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Wednesday, 29 Nov 2017

Written Answers Nos. 503-519

Carer's Allowance Data

Ceisteanna (503)

Bernard Durkan

Ceist:

503. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the number of carer's allowance applications that are approved or refused on an initial application; the extent to which trends have changed in this regard over the past five years; and if she will make a statement on the matter. [51203/17]

Amharc ar fhreagra

Freagraí scríofa

The information requested by the Deputy is detailed in the table.

Carer’s Allowance claims awarded or refused at initial application in 2012 to 2016 and at end October 2017

Year

Awarded

Refused

October 2017

15,002

7,555

December 2016

19,308

11,144

December 2015

14,378

7,920

December 2014

12,560

7,078

December 2013

16,011

9,881

December 2012

9,880

6,827

Child Benefit Data

Ceisteanna (504)

Bernard Durkan

Ceist:

504. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the number of families in receipt of child benefit to date; the extent to which these numbers have varied over the past five years; and if she will make a statement on the matter. [51204/17]

Amharc ar fhreagra

Freagraí scríofa

As at 31 October 2017, child benefit was in payment to a total of 627,318 families.

The number of families in receipt of child benefit in the period 2012 to 2016 is set out in the table:

Year end

No. of Families

2016

623,141

2015

619,308

2014

615,335

2013

611,366

2012

608,733

Social Welfare Schemes

Ceisteanna (505)

Bernard Durkan

Ceist:

505. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which each sector within her Department can respond in terms of dealing with applications for various means tested payments with particular reference to the need to eliminate hardship caused by delays of such payments including carer's allowance; and if she will make a statement on the matter. [51205/17]

Amharc ar fhreagra

Freagraí scríofa

My Department operates a number of means-tested schemes and, as well as evidence of means, applicants are also required to provide evidence that they satisfy other relevant qualifying conditions for the scheme in question, for example; that they are genuinely seeking work, or that they satisfy the medical and/or the habitual residence conditions.

Long-term schemes with medical or care-related conditions are particularly complex and, consequently, applications can sometimes take some time to process. In respect to carer’s allowance, particular details are required in order to establish the care recipient’s care requirements, the level of care the carer is providing and the means of the applicant in order to establish entitlement.

A redesigned application form for carer’s allowance will be published in 2018; this new form will allow carers to provide more information on the type and level of care they provide, with an aim to providing departmental deciding officers with the information they need to make correct decisions on entitlement as quickly as possible. The changes to the form have been finalised following consultation with Family Carer’s Ireland and carer representatives.

My Department is committed to ensuring that applications are processed as soon as possible. Operational processes, procedures and the organisation of work are continually reviewed to ensure that processing capability is maximised. In addition, staffing needs are regularly reviewed, having regard to workloads and the competing demands arising, to ensure that the best use is made of all available resources.

While a person is awaiting a decision on their application and where they are experiencing financial difficulties, they may make an application for a supplementary welfare allowance (SWA) payment from their local Intreo centre.

I hope this clarifies the matter for the Deputy.

State Pension (Contributory)

Ceisteanna (506, 507)

Bernard Durkan

Ceist:

506. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which she continues to examine the anomalies in respect of payment of the contributory State pension to persons whose contributions over their working lives are sufficient on present criteria to pay a full pension; and if she will make a statement on the matter. [51206/17]

Amharc ar fhreagra

Bernard Durkan

Ceist:

507. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection her plans for a costing in respect of the payment of a contribution-related pension to all eligible persons; and if she will make a statement on the matter. [51207/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 506 and 507 together.

The National Pensions Framework proposed that a total contribution approach should replace the yearly average approach to the calculation of the State Pension (contributory). Under this approach, the rate of pension paid would more closely reflect the total number of Social Insurance contributions made by a person throughout her or his working life and the incongruities of the Yearly Averaging method of calculating entitlement would be removed.

It is expected that this approach to pension qualification will replace the current one from 2020. I intend that its design will include significant homemaker’s provisions to assist those pensioners who spent considerable periods caring for their children, or adults with a caring need.

