Written Answers Nos. 410-424
410. Deputy Pearse Doherty asked the Minister for Social Protection the status of a disability allowance application in respect of a person (details supplied); when a decision will be made; and if he will make a statement on the matter. [9652/17]
Amharc ar fhreagraI confirm that an application from this lady for disability allowance (DA) was received by my Department on 5 September 2016.
The application has been referred to a Social Welfare Inspector (SWI) for a report on the person’s means and circumstances. Once the SWI has submitted his/her report to DA section, a decision will be made on the application and the person concerned will be notified directly of the outcome.
I trust this clarifies the matter for the Deputy.
411. Deputy Michael Healy-Rae asked the Minister for Social Protection if he will address a matter (details supplied) with regard to the processing time for social welfare applications; and if he will make a statement on the matter. [9667/17]
Amharc ar fhreagra444. Deputy Michael Healy-Rae asked the Minister for Social Protection the processing times for applications submitted to his Department regarding schemes (details supplied); and if he will make a statement on the matter. [10343/17]
Amharc ar fhreagraI propose to take Questions Nos. 411 and 444 together.
The information requested (where available) by the Deputy is detailed in the following table:
Social Welfare claims by average waiting times 31 January 2017
|
Scheme |
Average Waiting Time (weeks) |
|
Jobseeker's Benefit |
1 |
|
Jobseeker's Allowance |
2 |
|
One-Parent Family Payment |
7 |
|
State Pension Contributory (Dom) |
7 |
|
Widow’s, Widower's or Surviving Civil Partner’s Contributory Pension |
1 |
|
Widowed Parent Grant |
1 |
|
State Pension Non-Contributory |
12 |
|
Household Benefits |
3 |
|
Free Travel |
1 |
|
Domiciliary Care Allowance |
16 |
|
Supplementary Welfare Allowance |
1 |
|
Child Benefit (Domestic & FRA) |
3 |
|
Child Benefit (EU Regulation) |
29 |
|
Family Income Supplement (New) |
3 |
|
Carer's Allowance |
11 |
|
Disability Allowance |
12 |
|
Invalidity Pension |
10 |
412. Deputy Catherine Murphy asked the Minister for Social Protection the legal fees incurred on freedom of information, FOI, requests received by his Department; the staff hours involved in the processing of FOI requests for the past three years; and if he will make a statement on the matter. [9684/17]
Amharc ar fhreagraNo legal fees were incurred by the Department of Social Protection on FOI requests over the past three years.
The following FOI requests were received over the last 3 years:
FOI Requests Received
|
YEAR |
PERSONAL |
NON-PERSONAL |
MIXED |
TOTAL |
|
2014 |
2070 |
119 |
4 |
2193 |
|
2015 |
1932 |
223 |
1 |
2156 |
|
2016 |
1848 |
231 |
10 |
2089 |
The total staff hours involved in the processing of FOI requests was not monitored separately over the past 3 years. However in 2016 my Department estimated an overall cost of processing FOI requests, based on the hourly rate of the total staff involved. This estimate was calculated on a 1% sample of requests received. The estimated cost, based on the 1% sample, was €340 per FOI request.
413. Deputy Mary Butler asked the Minister for Social Protection the number of persons on jobseeker's allowance aged 65 years of age in each of the years 2014 to 2016 and to date in 2017 by county, in tabular form. [9687/17]
Amharc ar fhreagraThe information requested by the Deputy is detailed in the following table.
