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Wednesday, 15 Apr 2015

Written Answers Nos. 41-54

Unemployment Benefits Payments

Ceisteanna (41)

Terence Flanagan

Ceist:

41. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection if she will address a matter (details supplied) regarding the long-term unemployed. [14006/15]

Amharc ar fhreagra

Freagraí scríofa

The jobseeker's benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2015 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €3.01 billion.

Long-term unemployment refers to people with continuous periods of unemployment extending for a year or longer. The Government’s primary strategy to reduce long-term unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. This strategy has been succeeding, with an increase of over 80,000 in employment over the last 2 years.

The Pathways to Work Strategy provides for enhanced engagement services and additional activation measures to jobseekers while the recovery takes hold. In addition to ongoing reforms, the 2015 iteration of the strategy prioritises additional measures to enhance engagement with the long-term unemployed. This includes a structured process of engagement with the existing long-term unemployed that will see at least 8,300 long-term unemployed people being referred to the activation process each month in early 2015.

Second, a new employment services model for the long-term unemployed, JobPath, will be rolled out in 2015. It is a payment by results contract model with third party providers of employment services that will provide additional capacity in order to engage more systematically with long-term unemployed jobseekers. Referrals to JobPath providers are expected to commence early in the second half of 2015.

In support of these enhanced engagement processes, 57,000 further education and training places will continue to be reserved for the long-term unemployed in 2015. A minimum of 16,000 places for the long-term unemployed will also be provided through key public employment programmes. This includes an expansion of the JobsPlus initiative, an employment subsidy that incentivises employers to recruit the long-term unemployed.

Information on numbers on the Live Register at the end of March 2015 is detailed in the following statement.

Live Register numbers by duration, end March 2015

<1 Year

1-2yrs

2-3yrs

3-5yrs

5-10yrs

>10yrs

Total

188,273

42,426

26,429

38,467

44,679

8,402

348,676

National Internship Scheme Data

Ceisteanna (42)

Terence Flanagan

Ceist:

42. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the number of persons availing of JobBridge and other employment initiatives (details supplied); and if she will make a statement on the matter. [14007/15]

Amharc ar fhreagra

Freagraí scríofa

I have set out a table giving numbers participating in activation schemes under the Department as at 9th April, 2015.

Table 1. Numbers Participating in Activation Schemes

Figures as at 9 th April, 2015

Scheme

Current Participants

Back to Education Allowance

24,143

Community Employment

22,914

Back to Work Enterprise Allowance

11,837 (Inclusive of 465 STEA cases)

TÚS

7952

JobBridge

5,943

JobsPlus

4424

Rural Social Scheme

2567

Gateway

2048

Job Initiative

946

Community Services Programme

Ceisteanna (43)

Patrick O'Donovan

Ceist:

43. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection her views on a matter regarding the number of staff to be appointed to a company (details supplied) in County Limerick; and if she will make a statement on the matter. [14022/15]

Amharc ar fhreagra

Freagraí scríofa

This matter raised by the Deputy concerns the award of a contract under the community services programme (CSP) for the delivery of household repair, maintenance and small building works services to elderly and disabled persons in County Limerick.

Contracts under the CSP are awarded on a renewable basis for a duration of up to three years, following a review process that examines a number of issues such as the continuing need for the service, quality of delivery, value for money, sustainability, financial viability of the contractor, governance and management arrangements. Funding is determined by the level of outputs generated having regard to the nature of the services and to similar services funded by the programme. The Deputy should note that the funds available under the CSP are a contribution to the cost of the delivery of a service only and are not intended to cover full costs of provision. The contractor accepts the obligation to generate the balance of funds needed themselves to meet pay and operational costs.

CSP contracts are monitored on an ongoing and regular basis to ensure that the requirements of the programme are met and that the services that are subject to contract are being delivered. In the case of the company for which details were supplied, it was found that the level of activity in the company did not warrant the level of resources provided, that value for money was not being achieved and that the longer term financial viability of the company needed to be improved. To this end, the value of the contract was reduced to reflect the activity levels of the company and additional cash grants were made available to the company to sustain its operations, while it improved its level of income generation, productivity and overall service delivery and value for money. The value of the contract for 2015 is considered realistic given the outputs being generated and amount to some €123,000.

This operation is not due to be reviewed again until 2016. A review enables the progress achieved to be verified and for further consideration to be made as to the level of resources to be offered which will be related to the level and quality of services delivered.

