Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Tuesday, 15 Jul 2014

Written Answers Nos. 96-110

One-Parent Family Payments

Ceisteanna (96)

Joan Collins

Ceist:

96. Deputy Joan Collins asked the Tánaiste and Minister for Social Protection if she will provide a breakdown of extra places for education and training, child care places for over sevens and job placement since 2011 and 4 July 2014 directed towards parents on lone parent family payments. [30737/14]

Amharc ar fhreagra

Freagraí scríofa

The one-parent family payment (OFP) scheme supports 76,249 recipients at an estimated cost of €863 million in 2014. The reforms to the OFP scheme are reducing on a phased basis, the maximum age limit of the youngest child at which an OFP recipient’s payment ceases to 7 years. The rationale for these reforms is to provide lone parents with improved access to a wide range of supports, which are designed to improve an individual’s prospects of securing employment. As set out in the table the Government is providing a range of activation measures in 2014. These include programmes first introduced by this Government such as JobBridge, which was extended to include OFP recipients in May 2012, JobsPlus and Momentum and older schemes such as Community Employment and TÚS where the Government has significantly increased the number of places available. In total 92,000 participants are expected to commence these programmes in 2014. An additional 35,000 are expected to participate on PLC courses.

Should a lone parent make the transition to a jobseeker’s scheme after their entitlement to OFP has expired then they will have improved access to many of these measures, including for the first time JobsPlus, Tús, Momentum and Gateway.

Programme

Average participation 2014

Youthreach

6,000

JobBridge

7,700

Tus

7,500

JobsPlus

4,000

Momentum

6,500

Back To Education Allowance

18,500

BTWEA

11,000

VTOS

5,600

FAS/Solas

10,300

International Work Experience and Training

250

Gateway

3,000

Community Employment

25,300

Total

105,650

PLCs

35,000

Childcare is the responsibility of the Department of Children and Youth Affairs (D/CYA). In Budget 2013, the after-school child care (ASCC) initiative was announced with the purpose to offset some of the childcare costs that are associated with availing of an employment opportunity. The scheme provides 800 subsidised childcare places and is open to both jobseekers and OFP recipients.

In Budget 2014, the re-focusing of the original ASCC budget enabled the introduction of the community employment (CE) childcare programme. This scheme was implemented in January and provides some 1,800 subsidised child care places to CE participants.

These two schemes build on the existing supports by the D/CYA, through which subsidised childcare is provided to approximately 35,000 children of low-income parents.

Drug Treatment Programmes Policy

Ceisteanna (97)

Maureen O'Sullivan

Ceist:

97. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Social Protection when the social inclusion strand on community employment and drug rehabilitation projects will be announced and if Pobal will have a role in this strand; if she will give her commitment that the drug rehabilitation projects will remain central to the delivery of the rehabilitation pillar of the national drugs strategy; and if she will make a statement on the matter. [30819/14]

Amharc ar fhreagra

Freagraí scríofa

A Working Group, chaired by the Department of Social Protection, was set up in May to develop a framework for the delivery of the drugs rehabilitation response within CE. This group includes stakeholders from drugs rehabilitation projects and representatives from the statutory, community and voluntary sector, including Drugs Task Forces. Work on the social inclusion strand for the CE drug rehabilitation response is still at the early stages but will be progressed over the coming months with a view to an initial roll-out by the end of this year. The establishment of a CE social inclusion strand is designed to facilitate the participation of vulnerable adults who are very distant from the labour market and will set reasonable expectations in terms of expected outcomes for participants. The programme will include provision for mentoring, capacity building and education and training for participants to enable them to progress in the labour market.

The development of the social inclusion strand is informed by the EU policy on the active inclusion of people excluded from the labour market (Commission Recommendation 2008). The 2008 EU Commission Recommendation on Active Inclusion states that policies should 'facilitate the integration into sustainable, quality employment of those who can work and provide resources which are sufficient to live in dignity, together with support for social participation, for those who cannot.'

