Thursday, 7 May 2015

Written Answers Nos. 34-44

Mortgage Arrears Proposals

Ceisteanna (34)

Bernard Durkan

Ceist:

34. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which an evaluation has been done of the extent of mortgage arrears in respect of family homes; if, in the event of threatened repossessions, cognisance will be taken of those borrowers who continue to make payments to the best of their ability or whose mortgages have fallen into arrears due to health problems, with a view to setting out simple guidelines within which borrowers and lenders will be fairly accommodated without incurring moral hazard, repossession or added interest; and if he will make a statement on the matter. [17515/15]

Freagraí scríofa

Minister for Finance

As the Deputy is aware, the Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions.

This has included an extensive suite of interventions designed to address the problem including specific Central Bank targets for the banks through the Mortgage Arrears Resolution Targets (MART), the Code of Conduct on Mortgage Arrears, extensive recasting of the personal insolvency legislation, the provision of advice through Department of Social Protection-led initiatives and the mortgage to rent scheme which is designed to assist borrowers in an unsustainable mortgage position to remain in their homes through the involvement of social housing agencies.

With respect to the setting of Mortgage Arrears Resolution Targets, I am informed by the Central Bank (CBI) that it set further targets for the six main banks for Quarters 3 and 4 of 2014. The CBI continues to monitor banks' progress regarding MART requirements, most notably through: intensive ongoing supervisory engagement; audits; on-site reviews of operations and compliance with the Code of Conduct on Mortgage Arrears (CCMA); and ongoing monitoring of performance. The CBI has reported that the banks continue to meet or exceed the targets set for them.

As the Deputy is aware, the key issue is engagement The completion of affordability assessments is a key step in the Mortgage Arrears Resolution Process. In this regard a lender must examine each case on its individual merits and must base its assessment on the full circumstances of the borrower, including their personal circumstances, level of overall indebtedness, completeness and accuracy of information in their standard financial statement (SFS), their current repayment capacity and previous repayment history. The latest figures demonstrate that some 115,000 mortgages on family homes have been restructured with the vast majority of the borrowers able to adhere to the new arrangements and stay in their homes.

Social Insurance

Ceisteanna (35)

Terence Flanagan

Ceist:

35. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the position regarding pay-related social insurance (details supplied); and if she will make a statement on the matter. [17940/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

Pay Related Social Insurance (PRSI) is paid by employees, their employers and the self-employed for the sole purpose of funding social insurance benefits to provide pensions and other working age benefits to those who have established an entitlement.

Prior to 2011 the health contribution paid by employees was collected along with PRSI. PRSI was separate to the health contribution and was charged at a rate appropriate depending on the category of employment. (For example, private sector employees pay PRSI at 4%, while their employer pays 10.75% or 8.5% depending on the level of earnings.)

The health contribution was an additional charge payable by employees with weekly income in excess of €500, at the rate of 4% on income up to €75,036 and 5% on weekly earnings above €75,036. The health contribution was remitted to the Department of Health. In January 2011 the health contribution was abolished and along with the income levy was replaced into the universal social charge.

The health contribution was separate to and bore no relationship to PRSI other than a shared collection mechanism.

The table sets out the benefits accruing to the various categories of persons paying PRSI according to the class of PRSI contribution paid:

Benefit	Class A	Class J	Class S	Class B	Class C	Class D	Class E	Class H	Class P
Adoptive Benefit
Carer's Benefit								**
Illness Benefit									*
Health and Safety Benefit
Invalidity Pension
Maternity Benefit
Occupational Injuries Benefit
State Pension (Contributory)
Guardian's Payment
Treatment Benefit								**
Jobseeker's Benefit									*
Widow's, Widower's or Surviving Civil Partner's Pension (Contributory)								**

* Class P - Limited Benefits.

** Class H - only these benefits are paid during service.

Optical, dental and audiological benefits are available under the Department’s treatment benefit scheme. Optical and dental benefits currently offer free examinations, while audiological benefit pays part of the cost of the purchase of hearing aids.

