Written Answers Nos. 1-29
12. Deputy Mary Butler asked the Minister for Employment Affairs and Social Protection her views on whether the wait times for summary decisions in relation to appeal processing times are acceptable; the steps she is taking to improve these waiting times; and if she will make a statement on the matter. [2063/18]
Amharc ar fhreagraAll claim decisions taken by the Department’s deciding officers are appealable to the Chief Appeals Officer. In any year about 85% of all claims are awarded and just 1% are appealed. Nevertheless the Department is concerned that these cases are dealt with as quickly as possible. Accordingly, 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 2017 from 52.5 weeks for an oral hearing in 2011 to 26.4 weeks in 2017 and from 25.1 weeks for a summary decision in 2011 to 19.8 weeks in 2017. The time taken to process an appeal reflects a number of factors including that the appeals process is a quasi-judicial process with appeal officers being required to decide all appeals on a ‘de-novo’ basis. In addition, appeals decisions are themselves subject to review by the higher courts and decisions have to be formally written up to quasi-judicial standards.
Other factors that influence appeals times include the quality of the initial decision – in this respect the Department has changed the decision’s process in respect of medical schemes, in order to provide more information to the claimant. I expect that this will help to reduce the number of appeals over time.
In addition, a number of new appeals officers have joined the appeals office over the past year, to replace staff leaving on retirement. Given the complexity of the appeals process it takes some time for new staff to be trained up and develop expertise. This changeover in staff has led to a slightly longer time to conclude appeals in 2017. However, I am advised by the Chief Appeals Officer that she expects performance to improve further in 2018.
Firstly, it should be noted that an appellant can claim supplementary welfare allowance pending the outcome of their appeal and that any favourable decisions are backdated to the original date of claims.
13. Deputy Brian Stanley asked the Minister for Employment Affairs and Social Protection the job placement types that will be encompassed under the youth employment support scheme proposed in Budget 2018. [2049/18]
Amharc ar fhreagra33. Deputy Brian Stanley asked the Minister for Employment Affairs and Social Protection when the youth employment support scheme will be introduced; and the specific skill benefits it will provide. [2050/18]
Amharc ar fhreagraI propose to take Questions Nos. 13 and 33 together.
The Youth Employment Support Scheme (YESS) is a new scheme that I intend to introduce in May/June of this year.
The scheme will be targeted at young people aged 18 to 24 who are long-term unemployed or who face barriers to employment – people who even in the Celtic Tiger years would have found it difficult to get a foot on the career ladder.
The aim is to provide them with the opportunity to learn basic work and social skills in a supportive environment while on a work placement. The scheme will complement and sit alongside other opportunities developed by the Department of Education and Skills, such as the new Career Traineeships and Apprenticeships, and will broaden the choice available to young people.
The qualifying payments are Jobseekers’ Payments, One Parent Family Payment, Jobseeker Transition Payment, Disability Allowance, Blind Person’s Pension or Supplementary Welfare Allowance. In some cases, candidates who have been in receipt of a payment for less than 12 months, but who are considered by a case worker to face significant barriers to work will be granted access to the scheme.
Young people, like other groups vary in terms of skills, aptitudes, and background so the scheme will aim to offer them a wide variety of work experience options to meet their particular needs.
The scheme will be open to employers across the private, community and voluntary sectors who meet the eligibility criteria. Public sector organisations will be excluded.
The range of skills that a participant may acquire will be dependent on the type of placement offered and the skills level of the person on commencement.
A Learning and Development Plan will be at the core of each placement and progress will be supported and monitored by a case worker in my Department on an ongoing basis.
Apart from relevant ‘hard’ or specific skills, there will be a focus on the acquisition and demonstration of ‘soft’ employability skills that will improve the participant’s employment prospects, such as interpersonal and communication skills, teamwork, punctuality, time management, and customer service. Onsite work experience can be complemented by off-site training, as appropriate.
The key determinant will be whether the placement can provide a meaningful learning and development opportunity for the potential candidate.
The Host Organisation will complete an assessment for the participant at the end of the placement. Employers will be encouraged to hire participants who have performed well, and will qualify for a financial subsidy under JobsPlus Youth.
