Dáil Éireann Debate, Thursday - 9 July 2009
680 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to maintain policy of phasing and use of transition payments for persons coming off social welfare; and if she will make a statement on the matter. [29934/09]
Amharc ar fhreagraThe Department is conscious of the need to facilitate persons in receipt of social welfare payments when taking up employment opportunities. To ensure that supports are structured to support this objective, a number of measures have been introduced in recent years to remove disincentives to taking up employment and to assist in the transition from welfare to work.
These measures include the introduction of a tapered withdrawal of means-tested payments for unemployed people and people with disabilities who engage in employment and a tapered withdrawal of certain earnings for people in receipt of the rent and mortgage interest supplements.
Significant progress in removing poverty and inactivity traps is also shown in two important reforms which were introduced in 2007. These improved the method by which a person's earnings from employment, or the earnings of their partner, are assessed and facilitate persons in increasing their level of employment and income. This means that both adults associated with a jobseeker's allowance claim are now assessed in a similar manner and ensures that the families gain when earnings increase, encouraging qualified adults to move beyond long-term part-time employment. These changes are designed in particular to be progressive for women, who currently make up the majority of qualified adults in the social welfare system. Under the previous assessment procedures a trap existed whereby the loss in benefits to a household could exceed the gain in income attained by an increase in the earnings of a partner.
The changes also removed an anomaly in the assessment of means which discriminated against people with children, through the introduction of a daily earnings disregard of €20, benefiting many part-time workers, but particularly those with children. For example, a couple earning €290 per week over three days with two children gained over €112 per week jobseeker's allowance under the new arrangements.
In addition, Family Income Supplement (FIS) provides cash support for employees on low earnings with families or those seeking to make the transition from welfare to work. This preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were unemployed and claiming other social welfare payments. Take-up of the scheme has increased significantly in recent years with almost 43,000 new and renewal FIS claims in 2008, compared to almost 37,900 in 2007.
In order to respond effectively to the growing numbers on the Live Register, the changing profile of jobseeker's generally and the current employment situation, it decided to refocus the existing resources from the Back to Work Schemes on helping people into self-employment. To this end, the employee strand of the Back to Work Allowance was closed to new applicants.
From 1st May 2009 it has been replaced by two schemes; a 2 year back to work enterprise allowance (BTWEA) and a 1 year short term enterprise allowance (STEA). The STEA is payable to claimants who qualify for jobseeker's benefit, provided they have 104 contributions paid or have established entitlement to statutory redundancy from their latest period of employment. It is payable at the same rate and for the same duration as jobseeker's benefit.
The overall purpose of the new arrangements is to financially assist those on the Live Register to set up a business almost immediately they become unemployed, thereby ensuring that their knowledge, skills and expertise are fully utilised at an early stage in promoting enterprise and employment in the economy.
The measures outlined, including those recently introduced, will have the effect of greatly reducing the incidence and extent of poverty traps and ensure that they will only arise at significantly higher income levels than previously applied.
My Department will continue to monitor the operation of its schemes with a view to ensuring that poverty traps and disincentives are removed.
681 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to ensure that women are treated fairly in the social welfare code and to examine the proposals in the Green Paper on Pensions; and if she will make a statement on the matter. [29935/09]
Amharc ar fhreagraThe social welfare system has been improved over recent decades to make it easier for people, and women in particular, to qualify for contributory pensions. Social insurance coverage has been extended to include new categories of employment such as part-time workers and qualifying conditions for pensions have been eased. The homemaker's scheme was introduced to limit the impact that periods spent out of the workforce on caring duties had on pension entitlements. The effect of these reforms, combined with increased workforce participation, will ensure that, in future, most people will qualify for a contributory pension in their own right.
A qualified adult increase is payable in respect of a spouse or partner who is wholly or mainly maintained by a claimant. Since 2002, pensioner couples have been able to choose to have the qualified adult portion of the pension paid direct to the spouse or partner. Many spouse partners without their own pension entitlement have received a direct payment in this way. Direct payment of the qualified adult increase became mandatory for all new pension claims from September 2007. Couples may opt to receive a single payment but only where the qualified adult indicates that she/he does not wish to receive a direct payment.
The Government committed itself to complete the process, begun in Budget 2007, to bring payments to qualified adults age over 66 up to the level of the state pension (non-contributory) over a period of three years. Increases in subsequent Budgets have brought the qualified adult rate to 94% of the state pension (non contributory).
There are, of course, some older women who, for various reasons, cannot benefit from the many changes already outlined. Their position and that of others not covered by the social welfare pensions system is discussed in the Green Paper on Pensions which was published in October 2007. Following the conclusion of the successful consultation process last year, the Government has been considering a number of options to address the challenges facing our pensions system and which were raised in the Green Paper process. These issues relate to social welfare pensions, the sustainability of our pension system generally, the adequacy of current provision, and other complex issues around regulation, public sector pensions and retirement age.
Over the last year, the economic environment has changed considerably and the Government needs to ensure that any decisions made in the pensions area are robust enough to withstand new and unprecedented challenges.
