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Thursday, 28 Nov 2013

Written Answers Nos. 14-20

Employment Support Services

Ceisteanna (14)

Bernard Durkan

Ceist:

14. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which adequate FÁS, JobBridge, retraining or up-skilling courses remain available to her Department with particular reference to the need to address the issues of long-term and youth unemployment; the numbers currently seeking to avail of such courses; and if she will make a statement on the matter. [50788/13]

Amharc ar fhreagra

Freagraí scríofa

The Government’s Pathways to Work 2013 strategy prioritises the allocation of available resources to the long-term unemployed and to the young unemployed. The goal in Strand 2 of Pathways to Work is: “To provide unemployed people, in particular people who are long-term unemployed and young unemployed people, with opportunities to enhance their job prospects through value-adding work experience, education and training activities.”

A breakdown of likely available places for 2014 is presented in the table below. The programmes where being long-term unemployed is an eligibility requirement are indicated, as are the latest estimates for uptake by young people. For JobsPlus, it is proposed to amend the eligibility requirements to allow young people to access the scheme at lower unemployment duration.

Programme

Approximated Number of Places (new participants)

Aimed at LTU ?

Expected estimated inflow of young people

Youthreach/Community Training Centres

3,300

3,300

JobBridge

13,300

5,000

Tús

7,500

Yes

1,000

JobsPlus

2,000

Yes

1,500

Momentum

6,500

Yes

2,000

Back to Education Allowance (excl. Momentum)

9,300

3,300

Back to Work Enterprise Allowance

5,500

Yes

200

Vocational Training Opportunity Scheme

2,800

500

Solas (former FÁS training)

25,000

40% target

9,500

Micro Finance Ireland for young people

150

150

International Work Experience and Training

250

250

Gateway

3,000

Yes

400

Community Employment

12,700

Yes

500

Total

91,300

27,600

Mortgage Interest Supplement Abolition

Ceisteanna (15)

Mick Wallace

Ceist:

15. Deputy Mick Wallace asked the Minister for Social Protection the reason she has abolished mortgage interest supplement in budget 2014; and if she will make a statement on the matter. [50849/13]

Amharc ar fhreagra

Freagraí scríofa

The original purpose of the mortgage interest supplement scheme was to provide short term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 10,500 people in receipt of mortgage interest supplement. The Government has provided €41.8 million for the scheme in 2013. The Government wants to provide an environment where mortgage holders can pay for and stay in their home but, where people have a genuine difficulty in meeting their financial commitments, they will have a framework to address and resolve that difficulty in an appropriate and fair way having regard to the particular circumstances of the case.

The Government’s strategy to assist those in mortgage difficulty is built around the following measures, as recommended in the 2011 Interdepartmental Mortgage Arrears Working Group (Keane Group), in four main distinct areas:

- Lenders providing sustainable and durable resolution options to their borrowers.

- A social housing response (Mortgage to Rent).

- Comprehensive advice to borrowers.

- Personal Insolvency Reform.

In the context of the overall strategy, the continued payment of mortgage interest supplement does little to assist recipients in improving the long term difficulty in addressing their mortgage problem and provides little incentive for the lender to provide sustainable solutions. The Keane Group’s over-arching theme was that the mortgage interest supplement scheme is not an appropriate long term support and should become a time bound payment with an appropriate exit strategy to be formulated for the recipient.

As part of the fiscal adjustment required for Budget 2014, provision was made for the discontinuation of entitlement to mortgage interest supplement for all new applicants from 1 January 2014. Existing customers are not affected by this measure and may retain entitlement to the scheme over the next four year period. However, it would be expected that during this four year period, existing customers would no longer require this support through sustainable solutions being put in place, securing employment or exit strategies sponsored by the Department of Environment, Community and Local Government, namely the Mortgage to Rent scheme.

Under the Code of Conduct on Mortgage Arrears, lenders are obliged to put in place Arrears Support Units to deal with borrowers under the MARP. The most appropriate way in which customers experiencing short term mortgage difficulties can be supported is through engagement with their lender under this process. Lenders must explore all options for repayment arrangements in order to determine which options are viable for each particular case. These options include interest only arrangements and deferring payment of all or part of the instalment repayment for a period.

Budget 2012 provided an amendment to the scheme that from mid June 2012 mortgage interest supplement is not payable until applicants have agreed with their lender and complied with an alternative payment arrangement for a cumulative period of not less than 12 months. The numbers on the scheme has continued to reduce since the introduction of this condition which indicates that the MARP process has succeeded in addressing customers’ short term financial difficulties.

I am satisfied that the range of supports implemented by this Government, including the range of information and guidance resources available, are appropriate in assisting those facing mortgage difficulties following the discontinuance of the mortgage interest supplement scheme.

Question No. 16 answered with Question No. 9.

Anti-Poverty Strategy

Ceisteanna (17)

Willie O'Dea

Ceist:

17. Deputy Willie O'Dea asked the Minister for Social Protection if she is concerned by recent reports of food shortages from charities in Dublin; if she is concerned by rising food poverty here; and if she will make a statement on the matter. [50828/13]

Amharc ar fhreagra

Freagraí scríofa

Food poverty refers to an inability to access a nutritionally adequate diet due to issues of affordability of, and access to, food, and that has related impacts on health and social participation. Inadequate food consumption is central to the understanding of poverty as exclusion from everyday life due to lack of resources. In recent years, there is specific focus on food poverty as a policy issue for two reasons: the structural constraints facing households in accessing food; and the links between food and nutrition and health problems, such as obesity, and cancer.