15. Deputy Niamh Smyth asked the Minister for Employment Affairs and Social Protection the status of plans to reform the pension system which currently discriminates against persons, mainly women, that took time out of the workforce prior to 1994 to care for children or elderly relatives; and if she will make a statement on the matter. [1879/18]
Amharc ar fhreagraThe State pension contributory is paid from the Social Insurance Fund. Accordingly, it is important to ensure those qualifying for that pension have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement, all contributions, paid or credited, over their working life from when they first enter insurable employment until pension age are taken into account.
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 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.
Where someone does not qualify for a full rate contributory pension, they may qualify for another 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 means-tested State pension non-contributory, which amounts up to 95% of the maximum contributory rate.
Due to the redistributive nature of the Social Insurance Fund, women generally get more back from their PRSI contributions than men on an actuarial basis, particularly those with lower earnings and shorter contribution years.
I plan to introduce a total contributions approach to the calculation of the State Pension (Contributory) to replace the yearly average approach from around 2020. The position of homemakers will be carefully considered in the context of that reform.
I hope this clarifies the matter for the Deputy.
16. Deputy Aindrias Moynihan asked the Minister for Employment Affairs and Social Protection the status of the provision of a new full-time social welfare office in Macroom; and if she will make a statement on the matter. [2025/18]
Amharc ar fhreagraInterviews for the Branch Manager position in Macroom, Co Cork were held on 14th of September 2017 and a preferred candidate emerged from the open recruitment competition to select a new Manager. Discussions with the candidate selected, regarding the final details of the office accommodation to be provided, have been concluded and, I as Minister, approved the appointment of the new Branch Manager on 10th January 2018. It will take a number of months for the proposed accommodation to be fitted out to the specification required by my Department for the delivery of the services and for necessary planning applications to be completed.
It is anticipated that the new Branch Office in Macroom will be open in Q2 2018.
17. Deputy Bríd Smith asked the Minister for Employment Affairs and Social Protection the number of persons that have faced sanctions and deductions from their social welfare payments as a result of information provided by Jobpath providers; the criteria for such penalties; the right persons have to appeal such deductions; and if she will make a statement on the matter. [2052/18]
Amharc ar fhreagraThere are 93,000 clients currently engaged with JobPath of which 483, or 0.5%, currently have a penalty rate applied to their claim. This figure is consistent with the overall level of penalty rate applied across all Job Seekers. In total since the JobPath service commenced, approximately 6,500 or 4.6% of the 141,000 clients who had engaged with the JobPath service (between July 2015 and December 2017) have had, at some point during their engagement period, a penalty rate applied to their payment. JobPath providers do not apply or recommend the application of a penalty rate of payment. They simply advise the Department if a jobseeker is failing to attend activation meetings. Officials in my Department then contact the Jobseeker and seek to arrange a meeting to discuss the matter directly with them. The application of penalty rates is entirely a matter for my Department and officials involved will take all relevant factors into account.
In the interests of natural justice, a jobseeker who fails to participate in the activation process, whether that is provided directly by the Intreo Service or via a contracted service provider, is given both written and verbal warnings and an opportunity to comply before a reduced rate of payment is applied. Furthermore, Jobseekers can, through co-operation with the activation service of my Department, benefit from early re-instatement of the full rate of Jobseeker’s payment.
The legislation underpinning the application of reduced rates of payment is provided for in the Social Welfare Act 2010. All decisions on the application of reduced rates of payment are made by Deciding Officers and are based on all the available evidence and the circumstances of each case. The Jobseeker can appeal the Deciding Officer’s decision through the Social Welfare Appeals Office (SWAO).
Reduced rates are only applied where a job seeker fails to engage as requested, and following at least two warnings, with the Department’s employment services.
19. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the number of persons in receipt of social protection payments that have been subject to sanctions in 2017 due to non-compliance or non-engagement; and if she will make a statement on the matter. [1967/18]
Amharc ar fhreagraPenalty rates were introduced as a means of encouraging jobseekers to engage with activation measures and co-operate with efforts of the Department to assist them in securing employment. The Department is committed, under Pathways to Work, to incentivise the take-up of activation opportunities, including implementing sanctions for failure to engage.
The application of penalty rates is provided for in Social Welfare legislation. The application of the penalty provisions can only be applied in specific circumstances and the decision to impose a penalty can only be made by a Deciding Officer of the Department. If dissatisfied with that decision it is open to the Jobseeker to appeal to the Social Welfare Appeals Office.
