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Wednesday, 26 Jul 2017

Written Answers Nos. 1556-1575

Disability Allowance Appeals

Ceisteanna (1556)

Niamh Smyth

Ceist:

1556. Deputy Niamh Smyth asked the Minister for Social Protection the reason a person (details supplied) has been denied a disability allowance; and if she will make a statement on the matter. [36287/17]

Amharc ar fhreagra

Freagraí scríofa

Disability allowance (DA) is a means tested scheme and the way means are assessed is laid down in social welfare legislation. In summary, any income, with some exceptions, belonging to the person and his or her spouse/partner or co-habitant is assessable as means for disability allowance purposes. It is the nature of means tested schemes that there is no entitlement to a payment once means exceed a given amount. There is no discretion allowed as deciding officers are obliged to follow the legislation when assessing means.

Following a review of the entitlement of this gentleman, DA was disallowed with effect from 17 May 2017 as he was deemed to have means in excess of the statutory limit for his circumstances. Notification of this decision issued on 6 July 2017 and this gentleman appealed to the independent social welfare appeals office.

All the papers relating to this gentleman’s DA decision has been sent to the appeals office for their consideration. We await their decision.

I trust this clarifies the matter for the Deputy.

Housing Assistance Payment Data

Ceisteanna (1557, 1558, 1573)

Richard Boyd Barrett

Ceist:

1557. Deputy Richard Boyd Barrett asked the Minister for Social Protection the amount that was paid out annually in rent allowance in each of the years 2013 to 2016; and the projected amount in 2017 and 2018. [36363/17]

Amharc ar fhreagra

Richard Boyd Barrett

Ceist:

1558. Deputy Richard Boyd Barrett asked the Minister for Social Protection further to the transfer of rent allowance recipients to HAP, leasing arrangements and RAS, if the moneys saved have then been transferred to the Department of Housing, Planning, Community and Local Government; the organisation responsible for the latter payments; if so, the amount in each of the years since the beginning of these payments; and if she will make a statement on the matter. [36364/17]

Amharc ar fhreagra

Catherine Murphy

Ceist:

1573. Deputy Catherine Murphy asked the Minister for Social Protection the number of persons in receipt of rent supplement; the number of households eligible for rent supplement; the number of households in receipt of rent supplement that have transitioned onto the HAP scheme in each the years 2014 to 2016 and to date in 2017, in tabular form; and if she will make a statement on the matter. [36463/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 1557, 1558 and 1573 together.

The rent supplement scheme plays a vital role in housing families and individuals, with the scheme currently supporting approximately 41,200 tenants for which the Government has provided €253 million for in 2017.

Rent supplement is a demand led scheme. Details of rent supplement recipients and expenditure under the scheme for the period from 2013 to date are provided in the attached tabular statement. Rent supplement’s outturn forecast is calculated based on its expected level of activity taking into account transfers to, and the impact of, the housing assistance payment scheme (HAP) for the period under review. Rent supplement forecast outturn for 2018 will be determined as part of the budgetary process in consultation with the Department of Housing, Planning, Community and Local Government which has responsibility for HAP and other social housing solutions.

Rent supplement customer numbers have declined during the period commencing December 2013 (c.79,800) to June, 2017 (c. 41,200). The strategic initiative of returning rent supplement to its original purpose, that of a short-term income support, facilitated by the introduction of the HAP scheme has been the main driver in rent supplement’s base decline. Other contributory factors include the continuing improvement in the economy leading to fewer people seeking support due to retaining and securing long-term employment allied with more people exiting rent supplement through activation and securing job opportunities. The strategic goal is to transfer all long-term tenancies from rent supplement to HAP by 2020.

There are currently over 24,700 active HAP tenancy arrangements of which approximately 7,550 are direct transfers from rent supplement. Analysis of recipient numbers transferring to HAP as at December 2015 to end June 2017 is provided in the table. In addition to the ongoing transfer of long-term rent supplement recipients to HAP, the majority of new applicants seeking State support towards their rent are being supported by the local authorities under HAP rather than rent supplement.

The rental accommodation scheme (RAS) also has continued its operations in the transfer of rent supplement customers. At the end of May 2017, local authorities had transferred a cumulative total of 58,740 households from rent supplement to RAS and other social housing supports.

I trust this clarifies matters for the Deputies.