The separation of activation objectives from social inclusion objectives - as is planned for CE - will bring clarity to both sets of actions. For participants who can avail of higher level training and gain qualifications, the proposed activation strand will provide the resources and supports to achieve these outcomes.

The issue of the management and administration of the CE Programme is under on-going consideration by the Department. No decision has been made in relation to Pobal’s role in this regard.

Social Insurance

Ceisteanna (98)

Willie O'Dea

Ceist:

98. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection if she will provide an update on the solvency of the Social Insurance Fund; if she will protect all benefits accruing from the fund; if she will consider covering persons in self-employment under this fund; and if she will make a statement on the matter. [30816/14]

Amharc ar fhreagra

Freagraí scríofa

Social insurance spending has traditionally been funded on a tripartite basis – with contributions coming from the Exchequer, employers and employees. Legally, the Exchequer is the residual financier of the Social Insurance Fund (SIF) and Exchequer contributions were the norm for over 40 years. For example, in 1967, the State contribution was 38% of SIF expenditure; and almost 29% in 1985. However, no Exchequer contribution was required over the period 1997 to 2007 inclusive when social insurance income exceeded Fund expenditure. In 2008, the current operating balance of the SIF moved into deficit with expenditure exceeding income by €255m. This deficit accelerated in 2009 when it reached €2.49 billion and further rose to €2.75 billion in 2010. This resulted in the requirement for an Exchequer subvention in 2010 as the accumulated surplus was exhausted and this requirement will continue (in the absence of revenue raising measures). The Revised Estimates provides for a subvention of €0.69 billion from voted expenditure to fund the deficit on the SIF in 2014. The Actuarial Review of the Social Insurance Fund as at 31 December, 2010, highlighted the growing deficit in the Fund and the prospect that it will, in the absence of measures to address the deficit, accelerate further in the future, driven primarily by pension costs. It is estimated that in excess of €900m additional provision will be required over the next 5 years to fund increases in the numbers of recipients of the State pension (contributory) scheme. The Programme for Government commitment is to retain core weekly social welfare rates of payment. This Government has successfully achieved this objective over the last three Budgets.

As the Deputy is aware persons in self-employment who pay class S PRSI are entitled to access a range of long-term social insurance benefits which are funded from the SIF, including State pension (contributory).

In September 2013, I published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable, with the requirement that any proposals for change must be cost neutral.

The Group found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance during the three-year period from 2009 to 2011 received payment. Consequently, the Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.

The Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. To this end, the Group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. The Group further recommended that the extension of social insurance in this regard should be on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points.

This recommendation will require further consideration in conjunction with the findings of the most recent Actuarial Review of the Social Insurance Fund which indicated that the self-employed achieve better value for money compared to the employed when the comparison includes both employer and employee contributions in respect of the employed person.

My colleagues in Government and I will reflect on the findings of the Advisory Group on this issue and will further consider the recommendations contained in the report taking into account future developments in terms of the budgetary and fiscal situation.

Family Income Supplement Payments

Ceisteanna (99)

Thomas Pringle

Ceist:

99. Deputy Thomas Pringle asked the Tánaiste and Minister for Social Protection her plans to raise the living standards of low income families within her Department; and if she will make a statement on the matter. [30928/14]

Amharc ar fhreagra

Freagraí scríofa

The Revised Estimates Volume for 2014 provides for expenditure of €19.6 billion by the Department of Social Protection on schemes, services and administration. The vast majority of this expenditure goes on weekly income support payments as well as monthly child benefit payments. The Department currently provides income support to over 1.4 million recipients each week. When increases for qualified adults and children are included, more than 2.2 million directly benefit each week. These weekly payments have been fully maintained over the past three years in line with the commitment in the Programme for Government.

In addition to the weekly rates of payment, child benefit is paid to over 600,000 families each month, in respect of almost 1.2 million children. The Department also provides a wide range of supplementary payments and some benefits in kind.

