Written Answers Nos. 194-205
194. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which back to work applications have been approved in each of the past four years to date; the extent to which those previously self-employed and PAYE workers continue to benefit from the scheme; and if he will make a statement on the matter. [12048/16]
Amharc ar fhreagraSchemes such as the Back to Work Enterprise Allowance (BTWEA) and the Short Term Enterprise Allowance (STEA) assist those on certain social welfare payments who wish to become self-employed.
The BTWEA is designed to provide a monetary incentive for people who are dependent on certain social welfare payments to develop a business, while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years (100% in year one and 75% in year two). In the case of jobseekers, the qualifying period required for access to the BTWEA is 12 months in receipt of a jobseekers payment, provided a person has an underlying entitlement to jobseeker’s allowance (JA). Jobseekers who were previously self-employed, similar to PAYE workers, may access social welfare supports, including BTWEA, by establishing eligibility to JA.
The STEA provides immediate access to those who have lost their jobs and qualify for jobseeker’s benefit (JB) and wish to set up a business. Payment under the scheme is at the same rate and for the same duration as their entitlement to JB.
Information on accessing the scheme and supports for people considering starting their own business is available from DSP Intreo centres, local enterprise offices and local development companies. Further information is available on the Department’s website www.welfare.ie.
Information on the number of applications approved for payment under the two schemes for the years 2012 to end of April 2016 is set out in the following table.
Number of Applicants in Payment 2012-2016
|
Description of Scheme |
2012 (end Dec) |
2013 (end Dec) |
2014 (end Dec) |
2015 (end Dec) |
2016 (end April) |
|
BTWEA |
10,811 |
10,098 |
11,167 |
11,881 |
11,601 |
|
STWEA |
1,066 |
583 |
479 |
396 |
395 |
|
Total |
11,877 |
10,681 |
11,646 |
12,277 |
11,996 |
195. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of previously self-employed persons currently remaining unemployed and on the live register; the steps taken to facilitate their return to work; and if he will make a statement on the matter. [12049/16]
Amharc ar fhreagraThe key objective of activation policy and labour market initiatives is to offer assistance to those in need of support in securing work and achieving financial self-sufficiency. This policy objective prioritises scarce resources to those in receipt of qualifying welfare payments. Accordingly the employment services and schemes provided by the Department are focused, in the first instance, on this cohort of unemployed people.
This group includes a significant number of previously self-employed people. Data on previous employment status (self-employment or dependent employment) of those on the Live Register is not maintained so it is not possible to give the exact figure. However, the Advisory Group on Tax and Social Welfare, in examining issues involved in extending social insurance coverage for self-employed people, found 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.
People who were previously self-employed and are now in receipt of jobseeker’s allowance (JA) – and thus are on the Live Register – have access to the full range of activation measures and supports available to other jobseeker’s allowance recipients. This includes referral to group information sessions, 1-2-1 interviews and subsequent caseworker support. It also includes access to training, temporary employment, work-experience and recruitment subsidy programmes.
196. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of applications for contributory old age pension received in each of the past five years to date; where eligibility was determined on the basis of a partnership between spouses; where the relevant self-employed pension contributions under the 1988 Act were made but where pension was refused on the basis that a partnership did not exist; and if he will make a statement on the matter. [12050/16]
Amharc ar fhreagraIt is not possible to provide statistics on the number of applications for the State pension (contributory) where eligibility was determined on the basis of a partnership between spouses. The common practice is that a person will apply to Scope section in the Department for a determination concerning their PRSI status in advance of applying for a State pension. The number of applications for recognition of a commercial partnership processed in each of the last five years to date is set out in the following table.
Where retrospective commercial partnership status is approved, persons are in a position to apply for a State pension (contributory), subject to satisfying the qualification criteria.
I hope this clarifies the matter for the Deputy.
|
Year Received |
Partnership Status Approved |
Partnership Status Rejected |
|
2011 |
213 |
14 |
|
2012 |
158 |
17 |
|
2013 |
197 |
11 |
|
2014 |
150 |
9 |
|
2015 |
135 |
14 |
|
2016 - date |
50 |
5 |
197. Deputy Bernard J. Durkan asked the Minister for Social Protection the position in respect of applicants for contributory old age pension under the provisions of self-employed contributions provided for under the 1988 Act and where previously, in the event of a shortfall, it was possible to make up the contributions by way of single payment, whether the profit from the business did not warrant the payment of contribution; if such provision still remains available; and if he will make a statement on the matter. [12051/16]
Amharc ar fhreagraSelf-employed persons who earn €5,000 or more in a contribution year pay PRSI at the class S rate of 4%, subject to the minimum payment. Class S contributions are recorded in respect of that contribution year, which assist in establishing entitlement to certain social insurance benefits and pensions, including State pension (contributory).