JobsPlus Scheme

Ceisteanna (44, 45)

Terence Flanagan

Ceist:

44. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the minimum hourly rate of pay under the JobsPlus scheme (details supplied); and if she will make a statement on the matter. [14030/15]

Amharc ar fhreagra

Terence Flanagan

Ceist:

45. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the position regarding the JobsPlus Scheme; and if she will make a statement on the matter. [14031/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 44 and 45 together.

JobsPlus provides a direct monthly financial incentive to employers who recruit employees from the Live Register and those transitioning into employment. It provides employers with two levels of payment - €7,500 or €10,000 over two years provided the employment is maintained. The rate of payment depends on the length of time the person is unemployed. The employment offered must be of a full-time nature of at least 30 hours per week over four days and must not displace existing employment. Since July 2013, 18,940 jobseekers have confirmed their eligibility for JobsPlus, of which 4,424 are currently in employment.

Employee pay rates are a matter for agreement between the employer and employee. Under the National Minimum Wage Act 2000, employees are entitled to a minimum wage, currently €8.65 per hour. Employers recruiting under the JobsPlus initiative are required to comply with the Act and other statutory provisions in respect of pay and conditions.

The Department collects data from employers in respect of expected pay levels at registration and this indicates that over 80% of employers at the time of recruitment intended to pay above the minimum pay rate. This is considered reasonable given that starting pay rates will inevitably be lower than standard pay rates within an employment. The Department has commenced structured monitoring of employers and also consults separately with employees on the operation of JobsPlus. The Department also reserves the right to withdraw the wage subsidy from any employer who acts in manner inconsistent with the terms of JobsPlus or fails to meet the statutory requirements with respect to pay.

Community Employment Schemes Operation

Ceisteanna (46)

Derek Nolan

Ceist:

46. Deputy Derek Nolan asked the Tánaiste and Minister for Social Protection if she will introduce a new programme for those over sixty years of age who are finishing their tenure on a community employment scheme, which will take their prospects of employment into consideration; and if she will make a statement on the matter. [14034/15]

Amharc ar fhreagra

Freagraí scríofa

The aim of CE is to enhance the employability and mobility of disadvantaged and unemployed persons by providing work experience and training opportunities for them within their communities. The Department’s priority in supporting CE is having access to schemes that can provide job seekers and other vulnerable groups with good quality work experience and training qualifications to support their progression into employment. The proportion of participants over 60 years of age is 11% (March 2015). In this context there are currently no plans to introduce a new programme for those over 60 years of age who have completed CE.

As participation on CE ranges from 1 year up to 6 years for participants depending on their eligibility and 7 years for people with a disability, the duration of CE is considered extensive for an active labour market programme.

Back to Education Allowance Eligibility

Ceisteanna (47)

Jonathan O'Brien

Ceist:

47. Deputy Jonathan O'Brien asked the Tánaiste and Minister for Social Protection the guidelines that were previously in place and allowed students exiting Youthreach and going on to post leaving certificate courses to access the back to education allowance; and the reasons for any changes to that system. [14047/15]

Amharc ar fhreagra

Freagraí scríofa

The Back to Education Allowance (BTEA) provides income support for second chance education opportunities to enable participation by jobseekers in full-time second and third level education. A person wishing to pursue a course of study under BTEA will have to satisfy a number of conditions. These include being of a certain age, in receipt of a prescribed social welfare payment for a specified time period and propose pursuing a full time course of study leading to a recognised qualification in a recognised college and, in general, be progressing in the level of education held. There has been no change in the terms and conditions applying to applicants to BTEA from Youthreach in recent years.

One of the conditions for receipt of the BTEA for jobseekers under 21 years of age is that they must be out of formal education for at least two years. Periods spent on Youthreach can count towards the relevant qualifying period and will be regarded as periods out of formal education. To qualify for BTEA, the applicant must have had a prior entitlement to an eligible social protection payment. In respect of Youthreach, eligibility to a qualifying payment must be established either prior to going on Youthreach or on completion of Youthreach and prior to the commencement date for the course of study. Advice on BTEA and the terms and conditions applying are available on the Department’s website www.welfare.ie or at any of the Department’s Intreo Centres or offices.

If the Deputy has any specific concerns he might contact me with the relevant details.

Question No. 48 withdrawn.

Widow's Pension Eligibility

Ceisteanna (49)

Seán Kenny

Ceist:

49. Deputy Seán Kenny asked the Tánaiste and Minister for Social Protection the reason the application for a widower's pension in respect of a person (details supplied) in Dublin 5 was disallowed. [14061/15]

Amharc ar fhreagra

Freagraí scríofa

Under current Social Welfare legislation any person participating on a Community Employment Scheme is disqualified from receiving widower’s contributory pension. This came into effect from the 16th of January 2012.

