Wednesday, 25 May 2016

Written Answers Nos. 37-49

Household Benefits Scheme

Ceisteanna (37)

Joan Collins

Ceist:

37. Deputy Joan Collins asked the Minister for Social Protection the cost of re-introducing the household package to 2007 and to 2008 levels in tabular form. [11645/16]

Freagraí scríofa

Minister for Social Protection

I understand that this question relates to the Telephone Allowance, which was previously part of the Household Benefits package. The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. This followed on from earlier savings when the allowance had been reduced. These savings meant that my Department was able to retain the other valuable elements of the household benefits package such as the electricity and gas allowance and the television licence. My Department will spend approximately €227 million this year on these elements of the household benefits package for over 418,000 customers. The cost of the telephone allowance scheme had risen significantly each year, as the number of eligible customers grew. In 2007 there were some 316,000 people receiving the telephone allowance compared to almost 396,000 at the end of September 2013. This was an increase of 25%, or an average increase of nearly 4% per annum.

In August 2007 the value of the telephone allowance was increased with general price increases from €296 per annum to €310.80 per annum. There was no increase in 2008.

The cost of restoring the allowance at 2007/8 levels is estimated to be in the region of €125m to €131m per annum.

Any decision to restore the telephone allowance would have to be considered in the context of overall budgetary negotiations.

Community Employment Schemes Operation

Ceisteanna (38, 45)

Thomas Pringle

Ceist:

38. Deputy Thomas Pringle asked the Minister for Social Protection his plans to maintain and develop community employment schemes; and if he will make a statement on the matter. [11840/16]

Thomas Pringle

Ceist:

45. Deputy Thomas Pringle asked the Minister for Social Protection the way in which community employment schemes can compete with Tús and the rural social scheme; and if he will make a statement on the matter. [11841/16]

Freagraí scríofa

Minister for Social Protection

I propose to take Questions Nos. 38 and 45 together.

My Department will spend more than €1 billion in 2016 on work, training and education places in support of jobseekers. Expenditure and the number of schemes and participants has increased significantly in recent years in a response to the high levels of unemployment which peaked at 15%. The numbers of places available on work programmes, including Community Employment (CE), Tús, Rural Social Scheme (RSS), have grown from 25,000 in 2010 to just over 39,000 in 2016 (56% increase).

Schemes such as these do play an important role in helping jobseekers maintain work skills. Erosion of jobseeker confidence and work skills – including soft skills related to team-working, communication, planning etc. - is a significant issue over long periods of unemployment.

CE and Tús are employment programmes with the aim of helping the long-term unemployed to re-enter the workforce by breaking their cycle of unemployment through a return to a regular work routine. CE also provides training and development to participants. The RSS provides income support for low income farmers and fishermen who have an entitlement to specified social welfare payments.

Tús was introduced - and the numbers on CE were expanded - as a direct response to the growth in the level of unemployment during the financial crisis. With the ongoing welcome reductions in the live register, a review of these schemes is necessary to ensure that the number and nature of schemes continues to be appropriate. I will be considering all of these issues over the coming months.

The type of work undertaken by these schemes is determined locally and each scheme should complement each other within communities, rather than competing. Deputies on all sides of the House are fully aware of the positive benefits that are derived from schemes like these – for the participants themselves but also for the valuable services they deliver to communities around the country.

Social Welfare Rates

Ceisteanna (39)

Willie O'Dea

Ceist:

39. Deputy Willie O'Dea asked the Minister for Social Protection to increase working age payments above the rate of inflation similar to the commitment made in the programme for Government that the State pension and the living alone allowance are to be increased above the rate of inflation; and if he will make a statement on the matter. [11769/16]

Freagraí scríofa

Minister for Social Protection

Per the most recent CSO data, inflation in the 12 months to end April has declined by 0.1%. The Central Bank, in their most recent Quarterly Bulletin, estimate that inflation, as measured by the Consumer Price Index, will be 1.7% in 2017. The cost of a 1.7% increase across all working age payments, based on 2016 recipient numbers, is €138 million in a full year. A €1 per week increase in all weekly welfare payments costs €74.6 million in a full year while a €1 per week increase in all working age payments costs €43.7 million. My Department operates a wide range of schemes which offers income and employment supports to people experiencing a variety of working age contingencies, such as disability, caring, unemployment, the death of a spouse or civil partner, and having children.