Rent Supplement: Recipient Numbers & Expenditure: 2013 to Present

Year

Recipients

% Change

Cost €000

% Change

2013

79,788

-9.00%

372,909

-12%

2014

71,533

-10.30%

338,208

-9.30%

2015

61,247

-14.30%

311,059

-8%

2016

48,041

-21.60%

275,296

-11.50%

2017

41,240

1

253,000 2

As at end June 2017

Forecast outturn for 2017

Rent Supplement: Recipient Numbers transferred to HAP

YEAR

Transferred from RS to HAP

2014

N/A

2015

2,100

2016

3,943

End June 2017

2,071

Social Welfare Benefits Expenditure

Ceisteanna (1559)

Richard Boyd Barrett

Ceist:

1559. Deputy Richard Boyd Barrett asked the Minister for Social Protection the full year cost for measures (details supplied). [36365/17]

Amharc ar fhreagra

Freagraí scríofa

The information sought by the Deputy is detailed in the following table:

Measure

Cost

€m

Increase the duration of the fuel season by two weeks (from 26 to 28)

17.6

Increase social welfare payments to 2008 levels (costing relates to weekly payments made to people aged under 66 – pension rates are currently in excess of 2008 levels)

349

Introduce a €250 per week state pension for all pensioners (includes rates of payment for recipients of Widow/er’s/Surviving Civil Partners Contributory pension aged 66 or over).

406

Restore the full Christmas Bonus to all those eligible (based on a payment level of 110%)

267

Increase all social welfare payments by €10 per week.

694

Increase the Family Income Supplement multiplier from 60% to 75%.

101

Extend Child Benefit to 18 year olds in second level education.

62

Increase the age of the youngest child to 18 for receipt of One Parent Family Payment (costing is based on allowing recipients of FIS with a youngest child aged 7 to 17 to concurrently claim one parent family payment and transferring recipients of jobseeker’s transition with a youngest child aged 7 to 13 to one parent family payment. Data in relation to lone parents who are on jobseeker’s allowance with a youngest child aged 14 to 17 is not readily available).

26.5

Increase the Back to School Clothing and Footwear Allowance by €50 (all children)

14

Increase maternity payments to 12 months (based on Maternity Benefit).

268

The costings listed above include proportionate increases for qualified adults and for those on reduced rates of payment, where relevant. It should also 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.

Question No. 1560 answered with Question No. 1475.

State Pensions Payments

Ceisteanna (1561)

Bríd Smith

Ceist:

1561. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to extend the home-makers scheme for pensioners to cover those that were full-time home-makers prior to 1994. [36399/17]

Amharc ar fhreagra

Freagraí scríofa

There are two State pensions related to reaching State pension age. The State pension (non-contributory) is a means tested pension and is funded by general taxation, whereas the State pension (contributory) is not means tested and is paid from the Social Insurance Fund, with contributions to that fund generally improving a person’s entitlements under that pension.

It is important to ensure that those qualifying for a State pension (contributory) 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 (contributory), 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.

The home-makers 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 for periods 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. This may have the effect of increasing the yearly average of the pensioner, which is used to set the rate of their State pension (contributory). The scheme was not introduced retrospectively.

My Department has estimated that the annual 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 some €290m in 2017, and this figure would rise at a faster rate than the rate of the overall cost of State pensions. This is a very significant cost, and the main beneficiaries would be people who already have significant means, and who do not therefore qualify for an alternative means-tested payment.

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. Alternatively, they may qualify for a State pension (non-contributory), which amounts up to 95% of the maximum contributory rate. While this payment is subject to a household means-test, there are very significant disregards which mean that over 70% of such pensioners qualify at the full 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. 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.

Labour Activation Programmes Expenditure

Ceisteanna (1562)

Bríd Smith

Ceist:

1562. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to remove the qualifying time periods and allow immediate access for all qualifying payments for back to education allowance or community employment training. [36400/17]

Amharc ar fhreagra

Freagraí scríofa

The Back to Education Allowance (BTEA) and Community Employment (CE) schemes are not targeted at the newly unemployed. My Department provide a range of activation supports to newly unemployed individuals through the Intreo network to assist them in finding employment. The current rules are designed to ensure that a person who becomes unemployed is, in the first instance, provided with the one-to one intensive activation support of a DSP case officer to try to find employment before being considered for a placement on an employment programme.

CE is primarily aimed at long-term unemployed persons, which is generally defined as one year or more on the Live Register. CE is an active labour market programme aimed at persons who are not considered ready for entry to employment, with the programme emphasis on progression into employment and/or further education/training. The core eligibility criterion for CE is that the person is in receipt of a qualifying social welfare payment for a specified amount of time, generally 12 months.