The number of instances of Penalty Rates in 2017 was 16,451, involving 13,503 individuals.
20. Deputy John Curran asked the Minister for Employment Affairs and Social Protection the progress to date by the Citizens Information Board with regard to the restructuring of CIS and MABS services; the timeframe for the restructuring; the estimated cost savings that will be made in 2018 as a result of the restructuring; the improved services that will be made available in 2018 as a result of this restructuring; and if she will make a statement on the matter. [1908/18]
Amharc ar fhreagraThe Citizens Information Board (CIB), which has the statutory responsibility for the Citizens Information Service (CIS) and the Money and Advice Budgeting Service (MABS) decided in February 2017 to restructure its governance arrangements. The first phase of implementation is underway in the areas of South Dublin, North Leinster (Kildare, Longford, Louth, Meath and Westmeath) and South Munster (Cork & Kerry). CIB is providing regular updates on the restructuring programme directly to all CIS and MABS Chairpersons and staff. Information sessions are being organised for Chairpersons of local services, providing an opportunity to seek clarifications on the process of transfer to the new regional companies and the wind up of the existing companies.
Implementation of the new eight region model, with the establishment of a new regional CIS and MABS company in each region, is expected to take up to two years to complete.
It is not envisaged that there will be cost savings in 2018. Cost has never been a driver of this change. The aim is to improve existing governance arrangements and to optimise the benefits from operating a more modern and streamlined citizen-focused service delivery model. For 2018, the focus for CIB and its service delivery partners is to maintain existing levels and standards of service provision to citizens during the transitional period. No major new service development initiatives are planned during this period of change.
I hope this clarifies the matter for the Deputy.
21. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the concerns raised by her Department as referenced in the recently published cost benefit analysis undertaken on behalf of the Citizens Information Board regarding the structure of the MABS service prior to the restructuring plans now underway; and if she will make a statement on the matter. [2059/18]
Amharc ar fhreagraThe aim of the decision by the Board of the Citizens information Board (CIB) to restructure local Citizens Information Services (CIS) and Money Advice and Budgeting Service (MABS) company boards is to improve the governance arrangements with its downstream service delivery partners. It must be remembered that citizen centric CIS and MABS services are 100% funded by the Exchequer. It is essential that each company operates to modern and evolving standards of corporate governance, including compliance with necessary financial and audit requirements.
Under the current unwieldy arrangements, each of the 93 services operates as independent entities and considerable administrative effort is required in the maintenance of each individual company. As many common services are delivered to citizens across the country, opportunities exist to improve service standards and consistency nationwide. Reducing the administrative burden on local service managers and re-direction of valuable resources to front line services will improve services for those who rely on them.
In parallel, improved monitoring of service delivery will assist CIB in identifying weaknesses and assist regional services in getting appropriate and suitable supports in place.
A reduction in the number of individual, yet similar, CIS and MABS companies from 93 to 16 will better facilitate adherence to required governance standards, assist CIB in meeting its legislative responsibilities as direct funder and bring CIS and MABS organisations more into line with modern public service governance guidelines and requirements.
I hope this clarifies the matter for the Deputy.
22. Deputy Margaret Murphy O'Mahony asked the Minister for Employment Affairs and Social Protection the action being taken to address the increase in at-risk and consistent poverty rates for persons with disabilities that was disclosed in the most recent SILC data. [1844/18]
Amharc ar fhreagraThe latest CSO Survey on Income and Living Conditions (SILC) results for 2016 shows that people in households headed by a person whose principal economic status is not at work due to illness or disability continue to experience higher at risk and consistent poverty rates than the general population. The survey also shows that social transfers play a very significant role in reducing poverty and that Ireland continues to be among the best performing EU countries in reducing poverty and inequality through spending on social protection. In 2018, expenditure on illness, disability and carers payments will amount to over €3.9 billion or almost one fifth of the total Departmental spend. This includes a €5 per week increase in the maximum weekly rate for recipients of disability allowance, invalidity pension and carer’s allowance, with proportionate increases for adult dependents and an increase of €2 per child per week for qualified child dependents.
Given the continuing economic recovery throughout 2017 and the measures introduced in Budgets 2016, 2017 and 2018, it is reasonable to expect future poverty statistics to show improvements. I will continue to work with my Government colleagues to ensure that the economic recovery is experienced in all regions and by all families, households and individuals.