As mentioned by the Deputy, the Programme for Government commits to increasing the rates of the state pension and the living alone allowance above the rate of inflation. The Programme also sets out targeted welfare improvements for a number of key working age contingencies. It supports rate increases for people with disabilities and for carers. It commits to increasing rent supplement limits and extending the dental treatment benefit scheme.

The Government is focussed on increasing employment by 200,000 jobs across the country. According to the latest CSO figures for the first quarter of 2016, unemployment has fallen to 8.3%. In the year to the first quarter of 2016, the number of people in employment increased by 46,900. In addition to the existing Pathways to Work 5-year strategy, which aims to help 50,000 long-term unemployed people into jobs, we also commit to publishing a new dedicated ‘Pathways to Work’ strategy for jobless households.

The Programme for Government takes a multifaceted approach to improving the living standards of working age social welfare recipients. This includes strengthening the provision of employment supports, and developing a new working family payment. I believe that the Programme for Government contains ambitious proposals which will benefit all people in receipt of social welfare.

Pension Provisions

Ceisteanna (40)

Clare Daly

Ceist:

40. Deputy Clare Daly asked the Minister for Social Protection given the budgetary surplus reported in his Department and further to Parliamentary Question No. 9 of 30 September 2015, in which the former Minister stated on plans to address the inequality experienced by persons who are in receipt of reduced pensions because of the marriage bar, that "we do not as yet have the resources as a country to be in a position to fund what it would cost"; and if he will now address this issue. [11638/16]

Freagraí scríofa

Minister for Social Protection

The ‘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 on marriage. This practice was abolished in 1973 when we joined the EEC. As employees in the public service generally paid a reduced rate of PRSI which provided no cover for the State pension, the marriage bar would not have impacted on State pension entitlement. It would have impacted on their continuing public service employment, and eventual entitlement to a Public Service pension. This is a matter for the Minister for Public Expenditure and reform.

Budget 2016 contained a number of measures to benefit pensioners. Firstly, the State pension (contributory) rate was increased from €230.30 to €233.30 per week, and the State pension (non-contributory) rate was increased from €219 to €222 per week. Where a pensioner does not qualify for a full rate contributory pension, they may make a claim to the latter payment, which is means-tested, if that entitles them to a higher payment.

These increases will benefit more than 676,500 pensioners and their dependents this year. Proportionate increases also applied for qualified adults on pensions where they are aged 66 or over. Secondly, a couple in receipt of the maximum rate of the State pension contributory would have received a 75% Christmas Bonus of €327.50 in the first week of December 2015. Finally, pensioners may also have benefitted from the increase in Fuel Allowance from €20 to €22.50 per week for the duration of the fuel season.

Carer's Allowance Payments

Ceisteanna (41)

Gino Kenny

Ceist:

41. Deputy Gino Kenny asked the Minister for Social Protection to afford a full stamp to persons who are in receipt of the carer's allowance in order that, in the event of their carer's job ending, they are eligible for full benefits and in recognition of the service they are providing to the State; and if he will make a statement on the matter. [11642/16]

Freagraí scríofa

Minister for Social Protection

The new partnership Government is committed to supporting carers through an increase in carer’s benefit and allowance.

Credited contributions, normally known as credits, are awarded to recipients of carer’s benefit and of carer’s allowance where they have an underlying entitlement to credits. Recipients of these payments qualify for credits where they have at least one paid contribution in the previous two years or have had credited contributions in that period. Credits are also awarded to workers who take unpaid carer’s leave from work.

Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as during periods spent caring. In combination with paid PRSI contributions, credits assist employees in qualifying for short-term schemes and enhance the level of benefit for long-term schemes.

