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Tuesday, 6 Feb 2018

Written Answers Nos. 581-599

JobPath Data

Ceisteanna (581)

Brian Stanley

Ceist:

581. Deputy Brian Stanley asked the Minister for Employment Affairs and Social Protection in view of the fact that it was reported that 6,111 persons secured full-time employment in the year July 2015 to June 2016 from the JobPath scheme, the length of time the employment lasted for the 6,111 persons, that is, three, six or nine months or one year. [5483/18]

Amharc ar fhreagra

Freagraí scríofa

JobPath is an employment service designed to support people who are long term unemployed (over one year) to obtain and sustain employment.

The Department published an updated cohort report on the performance of the JobPath strand of the Department's activation services at the beginning of January 2018. The report can be accessed on the Department’s website at the following link.

http://www.welfare.ie/en/downloads/JobPath-Performance-Report2017.pdf

The report detailed employment outcomes on a quarterly cohort basis, i.e. customers referred in Quarter 3 and 4 in 2015 and those referred in Quarter 1 and 2 in 2016.

The data is encouraging as the total employment outcome at the time of publishing was 25%: 18% of Jobseekers who engaged with the service during this period obtained full time employment. In addition, a further 4% of clients entered part time employment and a further 3% became self-employed.

The number of clients, at the time of publishing, to remain in full time employment for 3 months was 4,619. In addition, the total number of clients to sustain 3 months' employment is broken down by quarterly referral cohort within the report. The number of clients to remain in full time employment for 6 months was 3,422. Again this total number is then broken down by quarterly referral cohort within the report.

The JobPath service was launched on a rolling basis with referral numbers increasing over time. The two latter cohorts (Q1 and Q2 2016) make up 80% of the total referrals (80% of the 39,603 jobseekers) between July 2015 and June 2016. Consequently not enough clients have completed their period of engagement with the service to produce robust data in terms of nine and twelve month outcomes. However, the department is undertaking an econometric review of this strand of its services with completion of the review scheduled for Q3 2018, following which more detailed statistics will be available.

The Deputy will be aware that jobseekers may be supported through the service for up to 30 months and as such these statistics are a snapshot at a point in time. The duration of the client journey necessitates the requirement of a cohort-based approach to reporting and the updating of outcome data over time: for example the performance of the latter two cohorts (Q1 and Q2 2016) are expected to improve over time as more jobseekers complete their full engagement period with the service.

In designing the JobPath service the department took steps to ensure the focus would be on sustained employment outcomes, rather than the traditional measurement of such contracts i.e. outcomes based on jobseekers being ‘placed into / starting’ employment. As a result the Department only makes payments for full time employment outcomes that last a minimum of 13 weeks. The department is therefore not reporting on or making payments for any job sustainment outcomes of less than 13 weeks e.g. full time employment of 12 weeks' duration - which will have been beneficial to the Jobseeker.

It should be noted, where a client starts a job but subsequently returns to the live register the client returns to their original individual personal advisor who will continue to work with them to support them in their efforts to obtain further employment.

Of the 39,603 jobseekers referred to the service during the period July 2015 and June 2016, 58% were over three years unemployed and a further 17% were over two years unemployed. These groups face significant barriers when seeking to enter or return to employment in the open labour market.

I trust that this information is of some assistance to the Deputy.

Social Welfare Payments Administration

Ceisteanna (582)

Clare Daly

Ceist:

582. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection the implication of recent court decisions in respect of Seetec and Turas Nua deducting payments from persons in receipt of social welfare payments; and the arrangements in place to refund unlawful deductions and to ensure that the practice ceases. [5484/18]

Amharc ar fhreagra

Freagraí scríofa

The primary goal of the Department’s activation services is to move people from unemployment to full-time and sustained employment. All jobseekers are required to engage with the Department’s activation service and this obligation applies irrespective of whether the service is provided by the Department’s own case officers or those advisors employed by external contractors such as the JobPath providers. Failure to engage without good cause may result in the jobseeker’s payment being reduced or temporarily suspended.

