Written Answers Nos. 76-97
76. Deputy Clare Daly asked the Minister for Social Protection the consideration he has given to a review of the provisions of the Social Welfare and Pensions Act 2013, including single insolvencies and their effects on pensioners. [35826/16]
Amharc ar fhreagraIn Ireland, occupational pension schemes are generally set up under trust and are maintained by the employer on a voluntary basis. The trust deeds and rules of a scheme differ from scheme to scheme, and as with any contractual situation, reflect the level of obligation of the parties involved. While the Pensions Act provides a framework for the regulation and supervision of occupational pension schemes, it does not impose any requirement on an employer to fund scheme benefits or maintain an existing scheme.
The Social Welfare and Pensions (No. 2) Act 2013 provided for a fairer and more equitable distribution of scheme assets in the event of the wind up of an underfunded scheme. It also facilitated a greater sharing of the risk between all the beneficiaries when a scheme is underfunded, while still providing for priority protection of pension benefits. Prior to the introduction of this Act, pensioner benefits were given priority over the benefits of active and deferred scheme members which meant a situation could arise whereby pensioners received all or almost all of the pension fund and members who had contributed but not retired received considerably less than expected.
When an underfunded pension scheme is winding up (and when the employer is still solvent), the existing 100% priority given to pension benefits was changed to provide for a reduced priority for higher pensions. It is important to note that the changes introduced in the 2013 Act still give high priority to existing pensioners in the discharge of the liabilities. For pensioners this is: (i) 100% priority will be given to the first €12,000, if the annual pension is €12,000 or less; (ii) the lesser of €12,000 or 90% of the annual pension if the annual pension amount is over €12,000 and less than €60,000; (iii) the lesser of €54,00 or 80% of the annual pension if the annual pension amount is €60,000 or more.
After that the next priority will be to secure 50% of current and former employee’s benefits. Then any remaining funds will be used to secure pensioner benefits to the extent that they have not already been discharged and after that, current and former employees benefits to the extent that they have not already been discharged.
This change in the order of priority when a scheme winds up redistributes funds to the current and former employees. If the pension scheme is sufficiently funded the pensioner will get back further funds as the scheme moves through the order set out above.
I have no plans to review these provisions as the changes made provided for a fairer and more equitable distribution of scheme assets in the event of the wind up of an underfunded scheme.
I hope this clarifies the matter for the Deputy.
77. Deputy Paul Murphy asked the Minister for Social Protection his plans on cutting unemployment payments following reported comments (details supplied) made at a recent Pobal conference in Dublin City University; and if he will make a statement on the matter. [36026/16]
Amharc ar fhreagraIn addition to assisting unemployed jobseekers through the payment of income supports the Department of Social Protection, through its Intreo service, provides a range of employment supports and services to assist jobseekers find and secure employment. As unemployed jobseekers in receipt of jobseeker payments certify that they are genuinely seeking and available for work it is expected that they will avail of these employment supports and services. This is in line with the principle of “rights and responsibilities’’; in other words unemployed people have a right to income supports and employment services from the State but also have a responsibility to engage with those services when in receipt of a payment. Accordingly since 2011, the application of reduced rates of payment has been provided for under Social Welfare legislation.
Under this Legislation a Deciding Officer may, where recipients of jobseeker payments fail, without good cause, to engage with activation services, apply a reduction to the jobseeker payment. Activation measures include the requirement to attend group or individual meetings with case officers, and/or avail of suitable education, training or development opportunities, or specified employment programmes, which are considered appropriate to a person’s circumstances.
If a person continues to fail, without good cause, to comply with activation measures, while on a reduced rate of payment, he/she may be disqualified from receiving the personal rate of payment for up to 9 weeks. The normal rate of payment may be reinstated at any time, if the jobseeker reengages, as requested, with activation measures. There are no plans to change these reduced payment rate provisions at this time.
78. Deputy Joan Collins asked the Minister for Social Protection his views on the hard means test of €100 over a person's social protection payment to receive fuel allowance (details supplied). [36030/16]
Amharc ar fhreagra93. Deputy Joan Collins asked the Minister for Social Protection if he will consider changing the means test for the fuel allowance (details supplied). [36018/16]
Amharc ar fhreagraI propose to take Questions Nos. 78 and 93 together.
The fuel allowance is a payment of €22.50 per week for 26 weeks from October to April, to 376,000 low income households to assist them with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
My Department also pays an electricity or gas allowance as part of the household benefits package to approximately 421,000 customers, at an estimated cost of €228 million in 2016. Applicants for household benefits aged 70 or over do not have to satisfy a means test.
The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. People who are in receipt of a qualifying contributory payment must also satisfy a means test. All non-contributory recipients are accepted as satisfying the means test.
A fuel applicant and members of his/her household may have a combined assessable income of up to €100.00 a week above the appropriate rate of State Pension Contributory and qualify for a payment. This ensures that the fuel allowance payment goes to those who are more vulnerable to fuel poverty including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own. The €100 a week means limit is significantly higher that the weekly fuel allowance rate of €22.50 and also the combined weekly total of household benefits and fuel allowance added together (€33.65). It might be remembered that more than half of those over 66 are solely dependent upon the State pension, and so a person who has additional pension income above €100 is not among the more disadvantaged people that Fuel Allowance is targeted at.