In addition, all carers, including those who do not qualify for a payment or for credits, may qualify for the homemaker scheme. The homemaker’s scheme is designed to help homemakers and carers qualify for state pension (contributory). Years spent caring on a full-time basis are disregarded when calculating the state pension (contributory) rate of payment.

Through the award of credits and the homemaker’s scheme, the social insurance system already gives significant recognition of the service provided by carers. Awarding paid contributions would be contrary to the principle that entitlement to social insurance benefits, as a right, is directly linked to the actual payment of PRSI contributions on income and to do so would have cost implications.

My priority is to make progress on the commitment in our Programme regarding the level of support for carers.

Social Welfare Payments Administration

Ceisteanna (42)

John Brassil

Ceist:

42. Deputy John Brassil asked the Minister for Social Protection his plans to provide the option of having all social protection payments paid into the local post office network similar to what is available to the banking network. [11640/16]

Freagraí scríofa

Minister for Social Protection

My Department provides two main options for payment methods for its customers: payments direct to customer accounts in financial institutions or payments in cash at post offices. In a small proportion of cases, cheque payments are used for business purposes such as emergency payments or at the opening and closing of claims.

Specifically in respect of cash payments at Post Offices, in 2015 my department made over 38 million such payments in cash at a cost of €54 million. These welfare payments through post offices are across all of the department’s major schemes: state pension, jobseekers, one parent family payments, widow/ers or survivors pensions, carers payments, disability payments and child benefit.

I want to emphasise that for the vast majority of my department’s schemes the department’s customers are given the choice of what payment method they wish to receive their social welfare payment. The vast majority of new customers choose to have payments made directly into their accounts in financial institutions which reflects a societal trend towards payment by electronic funds transfer. For example, 83% of new Child Benefit customers and 70% of new State Pension customers chose this option in 2015.

Many of my department’s customers are in employment. My department’s focus must be on our customers and to this end my department’s policy is to make payments to in-work customers directly to accounts rather than customers being inconvenienced by two separate payment methods.

My department restricts customer choice in relation to some means tested schemes where the payment method may be restricted to payment by cash at post offices due to control measures required to verify identity before payment. One notable exception to this is the payment method of casual jobseekers customers who are in part-time employment and who are paid by electronic funds transfer in line with the policy on in-work customers that I just referred to.

The recent “Kerr Report” sets out the challenges that An Post and Postmasters face as they seek to ensure that the post office network remains relevant in the context of the inexorable shift towards electronic payments.

My Department is engaging as appropriate with the Departments of Communications, Climate Change and Natural Resources and Public Expenditure and Reform in addressing the recommendations of the report.

Farm Assist Scheme Administration

Ceisteanna (43)

Charlie McConalogue

Ceist:

43. Deputy Charlie McConalogue asked the Minister for Social Protection if he has analysed the impact the changes to farm assist and income disregards have had on farmers; if he will reconsider the changes; and if he will make a statement on the matter. [11651/16]

Freagraí scríofa

Minister for Social Protection

The farm assist scheme provides support for farmers on low incomes and is similar to jobseeker’s allowance. Farm assist recipients retain the advantages of the jobseeker’s allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2016 Revised Estimates for my Department provide for expenditure of almost €85 million on the farm assist scheme.

Changes introduced in Budgets 2012 and 2013 brought farm assist into closer alignment with the jobseeker’s allowance scheme’s treatment of self-employed people. Farm families with the lowest income were least impacted by these changes as the headline rates of farm assist were maintained.

Budget 2016 contained an increase in child benefit of €5 per month. All recipients of farm assist with children are now benefitting from this increase. Farm assist recipients who were eligible for the fuel allowance also gained from the increase of €2.50 per week, from €20 to €22.50 per week over the fuel season. Farm assist recipients would also have benefitted from the 75% Christmas Bonus which was paid in December last year.

