benefit payment and, in doing so, set out the parameters of a proposed Working Age Payment.  Rather than using hours or days worked thresholds, this approach would utilise Revenue Commissioners real-time earnings data to adjust payment levels in line with a person’s weekly earnings.  In this way it would guarantee a basic income floor and ensure that in all cases a person’s income increases when they work.  This would represent a significant change and would address concerns around thresholds for days or hours worked.

My department is currently considering the responses received as part of the consultation process, which will help to inform next steps.

I trust that clarifies the position for the Deputy.

Social Welfare Benefits

Questions (706)

Colm Burke

Question:

706. Deputy Colm Burke asked the Minister for Social Protection to confirm that a liability raised for a person (details supplied) by her Department arising out of additional hours worked in excess of the limit on their carer’s allowance will be nullified due to the fact that these hours relate to their work helping elderly and vulnerable people with home help during the pandemic in 2020 and 2021 and were required as there was no one else available to undertake this work, and that they did not intend to circumvent the rules; and if she will make a statement on the matter. [36183/23]

Written answers

Minister for Social Protection

Carer's Allowance is a means-tested social assistance payment made to a person who is habitually resident in the State and who is providing full-time care and attention to a child or an adult who has such a disability that as a result they require that level of care.

To qualify, applicants must show that they are habitually resident in the State, that their means are less than the statutory limit, that they are providing full-time care and attention and that the person being cared for requires full-time care and attention.

A person is considered to be providing full-time care and attention where they are engaged in employment, self-employment or on training courses for a maximum of 18.5 hours per week provided that they can show to the satisfaction of a Deciding Officer that adequate care has been provided for the care recipient in their absence.

Once in payment, my Department periodically reviews claims to ensure that there is continued entitlement. 

The person concerned has been in receipt of Carer’s Allowance since 27 September 2007.  A review of their claim was initiated on 15 September 2022.

Following receipt of the information requested, it became apparent that the person concerned was working in excess of the hours permitted by the legislation and had means exceeding the statutory limit.  As a result, payment was suspended from 27 October 2022.

Further information was supplied confirming a reduction in working hours, but the person concerned still had assessable means.  They also had been working over the hours for the period 29 October 2020 to 26 October 2022 which resulted in an overpayment.

The payment of Carer's Allowance was reinstated from 27 October 2022 with a reduced payment due to assessable means.  Any arrears due for this period were withheld to offset against the overpayment.  The person concerned was notified of this on 17 February 2023 and of their right to review and/or appeal.

An appeal against the overpayment was requested on 6 March 2023 and further information was supplied in support of this.  The appeal was examined by the Social Welfare Appeals Office and the result was that the appeal was disallowed and the overpayment remained.  The Social Welfare Appeals Office indicated that the Department should work with the appellant to negotiate a repayment plan.  The person concerned was notified of this on 11 July 2023.

I hope this clarifies the position for the Deputy.

Social Welfare Benefits

Questions (707)

John Brady

Question:

707. Deputy John Brady asked the Minister for Social Protection the estimated amount it would cost to equalise the rates of jobseeker's allowance for under 25's and over 25's; and if she will make a statement on the matter. [36199/23]

Written answers

Minister for Social Protection

The estimated full year cost of increasing the rate of Jobseeker's Allowance for under 25's to that for over 25's is €65 million. 

It should be noted that this costing is 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 for those on Supplementary Welfare Allowance, where relevant. 

Social Welfare Benefits

Questions (708)

Paul Kehoe

Question:

708. Deputy Paul Kehoe asked the Minister for Social Protection the reason the carer's allowance application for a person (details supplied) was refused when a change of carers was applied; and if she will make a statement on the matter. [36229/23]

Written answers

Minister for Social Protection

Carer's Allowance (CA) is a means-tested social assistance payment, made to persons who are providing full-time care and attention to a person who has a disability such that they require that level of care.