A proposal for the precise method of how the Total Contributions Approach will be implemented is currently being finalised by officials in my Department, having recently received the Actuarial Review of the Social Insurance Fund 2015. When this has been finalised, I intend to consult with relevant stakeholders before a decision in made on the final proposal by Government. That proposal will then be subject to the legislative process, and which may result in further changes.

The main aim of Government policy on pensions is to make sure that pensions are affordable, sustainable and keep their value in the coming years. The reforms that are planned will result in a more inclusive and fairer pension system for all citizens.

I hope this clarifies the matter for the Deputy.

Rent Supplement Scheme Expenditure

Ceisteanna (508)

Bernard Durkan

Ceist:

508. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the amount of funding provided by her Department by way of rent support to families on local authority housing lists over the past fifteen years since responsibility for such payments in lieu of housing were entrusted to her Department; and if she will make a statement on the matter. [51208/17]

Amharc ar fhreagra

Freagraí scríofa

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting approximately 36,200 recipients for which the Government has provided €253 million for in 2017.

Statistics are not maintained in relation to rent supplement payments made to families on local authority housing lists. Details of rent supplement recipients under the scheme in respect of the period from January 2002 to October 2017 are provided in the attached tabular statement.

Rent supplement customer numbers from 2002 (c. 54,200) increased moderately until the onset of the financial crisis reaching a peak in 2010 (c. 97,300). HAP was introduced in 2014 which transfers responsibility of persons with a long term housing need from my Department to the Local Authorities. The Government’s strategic aim as set out in Rebuilding Ireland is to transfer all long-term rent supplement tenancies to HAP by 2020, with rent supplement reverting to its original purpose that of a short-term income support. Since HAP’s introduction it has been the main driver for rent supplement’s customer base decline with over 30,000 tenants currently in receipt of HAP support. Other contributory factors include the continuing improvement in the economy allied with people exiting rent supplement through activation and securing job opportunities.

I trust this clarifies matters for the Deputy.

Rent Supplement: Recipient Numbers & Expenditure: 2002 to Present

Year

Recipients

% Change

Cost €000

% Change

2002

54,213

20.4%

252,203

40.6%

2003

59,976

10.6%

331,471

31.4%

2004

57,874

-3.5%

353,762

6.7%

2005

60,176

4.0%

368,705

4.2%

2006

59,861

-0.5%

388,389

5.3%

2007

59,726

-0.2%

391,466

0.8%

2008

74,038

24.0%

440,548

12.5%

2009

93,030

25.7%

510,751

15.9%

2010

97,260

4.5%

516,538

1.2%

2011

96,803

-0.5%

502,747

-2.7%

2012

87,684

-9.4%

422,536

-16%

2013

79,788

-9.0%

372,909

-12%

2014

71,533

-10.3%

338,208

-9.3%

2015

61,247

-14.3%

311,059

-8%

2016

48,041

-21.6%

275,294

-11.5%

2017

36,238

Social Welfare Schemes

Ceisteanna (509)

Bernard Durkan

Ceist:

509. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection when the Christmas bonus will be paid; and to which categories of social welfare recipients; and if she will make a statement on the matter. [51209/17]

Amharc ar fhreagra

Freagraí scríofa

I was pleased to announce on Budget Day that an 85% Christmas bonus will be paid this year to over 1.2 million long-term social welfare recipients, such as pensioners, people with disabilities, carers, lone parents and long-term jobseekers at a cost of €219 million.

Payment of the Bonus commenced this week from Monday 27th November and most eligible recipients will receive the Bonus this week, depending on the payment date of the scheme.

All recipients in the relevant week of the following eligible schemes will receive the Bonus, which is paid as an 85% increase to the weekly payment.

Social Assistance Schemes

- State Pension Non-Contributory

- One Parent Family Payment

- Widow(er)s' and Surviving Civil Partner’s Pension (Non-Contributory)

- Deserted Wife's Allowance

- Farm Assist

- Pre-Retirement Allowance

- Community Employment

- Rural Social Scheme

- Tús

- Job Initiative

- Back to Work Enterprise Allowance

- Gateway

- Back to Work Family Dividend

- Disability Allowance

- Blind Pension

- Carer's Allowance

- Domiciliary Care Allowance

- Guardian's Payment (non-con)

- Magdalen Commission Scheme

Social Insurance schemes

- State Pension (Contributory)

- Widow(er)s' Surviving Civil Partners Pension (Contributory)

- Occupational Injuries Death Benefit Pension

- Deserted Wife's Benefit

- Partial Capacity Benefit

- Invalidity Pension

- Disablement Benefit

- Carer's Benefit

- Guardian's Payment (Contributory)

In the case of recipients of Jobseeker’s Allowance, Supplementary Welfare Allowance, Direct Provision Allowance and jobseekers on the Back to Education Allowance scheme, the person must be in receipt of an eligible payment for a minimum of 15 months in order to qualify for the Bonus.