The Programme for Government contains the commitment to undertake a "Review of the Farm Assist Scheme, recognising the challenges facing farmers on low incomes". I have asked my officials to review the farm assist scheme from a policy and an administrative point of view. Any changes to the scheme will have to be considered in a budgetary context.

Pension Provisions

Ceisteanna (44)

Clare Daly

Ceist:

44. Deputy Clare Daly asked the Minister for Social Protection to outline plans for a universal second-pillar pension system, including the timetable for its introduction. [11639/16]

Freagraí scríofa

Minister for Social Protection

The last Government established a Universal Retirement Savings Group (URSG) to proceed with work to develop a roadmap and timeline for the introduction of a universal supplementary workplace retirement saving system. The Group was asked to consider the constituent factors involved in constructing an efficient and effective model for such a system. The Group comprises of Assistant Secretary level representatives from a range of Departments/Agencies including experts from the UK Department for Work and Pensions and the OECD.

Initial work has concentrated on whether the optimal model would be one which is mandatory for all workers currently without supplementary retirement savings coverage or one which would automatically enrol those without supplementary retirement savings coverage whilst allowing individuals to opt out should they so choose. The Group also undertook a consultation process to facilitate input from, and engagement with, consumers and sectorial interests from the pensions industry along with employers and employee representatives. Officials also engaged with a range of international/Irish subject matter experts.

I have indicated that the development of a universal retirement savings system will be a priority area of work for my Department. In order to achieve the goal of increasing retirement savings coverage and adequacy levels, it is crucial that the design and structure of any system is appropriate and suited to the national environment.

I now intend to consider the body of work completed to date and put in place a work plan for delivery.

Question No. 45 answered with Question No. 38.

Programme for Government Initiatives

Ceisteanna (46, 48, 49, 57, 61)

Mick Barry

Ceist:

46. Deputy Mick Barry asked the Minister for Social Protection if his Department has carried out research on schemes similar to the fit-for-work programme operating in other countries, particularly in Britain. [11842/16]

Ruth Coppinger

Ceist:

48. Deputy Ruth Coppinger asked the Minister for Social Protection the criteria he will use to assess a person's ability to work as part of the fit-for-work programme as per the programme for Government. [11836/16]

Mick Barry

Ceist:

49. Deputy Mick Barry asked the Minister for Social Protection the number of places which he will provide on the fit-for-work programme and the criteria for eligibility. [11843/16]

Paul Murphy

Ceist:

57. Deputy Paul Murphy asked the Minister for Social Protection if he will outsource the operation of the proposed fit-for-work programme to a private sector operator. [11835/16]

Paul Murphy

Ceist:

61. Deputy Paul Murphy asked the Minister for Social Protection for further information on the fit-for-work programme as per the programme for Government. [11834/16]

Freagraí scríofa

Minister for Social Protection

I propose to take Questions Nos. 46, 48, 49, 57 and 61 together.

The recently agreed programme for a partnership government provides for a range of actions that are designed to improve the quality of life for people with disabilities. One of these actions is a proposal for the Departments of Health and Social Protection to work together to pursue a “Fit for Work Programme” to support more people with an illness or disability to get back to work through early intervention.

The “Fit for Work” proposal is based on the findings of a pan European study, which examined the impact of musculoskeletal disorders (MSDs) on an individual’s ability to work. The Irish module of this study was progressed by a coalition of key stakeholders and was led by Arthritis Ireland. The Irish College of General Practitioners, ICTU, IBEC and the Health & Safety Authority also contributed to the study.

Early interventions and developing return to work practices in the case of people with musculoskeletal incapacities is consistent with my Department’s approach to illness/disability income support, which aims to reduce the number of people progressing to chronic disability and long-term social welfare dependency. To this end, my Department has in 2015, issued a set of certification guidelines for GPs, which sets out defined periods of recovery for common medical conditions, including MSDs.

The certification guidelines build on the “Renaissance project”, which is an initiative of my Department since 2003. This has shown that early intervention reduced the incidence of progression from the acute simple low back pain to chronic disability in 64% of claimants.