The BTEA is a second chance education opportunity scheme designed to remove barriers to participate in second and third level education by enabling those who fulfil the eligibility criteria to continue to receive a payment while pursuing an approved full-time education course.

The objective of the scheme is to raise the educational and skill levels to enable jobseekers better access to the emerging needs of the labour market in line with Government activation strategy. 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. In general, most BTEA customers will also have certain registration and related college fees paid by SUSI.

A person wishing to pursue a course of study under the BTEA scheme will have to satisfy a number of conditions such as age, in receipt of a qualifying social welfare payment for a specific period and pursuing a full-time course of study leading to a recognised qualification in a recognised college and progressing in the level of education, with reference to the National Framework of Qualifications among others.

To qualify for BTEA, a person must be in receipt of one of the following social welfare payments for a minimum period - 3 months if pursuing a second level course or 9 months prior to the date of commencement of their course.

A waiting period is considered essential for the BTEA. This scheme confers entitlement to income support for a period of education and, therefore, it is necessary to target scarce resources. Recipients on Jobseekers Assistance are required to engage in job seeking while exploring other options available to them.

There are no plans at present to modify the existing CE or BTEA qualifying criteria for persons who are not in receipt of a qualifying social welfare payment for the required duration.

I hope this clarifies the matter for the Deputy.

Social Welfare Benefits Expenditure

Ceisteanna (1563)

Bríd Smith

Ceist:

1563. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to restore the income disregard to the OPFP and JST payments to €146.50. [36401/17]

Amharc ar fhreagra

Freagraí scríofa

The cost of increasing the One Parent Family Payment and the Jobseeker’s Transitional Payment earnings disregard from €110 per week to €146.50 per week is set out in the following table:

Scheme

Increase income disregard to:

Approximate cost to the Exchequer in a full year

One Parent Family Payment

€146.50 a week

€11.1 million

Jobseeker’s Transitional Payment

€146.50 a week

€4.2 million

Total

€15.3 million

The above costings are based on the number of recipients who were working and earning in excess of €110 per week on both the One-Parent Family Payment and the Jobseeker’s Transitional Payment as of March 2017.

The costings do not take into account potential behavioural changes, or the inflow of new entrants, which may arise from the introduction of higher income disregards. There would be additional costs on foot of these two factors, which are not possible to cost and have not been factored into the above costing of €15.3 million.

Social Welfare Benefits Expenditure

Ceisteanna (1564)

Bríd Smith

Ceist:

1564. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to increase the qualified child payments on all social welfare to €32.30 as recommended by the Committee for Social Protection. [36402/17]

Amharc ar fhreagra

Freagraí scríofa

Increases for a Qualified Child (IQCs) are paid as child-related supplements to most weekly social welfare payments in recognition of the need for greater incomes among benefit-dependent households with dependent children. The current full rate of payment is €29.80 per week per dependent child. The estimated expenditure on qualified child increase in 2018 is €569.1million.

IQC payments do not of themselves constitute a specific social welfare scheme and entitlement to the appropriate primary adult payment must be established in the first instance.

Where children continue in full-time education, payment of the IQC can continue up to 22 years of age or up to the end of the academic year in which the child reaches 22 in the case of long-term payments as well as short-term payments that have been in payment for at least 156 days.

The estimated full year cost of increasing the qualified child increase from €29.80 to €32.30 is an additional €47.7 million. Any changes to the rate of the IQC would have to be considered in an overall budgetary context.

Social Welfare Benefits Expenditure

Ceisteanna (1565)

Bríd Smith

Ceist:

1565. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to increase the qualified child payments for children over 12 years of age to €47. [36403/17]

Amharc ar fhreagra

Freagraí scríofa

Increases for a Qualified Child (IQCs) are paid as child-related supplements to most weekly social welfare payments in recognition of the need for greater incomes among benefit-dependent households with dependent children. The current full rate of payment is €29.80 per week per dependent child. The estimated expenditure on qualified child increase in 2018 is €569.1million.

IQC payments do not of themselves constitute a specific social welfare scheme and entitlement to the appropriate primary adult payment must be established in the first instance.

Where children continue in full-time education, payment of the IQC can continue up to 22 years of age or up to the end of the academic year in which the child reaches 22 in the case of long-term payments as well as short-term payments that have been in payment for at least 156 days.

Given the complexity involved and in the time available it is currently not feasible to accurately predict the full year cost of introducing a higher rate of the qualified child increase for all social welfare payments to families with dependent children over the age of 12.