Youth Unemployment Data

Ceisteanna (510)

Bernard Durkan

Ceist:

510. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent of youth unemployment throughout the country, by county; and if she will make a statement on the matter. [51210/17]

Amharc ar fhreagra

Freagraí scríofa

The official measure of unemployment, based on the Quarterly National Household Survey (QNHS) indicates that the youth unemployment rate has fallen from a peak of 31% in 2012 to 14% in October 2017. Overall youth unemployment has fallen from well above the EU average in 2012 to well below the EU average of 16.6% in September 2017 (latest Eurostat data available).

Youth unemployment statistics from the QNHS are not available at the county level.

Administrative data from the Live Register include, as well as people who are unemployed, others who are working part-time or on a casual basis and receiving partial jobseekers’ payments. They may nonetheless give some indication of the trend in, if not the level of, youth unemployment, and are available at the county level. The number of young people signing on at DEASP offices in each county in October 2012 and October 2017 is set out in Table 1 below.

Table 1. Under 25 on Live Register by county Oct 2012 – Oct 17

County

Oct-12

Oct-17

Carlow County

1230

517

Cavan County

1285

513

Clare County

1523

606

Cork County

6204

1955

Donegal County

3943

1496

Dublin County

16979

6347

Galway County

3432

1161

Kerry County

2218

780

Kildare County

2797

1094

Kilkenny County

1131

423

Laois County

1577

630

Leitrim County

519

211

Limerick County

3289

1229

Longford County

910

383

Louth County

2993

1153

Mayo County

2104

753

Meath County

1645

611

Monaghan County

972

317

Offaly County

1723

677

Roscommon County

607

278

Sligo County

842

407

Tipperary County

2838

1150

Waterford County

2233

954

Westmeath County

1754

774

Wexford County

3200

1303

Wicklow County

1870

711

State

69818

26433

Overall, the number of young people on the Register has fallen by 62% over this period, with the declines at the county level ranging from 52% to 68%.

Government policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs; and second, through Pathways to Work to ensure that as many of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, including young people.

The overall reduction in youth unemployment, and the indications from the Live Register that this improvement has been spread widely across the country, suggests that this approach has been relatively successful.

I am confident these policies, and continuing economic recovery, will support further reductions in youth unemployment and add to the substantial improvements that have already been seen over the last few years.

One-Parent Family Payment

Ceisteanna (511)

Bernard Durkan

Ceist:

511. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which persons that have lost their one-parent family allowance have had their cases reviewed to ensure the elimination of hardship; and if she will make a statement on the matter. [51211/17]

Amharc ar fhreagra

Freagraí scríofa

My Department provides a number of income supports to lone parents once their entitlement to the One-Parent Family Payment (OFP) ceases. These include the Jobseeker’s Transitional Payment (JST) payment where the youngest child is aged 7-13 years and the Jobseeker’s Allowance (JA) payment which may be paid to lone parents where the youngest child is aged 14 or over. The Family Income Supplement, which is being re-designated as a Working Family Payment (WFP) is also available to lone parents who are working 19 or more hours per week. Lone parents who move to FIS/WFP can also apply for the Back to Work Family Dividend (BTWFD).

In addition to these income supports lone parents also have access to the Department’s Intreo service and the associated training, education and employment supports to assist them towards employment and financial independence. A lone parent who seeks ongoing income support from the Department may receive a one to one meeting with a case officer from the Department who assists them to produce a personal development plan and guides them towards appropriate education, and employment opportunities. While the customer is on the JST payment access to these supports is available, potentially for up to seven years. This is a much broader support than the 12 month engagement that normally applies for jobseekers from their one to one meeting. The aim of this broader support is to improve the individual’s employment prospects.