|
Recipients of Jobseeker’s Allowance aged 65 by county at 31 December in each of the years 2014 to 2016 and at 31 January 2017 |
||||
|
County |
31 December 2014 |
31 December 2015 |
31 December 2016 |
31 January 2017 |
|
Carlow |
44 |
32 |
41 |
43 |
|
Cavan |
47 |
43 |
42 |
32 |
|
Clare |
106 |
61 |
75 |
72 |
|
Cork |
275 |
256 |
258 |
240 |
|
Donegal |
133 |
131 |
127 |
122 |
|
Dublin |
473 |
562 |
607 |
586 |
|
Galway |
122 |
132 |
125 |
117 |
|
Kerry |
122 |
106 |
110 |
101 |
|
Kildare |
47 |
99 |
122 |
114 |
|
Kilkenny |
25 |
40 |
45 |
44 |
|
Laois |
33 |
38 |
55 |
51 |
|
Leitrim |
57 |
21 |
14 |
15 |
|
Limerick |
40 |
92 |
100 |
102 |
|
Longford |
15 |
22 |
39 |
37 |
|
Louth |
91 |
105 |
95 |
88 |
|
Mayo |
92 |
91 |
92 |
87 |
|
Meath |
63 |
55 |
59 |
61 |
|
Monaghan |
28 |
50 |
37 |
36 |
|
Offaly |
38 |
63 |
49 |
46 |
|
Roscommon |
24 |
31 |
23 |
21 |
|
Sligo |
15 |
38 |
28 |
26 |
|
Tipperary |
121 |
115 |
106 |
103 |
|
Waterford |
88 |
93 |
119 |
110 |
|
Westmeath |
55 |
66 |
61 |
55 |
|
Wexford |
101 |
133 |
129 |
116 |
|
Wicklow |
88 |
87 |
81 |
79 |
|
Grand Total |
2,343 |
2,562 |
2,639 |
2,504 |
414. Deputy Bernard J. Durkan asked the Minister for Social Protection the progress to date in determination of eligibility for a basic social welfare payment in the case of a person (details supplied); and if he will make a statement on the matter. [9730/17]
Amharc ar fhreagraI confirm that my Department received applications for carer’s allowance from the person concerned on 15 December 2016 for two care recipients.
Additional information in relation to the person’s application was requested by a deciding officer on 14 February 2017. Once the information is received the application will be processed and the person concerned will be notified directly of the outcome.
In the meantime, if the means of the person concerned are insufficient to meet her needs she should apply for a means-tested supplementary welfare allowance from her local community welfare service. Please contact Philip in my office should you need any further assistance with this query.
I hope this clarifies the matter for the Deputy.
415. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on a matter (details supplied) with regard to persons that are requested to meet a case officer when receiving jobseeker's payments; and if he will make a statement on the matter. [9740/17]
Amharc ar fhreagraJobPath is an employment activation service that supports people who are long-term unemployed and those most distant from the labour market to secure and sustain full-time paid employment.
Participants on JobPath receive intensive individual support to help them to tackle barriers to employment and to assist them in finding jobs. Each person is assigned to a personal adviser who assesses a person’s skills, experience, challenges and work goals. The personal adviser works with the jobseeker to agree a personal progression plan that includes a schedule of activities, actions and job-focused targets. Participants are also provided with a range of training and development supports including online modules, career advice, CV preparation and interview skills. Participants receive the JobPath job search assistance and support service for a period of 12 months (which can be extended by up to six months to allow for completion of training programmes) or until such time as they find employment whichever is soonest. If the jobseeker secures employment during this period they will continue to receive support from the JobPath providers for at least three months and up to twelve months while in employment.
The JobPath providers are obliged to provide a baseline level of support to each participant but are free to adapt that support in individual cases, provided that it is not unduly onerous. Where a person has transport difficulties, the JobPath Company can assist the person with travel arrangements. My officials have spoken with Turas Nua regarding the specific issue raised in by the Deputy and Turas Nua will contact the customer directly to discuss options to tailor the service around his particular travel requirements.
416. Deputy Richard Boyd Barrett asked the Minister for Social Protection if there are social welfare supports available to persons undertaking a masters degree or if there is a saving clause in the rules of the back to education allowance scheme, BTEA, allowing it to be accessed in certain circumstances by postgraduate students; and if he will make a statement on the matter. [9743/17]
Amharc ar fhreagraThe Back to Education Allowance Scheme (BTEA) is designed to support second chance education. It enables eligible persons to pursue approved education courses and to continue to receive income support for the duration of a course of study, subject to meeting certain conditions.