Legislation provides that sanctions/penalties in the form of reduced payments may be imposed by a Deciding Officer employed by my department where recipients of jobseeker payments fail, without good cause, to comply with activation measures. Reduced rates are only applied where a jobseeker fails to engage as requested, and following at least two warnings, with the Department’s employment services.

I want to emphasise that personnel employed by the JobPath providers do not apply or recommend the application of a penalty rate of payment. They simply advise my Department if a jobseeker is failing to attend activation meetings. Officials in my Department will then contact the Jobseeker to arrange a meeting to discuss the matter directly with them.

All decisions on the application of reduced rates of payment can only be made by a Deciding Officer of the Department and are based on all the available evidence and the circumstances of each case.

The legislation underpinning the application of reduced rates of payment is provided for in the Social Welfare Act 2010 and the Jobseeker can appeal the Deciding Officer’s decision through the Social Welfare Appeals Office (SWAO).

The recent court proceedings whereby an individual sought leave for judicial review to challenge decisions taken by my Department were refused by the High Court in the judgment delivered on 26th January 2018. I am happy to advise the Deputy that there are no recent court decisions which have implications for the application of penalty rates by my Department. As I have indicated, the JobPath contractor companies have no decision-making role in the application of penalty rates and there is no basis for the suggestion that my Department is making unlawful deductions from Jobseekers' payments.

I trust this clarifies matters for the Deputy.

JobPath Data

Ceisteanna (583)

Catherine Murphy

Ceist:

583. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection the number of persons on the JobPath scheme who have availed of the training support grant; and if she will make a statement on the matter. [5501/18]

Amharc ar fhreagra

Freagraí scríofa

The Training Support Grant (TSG) previously known as the Technical Employment Support Grant (TESG) is funded by my department. TSG is designed to facilitate quick access to short-term training where this cannot be provided by a state provider within a reasonable time or where an intervention is identified that can support individual jobseekers to access work opportunities.

JobPath participants do not have access to the Training Support Grant while participating on the JobPath service.

Participants on JobPath receive intensive individual support to help overcome barriers to employment and to find jobs. Each person is assigned a personal advisor who assesses their skills, experience, challenges and work goals and agrees a “personal progression plan” that includes a schedule of activities, including relevant training and educational programmes to assist them in finding full-time sustainable employment. There are no barriers to any participants pursuing training, including further education and training courses, provided they are relevant to the agreed personal progression plan.

The JobPath providers arrange for the delivery of a broad range of education and training courses with a particular and strong focus on upskilling the long term unemployed. Both JobPath providers have their own discretionary funds available to pay for these training courses. Some of these courses are provided in-house while others are provided by specialist training providers including the Education and Training Boards (ETBs).

In addition, JobPath participants may also apply for the Back to Education Allowance Scheme in order to pursue second and third level courses.

Back to Work Enterprise Allowance Scheme

Ceisteanna (584)

Anne Rabbitte

Ceist:

584. Deputy Anne Rabbitte asked the Minister for Employment Affairs and Social Protection the reason a person (details supplied) did not qualify for the back-to-work enterprise allowance. [5547/18]

Amharc ar fhreagra

Freagraí scríofa

The person in question was awarded Jobseeker’s Allowance (JA) from 12 September, 2017 and is currently in receipt of this payment. The person in question was in receipt of Carer’s Benefit immediately prior to JA. To qualify for Back to Work Enterprise Allowance (BTWEA) a client is required to have 9 months' continuous entitlement to a primary eligible payment. Time spent on Carer’s Benefit does not count towards the qualifying period for BTWEA. As the person concerned has not been on an eligible payment for 9 months, she does not qualify for BTWEA at this time.

Back to Work Enterprise Allowance Scheme

Ceisteanna (585)

Anne Rabbitte

Ceist:

585. Deputy Anne Rabbitte asked the Minister for Employment Affairs and Social Protection her plans to reduce the qualifying waiting criteria from nine to six months in the case of a person (details supplied) in view of previous contributions; and if she will make a statement on the matter. [5548/18]

Amharc ar fhreagra

Freagraí scríofa

The Back to Work Enterprise Allowance (BTWEA) is designed to provide a monetary incentive for people who are on social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years: 100% in year 1 and 75% in year 2.

