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Tuesday, 5 Mar 2013

Written Answers Nos. 1 - 95

Maternity Benefit

Ceisteanna (87)

Charlie McConalogue

Ceist:

87. Deputy Charlie McConalogue asked the Minister for Social Protection the total number of recipients of maternity benefit in 2011 and 2012; the total amount spent in 2011 and 2012; her plans for this benefit; and if she will make a statement on the matter. [11102/13]

Amharc ar fhreagra

Freagraí scríofa

Maternity benefit is an income maintenance payment awarded to eligible women for a 26-week period on foot of a confinement. Entitlement to this benefit for employees is contingent on entitlement to statutory maternity leave. In 2012 there were 45,129 recipients under the scheme, down from 48,413 in 2011. My Department spent €303 million on maternity benefit payments in 2012, down from €309 million in 2011. Subject to the provisions of social welfare legislation, the 26-week period of core statutory maternity leave attracts a benefit payment. Maternity leave legislation also provides an option for a woman to take an additional 16-week period of leave that does not attract a benefit payment.

In line with the programme for government commitment to maintain headline rates of social welfare, maternity benefit remains payable at rates ranging from €217.80 per week up to €262 per week, derived with reference to earnings in the relevant tax year. Budget 2013 provided that, from July of this year, maternity benefit will be subject to taxation, in line with the majority of social welfare payments and the general principle that, as far as possible, income from all sources should be subject to taxation. The right to maternity leave is established under the Maternity Protection Acts, legislation which is the responsibility of the Minister for Justice. Any changes to current Maternity Leave provisions are a matter for that Minister to consider in the first instance – and consequential changes to Maternity Benefit would have to be considered by Government in a Budgetary context.

National Internship Scheme Placements

Ceisteanna (88)

Pearse Doherty

Ceist:

88. Deputy Pearse Doherty asked the Minister for Social Protection the number of JobBridge interns in each Department and subsidiary bodies. [11370/13]

Amharc ar fhreagra

Freagraí scríofa

Jobbridge is the National internship scheme introduced in July 2011 as a means of giving unemployed people an opportunity to secure work experience and to prove their competence to prospective employers. Under the scheme unemployed people and people with disabilities can secure work experience of either six or nine months and receive a top-up of €50 onto their weekly social welfare payment. To date over 15,000 people have benefitted from such an internship, there are currently 5,832 people working as interns and a further 2,400 internships opportunities are advertised on the Department’s website.

The positive impact of the scheme was shown in an interim evaluation conducted on behalf of the Department by Indecon International Economic Consultants. That interim evaluation, which I published on 5 October 2012, states that 61% of JobBridge finishers progressed into employment with either their host organisation or another employer within 5 months of finishing their internship. The interim report found that, of all internships, 67% were with private sector host organizations, 21% were with public sector host organizations and the balance were with host organizations in the community and voluntary sector.

With regard to the specific question raised by the Deputy I wish to advise that 232 interns took up Jobbridge internships in the Civil Service, in respect of which I have provided a break-down in a table below. A total of 3,242 placements commenced in the public sector since JobBridge came into operation. In addition to the Civil Service, those placements have been with commercial and non-commercial semi-state organizations, the Health Service Executive, Local Authorities, and various bodies in the education sector.

I am pleased to advise the Deputy that the Indecon interim report found that 49.9% of former public sector interns who had completed their internships were in employment at the date of the report. I am sure the Deputy will agree that this shows that, despite the public sector recruitment moratorium, the public sector is making its contribution to empowering and up-skilling interns by giving them quality real workplace experience and enhancing their skill sets, putting them on a better trajectory back to employment.

Public Sector Internships as at 28 February 2013.