A self-employed worker whose income is less than €5,000 in a particular year, is not liable to pay PRSI contributions and is not compulsorily insured for social insurance purposes. In this case, the individual may opt to become a voluntary contributor, subject to satisfying the qualifying conditions. The voluntary contribution scheme enables individuals between 16 and 66 years, who are no longer compulsorily insured for social insurance purposes, to pay voluntary contributions to maintain their PRSI record.
To become a voluntary contributor, a person must have paid at least 520 weeks PRSI in either employment or self-employment and apply within 12 months of end of the contribution year in which the compulsorily insured for social insurance purposes.
198. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which he might examine the ineligibility of entitlement to contributory old age pension for women who had to give up work in the public sector due to the marriage bar or who took time out to rear their families and subsequently returned to the workforce but who do not qualify for a contributory old age pension, despite having a made a contribution to the social and economic well-being of the country; and if he will make a statement on the matter. [12052/16]
Amharc ar fhreagraThe ‘marriage bar’ describes a rule that existed in most of the public service and some private sector employments, where women were required to leave their employment upon marriage. This practice was abolished in 1973 when Ireland joined the EEC. As employees in the public service generally paid a reduced rate of PRSI, which provided no cover for the State pension (contributory), the marriage bar would not generally have impacted on State pension entitlement, as they would not have qualified for that payment had they remained in public sector employment.
Instead, by impacting upon their continuing public service employment, the marriage bar’s pension implications, where they exist, more generally relate to a person’s eventual entitlement to a Public Service pension. Any questions regarding this issue are a matter for the Minister for Public Expenditure and Reform.
199. Deputy Bernard J. Durkan asked the Minister for Social Protection #the total number of family income supplement payments currently in place; the extent to which the number has fluctuated over the past five years to date; and if he will make a statement on the matter. [12053/16]
Amharc ar fhreagraThe number of families in receipt of family income supplement (FIS) stands at 55,940 as of 13 May 2016. This represents an increase of almost 94% since the end of December 2011 when 28,876 customers were in receipt of FIS. The following table shows the year, number of recipients and the percentage increase on the previous year since 2011:
|
Year |
Recipients - Families |
Percentage Increase |
|
2011 |
28,876 |
2.31% |
|
2012 |
32,307 |
11.88% |
|
2013 |
44,159 |
36.69% |
|
2014 |
50,306 |
13.92% |
|
2015 |
55,913 |
11.15% |
|
2016* |
55,940* |
0.05%* |
* Up to 13 May 2016
200. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated cost of extending maternity benefit by six weeks. [12056/16]
Amharc ar fhreagraMaternity Benefit is an income maintenance payment awarded to eligible women for a 26 week period while they are on Maternity Leave. As with all social insurance payments entitlement to Maternity Benefit is predicated on a minimum number of contributions being paid.
In 2016 it is estimated that my Department will spend approximately €266 million on Maternity Benefit, in respect of an average of 22,000 recipients per week.
Entitlement to Maternity Benefit for employees is contingent on their entitlement to statutory maternity leave. Statutory Maternity Leave entitles a mother to 26 weeks leave. Any decision to change the duration of Maternity Leave would be the responsibility of my colleague the Minister for Justice and Equality.
If the duration of Maternity Leave was extended for 6 weeks and Maternity Benefit was payable for those additional weeks, the cost to the Social Insurance Fund in a full year would be in region of €62 million per annum. This figure does not include any additional costs to the Exchequer incurred by augmenting public servant salaries for the additional 6 week period.
201. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated cost of increasing maternity benefit to €260 per week for the year 2017. [12059/16]
Amharc ar fhreagraMaternity Benefit is a payment made for 26 weeks to employed and self-employed pregnant women who satisfy certain pay related social insurance (PRSI) contribution conditions in order to avoid the need for them to work pre and post-delivery of their baby. The original scheme was introduced in 1970 and was extended to include self-employed mothers with effect from June 1997.
In 2016 it is estimated that my Department will spend approximately €266 million on Maternity Benefit in respect of an average of 22,000 recipients per week.
The estimated cost of increasing Maternity Benefit to €260 per week for the year 2017 would be approximately €34.3 million per annum.
202. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection for an estimated cost of increasing the back to school allowance by €50. [12060/16]
Amharc ar fhreagra212. Deputy Carol Nolan asked the Minister for Social Protection the estimated cost of increasing the annual back to school clothing and footwear allowance by €50; and if he will make a statement on the matter. [12212/16]
Amharc ar fhreagraI propose to take Questions Nos. 202 and 212 together.
The back to school clothing and footwear allowance (BSCFA) scheme provides a once-off payment to eligible families to assist with the extra costs when children start school each autumn. The Government has provided €38.8 million for this scheme in 2016.
End of year records show that under the 2015 BSCFA scheme, payments were made to over 153,000 families in respect of some 281,000 children. The rate of payment was €100 in respect of children aged 4 to 11 and €200 for children over 12 years in second level education.
Using the number of children covered by the scheme in 2015 as a basis, the additional cost to increase the BSCFA payment by €50 for each eligible child would be approximately €14 million. Any change to the scheme to increase the rate of payment would have to be considered in a budgetary context.
203. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the cost for restoring jobseeker's allowance to €188 for persons under 26 years of age for 2017. [12068/16]
Amharc ar fhreagraThe cost of increasing the rate of Jobseeker’s Allowance paid to those under 26 years of age, to the maximum rate of €188 per week in 2017 is €148.4 million. This measure involves increasing the €100 rate by €88 per week and the €144 rate by €44 per week. The cost also includes proportionate increases for any qualified adults.
The costing above is provisional and may be subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients. The costs outlined above are based on recipient data for 2016.
204. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the estimated cost of abolishing the JobBridge and Gateway schemes. [12070/16]
Amharc ar fhreagraA commitment was given in Pathways to Work to develop and implement a programme of evaluations to assess the impact of Pathways to Work initiatives. One of the first schemes selected for evaluation was JobBridge.
The aim of the evaluation is to assess the effectiveness of the scheme in terms of its key objective of improving employment outcomes for unemployed jobseekers. The evaluation involves a number of elements including:
1. Surveys of host organisation and participants to capture their perspective on, and experience of, JobBridge.
2. An assessment of whether or not JobBridge may be displacing paid employment in the economy.
3. A comparison of employment outcomes of JobBridge participants to matched non-participants.
The research is currently well advanced and I expect to receive an interim progress report towards the end of June and the final report in September.
The JobBridge scheme has been an effective labour market intervention to date. Some 15,000 interns went directly into paid employment immediately following a JobBridge internship. Independent research indicates that this rose to 29,000 interns, or 61% of all participants after five months, compared to an average of 34% for comparable programmes in other European countries.
I know people who took part in JobBridge and have benefitted from it. But it was very much a scheme for its time, and I’m planning to replace it with a more appropriate scheme. JobBridge was launched at a time of massive economic uncertainty and widespread unemployment. Companies were simply not hiring because they couldn’t afford to recruit, and in many cases insisted on a minimum level of experience. But large numbers of recent graduates and people who lost their jobs in the recession couldn’t get the relevant workplace experience they needed to get a first or a new job.
That crisis is now over, the economy is growing and employers are hiring again. The labour market has changed and new graduates are once again finding work.
Job creation was at the heart of the last Government with more than 125,000 jobs created, and we have a new target to create a further 200,000. Unemployment has fallen below 8% for the first time since the crash. Although the evidence is largely anecdotal, I am concerned at reports that some employers might be using JobBridge as an alternative to hiring new employees. On the other hand, I am very conscious that there are still many people who lost their jobs in the depth of the recession who are struggling to break back into the labour market and schemes like JobBridge can provide a valuable pathway to such citizens, in particular in instances where it is associated with a training programme. The Indecon review in September will provide an evidential basis upon which to consider what changes should be made to improve outcomes for Jobseekers and value for money for the State.
In order that the design of a new scheme be informed by the best evidence possible, I am awaiting the results of a second large scale evaluation of JobBridge. This evaluation is currently well advanced; an interim progress report is expected towards the end of June and the final report in September.
Any costs related to the replacement of the JobBridge scheme will be dependent on the nature of the scheme that is implemented in its place. Such costs are not known at this time.
Gateway is an employment scheme operated in association with the County and City Councils. It provides short-term work opportunities for those who are unemployed for more than 24 months.
Participants benefit by being involved in work, by maintaining and improving their work readiness and gaining new skills. The scheme is intended to assist the personal and social development of participants with the objective of bridging the gap between unemployment and re-entering the workforce. Participants are encouraged to engage in work search whilst engaged on the initiatives and will be supported to leave to pursue a full time job option.
I have no plans, at present, to modify or replace the Gateway scheme.
205. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which overpayments, culminating in a recovery, may exist in respect of cases whereby the recipient of the alleged overpayment may have a prior entitlement which would reduce the extent of liability to repay; and if he will make a statement on the matter. [12105/16]
Amharc ar fhreagraThe Department of Social Protection administers some 70 schemes. Overpayment of social welfare benefit or assistance can be described under three broad headings related to fraud and misrepresentation by the applicant to obtain a payment; error and changes in the underlying circumstances of the recipient; or errors and failures in the processing of claims and information by staff of the Department.
When a person is in receipt of a social welfare payment, the onus is on that person to notify the Department of any change in circumstances which may affect their continued entitlement to that payment. Changes may arise from a variety of reasons such as family composition, taking up employment, income levels and/or entitlements to other benefits.
Where an overpayment is assessed, the Department has the discretion to look at the person’s entitlement to another welfare payment for the period being reviewed. If entitlement to another payment is established, the amount of the overpayment can be offset by the value of any arrears due. However, offsetting is limited by statute to overpayments that do not arise from fraudulent, false or misleading statements or wilful concealment of facts. In the case the overpayment arising from fraudulent conduct, the debt to the Department must be discharged.