Free Travel Scheme

Ceisteanna (36)

Dessie Ellis

Ceist:

36. Deputy Dessie Ellis asked the Tánaiste and Minister for Social Protection her plans to ensure that any bus company awarded a public service obligation route will continue to accommodate the free travel pass scheme. [17972/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The free travel scheme permits free travel on most CIE public transport services, Luas and a range of services offered by some 80 private operators in various parts of the country for those eligible under the scheme. There are currently in excess of 810,000 customers with direct eligibility with an annual allocation of €77 million.

As regards routes with Public Service Obligation funding that go out to tender, including routes previously operated by CIÉ, it is my intention that private operators will be able to apply to participate in the free travel scheme.

Bereavement Grant

Ceisteanna (37)

Mick Wallace

Ceist:

37. Deputy Mick Wallace asked the Tánaiste and Minister for Social Protection her plans to reintroduce the bereavement grant; and if she will make a statement on the matter. [18029/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The overall concern in recent Budgets has been to protect primary social welfare rates. Abolishing the bereavement grant provided an annual saving of €22 million. This allowed the Department to protect other more fundamental social welfare payments such as the State pension. Accordingly, I have no plans to reinstate the bereavement grant.

There are a range of supports available for people following bereavement which provide more significant support than the grant. These include a weekly-paid widow's, widower's or surviving civil partner’s (contributory and non-contributory) pension based on contributions or a means test, and a once-off widowed or surviving civil partner grant of €6,000 where there is a dependent child. A number of social welfare payments, including State pension and carer’s allowance, continue in payment for six weeks following a death. Guardian payments are available where someone is looking after an orphaned child. A special funeral grant of €850 is paid where a person dies because of an accident at work or occupational disease.

Under the supplementary welfare allowance (SWA) scheme, the Department of Social Protection may make a single exceptional needs payment (ENP) to help meet essential, once-off and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. An application can be made under the ENP scheme for assistance with funeral and burial expenses. The assistance is toward the costs of the necessary basic requirements for a dignified funeral. However, there is no automatic entitlement to such a payment. An ENP is a means tested payment payable at the discretion of the officers administering the scheme, taking into account the requirements of the legislation and all the relevant circumstances of the individual applicant and that of the deceased person including any savings, property, insurance policies, etc. that would render the applicant or anybody else liable for the burial costs. The Department official will also consider if a bereavement grant is available from any other source including former employer, credit union or trade union.

Disability Allowance Payments

Ceisteanna (38)

Caoimhghín Ó Caoláin

Ceist:

38. Deputy Caoimhghín Ó Caoláin asked the Tánaiste and Minister for Social Protection the reason a disability allowance payment has ceased in respect of a person (details supplied) in County Longford without any prior notice or warning; and if she will make a statement on the matter. [17920/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The disability allowance payment of the person in question has been re-instated with effect from 29 April 2015. First payment will be on 8 May 2015 and includes arrears due.

Carer's Allowance Appeals

Ceisteanna (39)

Michael Ring

Ceist:

39. Deputy Michael Ring asked the Tánaiste and Minister for Social Protection when a person (details supplied) in County Mayo will receive a decision regarding an application for a carer's allowance; and if she will make a statement on the matter. [17922/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 17th December 2014. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers were received in the Social Welfare Appeals Office on 07th April 2015 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.

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.

Carer's Allowance Appeals

Ceisteanna (40)

Michael Ring

Ceist:

40. Deputy Michael Ring asked the Tánaiste and Minister for Social Protection when a person (details supplied) in County Mayo will receive a decision regarding the backdating of an application for a carer's allowance; and if she will make a statement on the matter. [17923/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

I confirm that the department received an application for carer’s allowance from the person in question on the 24th July 2013. The person in question was refused carer’s allowance on the grounds that the care recipient is not so disabled as to require full time care and attention as prescribed in regulations. The person in question was notified on the 21st of September 2013 of this decision, the reasons for it and of his right of review and appeal. The person concerned appealed this decision and the case was submitted to the Social Welfare Appeals Office (SWAO) for determination. An Appeals Officer (AO), having fully considered all of the available evidence, disallowed the appeal of the person concerned. The person concerned was notified on the 11th March 2014 of the AO’s decision and the reasons for the disallowance.