The immediate impact of these payments, known as social transfers, is to reduce poverty. In 2012, CSO data shows that social transfers reduced the at-risk-of poverty rate from 50.3 per cent (before social transfers) to 16.5 per cent (after social transfers, including pensions), a ‘poverty reduction effect’ of 67.2 per cent. If pensions are excluded, the reduction is from 39 per cent to 16.5 per cent, or 57.7 per cent in relative terms. Ireland continues to be among the best performing EU countries in reducing poverty through social transfers.

Employment is the best route for protection against poverty and social exclusion. Since coming into office as Minister for Social Protection, I have focused on transforming the Department from the passive benefits provider to an active and engaged public employment service that assists in getting people back to work.

The Department is the lead Department on the Pathways to Work strategy, which complements the Government's Action Plan for Jobs. The Action Plan is designed to accelerate the transition to a sustainable, jobs-rich economy, while the aim of Pathways to Work is to ensure that as many as possible of those newly created jobs go to people on the Live Register. For instance, initiatives like JobsPlus, which provide a financial incentive to hire people who are long-term unemployed are proving very successful, particularly with the longer-term unemployed.

The Department also incentivises the take-up of part-time work through income disregards and tapering arrangements in the various means tested schemes as well as supporting lower income working families with children through the family income supplement scheme (FIS).

FIS offers a direct financial incentive to families to take-up employment. There are currently nearly 45,000 families with over 99,000 children in receipt of FIS. Expenditure on FIS has increased from €204.5 million in 2011 to an estimated expenditure of nearly €282 million in 2014.

The appropriate rates of welfare supports in the year ahead will be considered by Government as part of its deliberations on the next Budget.

Money Advice and Budgeting Service

Ceisteanna (100)

Mick Wallace

Ceist:

100. Deputy Mick Wallace asked the Tánaiste and Minister for Social Protection the reason for the decision to discontinue the lough payment scheme, also known as MABSlink, which supports marginalised persons in managing their finances and accessing legal credit; and if she will make a statement on the matter. [30929/14]

Amharc ar fhreagra

Freagraí scríofa

There are a number of Money Advice and Budgeting Services (MABS) companies which have been assisting and supporting their clients with a facility to make direct deductions from their social welfare payments for bill paying purposes through historical arrangements put in place by Cork MABS and the Lough Credit Union, using the Household Budget facility operated by An Post. This arrangement is known as the Lough Payment Scheme or MABSlink. The purpose of the Household Budget facility is to facilitate deductions from social welfare payments for specified creditors. The Lough Payment Scheme catered for a variety of creditors, some outside those specified for the Household Budget facility. In order to regularise these arrangements, the local MABS companies which have clients currently availing of the Lough Payment Scheme are working with these clients to explore alternative arrangements for paying their bills. The Citizens Information Board, which has statutory responsibility for the Money Advice and Budgeting Service (MABS) is liaising with the local MABS companies concerned. Particular effort is being made to ensure that suitable alternative options are made available and that clients will be fully supported through the transition to the alternative arrangement. I am informed that the current arrangements will continue for the remaining clients on an administrative basis in the interim.

Back to Education Allowance Payments

Ceisteanna (101)

Charlie McConalogue

Ceist:

101. Deputy Charlie McConalogue asked the Tánaiste and Minister for Social Protection the supports available from her Department for single parents aged under 23 years of age and who wish to return to full-time education; if these persons are entitled to rent allowance; if not, the reason for same; and if she will make a statement on the matter. [30821/14]

Amharc ar fhreagra

Freagraí scríofa

The purpose of rent supplement is to provide short-term income support to eligible people living in private rented accommodation. There are approximately 76,000 rent supplement recipients for which the Government has provided over €344 million for 2014.In general, persons engaged in full-time education are excluded from receiving rent supplement. However, those participating in approved courses under the back-to-education allowance (BTEA) or the vocational training opportunities scheme (VTOS) may retain entitlement to rent supplement, subject to meeting all other conditions of the scheme. A person wishing to pursue BTEA will have to satisfy a number of conditions; specifically meet certain age requirements and be in receipt of a prescribed social welfare payment for a specified time period.