It is recognised that the best route out of poverty and social exclusion is through paid employment. My Department manages a range of employment support programmes for people with disabilities, including the wage subsidy scheme, the EmployAbility service and the reasonable accommodation fund. The partial capacity benefit is also available to support people on invalidity pension or illness benefit (of more than 6 months) who have some capacity for work and who choose to return to employment. The Department’s Intreo service is also available to provide employment support services for people with disabilities who wish to engage with the service on a voluntary basis. Expenditure on these programmes will amount to some €50 million in 2018.
The Government is committed to increasing the employment opportunities for people with a disability. The Comprehensive Employment Strategy for people with disabilities adopts a cross-government approach that brings together various measures, to be taken by different Departments and State agencies, in a concerted effort to address the barriers and challenges that impact on the employment of people with disabilities. The aim of the strategy is to increase the numbers of people at work, and the proportion of people with disabilities in a job.
The Government’s strategy for addressing poverty and social exclusion is set out in the National Action Plan for Social Inclusion. The Strategy identifies a wide range of targeted actions and interventions to achieve the overall objective of reducing consistent poverty. The Department is reviewing the Plan, as it reached the end of its term in 2017, with a view to developing an updated plan for future periods. The Department will also review the national social target for poverty reduction. This review will be undertaken in consultation with relevant stakeholders.
I can assure the Deputy that a reduction in measured poverty rates for people with a disability is a key priority of the Government. We will continue to keep the range of supports under review as well as implement the comprehensive employment strategy in order to secure better income and employment outcomes for people with disabilities.
23. Deputy Gino Kenny asked the Minister for Employment Affairs and Social Protection if persons that make new claims for social welfare payments must have a public services card (PSC); if her attention has been drawn to the fact that there is evidence that new claimants are being told that they will not be eligible for payments unless they hold a PSC; and if she will make a statement on the matter. [1911/18]
Amharc ar fhreagraThe purpose of SAFE 2 registration is to verify a person’s identity to a substantial level of assurance. Once identity is so verified, a Public Services Card can be issued as a physical token of proof of that identity verification. My Department makes it clear to our customers that they need to complete a SAFE 2 registration to access, or continue to access, payments and entitlements. This is not an unreasonable condition given the value of payments made to customers and the overwhelming majority of customers have no difficulty in completing the process.
The legal provisions providing for and relating to SAFE registration of Social Welfare customers are set out in the Social Welfare Consolidation Act, 2005 (as amended):
- Sections 262 and 263B provide for the verification of identity to facilitate the issuing and use of a Personal Public Services Number (PPS Number or PPSN).
- Sections 263, 263A and 263B provide for the verification of identity to facilitate the issuing, use and cancellation of a Public Services Card (PSC).
- Section 241 provides that a person must satisfy the Minister to his/her identity when making a new claim and sets out how that can be done.
- Section 247C provides that an existing claimant must satisfy the Minister to his / her identity, sets out how that can be done, and provides for disqualification where an existing claimant fails to so do.
I hope this clarifies the matter for the Deputy.
24. Deputy James Browne asked the Minister for Employment Affairs and Social Protection her plans to introduce flexibility and support in the social welfare system for persons with mental health difficulties. [2015/18]
Amharc ar fhreagraThrough the operation of the income support system managed by my Department and the health service managed by the HSE, the Government recognises the need for flexible and effective support for persons who encounter mental health difficulties. Recent research by the ESRI and the OECD has drawn attention to the prevalence of mental health conditions in the working-age population. Both an effective income support system and health services are key to addressing these difficulties but the research has also demonstrated that work can be an important factor in recovery, in particular for people with mental health issues. The Make Work Pay report for People with Disabilities, published last year, identified the need for flexibility in the income support and medical card system where a person with a disability takes up a job and options available if that job does not work out. This anxiety can be particularly pronounced amongst those with mental health issues, given the episodic nature of such conditions. One of the recommendations of the report was to put in place and promote a system for fast-track reinstatement of disability allowance, illness benefit or invalidity pension to people with disabilities who have returned to work, and have subsequently had to leave their job within one year.
As a first step in implementing this recommendation a fast-track return to disability allowance protocol has now been put in place. In addition to this initiative, people who are participating on the partial capacity benefit scheme may return to illness benefit or invalidity pension if they find that they cannot continue to work.