The income and activation supports outlined above combine to ensure that there are effective resources available to lone parents.

Social Welfare Appeals Data

Ceisteanna (512)

Bernard Durkan

Ceist:

512. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the number of appeals in respect of various payments awaiting a decision for more than two months; and if she will make a statement on the matter. [51212/17]

Amharc ar fhreagra

Freagraí scríofa

The table below provide the details which have been requested by the Deputy in respect of pending appeals.

Of the 8,898 appeals presently on hand, 4,025 (45.2%) were registered prior to 1 October 2017. Of these, 1,817 (45.1 %) are currently with the Department for review and/or the preparation of the Deciding Officer/Designated Person’s appeal submission and 2,184 (54.3%) are presently with the appeals office.

The quasi-judicial nature of the appeal system impacts on appeal processing times which are proportionate to the complexity of many of the issues under appeal and often require a high level of judgement, in addition to the need to ensure due process and natural justice.

The time taken to determine an appeal reflects all aspects of the appeal process including the time spent in the Department reviewing the decision in light of the appeal contentions and/or preparing the appeal submission. As at the end of October 2017, 41% of appeals which had a favourable outcome for the appellant resulted from revised decisions taken by Deciding Officers/Designated Persons at this stage of the appeal process.

Where a decision is not revised by the Department, the file and Deciding Officer/Designated Person’s submission is forwarded to the Appeals Office for consideration by an Appeals Officer. Of the 10,786 appeals which had been finalised by Appeals Officers to the end of October 2017, 42% (4,554) were determined by way of oral hearing and 57.8% (6,232) were determined by way of summary decision.

Where an oral hearing is required the logistics involved in scheduling the hearing and giving the appellant and any other witnesses, adequate notice unavoidably adds to the timeframe involved.

I trust this clarifies the matter for the Deputy

Appeals Registered prior to 1 October 2017

No. of Appeals

Blind Person’s Pension

5

Carers Allowance

526

Carers Benefit

21

Child Benefit

109

Disability Allowance

517

Illness Benefit

78

Partial Capacity Benefit

14

Domiciliary Care Allowance

204

Deserted Wives Benefit

2

Farm Assist

58

Liable Relatives

5

Family Income Supplement

117

Invalidity Pension

175

Maternity Benefit

11

Paternity Benefit

5

One Parent Family Payment

82

State Pension (Contributory)

160

State Pension (Non-Contributory)

103

State Pension (Transition)

2

Pre-Retirement Allowance

2

Occupational Injury Benefit

13

Disablement Pension

88

Medical Care

2

Incapacity Supplement

3

Guardian's Payment (Con)

6

Guardian's Payment (Non-Con)

1

Jobseeker's Allowance (Means)

518

Jobseeker's Allowance

522

BTW Family Dividend

14

Jobseeker's Transitional

13

Recoverable Benefits & Assistance

4

Jobseeker's Benefit

158

Treatment Benefit

-

Carer’s Support Grant *

24

Insurability of Employment

121

Supplementary Welfare Allowance

319

Survivor's Pension (Con)

13

Survivor's Pension (Non-con)

6

Widows Parent Grant

4

Total on hands

4,025

* Previously called Respite Care Grant

Social Welfare Appeals Data

Ceisteanna (513)

Bernard Durkan

Ceist:

513. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the number of appeal decisions in respect of various refusals for payments that have been overturned on appeal; and if she will make a statement on the matter. [51213/17]

Amharc ar fhreagra

Freagraí scríofa

The tables below provide the details which have been requested by the Deputy in respect of 2016 and to end of October 2017.

Overall, 59.2% of the 23,220 appeals which were finalised in 2016 had a favourable outcome for the appellant, i.e. were either allowed in full or in part, or resolved by way of a revised decision by a Deciding Officer/Designated Person. To date in 2017, 59.4% of the 15,551 appeals finalised have had a favourable outcome for the appellant.

There are a number of reasons why a decision which was refused at first instance might be successful on appeal and it is not necessarily the case that the first decision was wrong.