The person concerned applied for the widower’s contributory pension on the 17th of December 2014. As this person is currently participating on a Community Employment Scheme, the application was disallowed. Upon completion of his participation on the Community Employment Scheme the person concerned may re-apply.

Questions Nos. 50 and 51 answered with Question No. 35.

Social Welfare Benefits

Ceisteanna (52)

Dara Calleary

Ceist:

52. Deputy Dara Calleary asked the Tánaiste and Minister for Social Protection the support that is available for self-employed persons with contributions on low income. [14091/15]

Amharc ar fhreagra

Freagraí scríofa

Self-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-based 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.

Rent Supplement Scheme Applications

Ceisteanna (53)

Bernard Durkan

Ceist:

53. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if she will extend rent support in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [14099/15]

Amharc ar fhreagra

Freagraí scríofa

The Department received an application for Rent Supplement from the client concerned on 27th March 2015. The client's Rent Supplement claim was awarded on 1st April 2015.

State Pension (Contributory) Eligibility

Ceisteanna (54)

Thomas P. Broughan

Ceist:

54. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection if she will report on State pensions for married couples and the restrictions placed on them regarding joint assets; the limit on assets of a dependant of a main contributory pension; the way these restrictions would differ if a couple held their assets in separate accounts; and if she will make a statement on the matter. [14135/15]

Amharc ar fhreagra

Freagraí scríofa

The general eligibility conditions for entitlement to State Pension Contributory for claimants and their dependants are set out in legislation, primarily in the Social Welfare Consolidation Act, 2005 and the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (S.I. No. 142 of 2007), as amended. Section 112(1) of the Act provides for an increase in the weekly rate of State Pension Contributory where the claimant has a qualified adult. A “qualified adult” is defined in the Act and is generally the spouse, civil partner or cohabitant of a claimant who is wholly or mainly maintained by that person, subject to certain conditions. As the State pension contributory is a PRSI based payment it is not means tested. However where a person wishes to claim for a qualified adult the income and assets of the qualified adult are assessed. Articles 7, 8 and 10 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (S.I. No. 142 of 2007) contain provisions with regard to qualified adults.

On the other hand, eligibility for State Pension Non-Contributory is means tested and takes into account the income and assets of both the claimant and his or her spouse or partner. Capital, property (excluding a person's home), savings and investments are assessed as capital and a formula is then used to assess the weekly means from capital. The weekly rate payable depends on the total weekly means of the person or couple. Schedule 3, Part 3 of the Act provides for rules as to calculation of the means of a person who is one of a couple living together as follows –

(a) the means of the person is taken to be one-half of the total means of the couple;

(b) the person is deemed to be entitled to one-half of all property to which the person or the other member of the couple is entitled or to which the person and the other member of the couple are jointly entitled;

(c) the means of each member of the couple shall first be determined in accordance with these rules and the total means shall be the sum of the means of each member as so determined.

Weekly income is calculated or estimated and includes the following -

- Income from employment or self-employment;

- Weekly value of income from property which is, or is capable of, being put to profitable use;

- Income from any other source including but not confined to, savings, investments, rent or periodical payment from the letting or use of property, income from an occupational pension, foreign social welfare payments, income from a trust fund, income under a deed of covenant, other cash income;

Means from capital is assessed as follows:

Capital

Weekly means assessed

First €20,000

Nil

Next €10,000

€1 per €1,000

Next €10,000

€2 per €1,000

Balance

€4 per €1,000

The payment of an Increase for a Qualified Adult (IQA) is determined as follows:

- Where the means of the adult dependent are assessed as less than €100, a full IQA is paid.

- Where the means of the adult dependent are assessed as between €100 and €310, a reduced rate of IQA is paid.

- Where the means of the adult dependent are assessed as more than €310, an IQA is not paid.

The decision to transfer or dispose of income or property is entirely a matter for the individual concerned. However, where a Deciding Officer notes that a transfer of assets (income or property) has occurred, by a person in respect of whom a means tested increase for qualified adult is being claimed, s/he will carefully consider all of the facts and circumstances of the individual case. This includes requesting any necessary documentation or evidence in order to determine if that person has directly or indirectly deprived themselves of any income or property in order to qualify for or to improve the weekly rate payable. If evidence in this regard is found, the payment may not be awarded or may be ceased.

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