The Guidelines for the Fuel Allowance Scheme are kept under review. However, any decision to introduce a system of tapered fuel rates for cases that have means greater than the allowed €100 would have cost implications, and would have to be considered in the context of overall budgetary negotiations. Alternatively, if it was restructured on a cost-neutral basis, this would mean that pensioners on lower incomes would have their Fuel Allowance payments reduced, in order to fund payments to people with higher weekly incomes.
I hope this clarifies the matter for the Deputy.
79. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which he has identified the various groups, such as the disability sector, carers, widows, pensioners and those dependent on means-tested payments, affected by financial cutbacks by his Department brought about through the financial crisis with a view to identifying an appropriate restoration programme; and if he will make a statement on the matter. [36000/16]
Amharc ar fhreagraAfter a series of challenging years, improvements for people in receipt of social welfare payments began in Budget 2015 and continued in Budget 2016. This included increases in the weekly rates of payment for pensioners and in the living alone allowance. There were also increases in child benefit, fuel allowance and the Carer’s Support Grant. In addition, new initiatives aimed at helping families were introduced, such as the back to work family dividend, and the paternity benefit scheme.
I held a pre-Budget Forum in the run up to the recent Budget and I listened carefully to the views of a wide range of organisations representing pensioners, carers, people with disabilities and so on. My priority in Budget 2017 was to make sure that everyone benefits from the recovery - employed, self-employed, retired people, people with disabilities, carers, those who cannot work, urban, rural, young and old.
It also sets out to make work pay through reforms to the PRSI system, including a new deal for the self-employed, and it includes a number of targeted measures to assist lone parents and farmers, among others.
On Budget Day, I announced the first general increase in all weekly rates of payment since 2009. A €5 increase in the weekly rates of payment for all social welfare payments will commence from March, with proportionate increases for qualified adults and those on reduced rates of payment (including jobseekers on age-related reduced rates of payment).
Approximately 1.5 million people will benefit from this increase, from pensioners, people with disabilities, carers, lone parents, maternity and paternity benefit recipients to jobseekers.
I am also extending social insurance benefits for the self-employed. From March, Class S PRSI contributors will be able to avail of Treatment Benefit, which includes free eye and dental exams, and contributions towards the cost of hearings aids and contact lenses.
In addition, and more significantly, self-employed contributors will be eligible for the Invalidity Pension. For the first time, this will give the self-employed access to the safety-net of State income supports if they have a serious illness or injury that prevents them from working without having to go through a means test.
A range of Dental and Optical benefits will also be restored. These will benefit all PRSI paying employees and the self-employed, benefitting approximately 2.5 million people.
There is also a package of measures supporting lone parents in the Budget, encouraging them into the workplace and into education, and helping to reduce their childcare costs. All lone parents on One-Parent Family Payment and Jobseeker’s Transition and Jobseekers Allowance will benefit from the €5 increase in the weekly rates of payment.
A new €500 annual Cost of Education Allowance will be made available to Back to Education Allowance participants with children from the next academic year in September. This will help parents, including lone parents, to return to education.
The income disregards for the One-Parent Family Payment and Jobseeker’s Transition payment will rise by €20, from €90 to €110 per week, reversing in part previous reductions, to encourage one-parent families to stay in, and return to, work. This will benefit lone parents earning more than €90 per week. For those earning €110 per week or more, it will increase the combined social welfare and earnings income by up to €15 per week from January 2017.
As part of the Government’s commitment to rural Ireland, I announced the total reversal of the Farm Assist measures introduced during the crisis. This is a programme which helps more than 8,000 farm families.
The Social Protection Budget will benefit over 2 million people in Ireland, including the retired, workers, people with disabilities and carers, and the unemployed.
The Budget also represented a significant shift in how the social insurance system interacts with self-employed contributors, with the extension of Treatment Benefits and Invalidity Pension to the self-employed next year. I plan to continue extending cover for the self-employed to other benefits on a phased basis in future Budgets.
The increase in the weekly rates of payment for all social welfare recipients demonstrates that everyone in Irish society can, and will, benefit under this Government from the economic recovery.
80. Deputy John Brady asked the Minister for Social Protection the measures he will put in place to ensure the survival of the post office network, including the roll-out of further social protection services; and if he will make a statement on the matter. [36021/16]
Amharc ar fhreagraPrimary responsibility for An Post and the Post Office network rests with my colleagues the Minister for Communications, Climate Change and Natural Resources and the Minister for Regional Development, Rural Affairs, Arts and Gaeltacht.
My department makes a significant contribution to An Post through the current contract for cash services. In 2015 there were over 38 million social welfare transactions in An Post at a cost of €54 million to my department.
The Programme for Government commits to actively encourage payment at post offices.