Child Benefit Expenditure

Ceisteanna (1566)

Bríd Smith

Ceist:

1566. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to increase children's allowance by €47 for children over the age of 12. [36404/17]

Amharc ar fhreagra

Freagraí scríofa

Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a disability. Child Benefit is currently paid to around 626,362 families in respect of over 1.2 million children, with an estimated expenditure of over €2 billion in 2017.

Budget 2009 reduced the age for eligibility for Child Benefit from 19 years to less than 18 years. A value for money review of child income supports, published by the Department of Social Protection in 2010, found that the participation pattern of children in education supports the current age limit for Child Benefit.

The estimated annual amount it would cost to increase Child Benefit by €47 for children over the age of 12 would be in the region of €210 million.

Families on low incomes can already avail of a number of provisions to social welfare schemes that support children in full-time education until the age of 22, including:

- Increase for a Qualified Child (IQCs) with primary social welfare payments;

- Family Income Supplement (FIS) for low-paid employees with children;

- The Back to School Clothing and Footwear Allowance for low income families (paid at the full-time second level education rate).

These schemes provide targeted assistance that is directly linked with household income and thereby support low-income families with older children participating in full-time education.

Given the universal nature of Child Benefit increasing Child Benefit by €47 for children over the age of 12 would not be a targeted approach. Any decision to would have to be considered in the overall budgetary and policy context.

Child Benefit Expenditure

Ceisteanna (1567)

Bríd Smith

Ceist:

1567. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to restore children's allowance to all those under 20 years of age that are still in full-time education. [36405/17]

Amharc ar fhreagra

Freagraí scríofa

Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a disability. Child Benefit is currently paid to around 626,362 families in respect of over 1.2 million children, with an estimated expenditure of over €2 billion in 2017.

Budget 2009 reduced the age for eligibility for Child Benefit from 19 years to less than 18 years. A value for money review of child income supports, published by the Department of Social Protection in 2010, found that the participation pattern of children in education supports the current age limit for Child Benefit.

It is not possible to estimate the annual costs of restoring Child Benefit to all those under 20 years of age that are still in full time education as the Department does not have the necessary data available to estimate with any degree of accuracy the Deputy’s proposal.

Families on low incomes can already avail of a number of provisions to social welfare schemes that support children in full-time education until the age of 22, including:

- Increase for a Qualified Child (IQCs) with primary social welfare payments;

- Family Income Supplement (FIS) for low-paid employees with children;

- The Back to School Clothing and Footwear Allowance for low income families (paid at the full-time second level education rate).

These schemes provide targeted assistance that is directly linked with household income and thereby support low-income families with older children participating in full-time education.

Finally, given the universal nature of Child Benefit restoring Child Benefit to all those under 20 years of age that are still in full time education would not be a targeted approach. Any decision to do so would have to be considered in the overall budgetary and policy context.

Social Welfare Benefits Expenditure

Ceisteanna (1568)

Bríd Smith

Ceist:

1568. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to disregard the maintenance payments when assessing social welfare payment. [36406/17]

Amharc ar fhreagra

Freagraí scríofa

Where a social welfare claimant is in receipt of maintenance payments from a spouse/partner, housing costs incurred by the social welfare claimant (e.g. rent or mortgage payments and/or home improvement loan) up to a maximum of €95.23 per week may be offset against the maintenance payment, with half the balance of the maintenance being assessed as means. These arrangements ensure that there is always an incentive to receive a maintenance payment. The cost of disregarding all maintenance received by a welfare claimant across all relevant schemes is not readily available.

Where a social welfare claimant is paying maintenance to another person, the means assessment of this maintenance paid varies by the type of social welfare scheme.

Social welfare legislation specifically provides that maintenance payments paid under a separation order by recipients of certain social welfare schemes are to be deducted from any assessment of their income. This provision applies to the state pension non-contributory, widow/er’s and surviving civil partner’s non-contributory pension, carer’s allowance, one-parent family payment, and the blind pension.

In the case of claimants of other schemes, however, such as jobseeker’s allowance, disability allowance and supplementary welfare allowance, their means for social welfare purposes are their means before they meet any obligations they may have to pay maintenance i.e. no account is taken of such payments in assessing the means of the maintenance payer.

It is not possible to provide the cost of excluding maintenance payments made by social welfare claimants, as the relevant data are not available. Any change to the current arrangements would have to be considered in the overall policy and budgetary context.