Finishers

Current Interns

Total Interns

Civil Service

D/Agriculture Food and Marine

8

2

10

D/Arts, Heritage and the Gaeltacht

3

6

9

D/Communications, Energy and Natural Resources

19

4

23

D/Defence

2

2

4

D/Education and Skills

4

1

5

D/Environment, Community and Local Government

12

1

13

D/Finance

3

0

3

D/Health

7

4

11

D/Jobs, Enterprise and Innovation

2

4

6

D/Justice and Equality

60

23

83

D/Public Expenditure and Reform

10

5

15

D/Social Protection

4

1

5

D/Taoiseach

2

3

5

D/ Transport, Tourism and Sport

4

3

7

Houses of the Oireachtas

5

0

5

Office of the Attorney General

5

0

5

Chief State Solicitor’s Office

1

0

1

Comptroller and Auditor General’s Office

1

0

1

Ombudsman’s Office

0

2

2

Pensions Ombudsman’s Office

1

1

2

Office of the Secretary General to the President

1

0

1

Revenue Commissioners

3

10

13

Valuation Office

0

3

3

157

75

232

Departmental Contracts

Ceisteanna (89)

Michael Colreavy

Ceist:

89. Deputy Michael Colreavy asked the Minister for Social Protection when the social welfare contract, currently held by An Post, will be put to tender; and if she will make a statement on the matter. [9979/13]

Amharc ar fhreagra

Freagraí scríofa

The contract for the delivery of cash payment services to customer which is currently with An Post, expires on 31 December, 2013. In anticipation of this, the Department is undertaking two public procurement competitions for the delivery of welfare payments. The first procurement competition is seeking over the counter cash services for social welfare customers. This procurement was publicly advertised on 20 December 2012 with a closing date of 18 February, 2013. The contract will be for a term of two years, which may be renewed annually, for up to six years in aggregate. The outcome of this competition will give rise to a contract to maintain continuity in the delivery of cash payments to the Department’s almost one million customers, whilst also putting in place arrangements to facilitate the transition from cash payments to electronic payments.

Given that an evaluation is currently underway, Deputies will appreciate it would be inappropriate for me to comment further on the procurement competition other than to say that the requirement for convenient access payment outlets and the standards of the customer service were specified in the published Tender. The Department envisages a future where all payments to our customers will be paid electronically. This is in line with the Government policies and objectives such as better public services, to improve the efficiency of the national payments environment and to modernise payment approaches in the economy. These objectives are aligned to the objectives of the National Payments Plan.

In Ireland a relatively low level, only some forty per cent, of social welfare payments are made electronically into a financial institution. This does not compare well with other countries where the level of social benefit paid electronically through an account is very high, in many instances close to one hundred per cent. Given the volume of payments issued annually, any progress made by the Department towards more modern and efficient payments approaches will bring benefits to both customers and the national payments environment generally. However, direct payment into a financial institution may not suit all our customers. For this reason, a supplementary approach is required to provide additional scope for electronic payments. In this context, the Department will be advertising a second procurement later this year for an ePayment solution. This ePayment solution will supplement existing levels of payments made directly by Electronic Funds Transfer (EFT) into customer accounts in financial institutions. I anticipate this procurement will be published before the end of June 2013.

Social Welfare Schemes

Ceisteanna (90, 97)

Billy Kelleher

Ceist:

90. Deputy Billy Kelleher asked the Minister for Social Protection the total amount of households affected by changes to the household benefits package; and if she will make a statement on the matter. [11098/13]

Amharc ar fhreagra

Barry Cowen

Ceist:

97. Deputy Barry Cowen asked the Minister for Social Protection the discussions, if any, she has had with suppliers of household benefit package elements on reducing charges to customers in receipt of the household benefits package; and if she will make a statement on the matter. [11091/13]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 90 and 97 together.

The total cost of the Electricity/Gas allowance in 2013 is estimated at €176m with 405,000 recipients. The total cost of the Telephone allowance in 2013 is estimated at €48.1m with 395,000 recipients. My Department meets regularly with the energy and telecommunication providers to ensure the smooth operation of the household benefits scheme and to pursue savings for the Department and better deals for our customers.

In Budget 2013, the structure of the electricity and gas allowance was changed from a unit based allowance to a cash credit which is currently €35 per month. This rate is aligned to the best average market rate currently available. The changed structure of the allowance is designed to encourage customers to achieve better savings through greater mobility between energy suppliers who can best meet their individual energy needs. If customers do not use their full entitlement, they will be able to carry forward that unused cash credit and draw it down as they wish and particularly if they wish to change supplier. Prior to these changes, credit could not be carried forward by the customer to a new supplier and this acted as an impediment to customers achieving the best value for their particular energy needs and switching supplier having regard to the best deals on offer in the energy supply market. In relation to the changes in the Budget 2013 to the telephone allowance, Eircom has responded by providing a special package - Eircom Talktime Control - for vulnerable customers with affordability issues who are also customers of the Department of Social Protection.