Department of Social Protection staff have been advised that, when dealing with customers who are making new claims or seeking to change their payment arrangements, customers can choose between payment at the post office or by electronic funds transfer. Customer wishes should be facilitated where they choose to receive their social welfare payment at their local post office.
There is no change to schemes where customer choice is not currently available for control or other specified purpose.
My department, along with the department of Public Expenditure and Reform, will work closely with the above departments as appropriate and necessary in considering the recommendations of the Post Office Network Business Development Group or as it is known, the Kerr Report.
A key recommendation of the Kerr Report is the development by An Post of a basic bank account facility. I welcome this initiative by An Post and can assure the Deputy that should customers choose to have their social welfare payments made directly into a future An Post bank account my department will facilitate this request in the same manner as any customer request to have payments made directly to an account in any financial institution.
82. Deputy Catherine Murphy asked the Minister for Social Protection if there has been an increase in requests for review of means-assessed pensions and other incomes in response to the declining value of sterling; the number of review requests he has received; the backlogs in current application and review processing queues; the outcomes for persons; and if he will make a statement on the matter. [35712/16]
Amharc ar fhreagraSocial Assistance payments act as a safety net for people who have insufficient income and who do not qualify for a contributory payment. The use of a means test is to ensure that limited resources are directed to those in greatest need. Payments from the United Kingdom (UK) are assessed as income under current legislation. If the person applying for a Social Assistance payment has a UK pension, it is assessable, together with all other means such as savings and investments, when determining the rate of payment.
There has not been any significant increase in either new applications from persons in receipt of payments from the UK or requests for review of means assessed pensions and other incomes in response to the declining value of sterling. To date c. 2% of persons in receipt of both State Pension non-contributory and a payment from the UK have requested a review of their entitlement. There is no backlog in dealing with such requests.
It is open to any person in receipt of a social assistance payment to request that his/her entitlement be reviewed if they wish. It is important to note, however, that any such review will involve a full reassessment of all of the customer’s means to ensure that the person continues to receive the correct payment in line with their overall entitlement and such reviews cannot of their nature just focus on the income derived from the UK. Therefore the outcome of each review depends on the individual means and circumstances of the person.
Following the outcome of the UK referendum, negotiations on the UK’s future relationship with the EU will take time. In the interim, it is important to stress that all payments made by the Department of Social Protection to entitled persons, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.
I hope this clarifies the matter for the Deputy.
83. Deputy Paul Murphy asked the Minister for Social Protection the processing times for carer’s allowance and benefit applications; the measures he will take to reduce these times; and if he will make a statement on the matter. [36025/16]
Amharc ar fhreagra90. Deputy Thomas Byrne asked the Minister for Social Protection his plans to deal with delays in the administration of carer's allowance. [35976/16]
Amharc ar fhreagraI propose to take Questions Nos. 83 and 90 together.
My Department is committed to providing a quality service to all its customers. This includes ensuring that applications are processed and decisions on entitlement are made as quickly as possible.
The average waiting time for new carer's benefit (CARB) claims at the end of October 2016 is 9 weeks. The average waiting time for new CA applications at the end of September 2016 was 14 weeks. The waiting time for new CA applications as at the end of October 2016 is not yet available.
The Department has seen a significant reduction in CA processing from 22 weeks at the end of May to 14 weeks at the end of September and expects the processing times for both schemes to reduce further, as recently assigned staff get up to speed with the work involved in claim processing.
At the end of October, there were 3,833 CA and 404 CARB applications awaiting decision. These figures compare very favourably to the end May figures which were 6,398 and 660 respectively.
The volume of claims on hands are a consequence of continued strong claim intake and the delays in processing are frequently caused by the customer failing to fully complete the claim form or failing to attach the supporting documentation that is requested on the application form. Applications for CA by the end of September 2016 are 20% higher than in the same period in 2015 while applications for CARB are 24% higher. This has impacted on the timely processing of applications.
Reducing waiting times is a priority for the Department and we are working hard to make this happen. As part of its programme of service delivery modernisation, a range of initiatives aimed at streamlining the processing of claims, supported by modern technology, have been implemented by the Department in recent years. Operational processes, procedures and the organisation of work are continually reviewed to ensure that processing capability is maximised.
In addition, staffing needs are regularly reviewed, having regard to workloads and the competing demands arising, to ensure that the best use is made of all available resources. Where additional staffing is deployed to a scheme, such as has happened for the carer’s schemes, there is a time-lag involved while those staff are trained and build up expertise.
I hope this clarifies the matter for the Deputy.
86. Deputy Ruth Coppinger asked the Minister for Social Protection if his Department has reviewed the changes to the rent supplement limits and their impact; and if he will make a statement on the matter. [36037/16]
Amharc ar fhreagra87. Deputy Paul Murphy asked the Minister for Social Protection if his Department has reviewed the number of properties available to rent within the rent allowance limits; and if he will make a statement on the matter. [36029/16]
Amharc ar fhreagra99. Deputy Mick Wallace asked the Minister for Social Protection his plans to reform the rent supplement system in line with calls from advocacy groups (details supplied) for rent supplement levels to be assessed based on individual circumstances and which recommend a range of administrative reforms which would make rent supplement more attractive to landlords; and if he will make a statement on the matter. [36052/16]
Amharc ar fhreagraI propose to take Questions Nos. 86, 87 and 99 together.