In 2016 a review of the BTWEA scheme was conducted. 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.

Budget 2017 introduced a change to the eligibility conditions for the BTWEA. From January 2017, jobseekers taking up self-employment are able to access the BTWEA after 9 months, down from 12 months previously. This change has enabled those wishing to commence self-employment at an earlier stage of their unemployment to access the supports of the BTWEA.

To qualify for BTWEA a client is required to have 9 months' continuous entitlement to a primary eligible payment. As the person concerned has not been on an eligible payment for 9 months, she does not qualify for BTWEA at this time.

There are no plans to reduce the qualifying waiting criteria for BTWEA from nine to six months.

Question No. 586 withdrawn.

Carer's Allowance Delays

Ceisteanna (587)

Jack Chambers

Ceist:

587. Deputy Jack Chambers asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to the fact that new applications for carer's allowance are taking at least 17 weeks to process; her views as to whether this is an acceptable length of time to wait for such an application to be granted; if her attention has been further drawn to the hardship this waiting time is placing on persons who often have no source of income; if the case of a person (details supplied) will be examined; and if she will make a statement on the matter. [5555/18]

Amharc ar fhreagra

Freagraí scríofa

My Department is committed to providing a quality service to all its customers. This includes ensuring that applications are processed and that decisions on entitlement are made as quickly as possible.

Before a decision can be made on entitlement to carer’s allowance, evidence must be provided in respect of the care recipient’s care requirement, the level of care the carer provides and the carer’s means. In general, social welfare schemes with a number of complex qualifying conditions can take longer to process. This is compounded if the documentary evidence provided at initial application stage is incomplete or insufficient; this is often the case with carer’s allowance applications.

At the end of December 2017, the average waiting time for new carer's allowance (CA) applications was 17 weeks with 5,284 CA applications awaiting decision. The volume of CA applications on hands is also a consequence of a continued increased intake of claims with the number of applications for CA in 2017 26% higher than in 2015.

Staff have been re-assigned within the carer’s allowance area to work on claims processing and it is expected that this will improve the processing times for this scheme over the coming weeks.

I confirm that my department received an application for CA from the person concerned on 4 January 2018.

The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.

In the meantime, if the means of the person concerned are insufficient to meet her needs she should apply for a means-tested supplementary welfare allowance from her local community welfare service.

I hope this clarifies the matter for the Deputy.

State Pension (Non-Contributory) Applications

Ceisteanna (588)

Tom Neville

Ceist:

588. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection if a further review will be carried out on a person's (details supplied) application for further backdating of their old age non-contributory pension at the maximum rate. [5580/18]

Amharc ar fhreagra

Freagraí scríofa

The State pension non-contributory claim of the person concerned has been reviewed based on comprehensive information now provided of her farming activities and the verification of her actual income from farming over the past three years. While acknowledging that the pattern of her farming activity has changed, the documentation examined and the inspector’s interview with the person concerned indicate a level of weekly means in excess of what had been previously advised and assessed.

The deciding officer will now adjust the level of State pension non-contributory payable to the person concerned from a current date and the customer will be advised accordingly. While this adjustment will initially result in a small refund of pension (reflecting fluctuations in the person’s assessed income through the 2017 tax year), the customer’s overall level of weekly State pension will reduce having regard to her increased means. The customer will also be advised of her right to appeal this decision if she is unhappy with the outcome.

I hope this clarifies the matter for the Deputy.

Domiciliary Care Allowance Applications

Ceisteanna (589)

Tom Neville

Ceist:

589. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection if the circumstances in the case of a person (details supplied) will be examined. [5600/18]

Amharc ar fhreagra

Freagraí scríofa

An application for domiciliary care allowance was received from this lady on the 4th October 2017. This application satisfied the qualifying conditions for the allowance and a letter issued on the 14th December 2017 advising of the decision to award the allowance from 1 November 2017, the month following receipt of the application, as per the relevant legislation.