Child Poverty

Ceisteanna (91)

Mick Wallace

Ceist:

91. Deputy Mick Wallace asked the Minister for Social Protection if she will commit to child poverty proofing budget 2014 in view of the contents of a report (details supplied) from the Children's Rights Alliance; and if she will make a statement on the matter. [11388/13]

Amharc ar fhreagra

Freagraí scríofa

The poverty reduction effect after social transfers demonstrates that the social protection system is protecting children at risk. From 2004 to 2010 (most recent data for children), the poverty reduction effect of social transfers for children’s at-risk-of-poverty rate increased from 43 per cent to 62 per cent. This reflects concerted State intervention and investment in the social protection system during this period.

Reducing and ultimately eliminating poverty is a fundamental aspiration of Irish society. The national social target for poverty reduction provides a key reference point for government policies and offers a tangible benchmark to measure social and economic progress. In recognition of the life-long consequences of child poverty and the damaging effects of intergenerational transmission of poverty, the Government has committed to setting a new sub-target for the reduction of child poverty. Discussions with Government Departments on setting the target are on-going and consultation with key stakeholders will also help to inform this process.

The sub-target for child poverty reduction will recognise that a multi-dimensional approach is needed to meet existing commitments and to take into account the importance of income supports, services and parental access to employment. Children in jobless households are three times more likely to experience consistent poverty than children generally. In 2011, almost three-quarters of all those living in consistent poverty lived in jobless households. Almost a quarter of all jobless households are living in consistent poverty. Over a fifth of all households in Ireland are jobless, twice the European average. The overriding objective for the Government is to increase employment, promote activation, skills training and education and thus build real and sustainable economic growth and to protect those who are most vulnerable in our society.

My Department provides a wide range of supports to families and their children through the social protection system. The importance of these supports is underlined by the fact that in 2013 my Department will spend over €2.8 billion on various child related payments. This accounts for around 14 per cent of expenditure on social protection of over €20 billion. The Child Benefit payment accounts for two-thirds of expenditure on child and family income supports as it is paid on a universal basis to approximately 609,000 families in respect of some 1.16 million children. However, it is important to note that my Department also provides child income support payments to low income families through additions to the main social welfare payments by way of qualified child increases (516,000 children), the Family Income Supplement (57,000 children) and through the Back to School Clothing and Footwear Allowance (approx. 377,000 children). I and the Government are conscious that these payments are an important source of income for all families, particularly during a time of recession and unemployment. Furthermore, the Government is committed to tackling Ireland’s economic crisis in a way that is fair, balanced, and which recognises the need for social solidarity. In addressing all aspects of the public finance, it will seek to ensure that resources are allocated fairly and that less well-off families are protected in so far as possible.

This Department also works closely with the Department of Children and Youth Affairs (DCYA) in relation to these issues. Minister Fitzgerald is overseeing the new children and young people’s policy framework under which policy and services for children and young people will be developed and implemented in the State. Minister Fitzgerald is also overseeing a new area-based approach to child poverty, building on evidence and experiences in prevention and early intervention programmes supported by her Department and Atlantic Philanthropies. My Department prepares a Social Impact Assessment of the main taxation and welfare changes arising from annual Government Budgets. This includes an analysis of the distributive and poverty impacts of these changes on different family types including those with children.

Departmental Reports

Ceisteanna (92)

Brian Stanley

Ceist:

92. Deputy Brian Stanley asked the Minister for Social Protection if the social impact assessment of the main taxation and welfare changes announced in budget 2013 is complete; and when she will publish same. [11375/13]

Amharc ar fhreagra

Freagraí scríofa

My Department is currently preparing a Social Impact Assessment of the main taxation and welfare changes announced in Budget 2013. This will include an analysis of the distributive and poverty impacts of these changes on different family types including those with children as well as the impact on at risk of poverty levels. This process is nearing completion and I hope to publish the assessment shortly.

