Written Answers Nos. 547-571
547. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection her plans to increase the heat supplementary welfare allowance on a temporary basis in view of an extreme cold weather event; if a more flexible scheme to provide a heat supplementary welfare allowance has been considered; and if she will make a statement on the matter. [10877/18]
Amharc ar fhreagraThe Deputy will be aware that in view of the severity of the weather in recent days, I have announced that all people in receipt of the fuel allowance will receive an extra payment of €22.50. The fuel allowance is a payment payable at €22.50 per week for 27 weeks (a total of €607.50) from October to April, to over 365,000 low income households. I believe that increasing this allowance is the fairest and best way of ensuring that those in most need will receive this additional support.
In addition to the fuel allowance my Department can provide supports under the supplementary welfare allowance (SWA) scheme which includes a heating supplement. This supplement may be paid to a person who lives alone or only with a qualified adult or child(ren) and who has exceptional heating needs due to ill health or infirmity. There is no standard rate for a heating supplement and each payment is awarded taking into account the individual circumstances of the case, therefore providing for flexibility in its administration. There are currently 1,500 recipients of this payment.
Any persons in receipt of a heating supplement who are unable to meet their fuel costs as a result of this cold weather should contact my Department’s Community Welfare Service at their local Intreo centre for assistance.
I trust this clarifies the matter for the Deputy.
548. Deputy Pat Deering asked the Minister for Employment Affairs and Social Protection when a person (details supplied) can expect a decision regarding their survivor's pension appeal. [10888/18]
Amharc ar fhreagraThe Social Welfare Appeals Office has advised me that an appeal by the person concerned has been referred to an Appeals Officer who will consider the appeal in light of all the evidence submitted. It is expected that a decision will issue to the person concerned within the next week.
The Social Welfare Appeals Office functions independently of the Minister for Employment Affairs and Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
I trust this clarifies the matter for the Deputy.
549. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the number of active defined benefit pension schemes and members in each of the years since 2010 and to date in 2018. [10895/18]
Amharc ar fhreagraTables 1 and 2 set out the number of defined benefit (DB) pension schemes and members from 2010 to the end of 2017. DB scheme data is issued on an end of year basis so it is not possible to provide figures for 2018.
Table 1 – DB schemes and members subject to the funding standard
|
Year |
Total number of schemes |
Frozen schemes |
Schemes in wind-up |
Number of active members |
|
2010 |
1,013 |
85 |
- |
222,072 |
|
2011 |
993 |
115 |
20 |
197,177 |
|
2012 |
933 |
121 |
57 |
189,644 |
|
2013 |
890 |
139 |
86 |
178,619 |
|
2014 |
778 |
164 |
58 |
139,877 |
|
2015 |
715 |
189 |
44 |
125,995 |
|
2016 |
677 |
212 |
32 |
111,535 |
|
2017 |
640 |
194 |
41 |
105,414 |
Table 2 – DB schemes not subject to the funding standard
|
Year |
Number of schemes |
Frozen schemes |
Schemes in wind-up |
Number of active members |
|
2010 |
95 |
0 |
0 |
328,157 |
|
2011 |
105 |
0 |
0 |
335,551 |
|
2012 |
107 |
0 |
0 |
338,037 |
|
2013 |
108 |
0 |
0 |
328,435 |
|
2014 |
108 |
0 |
0 |
329,889 |
|
2015 |
99 |
0 |
0 |
339,155 |
|
2016 |
101 |
0 |
0 |
360,073 |
|
2017 |
98 |
0 |
0 |
351,806 |
I hope this clarifies the matter for the Deputy.
550. Deputy John Brady asked the Minister for Employment Affairs and Social Protection her views on the moves from defined benefit to defined contribution pension schemes by companies in which the pension pot is in surplus; and if she will make a statement on the matter. [10896/18]
Amharc ar fhreagra613. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the reason the issue of defined benefit schemes in surplus being closed down as has been occurring in recent years was not examined in the Roadmap for Pensions Reform; and if she will make a statement on the matter. [11676/18]
Amharc ar fhreagraI propose to take Questions Nos. 550 and 613 together.
The Roadmap for Pensions Reform details specific measures that will modernise our pension system. It sets out under Strand 4, ‘Measures to Support the Operation of Defined Benefit Schemes’, that the Government is committed to advancing the Social Welfare, Pensions and Civil Registration Bill 2017 to respond to the ongoing difficulties in DB schemes and to increase protections for members as well encouraging employers to ensure that schemes are well funded and managed.