In order for backdating to be considered, it is required that good cause for the delay in submitting the application is shown. Where good cause is demonstrated, the application can be backdated by a maximum of 6 months.

A request for backdating was received in the Department from this lady on 19 December 2017. This request will be considered by a Deciding Officer and the decision notified as soon as possible.

Illness Benefit Waiting Times

Ceisteanna (590)

Tom Neville

Ceist:

590. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection her plans to review the waiting period of six days for illness benefit; the estimated day-by-day reduction costs; and if she will make a statement on the matter. [5601/18]

Amharc ar fhreagra

Freagraí scríofa

Illness benefit is a short term payment made to insured people who are unable to work due to illness. The payment is funded by the Social Insurance Fund (SIF) through the payment of PRSI contributions by workers and employers.

Normally, payment of illness benefit begins from the seventh day of the illness; no payment is made for the first six days, known as “waiting days”. Waiting days have been a long standing feature of social insurance schemes and are a feature of similar social security schemes in many other countries.

The SIF operates on a “pay as you go” basis, with the Exchequer acting as residual financier of the fund when there is a shortfall between contributions received and benefits paid. The fund is central to Ireland’s system of social protection and there is a fundamental requirement that it should be protected for current and future generations. In order to ensure the sustainability of the Fund, the number of waiting days was increased in 2014 from three to six. This increase in waiting days was a relatively modest adjustment and many employees still receive their salaries when out sick where their employers have occupational sick pay arrangements in place. Furthermore, people who need financial support are not left without such support during waiting days. A person who has no other income may claim supplementary welfare allowance in respect of the days in question.

I have no plans at present to change the number of waiting days for illness benefit. Such a measure would have budgetary implications and would need to be taken into consideration in the context of overall budgetary decisions. When the measure was introduced in 2014, the then projected full-year annual savings of extending the number of “waiting days” for Illness Benefit from three to six days was €22 million, from three to five days €15 million and from 3 to 4 days just under €8 million.

I hope this clarifies the matter for the Deputy.

Citizens Information Services Funding

Ceisteanna (591)

John Curran

Ceist:

591. Deputy John Curran asked the Minister for Employment Affairs and Social Protection the amount provided to the CIB in 2017 and 2018 to fund MABS and CIS; and if she will make a statement on the matter. [5713/18]

Amharc ar fhreagra

Freagraí scríofa

The Citizens Information Board (CIB) is a statutory body established by the Oireachtas. In addition to its own statutory responsibilities in relation to information and advocacy service provision, it has statutory responsibility for the countrywide networks of Citizens Information Services (CIS) and the Money Advice and Budgeting Service (MABS).

It delivers on its remit to provide services to the public by supporting a network of delivery partners, which includes local Citizens Information Services (CIS) and local Money Advice and Budgeting Services (MABS).

In 2017 CIB was allocated State funding of €54 million to fund its activities and that of its service delivery partners. Of this, €24.6m was allocated to MABS (including €15.4 million to the local MABS services, €0.3m to National Traveller MABS, €2.0m to MABS National Development Ltd., €3.5m for the Abhaile suite of services provided for borrowers in home mortgage arrears, €3.3m for the Dedicated Mortgage Arrears service, and the remaining €0.1m to MABS central supports).

An allocation of €15m was made to the Citizens Information Services (CIS) network which included €13.1m allocated to local services, €1.2m allocated to the Citizens Information Phone Service and € 0.7m allocated to CIS central supports.

In 2018 CIB has been allocated €57.4 million. Of this, €23.8m is allocated to MABS (including €15.5 million to local MABS services, €0.3m to National Traveller MABS, €2.3m to MABS National Development Ltd., €3.5m for the Abhaile suite of services for borrowers in home mortgage arrears, €2.0 m for Dedicated Mortgage Arrears service and the remaining €0.2m to MABS central supports).

