Written Answers Nos. 219-224
219. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the degree to which efforts are being made to award State pensions to those persons whose contribution record was interrupted for family or other reasons; and if she will make a statement on the matter. [2375/18]
Amharc ar fhreagraThere are three main State pensions. Firstly, the State pension non-contributory is a means-tested pension funded from taxation. Secondly, the State pension contributory, which is not means-tested, is paid from the Social Insurance Fund, via the PRSI system. The third main state pension available to some people over 66 is the Widows/Widowers Contributory Pension.
It is important to ensure those qualifying for the contributory pension have made a sustained contribution to the Social Insurance Fund over their working lives. Such contributory pensions, with rates of payment linked to contributions made into a fund, are the norm internationally.
To ensure that people can maximise their entitlement to a State pension, all contributions, paid or credited, over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement.
It should be noted that the rateband changes introduced in 2012 did not impact upon a person’s ability to qualify for a pension, as they introduced new rates of payment for reduced rate State pension (contributory) pensioners. Nor did those changes impact upon a person’s ability to qualify for a maximum rate contributory pension, as such pensioners would not have had enough contributions to qualify for a full rate pension before the changes were introduced under the previous ratebands introduced in 2000.
The homemaker's scheme makes qualification for a higher rate of State pension contributory easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect 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. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of his or her pension.
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 the means-tested State pension non-contributory, which amounts up to 95% of the maximum contributory rate.
When all payments across the State pension system are taken into account, the difference in the average direct payment to men and women is approximately 1% in Ireland. This would be very low by European standards, and as a result CSO figures show that poverty levels among those over 66 are very low for both men and women, and are at parity. In the latest figures, the rate of Consistent Poverty for men over 66 was 1.79% for men and 1.36% for women, compared to 8.3% for the general population.
Later this year, I plan to propose legislation to introduce a total contributions approach to the calculation of the State Pension (Contributory), replacing the current yearly average approach. The position of homemakers will be carefully considered in the context of that reform.
I hope this clarifies the matter for the Deputy.
220. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the estimated cost of restoring State pension levels to those applicable previously; and if she will make a statement on the matter. [2376/18]
Amharc ar fhreagraThe current rate bands applying to the State pension contributory 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 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 not proportionate with their level of contribution. For example, a person with only 20 years of contributions over nearly 50 years will still receive an 85% pension, whereas someone who paid into the system every week of those 50 years receives the 100% rate.
It is estimated that to revert to the previous bands from January 2018 would result in an annual cost of well over €70 million extra in 2018, and this annual cost would increase by an estimated €10 to €12 million extra each following year.
I committed to examine in depth various options that may provide some relief to those who would have a higher contributory pension had the rate bands not been amended in 2012. Officials in my Department have completed a report on this matter, which I intend to bring to a cabinet committee later this week. Following that meeting, and subject to any necessary amendment or further discussions, I will then bring the report to Government for consideration.
The National Pensions Framework proposed that a total contribution approach should replace the yearly average approach to the calculation of the State Pension (contributory) from 2020, which would remove anomalies created by the current system in 1961. It is hoped to start a consultation process regarding this reform with relevant stakeholders shortly. Following this process, a proposal to Government will be submitted seeking approval of the new approach.
This reform will make the rate of contributory pension more closely match contributions made by a person. It will also have significant homemakers provisions that will assist those pensioners who spent significant periods caring for people with a caring need.
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.
221. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the annual cost of State pensions from 2004 to 2017 and to date in 2018; and if she will make a statement on the matter. [2377/18]
Amharc ar fhreagraThe information sought by the Deputy is detailed in the tables.
The 2018 Revised Estimate for pension expenditure is €7,571,360 million. Details of expenditure to date in 2018 will not be available until the first week of February.