It is entirely appropriate that the Government takes the time to arrive at sound decisions about the future of our pension system, given the potential of such decisions to significantly impact on this and future generations. The objective is a system that will deliver an adequate retirement income for all which is, affordable and sustainable for the State and for those who sponsor and provide pension schemes. It is expected that the national pensions framework will be finalised in the near future.
In addition, the Department of Social & Family Affairs is currently carrying out a technical review of the entire social welfare code to examine its compatibility with the Equal Status Act 2000 (as amended). The review is examining the schemes and services provided for both in social welfare legislation and the administrative schemes operated by the Department. It will identify any instances of direct or indirect discrimination on any of the nine grounds under the Act, including gender, that are not justified by a legitimate social policy objective or where the means of achieving that objective are either unnecessary or inappropriate.
The findings of this review will contribute to informed planning and policy making to ensure that the social welfare system reflects the needs and expectations of all citizens and is equitable in meeting those needs. The Review is due to be completed by end 2009.
682 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to recognise the role and economic contribution of spouses working on the farm within the social insurance system; and if she will make a statement on the matter. [29936/09]
Amharc ar fhreagra697 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to better recognise the role and economic contribution of spouses working on the farm within the social insurance system; and if she will make a statement on the matter. [29951/09]
Amharc ar fhreagraI propose to take Questions Nos. 682 and 697 together.
Spouses working for self-employed contributors are specifically excepted from social insurance contributions. However, spouses who are actively engaged in a commercial partnership, including the operation of a farm, as opposed to simply being the joint owners of a property, are treated as individual self-employed contributors and are thus liable to social insurance contributions.
The Programme for Government states that ‘The role and economic contribution of spouses working on the farm will be better recognised within the social insurance system'. On foot of this commitment an information leaflet, ‘Working with your spouse: how it affects your social welfare contributions and entitlements', has been developed between the Department of Social & Family Affairs and the Revenue Commissioners to set out the social welfare and tax implications of families co-working in a shared business. It was published on the 25th of June, 2008.
Since June 2008 745 farm partnership applications have been received by my Department; 265 applications have been decided with 216 applications being granted partnership status.
683 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to continue to maintain the value of the lowest rate of social welfare payments as agreed in the national action plan on social inclusion; and if she will make a statement on the matter. [29937/09]
Amharc ar fhreagraThe commitment in the Programme for Government is to maintain the value of the lowest social welfare payment at least at €185.80 per week in 2007 terms over the course of the National Action Plan for Social Inclusion.
The Consumer Price Index increased by 4.1% since 2007. The lowest rate of social welfare payment was increased by €12 per week in the 2008 Budget and €6.50 in the 2009 Budget, a total increase of €17.50 or 9.4%. The rate currently stands at €204.30.
This level of increase is greater than movements in prices or wages over the same period thus ensuring that the value of the lowest payment has been more than maintained.
684 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to further increase eligibility for the carer’s allowance; and if she will make a statement on the matter. [29938/09]
Amharc ar fhreagra687 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the progress regarding the programme for Government commitment to develop a national carers’ strategy and that there will be appropriate consultation with the social partners; and if she will make a statement on the matter. [29941/09]
Amharc ar fhreagraI propose to take Questions Nos. 684 and 687 together.
The Government is acutely aware of the sacrifices made by carers and has made many improvements in services and supports for carers.
The carer's allowance scheme has been significantly improved in recent years and in Budget 2009, I continued this process. The rate of carer's allowance for those aged 66 or over increased by €7 to €239 per week and for those aged under 66 by €6.50 to €220.50 per week. These increases took effect from January 2009. Recipients of carer's allowance are also eligible for household benefits, free travel and the respite care grant.
Since 1997 weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit, half-rate carer's allowance and the respite care grant have been introduced and extended.
The means test for carer's allowance has been significantly eased over the years, and is now one of the most generous means tests in the social welfare system, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been set at €332.50 per week for a single person and €665 per week for a couple. This means that a couple with two children can earn in the region of €37,200 and qualify for the maximum rate of Carer's Allowance as well as the associated free travel and household benefits. A couple with an income in the region of €60,400 can still qualify for a minimum payment, as well as the associated free travel, household benefits package. These levels surpass the Towards 2016 commitment to ensure that those on average industrial earnings continue to qualify for a full carer's allowance.
From June 2005, the annual respite care grant was extended to all carers who are providing full time care to a person who needs such care, regardless of their income. The rate of the respite care grant has also been increased to €1,700 per year in respect of each care recipient since June 2008.
During 2008 an interdepartmental group, chaired by the Department of the Taoiseach, with secretariat support provided by my Department, undertook work, including a public consultation process to develop a National Carers' Strategy. However, because of the prevailing economic situation, it was not possible to set targets or time lines which could be achieved. In that context, rather than publishing a document which did not include any significant plans for the future, the Government decided not to publish a strategy. This position remains unchanged.
It is estimated that the combined expenditure on carer's allowance, carer's benefit, the respite care grant and half-rate carers will be €650 million in 2009.