My Department also provides a wide range of work related supports for people with disabilities, including people with mental health difficulties that they or where appropriate their employers can access while in receipt of income support payments. These include the Wage Subsidy Scheme, the EmployAbility service and employment support grants for people with disabilities.
Most recently, my Department was a partner organisation in the Integrating Employment and Mental Health Service project, which ran between 2015 and 2017. The aim of this project was to demonstrate how existing mental health and supported employment (EmployAbility) services could fulfil the best practice Individual Placement and Support (IPS) model of supported employment for clients with mental health issues. An evaluation report is currently being finalised and this shows that overall, the project demonstrated good outcomes through improved integration between mental health services and employment support services. Following on from this work, my Department has been collaborating with the Department of Health and the Health Services Executive to consider how best to embed this learning within the social protection and the health systems.
25. Deputy Peter Burke asked the Minister for Employment Affairs and Social Protection if she will review the rules for calculating means for social welfare payments regarding compensation paid for damage carried out to the principal private residence of a person, by CPOs or a State agency when the person has to invest the money back into their residence to mitigate the damage; and if she will make a statement on the matter. [1881/18]
Amharc ar fhreagraSocial welfare legislation provides for the disregard of certain compensation awards when assessing the means of a person for social assistance schemes. This includes all income derived from compensation awarded by the Hepatitis C and HIV Compensation Tribunal, by the Residential Institutions Redress Board and in relation to disability caused by thalidomide. Any payment made by the Residential Institutions Statutory Fund Board is similarly disregarded. In addition, ex gratia payments made through the Symphysiotomy Payment Scheme or to women who were admitted to and worked in the Magdalene Laundries are also disregarded. These compensation awards and payments were disregarded over the years as a result of Government decisions and the enactment of corresponding legislation. All other compensation or court awards which are not provided for in social welfare legislation are assessed in the normal manner.
It should be noted that a payment is only assessable as long as it is accessible. In the case outlined by the Deputy, if the person who received the compensation payment invests it back into their residence, then it would not be accessible or assessable for social welfare means testing purposes.
26. Deputy John Curran asked the Minister for Employment Affairs and Social Protection her plans for pension reform; her further plans on introducing auto-enrolment into pensions for employees; if so, the timeframe for this plan; and if she will make a statement on the matter. [1907/18]
Amharc ar fhreagraPensions reform is a Government priority and I can confirm an intention to publish and commence the implementation of a pensions reform plan in the near future. The plan will include measures relating to the introduction of a ‘Total Contributions Approach’ to the State pension for new pensioners, reform and simplification of the current supplementary pension landscape and measures required to transpose the EU ‘IORP II’ Pensions Directive. Perhaps the most fundamental reform measure contained within this plan will relate to the development of a new automatic enrolment supplementary retirement savings system for employees without pensions coverage. Auto enrolment would see a transition from the current and purely voluntary supplementary pension system to one which will, subject to certain parameters, automatically enrol employees into a quality assured retirement savings system. This reform, where the saver will maintain the freedom of choice to opt-out, will encourage long term saving and asset accumulation amongst those who may otherwise suffer a reduction in living standards at retirement. It will increase the wellbeing, financial security and independence of future retirees.
Following publication of the reform plan, I intend that detailed evidence building and consultation will be undertaken to inform fundamental choices which are required regarding the preferred operational structure and organisational governance for a new system as well as many design elements such as contribution levels, financial incentives and target membership. Correctly positioning / designing each of these will be critical to the success of any system.
Subject to any Government decision regarding the manner in which this project should be progressed, it is my objective that first members would be enrolled in the new system by 2022. This project timeframe reflects the scale of such a programme and its importance as being the most fundamental reform of the Irish supplementary pension system in generations.
I hope this clarifies the matter for the Deputy.
27. Deputy Pat The Cope Gallagher asked the Minister for Employment Affairs and Social Protection her plans to solve the problems and issues surrounding seasonal and part time workers' rights in seasonal employment, in particular the fishing, farming and the hospitality sectors; the timeframe to deal with these issues in view of the fact that these anomalies are causing financial strain on many persons; and if she will make a statement on the matter. [2017/18]
Amharc ar fhreagraIreland has a comprehensive suite of employment rights legislation including measures to prevent exploitation in the workplace. We have a well-resourced labour inspectorate within the Workplace Relations Commission (WRC), which is mandated to secure compliance with employment legislation. In addition, where employees believe that they have been deprived of an employment right, they may refer a complaint to the WRC where the matter can be dealt with by way of mediation or adjudication leading to a decision enforceable through the District Court. On 7th December 2017, I published the Employment (Miscellaneous Provisions) Bill 2017. The Bill delivers on the commitment in the Programme for a Partnership Government to tackle the problems caused by the increased casualisation of work and to strengthen the regulation of precarious work. This is a very important piece of legislation which will improve the security and predictability of working hours for employees on insecure contracts and those working variable hours in all sectors of employment.
