Written Answers Nos. 55-62
55. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Social Protection her views on whether self-employed persons are treated adequately on the live register; if she acknowledges that many self-employed persons feel that they are at a loss when it comes to registering for unemployment benefit; and if she will make a statement on the matter. [9439/15]
Amharc ar fhreagraSelf-employed persons are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as state pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as maternity benefit, adoptive benefit and guardians payment (contributory).
Self-employed workers may also access social welfare supports by establishing eligibility to assistance payments such as jobseeker’s allowance and disability allowance. In the case of jobseeker’s allowance they can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services.
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.
On the basis of the findings of the report of the Advisory Group I am satisfied that the self-employed have adequate access to income support in the event of business failure. There are no plans to change provision in this area.
56. Deputy Billy Timmins asked the Tánaiste and Minister for Social Protection the position regarding a children's allowance appeal in respect of a person (details supplied) in County Wicklow; the way a person proves the habitual residency condition. [9450/15]
Amharc ar fhreagraI am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence, decided to disallow the appeal of the person concerned by way of a summary decision. The person concerned was notified of the decision on 16 July 2014.
Under Social Welfare legislation, the decision of the Appeals Officer is final and conclusive and may only be reviewed by the Appeals Officer in the light of new evidence or new facts.
I am advised that following receipt of additional evidence the Appeals Officer has agreed to review the case. The person concerned will be contacted when the review of her appeal has been finalised.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
57. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection if she will provide details of all properties rented by her Department; the annual cost of the leases; the duration of the leases; and the capacity and occupancy of each premises as of 31 January 2015. [9464/15]
Amharc ar fhreagraThe Office of Public Works (OPW) is the exclusive procurer of office accommodation for the civil service and the sole authority for allocating space to the civil service. The acquisition and leasing of accommodation (including the rental costs and duration of leases) are a matter for the OPW, who have been tasked with the management of the State’s property portfolio. The OPW has a central role in promoting greater efficiency and coordination of property asset management in the wider public service.
59. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection her plans to reverse the changes that increased the State pension age from 66 years to 67 years in 2021 and to 68 years in 2028; and her plans for reforming pension schemes. [9539/15]
Amharc ar fhreagraState pensions account for the single largest block of social welfare expenditure, and expenditure on pensions is increasing annually due to demographic pressures. This year, the Department of Social Protection will spend an estimated €6.675 billion on pensions – 34.4% of all welfare expenditure and an increase of €168 million over 2014. While there have been significant real increases in pension rates over the last decade, the biggest long-term challenge to the sustainability of the pension system has been increased longevity, which is resulting in longer duration of pensions, without any corresponding increase in the PRSI contributions paid to finance them. Encouraging longer working is part of the strategy to address the issue of sustainability of the State pension without undermining its adequacy.
There are currently 5.3 people of working age for every pensioner and this ratio is expected to decrease to approximately 2.1 to 1 by 2060. The over 65 year old population is projected to increase from 11% of the total population in 2010 to 15% in 2020, and to 24% in 2060.
The Actuarial Review of the Social Insurance Fund projects that without action to tackle a shortfall, the deficit will increase significantly over the medium to long term to €3bn for 2019 and €25.7bn for 2066. It is in this context, and mindful of the importance of maintaining the adequacy of the rate of the State pension, that a number of reforms been introduced, in order to provide for sustainable pensions and to facilitate a longer working life. State pension age is being increased in three separate stages. In 2014, the State pension age was standardised at 66 by the abolition of the State pension (transition). The State pension (transition) had been criticised as it required workers to retire in order to receive a pension from 65 (no such requirement applies to the State pension contributory). While such workers could re-commence work at 66 when moving to the State pension contributory, most did not as they had already retired, and many would not have been in a position to do so even where they wished to. The pension age will be increased to 67 in 2021 and 68 in 2028. It is anticipated that this rate of increase in pension age will be no faster than the rate of increased longevity. It is also anticipated that the duration of a typical State pension may continue to increase, albeit more slowly than if these increases in pension age were not provided for.
There are a number of other reforms of the pension system being considered, and it is planned to replace the current ‘yearly average’ method for calculating State pension (contributory) entitlement with a fairer ‘total contributions’ approach. There are, however, a number of legislative, administrative and information technology system related issues to be addressed before this change can be put in place. It will also be important to ensure that those who spend a number of years out of the workforce on caring duties are not disadvantaged by this approach. It is not anticipated, therefore, that this change will be in place before 2020, although it is planned that the details of the new system would be announced well in advance of it taking effect, to allow workers good time to make decisions relevant to their retirement income.
The OECD report on the Review of the Irish Pension System confirmed that the reforms that have been introduced are necessary if we are to continue to put pension provision on a sustainable footing given increased life expectancy, the deficit in the Social Insurance Fund, and the increasing cost of pensions into the future.
60. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection if she will reverse the decision whereby in July 2015 the lone parent's payment for children over seven years of age is to be removed. [9559/15]
Amharc ar fhreagraBefore I introduced the reforms, the One Parent Family Payment was a passive scheme with limited engagement by the State with recipients. For many lone parents, most of whom are women, this has meant long-term social welfare dependency, associated poverty and social exclusion for them and their families.
Social transfers have provided a hugely important buffer in reducing poverty. Expenditure on the scheme is estimated at €607 million in 2015 with almost 70,000 recipients. However, lone parents remain particularly at risk of poverty.
This is why I believe that the reforms I have introduced are much needed. The best route out of poverty and social exclusion is through paid employment. I want to end the expectation that lone parents may remain outside of the workforce indefinitely. I want to support lone parents to develop their skills set and, ultimately to secure employment.
I have also made significant changes to the arrangements in place for affected customers as they transition. These include the introduction of the jobseeker’s allowance (JA) transitional arrangement which gives lone parents with young children the flexibility to work part time or engage in full time education, access to subsidised child care through the after school child care (ASCC) scheme and the community employment childcare (CEC) programme and the extension this week of OFP to all lone parents providing full-time care, until their youngest child is 16 years of age.
The introduction of the back to work family dividend (BTWFD) provides a further incentive for jobseekers and OFP recipients to avail of employment opportunities by allowing them to retain their increase for a qualified child payment when they leave income support for employment or self-employment. It is estimated that approximately 9,600 lone parents who transition from the OFP scheme and will transfer to the family income supplement (FIS) scheme and, as such, will qualify for the BTWFD.
There are no plans to change these reforms.
61. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Social Protection the number of senior civil servants who retired since 2011 in her Department who have been appointed to a State board under her aegis following their retirement; if she will provide in tabular form the names of these persons, the boards to which they were appointed and the appointment process followed in each case; and if she will make a statement on the matter. [9954/15]
Amharc ar fhreagraThe statutory bodies operating under the aegis of the Department of Social Protection are the Citizens Information Board, the Pensions Authority, the Pensions Council, the Pensions Ombudsman (which does not have a Board) and the Social Welfare Tribunal.
No senior civil servants, who retired since 2011 from my Department, have been appointed, at any stage, to the boards of any of these statutory bodies.
62. Deputy John Browne asked the Minister for Finance the VAT rate that applies to defibrillators, which are life-saving equipment; and if he will make a statement on the matter. [9423/15]
Amharc ar fhreagraThe VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories and training are also liable to VAT at the standard rate.
There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of defibrillators. Under the VAT (Refund of Tax) (No.15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund.