It is a condition for receipt of CA that the person being cared for must have such disability that they require full-time care and attention.  This is defined as requiring from another person, continual supervision and frequent assistance throughout the day in connection with normal bodily functions or continual supervision in order to avoid danger to him or herself and likely to require that level of care for at least twelve months.

The Department's Medical Assessor only considers the evidence relevant to the application submitted.

It is also a condition for receipt of Carer's Allowance that every claimant shall furnish such certificates, documents, information, and evidence as may be required for the purposes of deciding their claim

An application for Carer's Allowance was received from the person concerned on 20 March 2023.

The application was disallowed on the grounds that the medical evidence submitted in respect of the care recipient did not indicate that the requirement for full-time care was satisfied and also for failure to provide requested information.  The person concerned was notified of this decision on 12 April 2023 and informed of their right of a review and appeal.

Following a request from the person concerned for a review of this decision and the submission of information on 18 April 2023, a Deciding Officer decided that the full-time care and attention conditions were still not satisfied.  The person concerned was notified of this decision on 4 July 2023 and informed of their right to appeal this decision.

I hope this clarifies the position for the Deputy.

Social Welfare Eligibility

Questions (709)

Violet-Anne Wynne

Question:

709. Deputy Violet-Anne Wynne asked the Minister for Social Protection her views on extending the fuel allowance eligibility to families in receipt of a working family payment; and if she will make a statement on the matter. [36232/23]

Written answers

Minister for Social Protection

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 €412 million in 2023.  The purpose of this payment is to assist these households with their energy costs.  Only one allowance is paid per household.

The Fuel Allowance is paid to social welfare recipients such as pensioners, people with disabilities, lone parents and the long-term unemployed in recognition of their long-term financial dependence on their social welfare payment for all or most of their income.  

People on long term payments are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty.  It is for this reason that my Department allocates additional payments, supports and resources such as Fuel Allowance to this cohort of claimants. 

The Working Family Payment gives extra financial support to families with children with rates depending on their incomes and family size.  It is not considered a long-term Social Protection payment and recipients are in full time employment and are more likely to have additional resources. 

While Working Family Payment is not a qualifying payment for Fuel Allowance, people may receive Fuel Allowance while on Working Family Payment if they are in receipt of One Parent Family Payment.

In response to an amendment tabled at Committee Stage of the the Social Welfare Bill 2023, I have asked my Department officials to prepare a report on the potential extension of eligibility for the Fuel Allowance to those in receipt of the Working Family Payment.  The work is ongoing and when finished, I will carefully consider its contents and any recommendations that it may contain. 

I trust that this clarifies the matter for the Deputy.

Social Welfare Offices

Questions (710)

Cian O'Callaghan

Question:

710. Deputy Cian O'Callaghan asked the Minister for Social Protection if her attention has been drawn to the serious difficulties people are having in booking appointments in their local Intreo centres by phone and email; how she plans to make this system more accessible; and if she will make a statement on the matter. [36284/23]

Written answers

Minister for Social Protection

My Department is committed to delivering excellent customer service as pledged in the Customer Service Charter.  This includes providing the highest quality of services to all customers and to treating customers with courtesy and respect.  The department strives at all times to ensure that our customers’ experiences in dealing with us, whether in person, by email or over the telephone, are positive.

The provision of in-person service at Intreo Centres continues to be available for all our customers and remains an important part of service delivery.  The majority of Intreo Centre services do not require an appointment and are available on a walk-in basis.  Where a person requests an appointment every effort is made to facilitate this request as quickly as possible. 

If the Deputy would like to forward the details of a particular case(s) I will have them examined.

Social Welfare Eligibility

Questions (711)

Matt Shanahan

Question:

711. Deputy Matt Shanahan asked the Minister for Social Protection if she will acknowledge the enormous amount of care being provided voluntarily by family members at home for relatives in need of very high levels of care; if she will acknowledge that if this voluntary home care were not available and responsibility transferred to the State, this would put a huge financial burden on the State; if she will acknowledge that a large number of voluntary carers are not eligible to apply for carer’s allowance as they do not satisfy the means test limit under the current legislation; and if she will consider abolishing the means test. [36457/23]

Written answers

Minister for Social Protection

The Government acknowledges the important role that family carers play and is fully committed to supporting carers in that role.  This commitment is recognised in both the Programme for Government and the National Carers’ Strategy.