Supports in relation to housing are a key priority for this Government, as evidenced by the early implementation, in July 2016, of its commitment to introduce increased rent limits under rent supplement, currently supporting 49,700 tenants at a total cost of €267 million this year.
The rent limit review process represented a realignment of the maximum rent limits with agreed rents, with rents generally benchmarked against the 35th percentile of those registered with the Residential Tenancies Board. The review’s methodology is evidence based and reflects the pressures on rental properties in each location. Officials in my Department continue to monitor both overall availability of rental properties, which remains at historic lows, and the ongoing relevance of the new limits. Both my Department and the Department of Housing, Planning, Community and Local Government will jointly undertake a review of the effects of the increases on rental costs and homelessness after a 12 month period.
In recognition of the ongoing supply difficulties, my Department continues to implement a targeted case-by-case policy approach that allows for flexibility where landlords seek rents in excess of the limits. To date, approximately 9,300 persons at imminent risk of homelessness have been supported through increased rent supplement payments. There has been a significant reduction in these cases following the introduction of the increased rent limits.
The Housing Assistance Payment (HAP), which is a key pillar of the Social Housing Strategy 2020, will transfer responsibility for all those on rent supplement with long-term housing needs to the local authorities. It is expected that HAP will be available in all local authorities in early 2017. HAP represents a significant reform of the system and rent supplement will continue to be paid to households who are already in the private rented sector but who, generally because of a loss of income through unemployment, require short-term income support. Any recommendations to reform the administration of the rent supplement scheme have to be carefully considered in the context of this significant change in policy direction.
I can assure the Deputies that I am continuing to keep the matter of rent limits and the administration of the rent supplement scheme under close review.
88. Deputy Thomas Pringle asked the Minister for Social Protection his plans to introduce a universal pension to tackle income inequality in the elderly population; the progress to date in facilitating a transition to a universal pension system; and if he will make a statement on the matter. [36038/16]
Amharc ar fhreagraI understand the Deputy has clarified that when he refers to a “transition to a universal pension system” he is referring to an introduction of a universal flat rate State pension.
There are no plans to abolish either the State pension (contributory), or the State pension (non-contributory), as both are very effective in ensuring that older people have a decent standard of living. In relation to the State pension (contributory), workers who pay PRSI over their working lives receive a benefit which allows them make further provision for their retirement without losing that benefit via a means test.
The State pension (contributory) is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement.
One of the conditions of the State pension contributory is that a person needs a minimum of 520 weekly contributions (i.e. 10 years) paid since entering insurable employment. If a person does not have this minimum number of contributions paid, they will not generally have an entitlement to this particular pension, either at a full or reduced rate. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating the rate of pension entitlement. Entitlement is banded, with the maximum rate payable to those with a yearly average of 48-52 contributions, and the minimum rate payable to those with a yearly average in the range of 10-14 contributions per year. Even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they would generally qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances, and may not always be their most advantageous payment to claim.
The homemaker’s scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person’s social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for State pension contributory also being satisfied.
There are a number of reasons why someone might not have sufficient contributions paid to qualify for a State pension (contributory). Some would have been employed in the public service for a significant period, others would have worked abroad during their working life and qualified for a foreign pension based on foreign contributions, and some would have spent significant periods out of the labour force altogether for a number of reasons, e.g., caring for children or elderly relatives, prolonged periods of unemployment or incapacity and other circumstances.
Where people who were unattached to the labour market during most of their adult lives cannot qualify for a contributory pension in their own right as they have paid few or no contributions, or cannot qualify for a full rate as a result of an intermittent PRSI record, the social protection system provides alternative methods of supporting such pensioners in old age. Therefore, if their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full rate pension, which by default is paid directly to them. Alternatively, they may qualify for a means-tested State Pension (non-contributory), amounting up to 95% of the maximum contributory pension rate.
Providing a full rate pension to everyone over 66, regardless of their PRSI record or their means would be a very expensive measure, which would require significant additional funds (either through higher PRSI rates or exchequer subvention) or a reduction in the rate of the maximum pension.
Work is underway to replace the ‘yearly average’ system with a ‘total contributions approach’. Under this approach, the number of contributions recorded over a working life will be more closely reflected in the rate of pension payment received. The position of gender and gaps in contribution records will be considered very carefully in developing these proposals. It is expected that the total contributions approach to pension qualification will replace the current average contributions test for State pension (contributory) for new pensioners from around 2020 and work is underway in my Department in that regard.
I hope this clarifies the matter for the Deputy.
89. Deputy Willie O'Dea asked the Minister for Social Protection the way he plans to address inequality and social exclusion in 2017; and if he will make a statement on the matter. [35934/16]
Amharc ar fhreagraThe Government’s strategy for addressing social exclusion and poverty is set out in the National Action Plan for Social Inclusion 2007-2016 (NAPinclusion). This Plan identifies a wide range of targeted actions and interventions with an ambition to achieve an overall objective of reducing poverty under the national social target for poverty reduction.
