Written Answers Nos. 225-232
225. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection her preferred options to resolve the issue whereby women and some men fail to qualify for an adequate level of contributory State pension; and if she will make a statement on the matter. [2381/18]
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. Thirdly, the Widows/Widowers Contributory Pension is available to some people over 66.
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. Therefore, the State pension system ensures that those of State pension age do have an adequate standard of living, with a safety net under the non-contributory pension of €227 per week, plus additional payments such as Household Benefits, Fuel Allowance, and a Rent Allowance where required. While there is a means-test, there are generous disallowances which mean that over 70% of such pensioners qualify for that pension at the maximum rate. Therefore, people in receipt of reduced rate contributory pensions below the 98% rate would have significant additional means, over and above their State pension payment, as they would otherwise qualify for a non-contributory pension at a higher rate instead.
It is important to ensure those qualifying for the contributory pension, which is funded by the Social Insurance Fund and is based upon contributions to that fund, 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 across the world, and underpin the PRSI system in this country. 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.
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. Backdating it in respect of periods before its introduction in 1994 is estimated to cost €290 million per year, and this figure would rise at a faster rate than the overall cost of State pensions.
The State pension contributory rate bands introduced from September 2012 more closely reflect the social insurance contributions history of a person than those in place before that. The current rate bands still provide pensions to people which are very favourable in comparison 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. It is estimated that, to revert to the previous bands with effect 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.
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.
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.
I expect to start a consultation process shortly with stakeholders on the introduction of a Total Contributions Approach to replace the yearly average approach to State Pension calculation. Thereafter, a proposal to Government will be made.
I hope this clarifies the matter for the Deputy.
Question No. 226 answered with Question No. 44.
227. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection if adequate staff are available throughout the various sectors of her Department to ensure the expeditious of applications. [2383/18]
Amharc ar fhreagraThe Deputy will be aware that my Department, like all government departments, must operate within the staffing budget and headcount determined by the Minister for Public Expenditure and Reform. In that context, the staffing needs for all areas within the Department are continuously reviewed. This takes account of workloads, management priorities and the competing demands arising, to ensure that the best use is made of all available resources with a view to providing an efficient service to those who rely on the schemes operated by the Department.
228. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which she has identified specific trends arising from the study of the age profile of those on the live register; and if she will make a statement on the matter. [2384/18]
Amharc ar fhreagraThe official measure of unemployment is sourced from the Quarterly National Household Survey (QNHS). Measures of unemployment from the QNHS are based on International Labour Office (ILO) definitions. To be ‘ILO unemployed’ a person must in the week before the survey be without work but available for work and have recently taken specific job-search steps. The Live Register, which captures those registering for unemployment benefits (including those working part-time and in casual work who draw partial unemployment payments), is an administrative record. It is not the official measure of unemployment, but can give indicative trends. My Department uses both Live Register and QNHS data for reporting and monitoring trends and adjusting policies accordingly at national level.
This includes providing data and trends broken down by age categories and by duration of unemployment. The QNHS data, being prepared as part of the EU-wide Labour Force Survey, also allow Irish trends to be compared with international developments.
The Pathways to Work strategy, the key document setting out policy to facilitate the unemployed of all ages back into work, is underpinned by analyses of the labour market situation based on the statistical sources mentioned above.
By allocating activation resources to persons on the Live Register, the government’s policy tends automatically to focus on those areas and age-groups in which unemployment is most concentrated. The focus on those most in need is further reinforced by the use of profiling to identify, among the newly unemployed, those most likely to face severe difficulties in re-entering employment. People identified as having a low PEX (probability of exit from unemployment) score are prioritised for intensive engagement and support from the Intreo employment service
In addition, the Youth Guarantee initiative is specifically aimed at those aged under 25 who are unemployed with specific targeting of those who are either long-term unemployed or are most at risk of becoming long-term unemployed.
Summary statistical information on the clients’ age, duration of unemployment, and last held occupation together with other demographic and regional information is published on the Central Statistics Office website.
Question No. 229 answered with Question No. 32.
230. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the degree to which back to work and back to education supports will be reviewed with a view to maximising their availability; and if she will make a statement on the matter. [2386/18]
Amharc ar fhreagraThe Back to Work Enterprise Allowance (BTWEA) scheme enables my Department to work with people who have found themselves dependent on the welfare system for various reasons but who have an idea or have identified an opportunity to start their own business.
In 2017, a review of the BTWEA scheme was released. Overall, the review found that the scheme offers effective support for people who are long-term unemployed and who are interested in self-employment as a route to entering the labour market. The scheme plays a useful role in supporting the development of new enterprises.
Research demonstrated that the numbers returning from self-employment to the Live Register, after participating on the scheme, are low. Based on the comparison of the BTWEA participants to a control group of similar jobseekers who did not choose the scheme as an option, the BTWEA participant was over twice as likely to remain off the Live Register six months after the payments on the scheme had ceased. This trend continues when examined following an 18 month period after the payments ceasing.