The BTEA is not intended to be an alternative form of funding for people entering or re-entering the third level education system. The Student Universal Support Ireland (SUSI) Grant, payable by the Department of Education and Skills, represents the primary support for persons pursuing education. The eligibility rules that govern the payment of a student maintenance grant are a matter for that Department.
Access to BTEA at postgraduate level is subject to the following conditions. BTEA is payable to persons who wish to pursue a postgraduate course of study that leads to a higher diploma (H-Dip) qualification in any discipline or to persons in pursuit of a professional masters of education (primary and secondary school teaching). The only exception to the eligibility rule for masters is made whereby a person is admitted to a master’s programme based solely on life experience and provided the applicant is not the holder of any third level qualification.
I hope this clarifies the matter for the Deputy.
417. Deputy Jackie Cahill asked the Minister for Social Protection his plans for the successful Tús programme following media reports that there are plans to cease it and in view of the fact this programme has contributed greatly to communities here; and if he will make a statement on the matter. [9750/17]
Amharc ar fhreagraAs the Deputy will be aware, the purpose of Tús is to provide short-term work opportunities for those who are unemployed for more than a year. It is designed to break the cycle of unemployment and maintain work readiness, thereby improving a person’s opportunities of returning to the labour market. In addition, I want to acknowledge the valuable services Tús provides to local communities.
With the ongoing welcome reductions in the Live Register, issues such as the appropriate level of expenditure, the number of places and the criteria for participation on employment schemes, including Tús, are all being considered. In any consideration of these schemes, the benefits they provide to participants and their communities will be taken into account. I will be bringing a Memorandum to Government on the operation of these programmes in the coming weeks. If there are changes to be made, consultations with stakeholders will be facilitated.
I hope this clarifies the matter for the Deputy.
418. Deputy Sean Sherlock asked the Minister for Social Protection if a person (details supplied) may switch from one employment scheme to another which is nearer to their home. [9792/17]
Amharc ar fhreagraThe customer the Deputy refers to is currently engaged with the JobPath service and has been since August 2016, as part of this he has agreed a Personal Progression Plan with his personal advisor. The JobPath service provides intensive individual support and advice to help customers find full time sustainable employment. If the customer is successful in finding a suitable job, the company will continue to provide support for at least 13 weeks and up to a year while they remain in employment.
Jobseekers can only participate with one activation scheme or service at a time; this is to ensure that the best use is made of the available places and to allow the scheme and service providers’ time to work with the participants. The JobPath service will engage extensively with the customer for up to 52 weeks. If the customer has not been successful in finding suitable and sustainable employment after this period, placement on other schemes and programmes remain an option which can be discussed with an Intreo case officer.
I note the customer is question has previously participated on a CE scheme. TÚS and CE schemes are intended to help long-term unemployed people re-enter the active workforce by breaking their experience of unemployment through placement on a work experience or training programme for a limited duration; they are not full-time sustainable jobs which are the primary target for the JobPath service.
I hope this clarifies the matter for the Deputy.
419. Deputy Willie O'Dea asked the Minister for Social Protection the areas under his remit which may be affected by Brexit; and if he will make a statement on the matter. [9801/17]
Amharc ar fhreagraIn the context of the social protection remit, the key area of concern is the impact of Brexit on the current reciprocal arrangements for social insurance (which includes pensions) and social assistance (means tested schemes linked to residency rights) and child benefit between Ireland and the UK, including Northern Ireland.
As with all EU Member States, Ireland and the UK are part of a system of social security coordination that sets down common rules to protect the social security rights of people moving within Europe. These rules are provided for in very detailed Regulations [883/2004 and 987/2009]. They do not replace national systems with a single European one but, rather, provide a bridge between national systems to ensure social security protection for people when moving within Europe – that is, the current EU28, Iceland, Liechtenstein, Norway and Switzerland. This co-ordination prevents, for example, a person being left without protection or having double-coverage in a cross-border situation.