The key role of my department is to provide income supports where an income need may arise due to unemployment, illness/disability or caring responsibilities.  The payments provided are an income support to people who cannot earn, or can only earn a limited income, and who have no other means or resources to rely upon.

The main income supports to carers provided by my department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Spending in 2023 is expected to amount to almost €1.6 billion on these payments. 

The two principal conditions for receipt of Carer’s Allowance are that full time care and attention is required and provided, and that a means test is satisfied.  The application of the means-test not only ensures that the recipient has an income need but also that scarce resources are targeted to those with the greatest need.

Since my appointment as Minister, I have made a number of significant improvements within the social welfare system to enhance the supports available for family carers.  As part of Budget 2022, I was delighted to announce the first improvements to the means test for Carer's Allowance in 14 years:

• For carers who work, the weekly income disregard was increased from €332.50 to €350 for a single person, and from €665 to €750 for carers with a spouse/partner. 

• The capital and savings disregard for the Carer’s Allowance means assessment was increased from €20,000 to €50,000, aligning it with the capital means test for Disability Allowance.

The Carer's Allowance disregards are the highest income disregards in the social welfare system.

More recently, as part of Budget 2023, I announced a range of measures directly benefitting family carers, particularly in light of the current cost of living crisis.  These include:

• A cost of living double payment to carers paid in October 2022.

• A €500 cost of living payment for people receiving Carer’s Support Grant paid in November 2022.

• Carers received the Christmas Bonus Double Payment in December 2022.

• A €200 lump sum payment for those in receipt of long-term payments, including carers, in April 2023.

• A €12 increase in the maximum rate of Carer’s Allowance and Carer’s Benefit took effect from January 2023 with proportionate increases for people receiving a reduced rate.

• A €2 increase for each Qualified Child bringing rates to €50 for Over 12s and €42 for Under 12s rom January 2023.

• The Half-rate Carer’s Allowance is now disregarded in the means assessment for Fuel Allowance since January 2023.

• Domiciliary Care Allowance increased by €20.50 to €330 per month with effect from January 2023. 

• Domiciliary Care Allowance is now available in respect of children with severe illness or disability who remain in hospital for up to six months after birth.

Abolition of the means test for Carer’s Allowance as the Deputy suggests would, in effect, create a new universal social protection scheme for those meeting the scheme’s basic caring condition.  This would constitute a fundamental change in the nature of the payment and could only be considered in a wider budgetary and policy context.

In addition to Carer's Allowance, my department also provides a non-means tested payment to those carers who have to leave the workforce or reduce their hours in the form of Carer’s Benefit.  For those providing ongoing care and attention for a child aged under 16 with a severe disability, Domiciliary Care Allowance is available and is also not means-tested.  Furthermore, the Carer's Support Grant - which I increased to its highest-ever rate of €1,850 - is also available to carers who are not on a social welfare payment.  On Thursday 1 June, some 141,000 Carer's Support Grants were paid to approximately 126,000 family carers. 

Notwithstanding the increased level of support already in place for carers, I have asked my department to keep these measures under review as part of the annual budgetary process.  I can assure the Deputy that I will continue to support carers and  meet regularly with them and their representative groups myself, so that I can hear directly from them about their issues. 

Finally, I have committed to a carrying out a broad review of means testing this year which will include the Carer's Allowance means test provisions.  This review is ongoing, and I hope to complete it in Quarter 4.  Changes to any of the schemes on foot of this review will only be done in the context of ensuring the most effective and targeted use of public funds that are required to provide income support on a broad societal level.

I trust this clarifies the matter for the Deputy.