The SWAO subsequently recalled the file for review. Following this review the appeal was partially allowed by an AO with effect from 11th of December 2014 only. The SWAO wrote to the person concerned on the 11th of January 2015 outlining the revised position.

The file has again been recalled by the SWAO and is currently with them for further consideration.

One-Parent Family Payment Appeals

Ceisteanna (41)

Bernard Durkan

Ceist:

41. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the procedure to be followed in the case of a person (details supplied) in County Kildare to reinstate a one-parent family payment or other appropriate payment; and if she will make a statement on the matter. [17925/15]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The person concerned was requested to submit written confirmation of her current address to Maynooth Branch Office. On receipt of the requested documentation, her claim will be reviewed and she will be advised of the outcome as soon as possible.

Question No. 42 withdrawn.

Job Initiatives

Ceisteanna (43)

Marcella Corcoran Kennedy

Ceist:

43. Deputy Marcella Corcoran Kennedy asked the Tánaiste and Minister for Social Protection her plans to reconsider the administrative rule in respect of the JobBridge scheme, which says that where an intern falls ill for a period of more than ten days, the internship must be terminated and cannot be reinstated on the intern's recovery from illness; if she will reconsider this rule in the context of equality legislation under the grounds of disability; her views that this rule is not in keeping with the principles of equality; if she will consider changing the rule to allow an employer to suspend the internship until such time as the intern recovers; and if she will make a statement on the matter. [17990/15]

Freagraí scríofa

Minister of State at the Department of Social Protection

The limits on sick leave for JobBridge interns were designed having regard to the limited duration of the internship and is considered necessary to safeguard the integrity of the scheme.

The condition applies to all interns regardless of background or circumstances.

I have no immediate plans to change the terms and conditions of the scheme in that regard pending the evaluation of the scheme later this year.

One-Parent Family Payment Eligibility

Ceisteanna (44)

Dara Calleary

Ceist:

44. Deputy Dara Calleary asked the Tánaiste and Minister for Social Protection if recipients of one-parent family payments who are in year three of a four-year degree course may continue to receive the higher education maintenance grant and their back to education payments when switched to the back to education allowance by her Department; and if she will make a statement on the matter. [18016/15]

Freagraí scríofa

Minister for Social Protection (Deputy Joan Burton)

The reforms to the one-parent family payment aim to reduce long-term social welfare dependency among lone parents by providing them with access the Department’s range of education, training, and employment programmes, with a view to developing their skills set and assisting them into sustainable employment, whilst simultaneously acknowledging their specific caring responsibilities.

The Department remains committed to supporting lone parents who wish to pursue education and training. All of the 29,400 customers affected by the one-parent family payment reforms in July 2015, who are in education, will be able to remain on one-parent family payment until they complete their course of education. These customers will not be required to switch to the back to education allowance. If they are in receipt of a SUSI grant, they can continue to receive both the maintenance and tuition portion of the SUSI grant, subject to the normal conditions of the grant. The maintenance portion of the grant will not be assessed as means for their one-parent family payment. Once their course ends, they will transition to either the jobseeker’s transitional payment or the jobseeker’s allowance, whichever is appropriate.

For customers who lose entitlement to one-parent family payment from July 2015 onwards their youngest child will be 7 years of age. These customers can transition to the jobseeker’s transitional payment which is payable until their youngest child reaches 14 years of age. This allows these customers up to 7 years to complete their course. If they are in receipt of a SUSI grant they can maintain grant. In situations like this, the maintenance portion of the SUSI grant will be disregarded for means purposes on the jobseeker’s transitional payment.