The following table details the national legislation to which the EU rules on social security coordination apply and the Irish benefits classified under each heading:
|
Schemes |
Classification of Irish social welfare schemes-benefits |
|
Family Benefits |
Child Benefit, Domiciliary Care Allowance, Family Income Supplement, Back to Work Family Dividend, One-Parent Family Payment and Guardian’s Payment [non-contributory] |
|
Unemployment Benefits |
Jobseeker’s Benefit |
|
Old Age and Survivors Benefits |
State Pension [Contributory], Widow/er’s and Surviving Civil Partner’s [Contributory] Pension, Guardian’s Payment [Contributory] |
|
Invalidity Benefits |
Invalidity Pension, Partial Capacity Benefit |
|
Sickness and Maternity Benefits |
Illness Benefit, Maternity Benefit, Health and Safety Benefit, Adoptive Benefit, Carer’s Benefit, Treatment Benefit |
|
Benefits in respect of accidents at work and occupational diseases |
Incapacity Supplement, Constant Care Allowance |
|
Applicable Social Security Legislation – posted workers |
For example, liability for social security contributions where a person - Has been posted from Ireland to the UK or vice versa; - Is concurrently employed or self-employed in Ireland and the UK |
The Department is continuing an assessment of the implications of Brexit on these areas on a scheme-by-scheme and client basis. This is part of ongoing Brexit analysis and scenario planning for input into larger Government deliberative processes. Clearly, however, undertaking a comprehensive analysis of the social protection implications of Brexit will, inevitably, be informed by the UK’s intentions in this area. Free movement of EU workers and citizens was one of the central issues involved in the debates leading up to the UK vote to leave the EU. Therefore, the potential social protection implications of that vote are intrinsically linked to the issues involved in the free movement of EU workers and citizens. Until such time as the UK has itself decided what relationship it wishes to have with the EU following its withdrawal, the precise implications of Brexit for the Department of Social Protection will remain unclear.
I can assure the Deputy that my focus, and that of my Department, is on ensuring that these social welfare rights and entitlements, which currently exist for Irish and UK citizens moving within the Common Travel Area on the island of Ireland and between Ireland and Britain, can be safe-guarded.
420. Deputy Willie O'Dea asked the Minister for Social Protection the status of the implementation of policies specified in the programme for partnership Government under his remit; and if he will make a statement on the matter. [9802/17]
Amharc ar fhreagraThe Programme for a Partnership Government includes a wide range of commitments which fall directly within the remit of my Department.
The updated status of these commitments is set out in the following table:
|
Commitment |
Status |
|
“ [to] increase Rent Supplement … by up to 15% taking account of geographic variations in market rents…." |
Action complete with introduction of increased rent limits on 1 July 2016. Limits were increased across the country, (by up to 30% in Dublin), in line with geographic variations of the rental market. |
|
“To protect low-income families in private rented accommodation and avoid further market rental inflation.. [to] expand access to the Tenancy Sustainment Protocol throughout the country." |
The Tenancy Sustainment Service and the Protocol arrangement in place between Threshold and this Department continues to operate in the areas where housing pressures are most acute in Dublin, Cork, Kildare, Meath, Wicklow and Galway city. In addition, the Department continues to provide flexibility in the administration of the rent supplement scheme so that tenants of the scheme are supported to retain their tenancies. Since the introduction of these flexible measures, a total of over 11,000 rent supplement households have been supported with increased rental payments. |
|
“to introduce a PRSI scheme for the self-employed” |
The Social Welfare Act 2016 provides for the extension of entitlement to the Treatment Benefit and Invalidity Pension schemes to self-employed people. |
|
“to introduce a new ‘Working Family Payment’, targeted at low-income families.” |
The Department’s approach to developing the Working Family Payment is guided by two principles. First, that it should ensure that work pays and that no family is better off on welfare than at work, and second, though equally important, that it will have a positive effect on child poverty. An open call for submissions on the Working Family Payment issued on the Department's website in January 2017. The Interdepartmental Working Group, set up to assist the work in developing proposals, has met three times to date. The work of the Group will also be informed by the consultation process. Considerable work and analysis still needs to be completed along with the consultation. It is intended that developed proposals will be prepared for consideration in the context of discussions for Budget 2018. |
|
“… [to] publish a dedicated ‘Pathways to Work for Jobless Households’ to support jobless households into employment.” |