Table 1: Pensions Expenditure Outturn, 2004-2010
|
Expenditure (€000) |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
State Pension (Non Contributory) |
599,988 |
631,299 |
727,782 |
920,167 |
972,765 |
1,000,546 |
977,293 |
|
State Pension (Contributory) |
1,050,348 |
1,152,849 |
1,580,896 |
2,754,749 |
3,117,855 |
3,367,733 |
3,451,503 |
|
State Pension (Transition) |
983,706 |
1,060,052 |
857,627 |
79,070 |
92,089 |
104,976 |
108,194 |
|
Widows', Widowers'/Surviving Civil Partners' Contributory |
906,449 |
998,524 |
1,094,884 |
1,204,979 |
1,299,039 |
1,353,391 |
1,335,584 |
|
Widows', Widowers'/Surviving Civil Partners' Death Benefit |
6,185 |
6,523 |
7,047 |
7,574 |
8,036 |
8,207 |
7,778 |
|
Bereavement Grant |
13,190 |
13,572 |
12,686 |
16,673 |
17,851 |
18,889 |
18,292 |
|
Total Expenditure |
3,559,866 |
3,862,819 |
4,280,922 |
4,983,212 |
5,507,635 |
5,853,742 |
5,898,644 |
Table 2: Pensions Expenditure Outturn, 2011 to 2017
|
Expenditure (€000) |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 Estimated Outturn |
|
State Pension (Non Contributory) |
971,769 |
963,211 |
952,457 |
954,411 |
972,206 |
982,138 |
994,742 |
|
State Pension (Contributory.) |
3,622,746 |
3,802,795 |
3,983,264 |
4,185,233 |
4,475,691 |
4,662,372 |
4,915,997 |
|
State Pension (Transition) |
132,395 |
146,629 |
137,270 |
73,768 |
1,185 |
245 |
0 |
|
Widows', Widowers'/Surviving Civil Partners' Contributory |
1,337,865 |
1,343,198 |
1,349,840 |
1,369,759 |
1,422,098 |
1,437,090 |
1,466,603 |
|
Widows', Widowers'/Surviving Civil Partners' Death Benefit |
7,977 |
7,827 |
7,775 |
8,068 |
8,248 |
8,594 |
9,371 |
|
Bereavement Grant |
19,436 |
19,755 |
20,286 |
4,271 |
56 |
10 |
0 |
|
Total Expenditure Vote and SIF |
6,092,188 |
6,283,415 |
6,450,892 |
6,595,510 |
6,879,484 |
7,090,449 |
7,386,713 |
In 2006, age-related pensions were replaced by State Pensions with significant administrative changes to several schemes. These alterations, implemented in stages following the introduction of the State Pension, resulted in substantial migrations of recipients between schemes with accompanying changes in expenditure and recipients on these schemes. The most significant transfers of recipients were those involving State Pension (Contributory) which was formerly known as the Old Age Pension (Contributory) and State Pension (Transition) which was formerly known as Retirement Pension.
Since 2006, recipients of Widow/Widower’s Pension, Deserted Wife’s Allowance, Blind Pension, and One-Parent Family Payment have transferred to State Pension (Non-Contributory) upon reaching 66 years of age, resulting in some decreases in recipients and expenditure on such schemes and associated increases on State Pension (Non-Contributory). Recipients of Invalidity Pension are now automatically transferred to State Pension (Contributory) at 66 years of age.
222. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the number of persons with insufficient insurance contributions to meet the requirements for State pension purposes; the degree to which they may qualify for a means-tested or non-contributory pension; and if she will make a statement on the matter. [2378/18]
Amharc ar fhreagraThe rate of payment under the State Pension (Contributory) scheme is related to contributions paid over the years into the Social Insurance Fund, and credited contributions where applicable. There are a number of criteria which must be satisfied in order to qualify for a State pension contributory, whether at full or reduced level. These include that the person must be aged 66 or over, and that they have at least 520 paid contributions.
As the cohort of people who do not qualify for the State Pension (Contributory) will include people (both resident in the State and abroad) who do not apply for the State Pension (Contributory), the question of the number of persons with insufficient insurance contributions to meet the requirements for State pension purposes cannot be answered.
