asked the Minister for Social Welfare the amount of money paid into the pay-related scheme for the years ended (a) September, 1974, and (b) September, 1975.
Written Answers. - Pay-Related Benefit Scheme.
109.
The pay-related benefit scheme came into operation in April, 1974. The contribution income of the scheme in the six months ended 30th September, 1974, was £5,189,000 and it is estimated that in the year ended 30th September, 1975, it was £18,800,000.
110.
asked the Minister for Social Welfare the amount of money paid out in pay-related benefits for the years ended (a) September 1974 and (b) September, 1975.
The pay-related benefit scheme came into operation in April, 1974. The amount of money, including administrative costs, paid under the scheme in the six months ended 30th September, 1974, was £1,667,000. The amount paid in the year ended 30th September, 1975, is estimated at £8,600,000.
111.
asked the Minister for Social Welfare the use to which excess funds in the pay-related scheme are put; or if the excess is carried forward from year to year.
In accordance with the provisions of section 5 of the Social Welfare (Pay-Related Benefit) Act, 1973, income from pay-related contributions is paid into the Social Insurance Fund. Pay-related benefit is paid out of that fund and the amount of any surplus on the operation of the pay-related benefit scheme contributes towards the reduction of the overall deficit on the fund.
112.
asked the Minister for Social Welfare how often the pay-related scheme is reviewed with a view to reducing the payments of the contributors in the event of the fund being over-subscribed; and if he will make a statement on the matter.
The pay-related benefit scheme is a relatively new scheme having been introduced in April, 1974, to offset the sharp drop in income previously suffered by many workers when they became ill or unemployed. Like all new schemes its effectiveness in achieving the purpose for which it was established has been continually under review. As a result of earlier reviews it was considered that the most significant improvement that could be made in the scheme was an extension of the duration for which pay-related benefit was payable. During the course of this year it has been possible to double the original duration of pay-related benefit with the result that it is now payable for 12 months—the same maximum duration as for flat rate unemployment benefit. Until sufficient time has elapsed to enable the financial effects of these improvements to be assessed, I would not feel justified in altering the existing financial arrangements.