It is expected that a proposal in relation to this commitment will be submitted to Government by end of Q1 2017. |
|
“…actively encourage payments at Post Offices." |
All DSP staff were advised of the PfG commitment and reminded that customer wishes should be facilitated where appropriate when they wish to receive their payment at the Post Office. |
|
“the rollout and extension of the Personal Microcredit Scheme, which is providing simple microloans to members and helping to combat the use of moneylenders.” |
As of 24th February, 2017, one hundred and one (101) credit unions, representing two hundred and twenty (220) credit union locations, have signed up as Personal Micro Credit (PMC) scheme participants. There are over 4,400 people making PMC loan repayments via deductions through the Household Budgeting facility, while others are making repayments via direct debit or standing order arrangements (numbers unknown). The list of participating credit unions is updated regularly on the website for the It Makes Sense loan scheme at www.itmakessenseloan.ie/participating-credit-unions and on the It Makes Sense Facebook page. |
|
… invest in new services and caseworkers to support jobseekers through the network of local Intreo offices..… support a regional approach to Intreo offices … review work activation and social welfare schemes to ensure that schemes do not contain anomalies that may impact unfairly on people in rural areas, including farmers.” |
The Department’s 62 Intreo offices are located throughout the country and are managed on a regional basis. The Intreo network is managed by 11 regional managers at Principal Officer level. Work activation schemes are being examined to identify any anomalies that impact on people in rural areas in particular. Changes on the Rural Social Scheme and the Farm Assist scheme are set out below. |
|
“… extend the Dental Treatment Benefit under the Social Insurance Fund to reimburse the cost of some routine dental treatments.” |
Budget 2017 provided for the extension of Dental and Optical Benefits under the Treatment Benefit scheme. Work is underway with a view to having the changes operational from October 2017. |
|
…” the Departments of Health and Social Protection [to] work together to pursue a “Fit for Work Programme” to support more people to get back to work if they have an illness or disability. |
A Working group was formed with the Department of Health to determine lead, scope and plan for implementation Meetings were held with Fit for Work coalition members, Department of Health, Department of Jobs, Enterprise and Innovation and the Health and Safety Authority. An interactive forum was held in Dublin Castle in December 2016, at which it was announced that the programme would be called “Healthy You”. This event involved various stakeholders including Government Departments, non-Governmental Organisations, patient organisations, employers, employees, semi state organisations and insurance companies. A report of this event is currently being prepared as a basis to initiate the second stage of the consultation process later this year. |
|
“ …to introduce flexibility and support in the social welfare system for people with severe and enduring mental health difficulties to transition into employment by ensuring a seamless return of their entitlements should a particular employment opportunity prove unsuitable. …. [and] …address concerns surrounding the loss of secondary benefits, so that people are always better off in work.” |
The Department now provides its full INTREO service to people with disabilities who wish to avail of the service on a voluntary basis. In addition, four pilot best practice Individual Placement and Support (IPS) projects have been established in Mayo, West Cork, Cavan/Monaghan and Galway in conjunction with the HSE, Genio and Mental Health Reform promoting Integrating Employment and Mental Health Support (IEMHS). The projects aim to demonstrate how existing mental health and supported employment (EmployAbility) services can fulfil the IPS model of supported employment through improved integration. The Make Work Pay interdepartmental group established under the Comprehensive Employment Strategy for People with Disabilities has also been considering a range of approaches to deliver on this commitment. The group's report is due to be published in the near future. |
|
… consolidate all means testing under a single national body ensuring a single application process for services or entitlements across all government agencies.” |
No specific developments to date. |
|
“… an increase in the Disability Benefit and Allowance, Carer’s Benefit and Allowance, and Blind Person's Pension“ …. “increase the State Pension and the Living Alone Allowance above the rate of inflation.” |
Budget 2017 provided for increases of €5 per week in the rate of weekly social welfare payments. |
|
“… support and expand supported employment opportunities and work with stakeholders to make supported employment more attractive to both prospective employers and employees.” |