A person who does not qualify for State Pension (contributory) may apply for State Pension (non-contributory). Until a person applies for the State Pension (non-contributory) their means are not assessed. Therefore, in the absence of such an application, it is not possible to state to which degree they may/may not be entitled to a payment under that pension scheme.
I hope this clarifies the matter for the Deputy.
223. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the average length of time taken to deal with appeals in respect of disallowance of jobseeker's allowance, carer's allowance, disability allowance and other payments; and if she will make a statement on the matter. [2379/18]
Amharc ar fhreagraThe average appeal processing times for all appeals determined from 2015 to 2017 broken down by all social welfare scheme types is outlined in the tables below.
Significant efforts and resources have been devoted to reforming the appeal process in recent years. As a result, appeal processing times improved between 2011 and 2016 from 52.5 weeks for an oral hearing in 2011 to 24.1 weeks in 2016 and from 25.1 weeks for a summary decision in 2011 to 17.6 weeks in 2016.
I understand from the Chief Appeals Officer that there has been a slight increase in processing times in 2017 with oral hearings taking, on average, 26.4 weeks and summary decisions taking 19.8 weeks to finalise. A number of factors have contributed to the increase including the retirement of six experienced Appeals Officers during the first half of 2017. However, she is hopeful that processing times will improve as a number of newly appointed Officers gain experience in their roles.
Specific actions taken to reduce processing times include liaising with HR to ensure that vacancies are filled quickly, ensuring that training is given to new Appeals Officers as early as possible and working with the Department to reduce the time in submitting appeal files.
It is open to an appellant to claim supplementary welfare allowance pending the outcome of their appeal if their means are insufficient to meet their needs.
The Chief Appeals Officer assures me that processing times are a priority. However, the drive for efficiency must be balanced with the competing demand to ensure that decisions are consistent and of high quality.
I trust this clarifies the matter for the Deputy.
Appeals Processing Times by Scheme 01/01/2015 – 31/12/2015
|
- |
Average processing times (weeks) Summary Decisions |
Average processing times (weeks) Oral Hearings |
|
Blind Person’s Pension |
21.1 |
30.7 |
|
Carers Allowance |
20.6 |
25.9 |
|
Carers Benefit |
19.7 |
21.8 |
|
Child Benefit |
24.8 |
34.7 |
|
Disability Allowance |
15.8 |
21.4 |
|
Illness Benefit |
26.3 |
33.1 |
|
Partial Capacity Benefit |
25.7 |
43.4 |
|
Domiciliary Care Allowance |
21.7 |
28.7 |
|
Deserted Wives Benefit |
19.7 |
26.2 |
|
Deserted Wives Allowance |
- |
16.2 |
|
Farm Assist |
21.0 |
28.6 |
|
Bereavement Grant |
65.7 |
26.0 |
|
Death Benefit (Pension) |
- |
22.6 |
|
Family Income Supplement |
19.4 |
27.7 |
|
Invalidity Pension |
26.2 |
28.4 |
|
Liable Relatives |
22.8 |
31.2 |
|
Maternity Benefit |
22.6 |
17.5 |
|
One Parent Family Payment |
22.9 |
33.9 |
|
State Pension (Contributory) |
26.0 |
46.0 |
|
State Pension (Non-Contributory) |