NAPinclusion was recently updated for the extended period to 2017 to reflect new challenges and current policy responses to poverty. These include a greater focus on modernising the social protection system, improving effectiveness and efficiency of social transfers and strengthening active inclusion policies to address employment and social challenges.
NAPinclusion will continue to be implemented in 2017. The Department will review the Plan during next year, as it reaches the end of its current term, with a view to developing an updated plan for future periods. The Department will also review the national social target to 2020. These review tasks will be undertaken in consultation with relevant stakeholders.
Income supports will continue to play an important role in addressing social exclusion and income inequality during 2017. The value of core weekly welfare payments has been maintained in recent years as social transfers have proved extremely effective in lifting people out of poverty. The latest data for 2014 shows that Ireland was the best performing EU member state in reducing poverty through social transfers, as had been the case in previous years.
Budget 2017 took a step forward and sought to improve the value and impact of these income supports. During 2017, more than 840,000 people will benefit from the first increase in weekly payments for working-age adults since 2009.
The measures outlined above are designed to complement the impact of continuing economic recovery in reversing the increase in poverty that took place during the recession from 2009 to 2013. The latest available data indicate that the consistent poverty rate stabilised – indeed fell marginally – in 2014. It is anticipated that data for 2015 and 2016, when available, will show more marked declines in this core poverty measure resulting from the sharp fall in unemployment since 2014. Unemployment is also forecast to fall further next year.
91. Deputy Clare Daly asked the Minister for Social Protection if his Department is undertaking or will undertake monitoring of the Pensions Authority's achievement of its strategic objectives as laid out in its statement of strategy 2016-20; and if he is satisfied with the authority's performance to date in tackling lack of governance or maladministration impacting on benefits and failure to pay benefits due, which is one of the risk priorities laid out in the strategy. [35827/16]
Amharc ar fhreagraThe Pensions Authority, under the Pensions Act 1990, is the regulator for occupational pension schemes in Ireland. The Authority provides a wide range of information and guidance to help and support trustees to comply with their regulatory obligations as set out under legislation. The Authority, in consultation with my Department, is continually assessing governance issues and making improvements in order to protect the members of pension schemes.
In March of this year, the Authority outlined plans for improved pension scheme governance in their Statement of Strategy 2016-2020. This Statement of Strategy sets out the vision, mission, values and the strategic objectives and high level strategies that will underpin the Authority’s work programme for the next 5 years. The Strategy will be reviewed mid-term to assess whether it continues to be appropriate to guide the Authority’s activities or whether the environmental and operational context has altered to such an extent that a new or revised Strategy is required.
Oversight of the executive of the Pensions Authority is provided by a three person board. This consists of the following:
- Mr David Begg as Authority chair.
- Ms Ann Nolan, Second Secretary General in the Department of Finance, who represents the Minister for Finance.
- Ms Anne Vaughan, Deputy Secretary General in the Department of Social Protection, who represents the Minister for Social Protection.
The role of the Pensions Authority is to promote and support compliance with the Pensions Act and to address any non-compliance it encounters. It is not, however, responsible for running pension schemes and PRSAs. Rather, the responsibility for managing pension schemes and PRSAs and for making decisions relevant to their operation and management rests with the trustees, the PRSA providers and employers. The Authority is responsible for ensuring those managing and providing services to pension schemes and PRSAs operate in compliance with the requirements of the Pensions Act.
If it is considered that benefits due are not being paid in accordance with the rules of a pension scheme, the person concerned can invoke the dispute resolution procedures which the scheme is obliged to operate and if they are still dissatisfied, they can bring the complaint to the Pensions Ombudsman. The Pensions Authority also comes under the remit of the Ombudsman (not the Pensions Ombudsman), who deals with customers who feel they may have been unfairly treated by public bodies.
In 2015, the Authority continued its robust compliance activities by opening 45 new investigations, closing 66, and referring 18 cases for prosecution. The Authority held 60 compliance meetings with stakeholders. 225 occupational pension schemes were selected for audit and 37 prosecution cases, most of which related to the construction sector, were concluded. The increase in prosecutions resulting from whistleblowers’ reports highlights the increased awareness of the Authority as an avenue for citizens to raise their concerns. The Authority’s investigations of Registered Administrators found an improvement in compliance standards since 2010 and this reflects the positive impact of the Authority’s compliance work.
In addition to this, the Pensions Authority, together with the Department, is currently working on proposals for reform and simplification of pensions, the purpose of which is to impose higher standards for all occupational schemes. Standards in relation to pension schemes will also be further enhanced by the transposition of the new IORPS II Directive within the next two years.
I hope this clarifies the matter for the Deputy.
92. Deputy Willie O'Dea asked the Minister for Social Protection the way he plans to address the issue of youth unemployment; and if he will make a statement on the matter. [35933/16]
Amharc ar fhreagraThe Government’s primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery through effective policies. In doing so it is hoped to promote 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 15.1% (30,500) in October 2016 (as estimated by CSO), compared to 15.9% (32,400) in September 2016 and a peak of over 31.1% (70,500) in 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 young unemployed people to find and sustain employment. 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).