The Department delivers assistance with the identification and take-up of supported employment opportunities for people with disabilities through its EmployAbility service. An evaluation of this service was completed in 2016 and made a number of proposals to improve the operation of the service. An event to consult EmployAbility companies on the review and its recommendations was held on 16th August 2016. The Department has established a working group to commence implementation of the operational recommendations contained in the report. |
|
“… highlight incentives for employers to employ a person with a disability, roll out a national awareness campaign” |
DSP Employer Engagement promotes workplace supports for people with disabilities on an ongoing basis. The DSP Employer Pack contains information on supports available to people with disabilities and employers and the Department promotes incentives and supports available to employers during its annual Intreo Careers Fair and Jobs Week. The Department is also currently updating its employer engagement strategy, including in respect of employment services to include people with disabilities. |
|
“… fully protect the Free Travel pass for all pensioners.” |
The Free Travel scheme is fully protected. |
|
“…in recognition of the vital role of schemes such as the Rural Social Scheme, Community Employment Schemes, BTEA and Farm Assist in rural communities and in activating the unemployed, …to make suitable recommendations to strengthen provision in this area…” |
Budget 2017 provided for 500 additional places on the Rural Social Scheme. Provision was also made in the Social Welfare Act 2016 for enhancements to the means assessment for the Farm Assist Scheme |
|
“ Review … the Farm Assist Scheme, recognising the challenges facing farmers on low income.” |
Provision was made in Budget 2017 and consequently in the Social Welfare Act 2016 for enhancements to the means assessment for the Farm Assist Scheme |
|
“… review the Fish Assist scheme in recognition of the irregular earning patterns of fishermen, in an effort to respond to difficult financial circumstances.” |
The enhancements to the means assessment for the Farm Assist Scheme, provided for in the Social Welfare Act 2016 also apply to certain categories of self-employed fishermen. |
|
“…. develop a system that fosters independence through retraining and employment …provide the resources to invest in services that protect the weakest and most vulnerable in our society from poverty and exclusion.” |
Work ongoing, notably through the implementation of Pathways to Work 2016-2020 and the promotion, monitoring and reporting on the implementation of the National Action Plan on Social Inclusion. |
|
“…carry out an immediate review of the financial supports available to the unemployed or those returning to the education system to ensure the greatest possible uptake of continuing education by eliminating current barriers.” |
Changes were made in Budget 2017 so that, from September 2017, where a jobseeker under the age of 26 participates in the Back to Education Allowance scheme, he or she will be entitled to receive the full maximum rate of jobseeker’s payment which will then be €193 per week, as against the €160 which they are currently on. This 21% increase represents an extra €33 a week, and demonstrates the State’s support for young jobseekers who seek to enhance their skills. A new €500 annual Cost of Education Allowance will also be made available to Back to Education Allowance participants with children from the next academic year in September 2017. This will help parents, including lone parents, to return to education. |
421. Deputy Willie O'Dea asked the Minister for Social Protection the estimated cost of reinstating the State transition pension; and if he will make a statement on the matter. [9803/17]
Amharc ar fhreagraThe Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition) available from 65 for those who satisfied the qualifying conditions, thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and to 68 in 2028.
In most cases, it is hoped that workers will continue to work up to the new State pension age. Where this is not possible, there are specific measures which apply to someone claiming Jobseeker’s Benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age.
Reversing this measure would have a significant Exchequer cost. In 2013, the cost of the State pension (transition) was €137 million. Its abolition was not expected to save that amount of expenditure in full, as some people who were affected would alternatively claim working age payments such as Jobseeker's Benefit (albeit at a lower rate than the rate of the State pension), or may claim an Increase for a Qualified Adult in respect of their spouse’s pension. However, it is anticipated that well over half of that cost has been saved each year as a result of this measure, and this would be expected to increase as (a) the number of 65 year olds increases, (b) the change results in a higher percentage of people working while aged 65, and (c) there have been two Budget increases in the rate of the State pension since then. It is estimated that the net saving in 2017 is likely to be in the region of €80 million, and this is expected to increase over time.