An allocation of €15.7m was made to the Citizens Information Services (CIS) network which includes €13.3m allocated to local services, €1.3m is allocated to the Citizens Information Phone Service, and €1.1m allocated to CIS central supports.

I hope this clarifies the matter for the Deputy.

Money Advice and Budgeting Service Funding

Ceisteanna (592)

John Curran

Ceist:

592. Deputy John Curran asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 20 of 17 January 2018, her plans to ensure that the MABS national management forum continues to be recognised and funded during this restructuring process; and if she will make a statement on the matter. [5714/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, the Citizens Information Board (CIB) is a statutory body established by the Oireachtas. In addition to its own statutory responsibilities in relation to information and advocacy service provision, it has statutory responsibility for the countrywide networks of Citizens Information Services (CIS) and the Money Advice and Budgeting Service (MABS).

In February 2017, the Board of CIB decided to change its governance arrangements from ninety three individual service delivery companies to an eight region model. The new model will comprise sixteen new regional companies, with one CIS and one MABS company in each of the eight regions.

MABS National Management Forum (NMF) was established as a representative body for the 51 local MABS management companies. It represents the interests of the boards of local MABS companies, as employers. MABS NMF has not recognised the union of MABS staff and there are no agreed collective bargaining arrangements in place.

An annual funding allocation (of circa €14,000) was made available by CIB to MABS NMF to cover expenses such as travel and subsistence, incurred in its day to day activities. CIB notified MABS NMF on 18 January 2018 of its decision to cease direct funding. Instead, CIB intends to deal directly with individual MABS companies on restructuring and with the new MABS regional companies once they are established.

As the restructuring process progresses, all CIS and MABS services will be requested to commence gathering the information required to facilitate what is known as the Transfer of Undertakings (Protection of Employees) (TUPE) process for employees and the transfer of business assets/liabilities. Information sessions have been organised for Chairpersons of local services, providing opportunities for Chairpersons to seek clarifications on the process of transfer to the new regional companies and wind up of the existing companies. Individual MABS companies engaging with the TUPE process are, and will continue to be, supported by CIB. On establishment, CIB will support the eight new MABS regional companies to promptly put in place an Employer/Union Forum.

Expenses, such as travel and subsistence, incurred by local MABS company representatives on the NMF, pending the establishment of the new regional management structure, can be claimed from their relevant local company.

I hope this clarifies the matter for the Deputy.

Parental Leave

Ceisteanna (593)

Denise Mitchell

Ceist:

593. Deputy Denise Mitchell asked the Minister for Employment Affairs and Social Protection the estimated cost of providing an additional 12 weeks of paid maternity leave and an additional 12 weeks of paid paternity leave. [5741/18]

Amharc ar fhreagra

Freagraí scríofa

Maternity benefit and paternity benefit are paid by my Department and are based on payment of PRSI contributions while working. The current entitlement to paid maternity leave is 26 weeks and the current entitlement to paid paternity leave is 2 weeks. The 2018 Estimates for my Department provide for expenditure of approximately €264 million on maternity benefit and €16 million on paternity benefit.

The estimated cost of providing an additional 12 weeks of paid maternity leave is approximately €115 million and an additional 12 weeks of paid paternity leave is approximately €62 million. These estimates are based on the cost for a full year and assume that any increase in duration is implemented from the beginning of the year.

It should also be noted that these costs are based on the new rate of €240 per week for both maternity and paternity benefit as provided for in Budget 2018 (up from €235) from 26 March 2018.

This costing is subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018. It should also be noted that there are additional costs to the Exchequer as these estimates do not include the costs of salary top-ups for public/civil servants.

Labour Activation Programmes

Ceisteanna (594)

Richard Boyd Barrett

Ceist:

594. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection if a company engaged in employing a person through JobBridge, JobPath, community employment, Tús or a similar scheme is vetted to ensure it complies with employment and health and safety law; and if she will make a statement on the matter. [5748/18]

Amharc ar fhreagra

Freagraí scríofa

The JobBridge Scheme closed in 2016.

