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Thursday, 11 May 2017

Written Answers Nos. 138-47

Social Insurance Fund

Ceisteanna (138, 139)

Seán Fleming

Ceist:

138. Deputy Sean Fleming asked the Minister for Social Protection the arrangements in place between his Department and the Revenue Commissioners in respect of businesses and non-registered businesses, including partnerships and sole traders, with debts due to the Social Insurance Fund; the protocols in place to allow his Department contact these companies to collect this debt; the amount collected from these sources in the past three years; and if he will make a statement on the matter. [22435/17]

Amharc ar fhreagra

Seán Fleming

Ceist:

139. Deputy Sean Fleming asked the Minister for Social Protection the amount of money due from companies or businesses with a debt due to the Social Insurance Fund; the whole-time-equivalent persons and their grades involved in the recovery and repayment of these debts; the amount paid out by this fund for the past three years; the repayments to this fund in the past three years; the number of persons involved in gathering statistics in relation to the debt owed to the Social Insurance Fund; and if he will make a statement on the matter. [22436/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 138 and 139 together.

When a payment is made from the redundancy and insolvency payments schemes from the Social Insurance Fund a debt is raised against the employer, which is reported in the Social Insurance Fund (SIF) financial accounts. The total employer debt to the Social Insurance Fund at 31 December, 2016 stood at €459 million. Almost two-thirds of the debt originated during the recession years of 2008 to 2013 and three-quarters of current outstanding employer debt is in respect of insolvent companies – companies who are no longer trading.

The total expenditure and recoveries for the redundancy and insolvency payments schemes for the years 2014-2016 is outlined in the table below. Total expenditure on the schemes over the three years was €170 million. Total recoveries in the same period were €29 million.

The Department of Social Protection liaises with the Insolvency Unit of the Revenue Commissioners in respect of insolvent companies. This liaison is governed by a Memorandum of Understanding between the department and the Revenue Commissioners.

The Department has a dedicated debt management unit in the redundancy and insolvency section which has responsibility for managing employer debt in line with the Department’s debt management policy and for the provision of statistical information. The debt is managed through the department’s Debt Recovery and Accounting System (DRAS), which issues automated reminders and annual statements on outstanding debt.

In most cases, recovery of debt is pursued with liquidators through the liquidation process. In cases where employers are not insolvent and are still trading the Department engages directly with the employers concerned. In these cases the Department is mindful that an overly aggressive process in pursuing debt with companies that are still trading, but are nevertheless in a financially precarious position, might result in those companies being pushed into an insolvency situation which could result in further job losses. Accordingly the unit engages with employers to establish the situation on a case by case basis and seeks to recover debt on a mutually agreed basis, including setting up repayment by instalment where appropriate.

The unit has a staff of six (5.1 fte) and the total cost of running the unit (including management costs) is €310,000 per annum. One of the duties of the staff in the unit is to gather and monitor data on employer debt, including data on trading status from third parties such as the Companies Registration Office.

Total Expenditure and Recoveries on the Redundancy and Insolvency Payment Schemes for 2014-2016

2014

2015

2016*

EXPENDITURE

€m

€m

€m

Redundancy Payments Scheme

64.6

34.9

31.0

Insolvency Payments Scheme

23.6

8.2

7.3

TOTAL EXPENDITURE

88.2

43.2

38.3

RECOVERIES

Redundancy Payments Scheme

7.9

5.5

8.2

Insolvency Payments Scheme

2.3

1.9

2.3

TOTAL RECOVERIES

11.2

7.4

10.5

*The 2016 figures are provisional pending the finalisation of the SIF Financial Statements.

Social Welfare Overpayments

Ceisteanna (140)

Seán Fleming

Ceist:

140. Deputy Sean Fleming asked the Minister for Social Protection the number of full-time equivalent staff and their grades of persons involved in the collection or recovery of overpayments to persons who received them from his Department; the total amount of outstanding money; the number of arrangements in place for the repayment or recovery of these amounts; the value of these arrangements; the number of persons involved in collecting statistics in relation to the debts due to his Department from the sources; and if he will make a statement on the matter. [22437/17]

Amharc ar fhreagra

Freagraí scríofa

Overpayments of benefit or assistance arise where a person is paid in excess of their entitlement or paid where no entitlement exists. In 2016, the Department overpaid customers by €110 million. Of this, customer fraud accounted for €41 million and relates to cases where a customer intentionally provides incomplete or inaccurate information in order to receive benefits, or deliberately fails to inform the Department of relevant changes in circumstances.