The key objective of Ireland’s policy response to the EU Recommendation on a Youth Guarantee is to help newly unemployed young people find and secure sustainable jobs. In this regard there is monthly engagement by case officers with young people to assist them to prepare, review and, if appropriate, revise personal progression plans. Where young people do not find work relatively quickly, additional supports may be offered, both through reserved places on existing employment and training 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. The wage subsidy JobsPlus Youth, valued at €7,500, is also available to employers who hire young jobseekers under 25 who were previously at least four months unemployed (JobsPlus is otherwise available to jobseekers over 25 who are at least 12 months unemployed).
Pathways to Work 2016-2020 continues to prioritise these measures for the young unemployed and further commits to a number of additional measures. These include 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.
I am confident these measures, and continuing economic recovery, will support further reductions in youth unemployment and add to the substantial improvements that have already been seen over the last few years.
94. Deputy John Paul Phelan asked the Minister for Social Protection the status of the fit for work programme referenced in the programme for Government; and if he will make a statement on the matter. [36064/16]
Amharc ar fhreagraThe 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 commitment to develop a programme to support more people to get back to work if they have an illness or disability.
The commitment envisaged that the programme is being led by the Departments of Health and Social Protection, working together and with other stakeholders. These Departments have identified “Healthy You: Early Intervention” as the working title of the programme to reflect widespread evidence that early intervention in a person’s illness or health condition through a range of services and supports can lead to positive health, employment and income results overall. Clearly, there will be cases where a return to work is neither desirable nor appropriate, but for other cases, the intention will be to ensure that both the healthcare and the income support systems, together with appropriate care supports from employers and others, increase the chances of a successful recovery.
As an initial step towards the development of this programme, a stakeholder forum is being organised to obtain a range of views about the scope of the programme as well as identifying issues around its design and operation. Subsequently, the feedback derived from this session will assist the work of the interdepartmental group set up to progress this proposal.
I would like to reassure 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 can be damaging.
I hope this clarifies the matter for the Deputy.
95. Deputy Willie Penrose asked the Minister for Social Protection his future plans to support self-employed persons access jobseeker's benefit. [36035/16]
Amharc ar fhreagraSelf-employed persons, who earn €5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory) and Widow’s, Widower’s or Surviving Civil Partner’s Pension (contributory), Guardian’s Payment (contributory), Maternity Benefit and Adoptive Benefit and Paternity Benefit.
Class A employees, who have access to the full range of benefits, pay PRSI at the rate of 4% on their income. In addition their employers pay PRSI at 10.75%, which brings the rate of PRSI paid in respect of Class A employees to 14.75% (12.5% for weekly earnings of €376 or less).
Currently self-employed workers can access the means tested jobseeker’s allowance payment, in respect of periods when they cannot work or because of a downturn in their business.
Core to the Programme for Government focusing on improving the position of the self-employed is the commitment to introduce an improved PRSI scheme for the self-employed.
In Budget 2017, I announced the extension of cover for Invalidity Pension to the self-employed on the same basis as employees, with effect from December 2017.
In addition the self-employed will have access to the treatment benefit scheme from March 2017. Treatment benefit entitlements will be extended further from October 2017 providing additional benefits.
In 2017, my Department will carry out detailed work to establish how to provide a better safety net for self-employed workers whose business fails. The outcome will be considered in a Budgetary context.
96. Deputy Brendan Griffin asked the Minister for Social Protection if he will review the average number of contributions per annum requirement for the State pension, contributory, in view of the difficulty it is posing for some persons, particularly the self-employed, women and returning emigrants; and if he will make a statement on the matter. [35713/16]
Amharc ar fhreagraThe rate of payment to a person of the State pension contributory is related to contributions made over the years into the Social Insurance Fund by the person. As such, those with a stronger attachment to the workforce, and who have paid more into that fund, are more likely to be paid under this scheme. Under the scheme, entitlement is calculated by means of a ‘yearly average’ calculation, where the total contributions paid or credited are divided by the number of years of the working life.
Social insurance contributions (Class S PRSI) were introduced for self-employed people on 6 April 1988. These contributions provide cover for self-employed people for long-term benefits such as State pension (contributory) and widows/widowers pension (contributory). A person must have paid self-employment contributions in respect of at least one contribution year prior to reaching age 66, and all self-employment contributions payable must have been paid in full.
There is also a State pension (contributory) half-rate pension for self-employed people. The legislation providing for this partial pension came into effect from 9 April 1999 to provide a basic payment for groups who would not otherwise qualify for a contributory social welfare pension, and who did not satisfy the means test for the State pension (non-contributory). In this case, the measure was designed to benefit self-employed people who were already over 56 years of age when compulsory self-employed social insurance was introduced in 1988, who had not paid other contributions (such as voluntary contributions, or other contributions while in employment), and who could not therefore satisfy the condition of having entered insurance 10 years before pension age. The pension was seen as a reasonable response to the position of the self-employed who were in their late 50s when Class S contributions were introduced, and I believe most would agree that it represents good value for the contributions made.