20.4 |
30.8 |
|
State Pension (Transition) |
80.1 |
53.4 |
|
Occupational Injury Benefit |
20.3 |
35.0 |
|
Disablement Pension |
23.7 |
35.3 |
|
Incapacity Supplement |
41.2 |
51.5 |
|
Guardian's Payment (Con) |
18.2 |
27.5 |
|
Guardian's Payment (Non-Con) |
18.7 |
31.0 |
|
Jobseeker's Allowance (Means) |
15.8 |
26.0 |
|
Jobseeker's Allowance |
15.2 |
21.9 |
|
JA/JB Fraud Control |
- |
46.1 |
|
BTW Family Dividend |
14.1 |
- |
|
Jobseeker's Transitional |
12.9 |
21.3 |
|
Recoverable Benefits & Assistance |
21.0 |
30.3 |
|
Jobseeker's Benefit |
14.3 |
21.2 |
|
Pre-Retirement Allowance |
15.0 |
- |
|
Treatment Benefit |
17.9 |
- |
|
Carer’s Support Grant * |
21.2 |
23.6 |
|
Insurability of Employment |
47.6 |
69.4 |
|
Supplementary Welfare Allowance |
13.1 |
23.5 |
|
Survivor's Pension (Con) |
24.1 |
46.6 |
|
Survivor's Pension (Non-con) |
23.7 |
38.3 |
|
Widows Parent Grant |
18.4 |
- |
|
All Appeals |
18.1 |
25.5 |
* Previously called Respite Care Grant
Appeal Processing Times by Scheme 01/01/2016 – 31/12/2016
|
- |
Average processing times (weeks) Summary Decisions |
Average processing times (weeks) Oral Hearings |
|
Blind Person’s Pension |
18.2 |
33.8 |
|
Carers Allowance |
17.6 |
21.6 |
|
Carers Benefit |
20.7 |
22.4 |
|
Child Benefit |
22.1 |
38.2 |
|
Disability Allowance |
14.6 |
20.1 |
|
Illness Benefit |
27.2 |
34.3 |
|
Partial Capacity Benefit |
27.3 |
33.6 |
|
Domiciliary Care Allowance |
24.3 |
30.6 |
|
Deserted Wives Benefit |
13.0 |
32.8 |
|
Farm Assist |
21.9 |
26.0 |
|
Bereavement Grant |
23.1 |
- |
|
Death Benefit (Pension) |
19.7 |
- |
|
Liable Relatives |
14.0 |
16.9 |
|
Family Income Supplement |
20.4 |
25.5 |
|
Invalidity Pension |
21.3 |
28.2 |
|
Maternity Benefit |
18.9 |
21.7 |
|
One Parent Family Payment |
21.7 |
31.9 |
|
State Pension (Contributory) |
25.6 |
45.9 |
|
State Pension (Non-Contributory) |
22.7 |
32.9 |
|
State Pension (Transition) |
67.7 |
61.3 |
|
Occupational Injury Benefit |
25.0 |
31.9 |
|
Disablement Pension |
25.8 |
26.8 |
|
Incapacity Supplement |
27.7 |
50.9 |
|
Guardian's Payment (Con) |
15.8 |
24.5 |
|
Guardian's Payment (Non-Con) |
18.4 |
23.3 |
|
Jobseeker's Allowance (Means) |
16.7 |
25.5 |
|
Jobseeker's Allowance |
16.0 |
20.9 |
|
BTW Family Dividend |
21.0 |
- |
|
Jobseeker's Transitional |
19.0 |
22.3 |
|
Recoverable Benefits & Assistance |
32.5 |
31.6 |
|
Jobseeker's Benefit |
16.0 |
27.2 |
|
Treatment Benefit |
17.1 |
- |
|
Carer’s Support Grant * |
18.1 |
23.3 |
|
Insurability of Employment |
36.6 |
85.7 |
|
Supplementary Welfare Allowance |
15.0 |
24.1 |
|
Survivor's Pension (Con) |
16.6 |
28.8 |
|
Survivor's Pension (Non-con) |
18.4 |
23.4 |
|
Widows Parent Grant |
23.5 |
63.8 |
|
All Appeals |
17.6 |
24.1 |
* Previously called Respite Care Grant
Appeal Processing Times by Scheme 01 January 2017- 31 December 2017
|
- |
Average processing times (weeks) Summary Decisions |
Average processing times (weeks) Oral Hearings |
|
Adoptive Benefit |
13.4 |
- |
|
Blind Person’s Pension |
20.1 |
24.4 |
|
Carers Allowance |
21.7 |
24.0 |
|
Carers Benefit |
17.8 |
21.3 |
|
Child Benefit |
22.8 |
32.4 |
|
Disability Allowance |
17.3 |
24.1 |
|
Illness Benefit |
28.0 |
30.6 |
|
Partial Capacity Benefit |
33.3 |
35.7 |
|
Domiciliary Care Allowance |
27.2 |
34.4 |
|
Deserted Wife's Benefit |