Social Welfare Code

Ceisteanna (93)

Denis Naughten

Ceist:

93. Deputy Denis Naughten asked the Minister for Social Protection the steps she is taking to assist unemployed persons who are unable to avail of social assistance payments; and if she will make a statement on the matter. [10957/13]

Amharc ar fhreagra

Freagraí scríofa

Given the scale of the unemployment crisis, the key objective of activation policy and labour market initiatives is to offer assistance to those most in need of support in securing work and achieving financial self-sufficiency. This policy objective prioritises scarce resources to those in receipt of qualifying welfare payments. Accordingly the employment services provided by the Department are focused in the first instance on this cohort of unemployed people. It is recognised that not all unemployed people are dependent on the State for financial support and some services (for example assistance with jobsearch activities, use of online job search tools) are also available to such people if they register with the Department’s employment services offices. Unemployed persons not in receipt of payments may also be eligible to avail of up-skilling opportunities, for example through FÁS training, but are not eligible to receive a training allowance while undertaking such training.

Social Welfare Code Reform

Ceisteanna (94, 109)

Willie O'Dea

Ceist:

94. Deputy Willie O'Dea asked the Minister for Social Protection her views on the future of the one parent family payment; the progress that has been made to reform childcare provision before implementing changes to the payment; and if she will make a statement on the matter. [11080/13]

Amharc ar fhreagra

Michael McGrath

Ceist:

109. Deputy Michael McGrath asked the Minister for Social Protection the progress that she has made on establishing a Scandinavian style childcare system here; and if she will make a statement on the matter. [11104/13]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 94 and 109 together.

The reforms to the one-parent family payment (OFP) scheme aim to prevent long-term dependence on social welfare support and, while recognising parental choice with regard to the care of children, include an expectation of participation in education, training, and employment by lone parents. The reformed scheme brings Ireland’s support for lone parents in line with international provisions – where there is a general movement away from long-term and passive income support.

The changes to the OFP scheme have placed a firm focus within my Department on the supports that lone parents require, in particular after-school child care, in order to assist them to make their transition into employment. The joint child care initiative that Minister Fitzgerald and I announced as part of Budget 2013 will provide approximately 6,000 additional after-school child care places for low-income families who gain employment and who have children of primary school age. Officials from my Department, the Department of Children and Youth Affairs (D/CYA), and the Department of Education and Skills (D/ES) are presently working out the exact parameters of the scheme, which will be launched on a phased basis during 2013, commencing with a pilot in April 2013.

The availability of these new child care places is a positive measure for lone parents and builds on my pledge to work to address the child care needs of lone parents as part of the reforms of the OFP scheme. The D/CYA estimates that the cost of Scandinavian style universal after-school child care provision in Ireland would be in the region of €1 billion per annum. Given the current fiscal constraints, this level of funding is not available. The new scheme will build on the existing supports provided by the Department of Children and Youth Affairs (D/CYA) in the child care sector.

Departmental Schemes

Ceisteanna (95)

Seán Crowe

Ceist:

95. Deputy Seán Crowe asked the Minister for Social Protection if she will provide detail of the JobsPlus initiative; and if she will specify the length of the contracts of the jobs involved. [11378/13]

Amharc ar fhreagra

Freagraí scríofa

The Action Plan for Jobs 2013, published by my colleague Richard Bruton T.D. Minister for Enterprise Jobs and Innovation on 22 February 2013, outlines 333 actions to be implemented before 31st December 2013 by 16 Departments and 46 agencies. These actions will continue to improve supports for job-creating businesses and remove the barriers to employment-creation across the economy. Furthermore, it also outlines 7 Disruptive Reforms; these high impact measures with ambitious deadlines are to be implemented in partnership with senior industry figures. These were selected because of their potential to have an immediate effect on job-creation.

One such reform is the JobsPlus scheme which will replace the existing PRSI exemption and the Revenue Job assist schemes. The objective of the new JobsPlus scheme is to provide a simple, easily understood and attractive scheme that will encourage employers to recruit from the cohort of the long term unemployed. The incentive will be payable over a two year period and set at two levels in order to bias the incentive in favour of the more long term unemployed:

- In respect of recruits unemployed for more than 12 months but less than 24 months: €7,500,

- In respect of recruits unemployed for more than 24 months: €10,000.

The operational details of the scheme are at the design stage with a proposed launch date of quarter three 2013. The existing schemes will remain in existence in the interim.

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