Where new evidence is provided with an appeal the original decision may be revised by the Deciding Officer or Designated Person as was the case in some 37 per cent of favourable appeal outcomes in 2016 and 41% of favourable appeal outcomes to end of October 2017. Where the decision was not revised in the Department in light of the appeal contentions, further evidence is often provided by the appellant as the appeal process proceeds and in addition, the Appeals Officer may gain insights when they meet the appellant in person at oral hearing which may influence the outcome of the appeal.

Decisions concerning entitlement to a social welfare payment or insurability of employment often require a high level of judgment and may involve complex legal questions. The Courts have found that decision makers are required to be free and unrestricted in discharging their functions.

I trust this clarifies the matter for the Deputy.

Outcome of Appeals by Category 2016

Revised DO Decision

Allowed

By AO

Partially Allowed

By AO

Disallowed

Withdrawn

State Pension (Non-Con)

81

76

30

166

30

State Pension (Contributory)

56

33

13

201

9

State Pension (Transition)

-

1

1

2

1

Widow’s/Widower’s Pension (Contributory)

7

12

5

34

2

Death Benefit

-

-

-

1

0

Bereavement Grant

-

1

-

1

-

Jobseeker’s Allowance - Payments

324

525

98

945

141

Jobseeker’s Transitional

6

12

1

15

5

Jobseeker’s Allowance -Means

338

287

120

1,216

198

One Parent Family Payment

59

89

27

121

51

Widow’s/Widower’s Pension (Non-Contributory)

1

5

1

14

1

Supplementary Welfare Allowance

346

532

75

923

156

Farm Assist

45

31

29

94

16

Jobseeker’s Benefit

155

151

40

304

54

Deserted Wife’s Benefit

-

5

1

4

1

Maternity Benefit

12

17

1

60

1

Treatment Benefits

0

0

0

6

0

Partial Capacity Benefit

7

9

0

16

3

Disability Allowance

815

2,830

88

1,367

75

Blind Pension

2

5

1

11

-

Carer’s Allowance

815

1,375

145

1,237

52

Domiciliary Care Allowance

469

596

18

250

11

Respite Care Allowance

56

37

2

49

7

Illness Benefit

341

136

5

168

230

Injury Benefit

13

13

1

30

2

Invalidity Pension

642

682

10

302

18

Disablement Benefit

45

140

13

164

9

Incapacity Supplement

5

1

1

7

0

Medical Care

2

0

0

0

1

Carer’s Benefit

32

11

3

23

2

Child Benefit

190

68

29

295

19

Family Income Supplement

177

125

18

135

15

Back To Work Family Dividend

12

1

0

49

3

Guardian’s Payment (Non-Contributory)

3

10

1

5

1

Guardian’s Payment (Contributory)

4

16

1

20

1

Widowed Parent Grant

2

0

0

8

1

Insurability

20

30

4

72

13

Liable Relative’s

12

0

0

9

0

Recoverable Benefits & Assistance

6

9

1

12

1

TOTAL APPEALS

5,100

7,871

783

8,336

1,130

Outcome of Appeals by Category 2017 (to end of October)

Revised DO Decision

Allowed

Partially Allowed

Disallowed

Withdrawn

State Pension (Non-Con)

68

65

30

108

24

State Pension (Contributory)

63

30

10

185

11

State Pension (Transition)

0

1

0

1

0

Survivor’s Pension (Con)

7

7

0

12

1

Death Benefit

0

0

0

1

0

Bereavement Grant

0

1

0

0

0

Jobseeker’s Allowance – Payments

258

310

56

595

166

Jobseeker’s Transitional

8

9

3

4

5

Jobseeker’s Allowance-Means

238

165

74

643

184

One Parent Family Payment

50

59

17

58

44

Survivor’s Pension (Non-Contributory)