13.1 |
27.7 |
|
Farm Assist |
20.7 |
25.8 |
|
Bereavement Grant |
15.1 |
- |
|
Family Income Supplement |
22.9 |
34.6 |
|
Invalidity Pension |
16.9 |
23.7 |
|
Liable Relatives |
25.3 |
24.0 |
|
Maternity Benefit |
18.8 |
19.3 |
|
Paternity Benefit |
18.3 |
- |
|
One Parent Family Payment |
26.1 |
34.7 |
|
State Pension (Contributory) |
32.1 |
45.7 |
|
State Pension (Non-Contributory) |
25.9 |
35.3 |
|
State Pension (Transition) |
60.4 |
- |
|
Occupational Injury Benefit |
20.0 |
26.4 |
|
Disablement Pension |
25.0 |
28.3 |
|
OIB-Medical Care |
- |
27.3 |
|
Incapacity Supplement |
47.8 |
37.2 |
|
Guardian's Payment (Con) |
23.7 |
27.0 |
|
Guardian's Payment (Non-Con) |
16.0 |
23.1 |
|
Jobseeker's Allowance (Means) |
19.6 |
27.3 |
|
Jobseeker's Allowance |
18.3 |
24.8 |
|
BTW Family Dividend |
19.8 |
27.5 |
|
Jobseeker's Transitional |
22.1 |
23.2 |
|
Recoverable Benefits & Assistance |
27.4 |
- |
|
Jobseeker's Benefit |
20.6 |
24.2 |
|
Carer’s Support Grant * |
18.5 |
25.6 |
|
Treatment Benefit |
14.0 |
- |
|
Insurability of Employment |
42.8 |
90.4 |
|
Supplementary Welfare Allowance |
16.4 |
25.8 |
|
Survivor's Pension (Con) |
23.0 |
44.7 |
|
Survivor's Pension (Non-con) |
23.3 |
24.7 |
|
Widowed Parent Grant |
19.5 |
- |
|
All Appeals |
19.8 |
26.4 |
* Previously called Respite Care Grant
224. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the degree to which a hardship clause has been invoked in the course of dealing with various circumstances in which persons found themselves in serious financial difficulty on a monthly basis over the course of the past year; and if she will make a statement on the matter. [2380/18]
Amharc ar fhreagraThe supplementary welfare allowance (SWA) scheme is considered the "safety net" within the overall social welfare system in that it provides assistance to eligible people in the State whose means are insufficient to meet their needs and those of their dependants. The main purpose of the scheme is to provide immediate and flexible assistance for those in need who do not qualify for payment under other State schemes.
Under the SWA scheme, my Department may award a basic weekly payment and/or a supplement to assist with ongoing or recurring costs that cannot be met from the client’s own resources and are deemed to be necessary. In addition, the Department can make a single exceptional needs payment (ENP) to help meet essential, once-off expenditure, which a person could not reasonably be expected to meet out of their weekly income. Details of the numbers of recipients of payments under the SWA scheme in December 2016 and 2017 are set out in the following tabular statement.
Any person who considers that they may have an entitlement to a payment under the SWA scheme should contact my Department’s Community Welfare Service at their local Intreo centre.
If the Deputy has concerns in relation to a particular case, he should bring the details to the attention of my Department.
Tabular Statement
Recipients of SWA schemes at end 2016 and 2017
|
SWA Scheme |
2016 |
2017 |
|
Basic Supplementary Welfare Allowance |
16,200 |
16,000 |
|
SWA Supplements (including Rent Supplement, Diet Supplement and Other Supplements) |
56,600 |
43,200 |
|
ENPs (incl. UNPs) (number of payments issued) |
100,100 |
103,500 |