While specific proposals for a “Fit for Work Programme” require further development and scoping out, I would like to assure the Deputy that any such proposals will be in line with the wealth of evidence which shows that generally employment is good for one’s mental and physical health and wellbeing and, conversely, that unemployment is damaging. I would also like to assure the Deputy that the proposal bears scant resemblance to the Work Capability Assessment (WCA) used in the United Kingdom to determine whether people with disabilities claimants or those suffering from long-term illnesses are entitled to the main out-of-work sickness benefit scheme.

Job Initiatives

Ceisteanna (47)

Bernard Durkan

Ceist:

47. Deputy Bernard J. Durkan asked the Minister for Social Protection to put incentives in place to reduce youth and long-term unemployment; if schemes require upgrading; and if he will make a statement on the matter. [11839/16]

Freagraí scríofa

Minister for Social Protection

The Government’s primary strategy to tackle both youth and long-term unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity.

Reflecting the impact of government policy, and the overall improvement in the labour market, youth unemployment continues to fall with a rate of 18.0% in April 2016 (as estimated by CSO), compared to 21.0% in April 2015 and a peak of over 31% in 2012. The long-term unemployment rate peaked at 9.5% in Q1 2012 before falling to 4.7% in Q4 2015. At the latter date, the long-term unemployed accounted for 54.5% of all those unemployed, down from almost 61% in early 2012.

Although the labour market situation is improving considerably as the recovery continues, the Government recognises the importance of a continued focus on measures to facilitate the young unemployed and long-term unemployed back into work. This is the rationale behind the Government’s Pathways to Work 2016-2020 strategy (published January 2016) and the Youth Guarantee plan (published January 2014).

As under services such as Intreo, Youthreach, VTOS, PLC programmes, and JobBridge, Ireland already had many of the recommended component parts of a Youth Guarantee as envisaged in the relevant EU Recommendation, the main approach in Ireland is to prioritise access to these existing supports for young people who become unemployed. The objective is to ensure that they have an opportunity for employment, further education or work experience within the recommended period of four months as per the EU council recommendation.

The key objective is to help newly unemployed young people find and secure sustainable jobs. In this regard there is monthly engagement with young people by case officers to assist young people to prepare, review and, if appropriate, revise personal progression plans. As part of this process additional supports may be provided, both through existing schemes and through youth-specific measures. Most such offers (over 70%) are in existing further education or training programmes. Others are in existing community-based employment programmes such as CE, Gateway and Tús. Overall, over 19,100 opportunities were taken up on the relevant programmes in 2015.

Pathways to Work 2016-2020 continues to prioritise these measures for the young unemployed and additionally commits to: increasing the share of workplace-based interventions for youth unemployed; ensuring that monthly engagement, at a minimum, is consistently applied and maintained; restructuring the First Steps programme; and implementing the Defence Forces Skills for Life programme.

A range of measures were introduced under previous Pathways to Work strategies for the long-term unemployed. This included a structured process of engagement with long-term unemployed people being referred to the activation process (Group Engagement followed by regular one-to-one case officer contact); wage subsidies in JobsPlus; the roll-out of a payment-by-results contracted employment services in JobPath, to provide additional capacity in order to engage more systematically with long-term unemployed jobseekers; and reserved places for the long-term unemployed on a range of Further Education and Training (FET) and public employment programmes. A core focus of Pathways to Work 2016-2020 is on consolidating and improving the quality and consistency of reforms undertaken in previous strategies, with continued prioritisation of those long-term unemployed. I am satisfied these measures will help to address youth and long-term unemployment.

Finally, a rolling programme of evaluations has been implemented under Pathways to Work 2015 together with regular jobseeker customer satisfaction surveys. Evaluations of JobBridge, of Intreo process reforms and of BTWEA are currently being conducted. Other programmes and processes will be evaluated throughout the period of the current Pathways to Work. Any changes to schemes will be considered in the light of the findings of these evaluations.

Questions Nos. 48 and 49 answered with Question No. 46.