Each year more people are living to pension age and living longer in retirement. As a result of this demographic change, the number of State pension recipients is increasing year on year. This has significant implications for the future costs of State pension provision which are currently increasing by close to €1 billion every 5 years. The purpose of changes to the State pension age is to make the pension system more sustainable in the context of increasing life expectancy. This sustainability is vital, if the current workers, who fund State pension payments through their PRSI, are to receive a pension themselves when they reach retirement age.
The Deputy should note that there is no legally mandated retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may have been entered into with a retirement date of 65, in the context of the previous State pension arrangements, there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so.
I hope this clarifies the matter for the Deputy.
422. Deputy Willie O'Dea asked the Minister for Social Protection the estimated cost of backdating the homemaker scheme prior to 1994; and if he will make a statement on the matter. [9804/17]
Amharc ar fhreagraSince 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 it will not always be their most advantageous payment to claim, particularly if they qualify for a full-rate State pension (non-contributory).
The homemaker’s scheme was introduced in 1994 to make qualification for State pension contributory (SPC) easier for those who take time out of the workforce for caring duties. The scheme allows up to 20 years spent caring for children under 12 years of age, or incapacitated people, to be disregarded when a person’s social insurance record is being calculated for pension purposes. The effect of this is to reduce the number of years by which the person’s contributions are divided, thereby increasing their yearly average, making it easier for them to qualify for a maximum rate SPC. It does not involve the award of credits.
My Department reviews these and other provisions on an ongoing basis and has estimated that the cost of extending the Homemakers scheme to allow people to avail of the full 20 years currently allowed under the scheme, encompassing periods prior to 1994, could cost €290m in 2017. This annual figure would increase in subsequent years.
It is worth noting that the most recent Actuarial Review of the Social Insurance Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors. This is due to the redistributive nature of the Fund.
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.
The National Pensions Framework (2010) proposed that a “Total Contributions Approach” (TCA) should replace the yearly average approach, for new pensioners from 2020. The aim of this approach is to make the rate of contributory pension more closely match contributions made by a person. Officials of my Department are currently working on the detailed development of the TCA with a view to making proposals for consideration later in the year. This is a very significant reform with considerable legal, administrative, and technical elements in its implementation. An important element in the final design of the scheme will be the position of people who have gaps in their contribution records for various reasons, and this factor is being considered very carefully in developing this reform.
I hope this clarifies the matter for the Deputy.
423. Deputy Willie O'Dea asked the Minister for Social Protection the estimated cost of increasing all working age payments by €3, €4, €5, €6, €7, €8, €9 and €10, in tabular form; and if he will make a statement on the matter. [9806/17]
Amharc ar fhreagra424. Deputy Willie O'Dea asked the Minister for Social Protection the estimated full year cost of increasing child benefit by €3, €4, €5, €6, €7, €8, €9 and €10, in tabular form; and if he will make a statement on the matter. [9807/17]
Amharc ar fhreagraI propose to take Questions Nos. 423 and 424 together.
The full year costs of increasing all weekly working age payments by the amounts specified by the Deputy are listed in the following table:
|
Increase all working age weekly payments by: |
Full Year Cost €m |
|
€3.00 |
120.0 |
|
€4.00 |
160.2 |
|
€5.00 |
200.0 |
|
€6.00 |
240.1 |
|
€7.00 |
279.8 |
|
€8.00 |
320.1 |
|
€9.00 |
360.2 |
|
€10.00 |
399.9 |
It should be noted that the costings listed above include proportionate increases for qualified adults and for those on reduced rates of payment, where relevant.
The full year costs of increasing child benefit by the amounts specified by the Deputy are listed in the following table:
|
Increase child benefit monthly payment by: |
Full Year Cost €m |
|
€3.00 |
43.9 |
|
€4.00 |
58.6 |
|
€5.00 |
73.2 |
|
€6.00 |
87.9 |
|
€7.00 |
102.5 |
|
€8.00 |
117.2 |
|
€9.00 |
131.8 |
|
€10.00 |
146.5 |
It should be noted that these costings are subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018.