Customer error accounted for €46.7 million in overpayments last year. These cases arise where a customer has provided inaccurate or incomplete information, or failed to report a relevant change in circumstances (such as an increase in means or a change in medical condition), but where clear fraudulent intent is absent. In addition, some €20 million was deemed to have been overpaid during the process of settling the affairs of persons who had died. Most of these cases relate to pensioners who were receiving a State Pension Non-contributory payment where, after death, some level of overpayment of entitlement was judged to have arisen. Overpayments arising from departmental/administrative errors were recorded at €2.3 million in 2016.

While overpayments at any level are unacceptable, they must be judged against total programme expenditure of some €19.2 billion across the 70 or so schemes that the Department administers. The outstanding debt balance due to the Department as the end of 2016 was €482.5 million in respect of approximately 191,660 individual debts. Of this figure, 42,352 were repaying their debt which is defined as having made a repayment in the previous 5 weeks.

The number of full-time equivalent staff and the grades of persons directly involved in the recovery of overpayments is set out in the table below. It is important to note that the recovery of overpayments is also a function of the Department’s Intreo Service and of all centralised scheme areas. It is not possible to further distinguish the debt recovery component of the staff engaged across the Department’s services.

My Department’s Central Debt Unit is the area that monitors and collects statistics on overpayment and recovery policies. There are a further three dedicated Debt Recovery Units located in my Department’s Offices in Letterkenny, Longford and Sligo.

TABLE – Number of Staff (FTE) on Debt Recovery Duties (May 2017)

Central Debt Unit

Other Units

Total

Assistant Principal

1

-

1

Higher Executive Officer

1

1.5

2.5

Executive Officer

4

4.5

8.5

Clerical Officers

10

22.3

32.3

Total

16

28.3

44.3

FTE = Full-time equivalent

In late 2014, the Department introduced a new integrated overpayment recording and debt management IT system, known as DRAS. DRAS expanded on the functionality previously available to the Department and enables the operation of best practice standards in overpayment recording and debt recovery. The improved system has provided improved control, management information and audit functionality in relation to debt transactions.

I hope this clarifies the matter for the Deputy.

Departmental Staff Training

Ceisteanna (141)

Denise Mitchell

Ceist:

141. Deputy Denise Mitchell asked the Minister for Social Protection the spend by his Department on training programmes catering for departmental staff and run by external organisations in 2016; the types of training provided; and if he will make a statement on the matter. [22439/17]

Amharc ar fhreagra

Freagraí scríofa

The Department’s spend on staff training programmes run by external organisations amounted to €603,908 in 2016.

Among the training included in this expenditure were leadership and management development programmes, Irish language training, policy and legislative development, information technology and systems courses, public procurement, mental health awareness, and train the trainer programmes.

In addition, the Department also operates the Refund of Fees scheme to encourage staff to pursue higher educational achievement outside of normal business hours. The scheme operates within the parameters of Department of Finance Circular 23/07. In 2016, approximately €190,000 was spent on the Refund of Fees scheme.

In addition to these external training supports, a comprehensive suite of training - the One DSP Learning and Development Programme - is delivered by Departmental training staff to colleagues in frontline roles. The Department has partnered with the National College of Ireland to place this curriculum on the National Framework of Qualifications.

Redundancy Data

Ceisteanna (142)

Denise Mitchell

Ceist:

142. Deputy Denise Mitchell asked the Minister for Social Protection the amount of debt owed to his Department for its coverage of unpaid redundancy payments and unpaid insolvency costs by companies since 2010, in tabular form; the amount of this debt that has subsequently been written off per year in each of the years 2010 to 2016 and to date in 2017, in tabular form; the amount of debt recouped per year in each of the years 2010 to 2016 and to date in 2017; and if he will make a statement on the matter. [22440/17]

Amharc ar fhreagra

Freagraí scríofa

The purpose of the redundancy payments scheme is to compensate employees for the loss of their jobs when the employer is unable to pay statutory redundancy due to financial difficulties or insolvency. The purpose of the insolvency payments scheme is to pay outstanding wage-related entitlements due to employees in the event of the insolvency of their employer.