JobPath is provided for long term unemployed jobseekers only; Jobseekers remain with the JobPath service for 52 weeks and if they are successful in finding work in that time, the JobPath service will provide in-work support for at least the first 13 weeks. While compliance with employment law is a matter for the employer, the JobPath customer can discuss any issues which might arise in the employment with their JobPath personal advisor.

Community Employment (CE) sponsoring organisations, as the legal employers of CE participants, are responsible for ensuring that all relevant health and safety requirements under the Safety, Health and Welfare Act 2005, and any subsequent enactments, are adhered to. Non-compliance with this legislation may be deemed non-compliance with the CE Agreement.

The implementation of TÚS is managed at a local level by local development companies and Údarás na Gaeltachta (implementing bodies), a total of 53 companies. The implementing bodies are responsible for all matters relating to employment and are recognised as the employer in all cases. They are responsible for indemnifications, supervision, discipline and ensuring that all relevant health & safety requirements are implemented and appropriate protective clothing and training is provided. Implementing bodies work with independent community sector organisations to identify work opportunities and develop work plans.

The Health and Safety Authority is the statutory body with responsibility for ensuring that workers and those affected by work activities are protected from work-related injury and ill-health.

As the participant is employed by the Sponsor and not this Department, they should in the first instance approach their Sponsor if they experience any issues relating to their scheme.

Sponsoring Organisations and implementing bodies are responsible for ensuring that all relevant health and safety requirements are adhered to. Non-compliance with this legislation may be deemed non-compliance with the CE or TÚS Agreement.

If the Deputy wishes to submit specific details of any particular case, I will have the position examined.

Labour Activation Programmes

Ceisteanna (595)

Richard Boyd Barrett

Ceist:

595. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection if a service user engaged in JobBridge, JobPath, community employment, Tús or a similar scheme leaves the scheme early due to non-compliance with employment law and-or the conditions of the scheme, the provisions that are made for this situation in the way in which the person is dealt with by her Department; and if she will make a statement on the matter. [5749/18]

Amharc ar fhreagra

Freagraí scríofa

The JobBridge Scheme closed in 2016.

JobPath is provided for long term unemployed jobseekers only; Jobseekers remain with the JobPath service for 52 weeks and if they are successful in finding work in that time, the JobPath service will provide in-work support for at least the first 13 weeks. While compliance with employment law is a matter for the employer, the JobPath customer can discuss any issues which might arise in the employment with their JobPath personal advisor.

Employers are responsible for ensuring that all relevant employment law requirements are adhered to. Non-compliance with this legislation may be deemed non-compliance with any agreement entered into by the department and the employer concerned.

My Department takes very seriously any allegations of failure to comply with the conditions of Community Employment (CE) and TÚS and investigates all complaints of which it is notified. My Department’s own control measures with respect to CE and TÚS are based on a combination of random monitoring visits/inspections of Sponsors and placement providers and the investigation of any complaints received.

As the participant is employed by the Sponsor or placement provider and not this Department, they should in the first instance approach their employer if they experience any issues relating to their scheme.

If the Deputy wishes to submit specific details of any particular case, I will have the position examined.

Departmental Staff Data

Ceisteanna (596)

Clare Daly

Ceist:

596. Deputy Clare Daly asked the Minister for Employment Affairs and Social Protection the number of secondees from companies (details supplied) that are working in her Department. [5834/18]

Amharc ar fhreagra

Freagraí scríofa

There are no secondees from these companies working in my Department.

State Pensions

Ceisteanna (597)

Brendan Ryan

Ceist:

597. Deputy Brendan Ryan asked the Minister for Employment Affairs and Social Protection the differences that exist between long-term unemployment and long-term disability payments in respect of opting for credits to count towards a person's State pension; and if she will make a statement on the matter. [5846/18]

Amharc ar fhreagra

Freagraí scríofa

The purpose of credited contributions or “credits” is to protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where they are not in a position to pay PRSI, such as for periods of unemployment or illness. Therefore in general credits can only be awarded where an individual has had a recent attachment to the workforce i.e. within the last 2 years.