It provides for five key issues which will benefit part-time workers as well as seasonal employees:
- Ensuring that employees are better informed about the nature of their employment arrangements and, in particular, their core terms at an early stage of their employment.
- Strengthening the provisions around minimum payments to low-paid, vulnerable employees who may be called in to work for a period but not provided with that work.
- Prohibiting zero hours contracts in most circumstances.
- Ensuring that workers on low hour contracts, who consistently work more hours each week than provided for in their contracts of employment, are entitled to be placed in a band of hours that better reflects the reality of the hours they have worked over an extended period.
- Strengthening the anti-penalisation provisions for employees who try to invoke a right under this Bill.
I am looking forward to working with colleagues on all sides of both Houses of the Oireachtas to progress this Bill as expeditiously as possible over the coming months.
28. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the reason fraud and error surveys are being carried out with older persons in receipt of the non-contributory State pension; and if she will make a statement on the matter. [2060/18]
Amharc ar fhreagraThe Department has a duty to ensure that it pays the right person the right amount of money at the right time. It is important that all schemes operated by the Department, including State Pension (non-contributory), are subject to ongoing control reviews and continuing eligibility checks. This includes conducting fraud and error surveys which serve to reaffirm the entitlement of randomly selected recipients to their ongoing social welfare payments. Fraud and error surveys are an integral part of the Department’s overall approach to control. They provide the Department with an indicator of the risk of non-compliance with scheme rules at a point in time and provide evidence on where control activities should be focused and inform risk assessment models for schemes.
The Comptroller and Auditor General (C&AG) reports annually on the regularity of social welfare payments. These reports are based on the outcome of fraud and error surveys undertaken by the Department. In recent years, the C&AG has made recommendations in relation to the methodologies underpinning the surveys which have been adopted by the Department and the implementation of actions to address control weaknesses identified as a result of surveys. Surveys involve sample cases and sample sizes representative of the specific scheme claim load. Sample sizes vary between 600 and 1,000 cases, depending on the particular characteristics of the scheme being surveyed.
The schedule of surveys forms part of the Department’s overall Compliance and Anti-Fraud Strategy 2014 - 2018. Generally, surveys are focused on schemes that involve large value expenditure. The nature of the scheme, either means or contribution-based, is also considered in selecting schemes to be surveyed.
The survey currently underway is the first such survey of the State Pension (non-contributory) scheme. Field work on this survey is due to be completed within the next few weeks with publication of the report due later in the year. A sample of 1,000 cases is being examined as part of the survey.
I hope this clarifies the matter for the Deputy.
29. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection her views on the discriminatory nature of the eligibility rules for obtaining a State pension (contributory) and its affect in disadvantaging women that in the past chose to take time out of the jobs market in order to raise families. [1910/18]
Amharc ar fhreagra39. Deputy Alan Farrell asked the Minister for Employment Affairs and Social Protection the action being taken to provide pension equality for those that were historically penalised for being stay at home parents; and if she will make a statement on the matter. [1986/18]
Amharc ar fhreagraI propose to take Questions Nos. 29 and 39 together.
There are three main State pensions. First, the State pension non-contributory is a means-tested pension funded from taxation. Second, the State pension contributory, which is not means-tested, is paid from the Social Insurance Fund, and is funded 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.
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.
Finally, last year I instructed my Department officials to undertake an in-depth examination of 2012 changes to the rate bands of the State Pension (contributory), with a view to identifying equitable options for reliefs where a person's PRSI gap resulted from a period of caring for children or older people, or for those with homemaking periods prior to the introduction of the Homemaker’s scheme in 1994. I am pleased to say, that this work has been completed. Later this week I will bring this report to a Cabinet Committee for discussion, with a view to bringing a proposal to Cabinet in the near future.
I hope this clarifies the matter for the Deputies.