EU Regulations provide for the inclusion of social insurance periods a person has incurred in another Member State(s), in a combined Irish/EU record, for the purposes of state pension contributory (SPC) eligibility. Taking the combined record into account, and subject to their satisfaction of the standard SPC eligibility conditions set out in domestic legislation, a claimant may qualify for a reduced-rate ‘pro-rata’ EU state pension (contributory) under EU Regulations. These arrangements apply to all countries covered by EU legislation, including the EEA countries Norway, Iceland and Liechtenstein. All such applications are first assessed under Irish legislation, on the basis of the claimant’s Irish contributions record only, then separately under EU legislation, using the pro-rata calculation method. If the eligibility conditions are satisfied, the most financially beneficial pension entitlement is awarded.
There are also a series of Social Security Agreements which apply to other countries not covered by EU regulations. These agreements protect the pension entitlements of Irish people who go to work in these countries and they protect workers from those countries who work in Ireland. They allow periods of Irish social insurance and, depending on the legislation in the other country, periods of residence/contributions which are completed in the second country, to be taken into account so that the worker may have his/her entitlement to a pension determined.
Prior to the introduction of the Homemakers scheme in 1994, there was no provision for the recognition of periods of homemaking. This scheme introduced such recognition of periods going forward from that date as the costs for backdating it would have been very considerable. I am advised that if the Homemakers scheme was to be backdated to all dates prior to 1994, for payments from January 2017, the net cost to the Exchequer could be expected to amount to approximately €290 million in 2017, and this annual cost would rise at a faster rate than the overall cost of State pensions.
Where someone does not qualify for a full rate contributory pension, they may qualify for an alternative payment. If their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full rate pension, which by default is paid directly to them. Alternatively, they may qualify for a means-tested State Pension (non-contributory), which amounts to 95% of the maximum contributory pension rate.
It is worth noting that the most recently published Actuarial Review of the Social Insurance Fund found the self-employed and women achieve very good value for money from the fund.
I hope this clarifies the matter for the Deputy.
97. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which he will improve waiting times in respect of the determination of appeals and access to oral hearings; and if he will make a statement on the matter. [36001/16]
Amharc ar fhreagra317. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which he can continue to reduce the time taken to process appeals in respect of various social protection payments; and if he will make a statement on the matter. [36295/16]
Amharc ar fhreagraI propose to take Questions Nos. 97 and 317 together.
The average appeal processing time for appeals determined in 2015 and to date in 2016 broken down by all social welfare scheme types is outlined in the following tables.
Significant effort and resources have been devoted to reforming the appeals process in recent years resulting in a marked improvement in overall appeal processing times. The average time taken to determine an appeal requiring an oral hearing reduced from 52.5 weeks in 2011 to 25.5 weeks in 2015 and the average time taken to finalise an appeal decided by way of a summary decision dropped from 25.1 weeks in 2011 to 18.1 weeks in 2015. This downward trend in overall appeal processing times has continued to date in 2016 to 24.3 weeks for an oral hearing and 17.4 weeks for a summary decision.
Notwithstanding these improvements, the Chief Appeals Officer has advised me that appeal processing times will continue to be a priority for her office and will continue to be monitored on an ongoing basis.
The quasi-judicial nature of the appeals system means that there are inevitable time-lags involved. However, the system is designed to be flexible and fair and allows for review and submission of further information at all stages. The time taken is proportionate to the complexity of many of the issues under appeal which require a high level of judgement, and the need to ensure due process and natural justice.
Appellants are advised of their right to request an oral hearing when their appeal is registered as an information leaflet (SW56) issues with the appeal acknowledgment. This information leaflet is also available on the appeals office website – www.socialwelfareappeals.ie.
I am advised that where an appellant requests an oral hearing, the request is generally granted unless the Appeals Officer is of the opinion that the appeal can be allowed on a summary basis, or where there is clearly nothing to be gained by granting an oral hearing, for example where the appeal question relates to contribution conditions or means and the underlying means or PRSI contribution figures are not disputed.
The Deputy may be aware from figures reported in the Chief Appeals Officer’s Annual Report that 36.4 per cent of appeals determined by Appeals Officers in 2015 involved an oral hearing – the equivalent figure in 2014 was 31.2 per cent. Social Welfare legislation provides that an Appeal Officer may determine an appeal without an oral hearing where s/he is of the opinion that it can be determined fairly on the basis of the documentary evidence provided.
I trust this clarifies the matter for the Deputy.