In general, claimants for BTEA must be at least 21 years of age before the start date of an approved course of study; those on disability-related payments can access BTEA at 18 years of age. Claimants must be at least 24 years of age for an approved postgraduate course. For persons aged between 18 and 21 years of age and have been out of formal education for at least 2 years may also qualify.

The VTOS, operated by Education and Training Boards, is open to those who are over 21 years of age, unemployed and have been getting certain social welfare payments for at least 6 months.

Rent Supplement Scheme Payments

Ceisteanna (102)

Catherine Murphy

Ceist:

102. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection the percentage and actual figures of the fall off in rent supplement claims for new tenancies in north of Kildare and other nationwide constituencies in 2013 and 2014 by quarter; and if she will make a statement on the matter. [31026/14]

Amharc ar fhreagra

Freagraí scríofa

The purpose of rent supplement is to provide short-term income support to eligible people living in private rented accommodation. There are approximately 76,000 rent supplement recipients for which the Government has provided over €344 million for 2014. Information on the number of rent supplement claims for new tenancies by constituency is not available. However, the number of rent supplement recipients by county for each quarter from January 2013 to June 2014 and the overall percentage change is provided in the tabular statement.

Tabular Statement: Rent Supplement Recipients 2013 to date by County per Quarter

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

County

No.

No.

No.

No.

No.

No.

% Change: Jan. 2013 to Jun. 2014

Dublin

32,114

31,070

30,374

29,541

28,964

28,237

(12.07%)

Cork

9,664

9,381

9,146

9,020

8,769

8,681

(10.17%)

Kildare

4,420

4,322

4,329

4,135

3,996

3,870

(12.44%)

Galway

4,151

4,168

4,024

3,983

3,851

3,764

(9.32%)

Wexford

3,618

3,464

3,286

3,179

3,015

2,865

(20.81%)

Limerick

3,252

3,139

3,081

2,984

2,886

2,755

(15.28%)

Louth

2,509

2,489

2,468

2,422

2,381

2,351

(6.30%)

Wicklow

2,522

2,447

2,488

2,381

2,293

2,231

(11.54%)

Tipperary

2,175

2,157

2,101

2,094

2,061

2,009

(7.63%)

Donegal

2,333

2,208

2,134

2,047

1,986

1,940

(16.85%)

Meath

2,169

2,099

2,031

1,941

1,908

1,841

(15.12%)

Kerry

1,995

1,921

1,867

1,888

1,895

1,816

(8.97%)

Mayo

2,338

2,214

2,056

1,900

1,740

1,704

(27.12%)

Westmeath

1,590

1,575

1,590

1,588

1,555

1,542

(3.02%)

Waterford

1,689

1,625

1,551

1,556

1,537

1,487

(11.96%)

Clare

1,701

1,666

1,592

1,547

1,493

1,427

(16.11%)

Kilkenny

1,322

1,305

1,261

1,210

1,228

1,195

(9.61%)

Offaly

1,225

1,177

1,143

1,124

1,098

1,087

(11.27%)

Carlow

1,194

1,159

1,109

1,108

1,089

1,082

(9.38%)

Laois

1,042

1,079

1,064

1,085

1,062

1,025

(1.63%)

Roscommon

943

890

839

802

736

705

(25.24%)

Sligo

564

544

546

542

520

487

(13.65%)

Longford

522

514

510

507

494

467

(10.54%)

Cavan

513

453

451

455

441

424

(17.35%)

Monaghan

432

426

411

395

393

375

(13.19%)

Leitrim

378

365

351

354

340

343

(9.26%)

Total

86,375

83,857

81,803

79,788

77,731

75,710

(12.35%)

Social Insurance

Ceisteanna (103)

Willie O'Dea

Ceist:

103. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection if she will address the PRSI anomaly resulting in lower paid workers taking home less pay when they earn more; and if she will make a statement on the matter. [30814/14]