The World Health Organisation last month published the Review of social determinants and the health divide in the WHO European Region: final report, which states that “Social protection policies are critically important in shielding populations from the health effects of poverty and financial insecurity”. The Irish social protection system is highly effective in reducing the at-risk-of-poverty rate by 62 per cent (SILC 2011), as compared a 49 per cent reduction in 2004. The improved impact of social transfers reflects concerted and sustained State investment in social protection during this period, including the economic crisis.

The Department supports a number of interventions which address food poverty. The school meals programme is a targeted intervention for children at risk of food poverty and educational disadvantage. In 2013, the Department provided €37 million to fund direct food provision to almost 200,000 disadvantaged school-children, in over 1,300 schools or organisations. The Department also supports financially Healthy Food for All, a national charitable organisation which works to increase access and availability of affordable healthy food by low-income groups, including the development of community food initiatives.

Finally, a new initiative that the Department has started work on is the programming of the new Fund of European Aid for the most Deprived persons (FEAD). This will provide around €3m of EU funds annually to support efforts to allow charities dealing with the most marginalised people to buy food and consumables. My objective is to have this new measure fully operational in 2014.

Illness Benefit Reform

Ceisteanna (18)

Willie O'Dea

Ceist:

18. Deputy Willie O'Dea asked the Minister for Social Protection the number of persons that will be affected by the budgetary changes to illness/injury benefit; if she will outline the future of PRSI based benefits and her strategy to retain or improve them; and if she will make a statement on the matter. [50830/13]

Amharc ar fhreagra

Freagraí scríofa

The social insurance system, funded by the Social Insurance Fund (SIF), is core to Ireland’s system of social protection and I am determined that it be protected for current and future generations. However the Fund is not in a healthy financial position. The third Actuarial Review of the Social Insurance Fund was completed by consultants KPMG in 2012. A key finding of that Review is that the Fund has a significant shortfall in 2011 of €1.5bn given expenditure of €9.0bn but income of only €7.5bn. In the absence of any action to tackle this shortfall, the 2011 deficit of €1.5bn will double to €3.0bn by 2019 and will have increased to €25.7bn by 2066. These figures refer to the projected annual deficit in the particular year in question.

The change in the number of “waiting days” from 3 to 6 before payment of illness benefit will apply from January next and it is estimated that approx. 220,000 claims a year will be affected.

The Social Insurance Fund operates on a “pay as you go” basis, with the Exchequer acting as residual financier of the Fund when there is a shortfall between contributions received and benefits paid. Following many years of surplus, the fund has operated in deficit over the last number of years. In a difficult economic environment the choices facing Government in order to ensure the sustainability of the Fund are to either increase contributions or reduce benefits. It is in this context that the decision was made to make this relatively modest adjustment to illness benefit.

Live Register Numbers

Ceisteanna (19)

Willie O'Dea

Ceist:

19. Deputy Willie O'Dea asked the Minister for Social Protection her views on the fact that the Central Statistics Office figures relating to the live register have been published in national daily newspapers in advance of their official publication by the CSO; her views on whether this is acceptable; and if she will make a statement on the matter. [50827/13]

Amharc ar fhreagra

Freagraí scríofa

The value of the Live Register as an early indicator of unemployment trends is proven over the economic cycle. As an early indicator of a key metric of economic performance, it is important that the public and market analysts can have confidence in accuracy and independence of the Live Register data. I note that on occasion over the years some data, which form part of the monthly Live Register report from the Central Statistics Office, have been published in the media in advance of their official publication by the CSO. While the publication of these data does not invalidate or in any way undermine the value or integrity of the CSO official statistics, the Department takes all steps possible to prevent early release of these data.

Anti-Poverty Strategy

Ceisteanna (20)

Billy Kelleher

Ceist:

20. Deputy Billy Kelleher asked the Minister for Social Protection her views on whether the official measurements of poverty give sufficient consideration of the extra costs of having a disability; and if she will make a statement on the matter. [50611/13]

Amharc ar fhreagra

Freagraí scríofa

The Social Inclusion Monitor, published by the Department, sets out the official indicators of poverty in Ireland as based on the CSO’s Survey of Income and Living Conditions. The main indicator is ‘consistent poverty’. It is measured by the overlap of two measures: those who are at-risk-of-poverty (below the threshold of 60 per cent of the median equivalised household income) and are suffering basic deprivation (an enforced lack, i.e. inability to afford, two or more items from an eleven item list of basic goods and services). Consistent poverty is the basis for the national social target for poverty reduction, which is to reduce consistent poverty to 4 per cent by 2016 and to 2 per cent or less by 2020, from a 2010 baseline rate of 6.3 per cent. In 2011, using the CSO SILC definition for people with a disability, the rate of consistent poverty for this group was 6.9 per cent, which was the same as the rate for the total population. The at-risk-of-poverty measure only focuses on income (financial poverty) and does not take into account the costs of living or the extra costs of disability. The basic deprivation measure, however, measures actual living standards. Thus, if people are facing higher costs due to disability, the impact of these costs will be captured through the basic deprivation measure due to the inability to afford basic necessities.

In 2011, the Department published a Social Portrait of People with Disabilities, as one of the lifecycle groups identified in the National Action Plan for Social Inclusion 2007-2016 (NAPinclusion). This report works from a model that understands disability in terms of how the individual interacts with their physical and social environment. The impact of a disability is therefore mediated by the resources people have, the services they can access, the environment in which they live and the attitudes they encounter. The national poverty target and high level goals pertaining to income support, employment and access to services in NAPinclusion are relevant to people with disabilities across the life course.

NAPinclusion has a specific goal in relation to addressing the barriers to employment for people with disabilities. Of particular concern to the Department is how the social welfare system can support and assist people in receipt of disability payments to access the labour market. While as a society we face strong economic and financial challenges, it is important that we continue to address the barriers to the social and economic participation of people with disabilities. In turn, this will enable people with disabilities to make their contribution to national recovery and to underpin future progress.

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