When a payment is made from the redundancy and insolvency payments schemes from the Social Insurance Fund a debt is raised against the employer, which may be either a company, sole trader or partnership. The total employer debt to the Social Insurance Fund at 31 December, 2016 stood at €459 million.

The Department has a dedicated debt management unit in the redundancy and insolvency section which has responsibility for managing employer debt in line with the Department’s debt management policy and for the provision of statistical information. The debt is managed through the department’s Debt Recovery and Accounting System (DRAS), which issues automated reminders and annual statements on outstanding debt.

Debt recovery is an integral element of the Department’s debt management policy. It seeks recovery of debt directly from employers continuing to trade and as a preferential creditor in liquidations/receiverships. In 2016 an estimated total of €10.5 million was recovered and €12.8 million was written off.

The total expenditure, recoveries and write-offs for the period 2010 to 2016 is outlined in the table for each of the schemes.

Redundancy & Insolvency Payments Scheme

Payments, recoveries and write-offs for the following periods:

Debt and recovery in each category

2010

2011

2012

2013

2014

2015

2016*

€m

€m

€m

€m

€m

€m

Redundancy Payments Scheme

Payments (debt incurred)

40.9

68.6

95.6

76.5

58.5

32.7

30.9

Recovery

3.2

3.7

4.09

5.2

7.9

5.5

8.3

Insolvency Payments Scheme

Payments (debt incurred)

23.6

18.5

21.7

22.05

23.6

8.2

7.3

Recovery

0.6

.08

1.8

1.8

2.3

1.9

2.4

Write-offs in each category

2010

2011

2012

2013

2014

2015

2016*

€m

€m

€m

€m

€m

€m

Redundancy Payments Scheme

Amount written-off**

2.4

2.8

0

10.7

35.3

9.4

8.5

Insolvency Payments Scheme

Amount written-off**

5.9

6.1

0

13.5

28.2

9.3

4.3

*2016 figures are provisional, pending finalisation of the SIF Financial Statements.

**Write-off of redundancy and insolvency debt to the SIF only takes place where the Department has completed all appropriate checks and is completely satisfied that the debt is not recoverable.

The figures for 2017 are not yet available.

Public Services Card

Ceisteanna (143)

Thomas Byrne

Ceist:

143. Deputy Thomas Byrne asked the Minister for Social Protection the identification requirements for an application for a public services card. [22442/17]

Amharc ar fhreagra

Freagraí scríofa

The Public Services Card (PSC) is issued on completion of a robust registration process designed to ensure a substantial level of identity assurance. The PSC is intended to replace other cards within the public sector such as the free travel pass and the social services card of this Department and to make it easier for providers of public services to verify the identity of customers in person and online.

The legislation governing the issuance of a PSC is contained in the Social Welfare Consolidation Act 2005, as amended. Included in these provisions, Section 263B states:

“(1) For the purposes of satisfying himself or herself as to the identity of a person in respect of whom a personal public service number is to be allocated and issued under section 262, or in respect of whom a public services card is to be issued under section 263, the Minister may, without prejudice to any other method of authenticating the identity of that person, request that person

(a) to attend at an office of the Minister or such other place as the Minister may designate as appropriate,

(b) to provide to the Minister, at that office or other designated place, such information and to produce any document to the Minister as the Minister may reasonably require for the purposes of authenticating the identity of that person,

(c) to allow a photograph or other record of an image of that person to be taken, at that office or other designated place, in electronic form, for the purposes of the authentication, by the Minister, at any time, of the identity of that person, and

(d) to provide, at that office or other designated place, a sample of his or her signature in electronic form for the purposes of the authentication, by the Minister, at any time, of the identity of that person.”

Full details of the PSC, the associated registration process and the documentation requirements are provided on my Department’s website at http://www.welfare.ie/en/Pages/Public-Services-Card_holder.aspx. The table below provides a listing of these different documentation requirements dependent on nationality.