3

5

4

8

0

Supplementary Welfare Allowance

202

254

28

489

164

Farm Assist

25

18

18

54

11

Pre-Retirement Allowance

1

0

0

0

0

Jobseeker’s Benefit

97

71

18

176

48

Deserted Wife’s Benefit

0

2

0

2

0

Maternity Benefit

7

7

3

42

1

Paternity Benefit

2

0

0

2

0

Adoptive Benefit

0

0

0

2

0

Treatment Benefits

0

0

0

1

0

Partial Capacity Benefit

11

13

1

11

4

Disability Allowance

524

1,896

61

844

92

Blind Pension

1

1

1

5

1

Carer’s Allowance

708

1,044

123

1,027

52

Domiciliary Care Allowance

256

264

9

113

9

Carers Support Grant

35

32

1

57

1

Illness Benefit

126

105

7

155

52

Injury Benefit

2

3

0

24

6

Invalidity Pension

618

307

6

218

17

Disablement Benefit

25

68

17

86

5

Incapacity Supplement

3

3

1

2

0

Medical Care

1

0

0

1

0

Carer’s Benefit

36

18

2

33

3

Child Benefit

128

60

20

158

14

Family Income Supplement

254

58

9

111

13

Back To Work Family Dividend

3

7

0

19

5

Guardian’s Payment (Non-Contributory)

2

4

1

6

0

Guardian’s Payment (Contributory)

4

10

2

13

0

Widowed Parent Grant

0

0

0

1

0

Insurability

10

33

4

35

51

Liable Relative’s

0

0

4

7

2

Recoverable Benefits & Assistance

3

3

0

14

0

TOTAL APPEALS

3,779

4,933

530

5,323

986

Social Welfare Eligibility

Ceisteanna (514)

Bernard Durkan

Ceist:

514. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection if changes are required in the criteria governing cohabitation with a view to ensuring that hardship is not caused; and if she will make a statement on the matter. [51214/17]

Amharc ar fhreagra

Freagraí scríofa

The question of whether a couple is cohabiting as husband and wife or civil partners affects entitlement under the Social Welfare Acts in a number of ways:

- A person may be entitled to an increase for a qualified adult for a person who is not a husband, wife or civil partner provided the couple are cohabiting;

- A disqualification applies in various schemes where there is cohabitation, for example, under the One-parent Family Payment scheme;

- Means are calculated similarly for a cohabiting couple as for a married couple/civil partners;

- In Jobseeker's Allowance cases a limitation is applied to payment rates where the person with whom the claimant is cohabiting is also in receipt of certain Social Welfare payments.

My Department has set down the guidelines it uses in considering issues relating to cohabitation. These guidelines are updated from time to time to take into account changes to policy, legislation or best practice. These are available on the Department’s website at http://www.welfare.ie/en/Pages/Cohabitation.aspx .

With regard to the issue of hardship, if a person does not qualify for a particular Social Welfare payment due to cohabiting, they should be advised to apply for a payment that is appropriate to their particular circumstances.

Any changes to these arrangements would involve significant costs and there no plans under consideration to change the existing criteria.

Questions Nos. 515 and 516 answered with Question No. 501.

State Pension (Contributory) Data

Ceisteanna (517)

Willie O'Dea

Ceist:

517. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the full-year cost of reversing the changes made in 2012 to the bands for the contributory pension; and if she will make a statement on the matter. [51217/17]

Amharc ar fhreagra

Freagraí scríofa

The changes made to State Pension (contributory) rate bands in Budget 2012 affected those pensioners who had a yearly average of less than 39 social insurance contributions over the course of their working life. As such, the changes did not preclude any pensioner who would have qualified for a full State Pension (contributory) pre-2012 from qualifying for a full rate after September 2012.

The current rate bands were introduced from September 2012, replacing previous rates introduced in 2000. The rate bands prior to 2000 were less generous, and the improved rate bands introduced in 2000 were a feature of the economic and political environment at that time. The economic crash changed the focus and while other payments were reduced as a result, the core rates of the pension, which many pensioners were solely dependent on, were maintained. Instead, the rates for people who both had additional means and lesser PRSI contribution records were reduced.

The 2012 rate bands more closely reflect the social insurance contributions history of a person than those in place between 2000 and 2012. The current rate bands still provide pensions to people which are better than proportionate with their level of contribution. A person with only 20 years of contributions over nearly 50 years will still get an 85% pension, which compares favourably with contributory pensions in other EU countries.

It is estimated that to revert to the previous bands from January 2018 would result in an annual cost of well over €70 million in 2018, and this annual cost would increase by an estimated €10 to €12 million extra each following year.

I hope this clarifies the matter for the Deputy.

Questions Nos. 518 and 519 answered with Question No. 501.
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