Social Welfare Benefits Expenditure

Ceisteanna (1569)

Bríd Smith

Ceist:

1569. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to means test carer's and disability allowances on net income rather than gross income. [36407/17]

Amharc ar fhreagra

Freagraí scríofa

The Department provides a range of income support payments for people with disabilities and to carers who provide full-time care and attention to those with a disability that require that level of care. Applicants who do not have the necessary social insurance contributions can apply for means tested social assistance payments, namely carer's allowance (CA) and disability allowance (DA).

Under both schemes assessable income is defined as gross earnings less PRSI and superannuation. Data is not available on the net earnings of recipients, which would also take into account the income tax that they pay. Consequently, it is not possible to produce a costing to means test carers and disability allowances on the basis of net income rather than gross income.

The means test for carers is one of the least onerous within the social protection system. The amount of weekly income that is currently not taken into account is €332.50. In the case of the income of a married couple, civil partners or cohabitants, the first €665 of their combined weekly income is disregarded. A couple under 66 with two children, earning a joint annual income of up to €35,400 can qualify for the maximum payment of Carer’s Allowance while such a couple earning €59,300 will still qualify for the minimum rate. Furthermore, single care recipients cannot work outside the home for more than 15 hours per week and it is unlikely that they pay income tax on their earnings.

A person on disability allowance may earn up to €120 per week without their payment being affected. Earnings of between €121 and €350 per week are assessed at 50% for means test purposes. Most disability allowance recipients who avail of the work related disregards would work only part-time and it is also unlikely that they pay income tax on their income from employment.

Jobseeker's Allowance Expenditure

Ceisteanna (1570)

Bríd Smith

Ceist:

1570. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to fully restore all cuts to jobseeker's allowance for those under 25 years of age. [36408/17]

Amharc ar fhreagra

Freagraí scríofa

In line with other EU and OECD jurisdictions where such measures feature, reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009 and extended to those under 26 in Budget 2014.

These measures were introduced to protect young people from welfare dependency by providing young jobseekers with a strong financial incentive to engage in education or training or to take up employment. Should a young jobseeker on a reduced jobseeker’s allowance payment participate on an education or training programme they will receive a higher weekly payment of €160. This rate will be further increased to €193 per week from September 2017. With effect from March 2017, rates of jobseeker’s payments were increased for claimants of all ages as a result of measures introduced in Budget 2017.

The CSO’s latest monthly unemployment figures report that the seasonally adjusted unemployment rate for persons aged 15-24 years was 11.9% in June 2017. This represents a significant decrease of 3.4 percentage points, from 15.3% in April 2016.

I am committed to ensuring my Department identifies effective measures to incentivise and support young people in finding and securing sustainable jobs. The best way to do this is through engagement processes and by incentivising them to avail of educational and training opportunities, thereby enhancing their employment prospects.

The full year cost of increasing the age related reduced jobseeker's rates of €102.70 per week and €147.80 per week to the maximum jobseeker's rate of €193 per week is estimated to be €109.1 million in 2018. It should be noted that this estimate is subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018.

I have no plans for any further increases in rates at present and any such changes could only be considered in a budgetary context.

Maternity Leave

Ceisteanna (1571)

Bríd Smith

Ceist:

1571. Deputy Bríd Smith asked the Minister for Social Protection the amount it would cost to pay all elected councillors maternity leave. [36409/17]

Amharc ar fhreagra

Freagraí scríofa

Maternity leave is a matter for my colleague, the Minister for Justice and Equality. Maternity benefit is paid by my Department for the duration of statutory maternity leave and is based on payment of PRSI contributions while working.

New regulations were introduced in December 2016 whereby city and county councillors, in their capacity as public representatives, were brought into social insurance cover for the first time with effect from 1 January 2017. The new arrangements apply to city and county councillors with reckonable emoluments from their Local Authority positions.

As a result, city and county councillors, under age 66, who do not have another insurable employment or self-employment, now pay PRSI at Class S (4%). This means that they are now covered, as self-employed contributors, for a range of benefits - the state pension (contributory), widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit, paternity benefit, treatment benefits (from March 2017) and invalidity pension (from December 2017).

Prior to the introduction of the new arrangements, city and county councillors had been, since 2011, liable to pay PRSI at Class K (4%) along with other office holders such as members of the Houses of the Oireachtas and the judiciary. PRSI Class K contributions do not provide cover for any social insurance benefit or pension.

Information in relation to the numbers of councillors who may be eligible for and avail of maternity benefit in future is not available and as such it is not possible to cost the Deputy’s question.