Amharc ar fhreagra

Freagraí scríofa

Employee PRSI is not charged where weekly earnings are €352 or less. Where weekly earnings exceed €352, employees become liable for PRSI and PRSI at 4% is charged on all earnings. While the effect of paying PRSI on all earnings once the €352 employee PRSI threshold is exceeded, is an issue, the yield from those paying PRSI contributes to keeping workers on lower earnings (below the threshold) outside of the PRSI net.Family Income Supplement (FIS) is available for lower paid workers with families, whose income falls below the relevant thresholds. The level of FIS entitlement is based on net income after all relevant deductions, including the deduction of PRSI. The payment effectively preserves the incentive to take up or remain in employment in circumstances where the employee might only be marginally better off than if s/he were claiming other social welfare payments.

One-Parent Family Payments

Ceisteanna (104)

Bernard Durkan

Ceist:

104. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which a loss of income has been experienced by lone parents working part time following the introduction of revised payment structure in the current year, with particular reference to those on local authority housing lists, who rely on rent support and are subject to rapidly increasing rental market; and if she will make a statement on the matter. [30871/14]

Amharc ar fhreagra

Freagraí scríofa

The one-parent family payment (OFP) scheme supports 76,249 recipients at an estimated cost of €863 million in 2014. The OFP scheme is in the process of being reformed. These reforms are reducing on a phased basis, the maximum age limit of the youngest child at which an OFP recipient’s payment ceases to 7 years from 2014 for new entrants and from 2015 for existing recipients. On 3 July the latest phase of the OFP reforms was implemented when 5,140 lone parents lost their entitlement to OFP. It is expected that most affected OFP recipients will apply for a jobseeker’s allowance (JA) payment. The majority of these customers will not suffer any reduction in their new payment as they are not working.

Affected lone parents who apply for a JA payment and who have a child aged under 14 years will be entitled to the JA transitional arrangement. This arrangement exempts these lone parents from having to be genuinely seeking, and available for, full-time employment. This enables lone parents with young children who are working part-time – e.g. mornings only – to remain in work and to receive income and activation supports as appropriate. This arrangement allows them to balance their caring responsibilities and significantly reduces their requirement for childcare.

However, lone parents who are working and who transfer to JA may suffer a reduction in their payment due to the fact that the JA means test is less generous than the OFP means test. The exact amount of this reduction will depend on the customers’ earnings. However, the Department has advised all individuals that where they work a minimum of 19 hours per week or can increase their hours to that level, to apply for the family income supplement (FIS) as this is the most beneficial income support available to them.

Lone parents, who were previously in receipt of both the OFP and the family income supplement (FIS) concurrently, will suffer a loss when their entitlement to OFP ceases. However, these customers will have their FIS payment automatically adjusted to compensate for 60% of the loss of their OFP payment.

With regard to lone parents who are in receipt of rent supplement, this is a means tested payment. Therefore a change in income received by a client, including the loss of their OFP payment, invariably means a change in entitlement. This should be communicated to a community welfare officer who will review the client’s case and if appropriate adjust their rent supplement entitlement.

The Department’s staff in the Community Welfare Service have considerable experience in dealing with customers and will continue to make every effort to ensure that their accommodation needs are met. Staff have discretionary powers to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant, for example, when dealing with applicants who are homeless or who are at risk of losing their tenancy. Such cases are examined on a case by case basis having regard to the situation presented.

Policy in relation to local authority housing lists is a matter for the Department of the Environment, Community, and Local Government.

Rent Supplement Scheme Payments

Ceisteanna (105)

Clare Daly

Ceist:

105. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection if she will abolish the rent supplement ceilings which are completely unrealistic in present market conditions, and allow CWOs to sanction appropriate payments based on their experience in the area in order to reduce the numbers of families that are being driven to homelessness. [30808/14]

Amharc ar fhreagra

Freagraí scríofa

The purpose of rent supplement is to provide short-term income support to eligible people living in private rented accommodation. There are approximately 76,000 rent supplement recipients for which the Government has provided over €344 million for 2014. I do not intend to abolish the rent supplement maximum rent limits. However, a review of the maximum rent limits has commenced and will feed into the budgetary process. This review involves a comprehensive analysis of information from a range of external sources, including the Private Residential Tenancies Board, in addition to seeking the views from a number of stakeholders including staff, relevant Departments and Agencies and non-Government organisations such as Threshold, Focus Ireland and the Society of St Vincent de Paul. Prospective tenants, including those seeking to access rent supplement, particularly in urban areas, are finding it increasingly difficult to secure appropriate accommodation due to the reduced availability of rental properties.