In isolation, credits do not give entitlement to social insurance benefits. In combination with paid PRSI contributions, credits can assist employees qualifying for short-term schemes such as jobseeker’s benefit. Credits may also enhance the level of benefit for long-term schemes such as the level of payment of State pension contributory (SPC), but only where the individual has already met the condition relating to the minimum number of paid contributions.

To qualify for credits an individual must satisfy entitlement to the credits scheme. Once an individual has established entitlement to credits either through long-term unemployment or long-term disability the credit has the same value for both payment types.

State Pensions Reform

Ceisteanna (598)

Willie O'Dea

Ceist:

598. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection her plans to put in place protection for persons due to retire in the period 2020-30 to ensure they are not financially disadvantaged and do not receive a reduced rate of pension when the total contributions approach replaces the yearly average approach for entitlement to a contributory pension in 2020; and if she will make a statement on the matter. [5858/18]

Amharc ar fhreagra

Freagraí scríofa

A policy to introduce the Total Contributions Approach (TCA) to pensions calculation was first adopted by Government in the National Pensions Framework in 2010, as was the decision to assess all new pensioners under this approach from around 2020.

The Government at that time was aware that there would be some people who would benefit, and some people who would have a lower rate of entitlement as a result of TCA, but the rates of payment would be on a more equitable basis than under the existing system, and the anomalies inherent in the Yearly Average system would be removed. Under the TCA model proposed, people with 20 years of paid contributions (over a period of up to 50 years) could generally expect a full pension, if they also had 10 years of credited contributions (including Homemaker credits for periods from 1994), and this combined with the safety net of the State pension (non-contributory) was considered to be a fair balance in an important reform of the State pension (contributory). This has remained the policy of successive Governments since then.

Later this year, my department will engage in a public consultation regarding the final model that will be in place from 2020. This consultation will be a key input to the design of the final structure of the TCA model to be submitted to Government later this year. It will include proposals for the number of years required for a maximum rate of pension, and the treatment of credited contributions and homecaring periods. Subsequent to Government decision, it is intended that legislation be introduced to the Oireachtas.

People who have a lower State pension (contributory) entitlement can apply for and may qualify for a higher State pension (non-contributory) of up to 95% of the maximum contributory rate. This is a means-tested payment, but over 70% qualify at the maximum rate due to generous income disregards. This option will remain in place following 2020.

I hope this clarifies the matter for the Deputy.

One-Parent Family Payment Payments

Ceisteanna (599)

Willie O'Dea

Ceist:

599. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the way in which and when she plans to unwind cuts made to lone parents' payments during the recession as reported recently; and if she will make a statement on the matter. [5860/18]

Amharc ar fhreagra

Freagraí scríofa

Since taking up my role as Minister for Employment Affairs and Social Protection last year, I have made it clear that my priorities include working families, and in particular, lone parents.

In Budget 2018, I continued to improve the situation for lone parents through an increase to the income disregard of the One-Parent Family Payment (OFP) and the Jobseeker’s Transitional Payment (JST) from €110 a week to €130 a week; an increase of €5 to the primary rate; and a €2 increase in the Increase for a Qualified Child (IQC) rate. These positive measures will see a lone parent on the OFP or JST, who is working 15 hours a week on the National Minimum Wage, better off by nearly €1,000 per year. These Budget measures will take effect from 29 March 2018.

My Department’s social impact assessments of Budgets 2015, 2016, 2017 and 2018 are an indicator of these improvements. These show a cumulative increase of €36.75 in the average weekly household income of employed lone parents (and €33.60 for unemployed lone parents). This compares favourably with a weekly increase of €34.45 for the average household.

I am confident that Budget 2018 will improve the financial situation of lone parents and I intend to continue to prioritise supports for lone parents as budgetary provisions allow into the future. I believe this should be done in particular through provisions which incentivise work over welfare, and assist lone parents to enhance their skills and consequently their opportunities. I believe that employment has the potential not only to boost incomes and thus to help lift lone parents out of poverty, but also to achieve other social benefits for lone parents and their children.

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