Social Welfare Benefits Eligibility

Ceisteanna (1572)

Martin Heydon

Ceist:

1572. Deputy Martin Heydon asked the Minister for Social Protection if she will review the application of social welfare payments for persons that work part time over a seven day period due to the nature of their industry (details supplied); and if she will make a statement on the matter. [36458/17]

Amharc ar fhreagra

Freagraí scríofa

The jobseeker's benefit (JB) and jobseeker’s allowance (JA) schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2017 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €2.5 billion.

Both the jobseeker’s benefit and the jobseeker’s allowance schemes provide significant support to individuals so that they can work up to 3 days a week and still retain access to a reduced jobseeker’s payment. The current days based system can provide significant income supports to jobseekers who are casually employed. For instance an individual can earn a little over €19,760 per year and still retain a small jobseeker's allowance payment, while the equivalent threshold for an individual with a qualified adult is almost €33,975 if they are both working.

It is recognised that a changing labour market has resulted in a move away from more traditional work patterns, resulting in an increase in the number of persons employed for less than a full week. However, it is important that the structure of jobseeker’s payments does not inadvertently subsidise unsustainably low earnings or encourage employers to offer minimal hours of employment.

In addition to the two jobseeker’s schemes my Department’s main in-work support is the family income supplement (FIS), which targets families with children on low incomes and who work at least 19 hrs per week.

The back to work family dividend (BTWFD) scheme allows JA or JB recipients who have been jobseekers for 12 months or recipients of the one-parent family payment to retain their full increase for qualified children (IQC) for the first year in employment, tapering to 50% in the second year.

Where a long term unemployed jobseeker is offered employment of more than 3 days but less than 24 hours a week, they may be eligible for the part-time job incentive scheme. Under this scheme they can receive a weekly payment of €119 per week if they are single or €193.90 if they have an adult dependent.

My Department is currently analysing incentives to work in the social welfare system for jobseekers with children with a view to developing the Working Family Payment.

Based on an analysis of current incomes, benefits, and taxes, ESRI research shows that people are better off in work than on welfare. In particular, it demonstrates that more than eight out of ten unemployed jobseekers would see their income increase by at least 40% upon taking up employment. Fewer than 3% would, in the short-term, be financially better off not in work.

The risk of facing weak financial incentives to work is higher for unemployed persons with a spouse and children, as the income support goal of the welfare system means that they tend to have higher welfare payments. However, even among that group, less than one in fifteen would be financially better off not working and with the introduction of the BTWFD scheme, that figure drops to one in twenty.

The combination of schemes available provides considerable income support for individuals who have part time employment by allowing them retain access to a social welfare payment.

Reflecting the impact of government policy, and the overall improvement in the labour market, long term unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15% in 2012 to 6.3% in June 2017.

Any decision to change the jobseekers benefit or jobseeker’s allowance schemes would be a matter for Government to consider in a budgetary context.

Question No. 1573 answered with Question No. 1557.

Child Benefit Eligibility

Ceisteanna (1574)

Martin Heydon

Ceist:

1574. Deputy Martin Heydon asked the Minister for Social Protection the options open to parents of children of 18 years of age plus who are still in secondary school but no longer eligible for children's allowance; if they are entitled to apply for other allowances; and if she will make a statement on the matter. [36495/17]

Amharc ar fhreagra

Freagraí scríofa

Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a disability. Child Benefit is currently paid to around 626,362 families in respect of over 1.2 million children, with an estimated expenditure of over €2 billion in 2017.

Budget 2009 reduced the age for eligibility for Child Benefit from 19 years to less than 18 years. A value for money review of child income supports, published by the Department of Social Protection in 2010, found that the participation pattern of children in education supports the current age limit for Child Benefit.

Families on low incomes can avail of a number of provisions to social welfare schemes that support children in full-time education until the age of 22, including:

- Increase for a Qualified Child (IQCs) with primary social welfare payments;

- Family Income Supplement (FIS) for low-paid employees with children;

- The Back to School Clothing and Footwear Allowance for low income families (paid at the full-time second level education rate).

These schemes provide targeted assistance that is directly linked with household income and thereby support low-income families with older children participating in full-time education.

Social Welfare Appeals

Ceisteanna (1575)

Michael Healy-Rae

Ceist:

1575. Deputy Michael Healy-Rae asked the Minister for Social Protection the status of an appeal by a person (details supplied); and if she will make a statement on the matter. [36499/17]

Amharc ar fhreagra

Freagraí scríofa

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 5 April 2017. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers have been received in the Social Welfare Appeals Office on 17 July 2017 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

I hope this clarifies the matter for the Deputy.

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