Identification Requirements

Irish citizens born in the Republic of Ireland

Current Irish passport or current Irish or UK driving licence or Irish learner driver permit. Adoption certificate in the case of adopted persons.

Irish citizens via naturalisation or Foreign Birth Registration

Current Irish passport or Certificate of Naturalisation or Foreign Birth Registration certificate and Irish or UK driving licence or Irish learner driver permit.

Irish citizens born in Northern Ireland and UK citizens

Current passport, or birth or adoption certificate and current driving licence

EU citizens (other than Irish and UK)

Current passport or national identity card

Non-EU citizens

Current passport or 1951 travel document

For Irish citizens born in the Republic of Ireland, birth details can be verified online in most cases with the General Register Office. However, in some cases, it is not possible to locate the birth registration, so the person may need to return with a copy of his/her birth certificate.

The Department does not have access to the adoption register, so adopted people are asked to bring their adoption certificate with them when attending their appointment.

An Irish or UK citizen who does not have a Passport or Driving licence as identification may still be issued with a PSC. When that person attends they will have an in-depth interview and additional information gathered during this interview will be verified in order to confirm their identity.

It is important to remember that a person will only be issued a Public Services Card where there is a substantial level of assurance as to his or her identity.

I hope this clarifies the matter for the Deputy.

Disability Allowance Applications

Ceisteanna (144)

Joan Burton

Ceist:

144. Deputy Joan Burton asked the Minister for Social Protection the reason for the delay in awarding a disability allowance to a person (details supplied); and if he will make a statement on the matter. [22445/17]

Amharc ar fhreagra

Freagraí scríofa

This person has been awarded disability allowance with effect from 25 January 2017. The first payment will be made by his chosen payment method on 31 May 2017.

Arrears of payment due will issue as soon as possible once any necessary adjustment is calculated and applied in respect of any overlapping payments or in respect of outstanding overpayments (if applicable).

I trust this clarifies the matter for the Deputy.

Domiciliary Care Allowance Applications

Ceisteanna (145)

Marc MacSharry

Ceist:

145. Deputy Marc MacSharry asked the Minister for Social Protection when a decision will be made regarding a domiciliary care allowance for a person (details supplied) in County Sligo; and if he will make a statement on the matter. [22538/17]

Amharc ar fhreagra

Freagraí scríofa

An application for domiciliary care allowance (DCA) was received from this gentleman on the 1st December 2016. The application was not allowed as it was considered that the child did not meet the eligibility criteria for the allowance. A letter issued on 21st March 2017 outlining the decision.

A request for a review of this decision was received on 10th April 2017 and additional information has been supplied. The application will be re-examined by a deciding officer and a revised decision will be made if warranted. The gentleman concerned will be notified of the outcome of this review as soon as it is completed. Such reviews can take up to 15 weeks to complete at present.

I hope this clarifies the matter for the Deputy.

Family Income Supplement

Ceisteanna (146)

Brendan Griffin

Ceist:

146. Deputy Brendan Griffin asked the Minister for Social Protection if a family income supplement payment will be reinstated in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [22551/17]

Amharc ar fhreagra

Freagraí scríofa

The person concerned returned to work on 15th February 2017 and notified Family Income Supplement (FIS) Section on 05th April 2017. FIS Section requested further information in relation to this customer’s employment on 07th April 2017. This information was provided to FIS Section on 25th April 2017.

FIS was reinstated to the person concerned on 06th May 2017 and will be paid to their bank account on 11th May 2017 with arrears payable the following week.

I trust this clarifies the matter for the Deputy.

Carer's Allowance Applications

Ceisteanna (147)

Michael Ring

Ceist:

147. Deputy Michael Ring asked the Minister for Social Protection the reason for the delay in dealing with a carer's allowance application on behalf of a person (details supplied); if the social welfare inspector's report has been completed; and when a decision will issue in this case. [22552/17]

Amharc ar fhreagra

Freagraí scríofa

Carer’s allowance was awarded to the person concerned on 4 May 2017 and the first payment is due to issue to her bank account on 11 May 2017.

Arrears of allowance due from 9 February to 10 May 2017 will also issue to her bank account.

The person concerned was notified of these details on 4 May 2017.

I hope this clarifies the matter for the Deputy.

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