Appeals processing times by scheme 01/01/2015 – 31/12/2015
|
Average processing times (weeks) Summary Decisions |
Average processing times (weeks) Oral Hearings |
|
|
Blind Person’s Pension |
21.1 |
30.7 |
|
Carers Allowance |
20.6 |
25.9 |
|
Carers Benefit |
19.7 |
21.8 |
|
Child Benefit |
24.8 |
34.7 |
|
Disability Allowance |
15.8 |
21.4 |
|
Illness Benefit |
26.3 |
33.1 |
|
Partial Capacity Benefit |
25.7 |
43.4 |
|
Domiciliary Care Allowance |
21.7 |
28.7 |
|
Deserted Wives Benefit |
19.7 |
26.2 |
|
Deserted Wives Allowance |
- |
16.2 |
|
Farm Assist |
21.0 |
28.6 |
|
Bereavement Grant |
65.7 |
26.0 |
|
Death Benefit (Pension) |
- |
22.6 |
|
Family Income Supplement |
19.4 |
27.7 |
|
Invalidity Pension |
26.2 |
28.4 |
|
Liable Relatives |
22.8 |
31.2 |
|
Maternity Benefit |
22.6 |
17.5 |
|
One Parent Family Payment |
22.9 |
33.9 |
|
State Pension (Contributory) |
26.0 |
46.0 |
|
State Pension (Non-Contributory) |
20.4 |
30.8 |
|
State Pension (Transition) |
80.1 |
53.4 |
|
Occupational Injury Benefit |
20.3 |
35.0 |
|
Disablement Pension |
23.7 |
35.3 |
|
Incapacity Supplement |
41.2 |
51.5 |
|
Guardian's Payment (Con) |
18.2 |
27.5 |
|
Guardian's Payment (Non-Con) |
18.7 |
31.0 |
|
Jobseeker's Allowance (Means) |
15.8 |
26.0 |
|
Jobseeker's Allowance |
15.2 |
21.9 |
|
JA/JB Fraud Control |
- |
46.1 |
|
BTW Family Dividend |
14.1 |
- |
|
Jobseeker's Transitional |
12.9 |
21.3 |
|
Recoverable Benefits & Assistance |
21.0 |
30.3 |
|
Jobseeker's Benefit |
14.3 |
21.2 |
|
Pre-Retirement Allowance |
15.0 |
- |
|
Treatment Benefit |
17.9 |
- |
|
Carer’s Support Grant * |
21.2 |
23.6 |
|
Insurability of Employment |
47.6 |
69.4 |
|
Supplementary Welfare Allowance |
13.1 |
23.5 |
|
Survivor's Pension (Con) |
24.1 |
46.6 |
|
Survivor's Pension (Non-con) |
23.7 |
38.3 |
|
Widows Parent Grant |
18.4 |
- |
|
All Appeals |
18.1 |
25.5 |
* Previously called Respite Care Grant
Appeal processing times by scheme 01/01/2016 – 31/10/2016
|
Average processing times (weeks) Summary Decisions |
Average processing times (weeks) Oral Hearings |
|
|
Blind Person’s Pension |
19.1 |
33.8 |
|
Carers Allowance |
17.9 |
21.9 |
|
Carers Benefit |
20.3 |
22.4 |
|
Child Benefit |
22.6 |
39.9 |
|
Disability Allowance |
14.7 |
20.3 |
|
Illness Benefit |
27.9 |
34.3 |
|
Partial Capacity Benefit |
28.4 |
32.2 |
|
Domiciliary Care Allowance |
24.2 |
30.6 |
|
Deserted Wives Benefit |
13.0 |
37.6 |
|
Farm Assist |
19.9 |
24.3 |
|
Bereavement Grant |
14.7 |
- |
|
Liable Relatives |
14.1 |
16.9 |
|
Family Income Supplement |
17.8 |
24.2 |
|
Invalidity Pension |
22.3 |
29.7 |
|
Maternity Benefit |
18.2 |
22.6 |
|
One Parent Family Payment |
21.4 |
33.3 |
|
State Pension (Contributory) |
25.6 |
45.4 |
|
State Pension (Non-Contributory) |
23.2 |
33.5 |
|
State Pension (Transition) |
67.7 |
40.5 |
|
Occupational Injury Benefit |
23.3 |
29.6 |
|
Disablement Pension |
22.2 |
26.9 |
|
Incapacity Supplement |
27.7 |
50.9 |
|
Guardian's Payment (Con) |
16.2 |
22.9 |
|
Guardian's Payment (Non-Con) |
18.4 |
22.1 |
|
Jobseeker's Allowance (Means) |
16.4 |
25.5 |
|
Jobseeker's Allowance |
15.9 |
21.2 |
|
BTW Family Dividend |
21.8 |
- |
|
Jobseeker's Transitional |
18.2 |
26.4 |
|
Recoverable Benefits & Assistance |
34.5 |
41.7 |
|
Jobseeker's Benefit |
15.2 |
23.6 |
|
Treatment Benefit |
18.6 |
- |
|
Carer’s Support Grant * |
19.1 |
25.0 |
|
Insurability of Employment |
37.8 |
90.6 |
|
Supplementary Welfare Allowance |
14.5 |
25.4 |
|
Survivor's Pension (Con) |
16.6 |
28.8 |
|
Survivor's Pension (Non-con) |
17.1 |
26.1 |
|
Widows Parent Grant |
23.0 |
63.8 |
|
All Appeals |
17.4 |
24.3 |
* Previously called Respite Care Grant