The Department has agreed a protocol with the Dublin local authorities and voluntary organisations so that families on rent supplement who are at risk of losing their accommodation can have more timely and appropriate interventions made on their behalf. A key element of these arrangements is the statutory discretion available to officers, under Article 38 of S.I. 412 of 2007, to award a supplement at a rate higher than the prevailing maximum rent limits where the circumstances of the case so warrant.

I can assure the Deputy that officers administering rent supplement throughout the country have considerable experience in dealing with customers and make every effort to ensure that their accommodation needs are met. A notice reminding all staff of their statutory discretionary power to award a supplement for rental purposes in exceptional cases, for example, when dealing with applicants who at risk of losing their tenancy, has recently been circulated.

One-Parent Family Payments

Ceisteanna (106)

Richard Boyd Barrett

Ceist:

106. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection her views that as the changes in entitlement to one-parent family payment as they are now being phased in are having a particularly adverse impact on lone parents who are working part-time and may impact on their housing and force them out of work; and if she will make a statement on the matter. [30931/14]

Amharc ar fhreagra

Freagraí scríofa

The one-parent family payment (OFP) scheme supports 76,249 recipients at an estimated cost of €863 million in 2014. The OFP scheme is in the process of being reformed. These reforms are reducing on a phased basis, the maximum age limit of the youngest child at which an OFP recipient’s payment ceases to 7 years from 2014 for new entrants and from 2015 for existing recipients. On 3 July the latest phase of the OFP reforms was implemented when 5,140 lone parents lost their entitlement to OFP. It is expected that most affected OFP recipients will apply for a jobseeker’s allowance (JA) payment. The majority of these customers will not suffer any reduction in their new payment as they are not working.

Affected lone parents who apply for a JA payment and who have a child aged under 14 years will be entitled to the JA transitional arrangement. This arrangement exempts these lone parents from having to be genuinely seeking, and available for, full-time employment. This enables lone parents with young children who are working part-time – e.g. mornings only – to remain in work and to receive income and activation supports as appropriate. This arrangement allows them to balance their caring responsibilities and significantly reduces their requirement for childcare.

However, lone parents who are working and who transfer to JA may suffer a reduction in their payment due to the fact that the JA means test is less generous than the OFP means test. The exact amount of this reduction will depend on the customers’ earnings. However, the Department has advised all individuals that where they work a minimum of 19 hours per week or can increase their hours to that level, to apply for the family income supplement (FIS) as this is the most beneficial income support available to them.

Lone parents, who were previously in receipt of both the OFP and the family income supplement (FIS) concurrently, will suffer a loss when their entitlement to OFP ceases. However, these customers will have their FIS payment automatically adjusted to compensate for 60% of the loss of their OFP payment.

With regard to lone parents who are in receipt of rent supplement, this is a means tested payment. Therefore a change in income received by a client, including the loss of their OFP payment, invariably means a change in entitlement. This should be communicated to a community welfare officer who will review the client’s case and if appropriate adjust their rent supplement entitlement.

The Department’s staff in the Community Welfare Service have considerable experience in dealing with customers and will continue to make every effort to ensure that their accommodation needs are met. Staff have discretionary powers to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant, for example, when dealing with applicants who are homeless or who are at risk of losing their tenancy. Such cases are examined on a case by case basis having regard to the situation presented.

Question No. 107 answered with Question No. 62.
Questions Nos. 108 to 110, inclusive, answered with Question No. 35.
Barr
Roinn