One of the amendments following the review was the participants who take up self-employment are able to access the BTWEA after 9 months, down from 12 months. This enables access to the supports to those wishing to commence self-employment at an earlier stage of their unemployment.
The Back to Education Allowance (BTEA) is an educational opportunities scheme for persons in receipt of certain qualifying social welfare payments wishing to pursue second or third level courses of education in order to improve their employment prospects. It is primarily designed to support second chance education.
Entitlement to BTEA is conditional on a person having an on-going entitlement to the qualifying scheme payment. The BTEA scheme has been amended in recent years to ensure that the conditions are in line with the qualifying payment and consistent with the rules governing student grants funding through SUSI. Changes were introduced over the past number of years followed a review carried out on employment supports schemes in 2012. Stakeholders were also afforded an opportunity to contribute to the proposed recommendations at that time.
Overall, the priority for my Department is that the BTEA scheme remains focused, targeted and suitable for the needs of jobseekers and of the future skills needs of the economy.
I hope this clarifies the matter for the Deputy.
231. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which anti-fraud initiatives have yielded revenue to the extent anticipated; if extra costs have been incurred by the programme; and if she will make a statement on the matter. [2387/18]
Amharc ar fhreagraThe majority of people in receipt of a payment from my Department receive what they are entitled to. Nevertheless, my Department recognises that abuse of the welfare system is an ongoing reality and must be tackled proactively. Anti-fraud and control measures are set out in the Department’s Compliance and Anti-Fraud Strategy 2014 – 2018 and are designed to prevent and detect fraud, to ensure effective oversight of schemes, to pursue prosecution of offenders and the recovery of any overpaid entitlements identified. The Strategy and annual reports on implementation is published on the Department’s website – www.welfare.ie. The report for 2017 is expected to be published in early April 2018.
While data for 2017 is currently being compiled and verified, provisional indications are that the target set for last year for control savings of €510 million will be met. It is estimated that for 2017, as a whole, some €111 million in overpayments were recorded (compared to just over €110 million in 2016). Of this, some €38.3 million related to 10,500 cases of suspected fraud. The value of overpayments recovered during 2017 is estimated at approximately €82 million - similar to the level recovered in 2016. The Department’s Prosecution Service and Special Investigations Unit considered nearly 300 cases for prosecution during 2017 which is also similar to the previous year.
Control and anti-fraud activities are an integral part of the functions of all staff and systems of the Department. No additional costs were incurred during the year on these activities. During 2017, the Department funded an awareness campaign to highlight its anti-fraud activities and the role members of the public can play in reporting potential fraudulent activity. The cost of the campaign before VAT was €163,000. Control savings arising from the campaign continue to accrue and will be included in the overall figures for 2017.
I hope this clarifies the matter for the Deputy.
232. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which FIS or other support payments continue to be made available to families living on uneconomic holdings; and if she will make a statement on the matter. [2388/18]
Amharc ar fhreagraThe main support my Department offers to families living on uneconomic holdings is the farm assist scheme which provides support for farmers on low incomes and is similar to jobseeker’s allowance. The farm assist scheme is a means tested payment and the means test is flexible so as to allow for significant income fluctuations from one year to the next. It may also be noted that farm assist customers continue to receive more beneficial treatment than other self-employed persons.
Farm assist recipients retain the advantages of the jobseeker’s allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2018 Revised Estimates for my Department provide for expenditure of approximately €74.1 million on the farm assist scheme.
Farm Assist recipients will benefit from the following measures which I provided for in Budget 2018; the €5 per week increase in the maximum weekly rates of payment, proportionate increases in weekly payments for qualified adults and a €2 per week increase for each qualified child. In addition, farm assist recipients are eligible to avail of the 250 additional places on the Rural Social Scheme which I announced as part of the Budget 2018 package.
The Working Family Payment (WFP), formerly known as Family Income Supplement, or FIS, is an in-work support which provides an income top-up for employees on low earnings. The WFP is designed to prevent in-work poverty for low paid workers with child dependants, and to offer a financial incentive to take-up employment.
To qualify for payment of the WFP, a person must be engaged in insurable employment which is expected to last for at least three months and be working for a minimum of 38 hours per fortnight or 19 hours per week. Therefore, self-employed people are not eligible for the WFP. However, where the spouse/partner of the farmer is in insurable employment, they may qualify for WFP/FIS, subject to meeting the criteria outlined above.
Other support payments offered by my Department include the jobseeker's benefit (JB) and jobseeker’s allowance (JA) schemes which provide income support for people who have lost work and who are available for and genuinely seeking full-time employment. Jobseeker’s allowance is a means tested social assistance payment whereas jobseeker’s benefit is a contribution based insurance scheme.
To qualify for jobseeker’s benefit a person must be unemployed, be available for and genuinely seeking work, have had a substantial loss of employment and as a result be unemployed for at least 4 days out of 7. The jobseeker’s benefit scheme provides significant support to individuals who can work up to 3 days a week and receive a jobseeker’s payment.
I am satisfied that the combination of the jobseekers schemes, the working family payment and the farm assist scheme provide adequate income support options for families living on uneconomic holdings.