As the Deputy is aware, the General Scheme of the Social Welfare and Pensions Bill 2017 (now the Social Welfare, Pensions and Civil Registration Bill 2017), was published in May 2017 and contained a number of key measures relating to DB pension schemes. These proposed provisions will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting. They seek a middle road between the current position where employers can abandon DB schemes and full and immediate debt on employer provisions. The measures will act to support existing provisions in the Pensions Act and will provide for further protection for scheme members’ benefits and enhance employer responsibilities for their schemes.
These provisions are quite technical and complex. Work to finalise them is at an advanced stage and I hope to be in position to bring forward the amendments at Committee Stage in the near future.
I hope this clarifies the matter for the Deputy.
551. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection her views on a matter (details supplied) regarding the free travel pass; and if she will make a statement on the matter. [10910/18]
Amharc ar fhreagraThe current free travel scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 80 private transport operators. There are currently approx. 904,000 customers with direct eligibility with an annual allocation of €90 million.
The scheme is available to all people aged over 66 living permanently in the State. To qualify for the scheme, applicants who are under age 66 must be in receipt of a qualifying payment. These are invalidity pension, blind pension, disability allowance, carer’s allowance or an equivalent social security payment from a country covered by EC Regulations or one with which Ireland has a Bilateral Social Security Agreement.
There are no plans at this time to allow people in receipt of carers allowance to receive a companion free travel pass. Any such expansion would have significant budgetary implications, particularly if it was a general, rather than a targeted provision.
Under the supplementary welfare allowance scheme (SWA) the Department of Social Protection may award a travel supplement in any case where the circumstances of the case so warrant. The supplement is intended to assist with ongoing or recurring travel costs that cannot be met from the client’s own resources and are deemed to be necessary. Every decision is based on consideration of the circumstances of the case, taking account of the nature and extent of the need and of the resources of the person concerned.
I hope this clarifies the matter for the Deputy.
552. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the timeframe for changes to the social welfare system which would allow self-employed persons to apply for an invalidity or disability payment; and if she will make a statement on the matter. [10923/18]
Amharc ar fhreagraSelf-employed workers who earn €5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory) and widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit, paternity benefit, treatment benefit (from March 2017) and invalidity pension, which was extended to the self-employed from December 2017.
This compares favourably with employees who, in general, are liable to the Class A rate of 4%. In addition their employers are liable to PRSI at the rate of 8.6% on weekly earnings up to and including €376 or at the rate of 10.85% where weekly earnings exceed €376. Accordingly the combined rate of PRSI rate paid in respect of Class A employees is 12.6% or 14.85%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.
The issue of extending additional social insurance benefits to the self-employed paying Class S PRSI was considered in the Actuarial Review of the Social Insurance fund (SIF) as at 31 December, 2015, which was published on the 18th October 2017. The review, required by legislation, was carried out by independent consultants, KPMG. It examines the projected income and expenditure of the SIF over the course of the 55 year period from 2016 to 2071.
The review found that the fund currently has a modest surplus of income over expenditure. In 2016 there was a surplus of €0.4 billion on expenditure of €8.8 billion and receipts of €9.2 billion. However, this will reduce over the next two years and will return to a small shortfall in 2020. The annual shortfalls are projected to increase from 2021 onwards as the ageing of the population impacts. Projections indicate that, in the absence of further action to tackle the shortfall, the excess of expenditure over income of the fund will increase significantly over the medium to long term. The shortfall in expenditure over income is projected to increase from €0.2 billion in 2020 to €3.3 billion by 2030 and to €22.2 billion by 2071. It should be noted that as self-employed workers are now eligible to apply for invalidity pension since December 2017, the cost of this introduction has been factored into the actuarial review.
As part of the review the independent consultants were required to project the additional PRSI expenditure if invalidity pension and illness, jobseeker’s and carer’s benefits were extended to Class S self-employed workers and the PRSI contribution rates required to provide these benefits on a revenue neutral basis.
The review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for Class S contributions is estimated to be €118 million in 2018, rising steadily to €223 million in 2020. By 2025 the projected cost is €413 million and, over the period of the review the cost would rise to €1.3 billion in 2071. These costs assume that the cost of extending invalidity pension to the self-employed builds up steeply for the first 10 years after introduction after which time the scheme is almost at maturity or a steady state.
For the shorter term schemes, illness and jobseeker’s benefits, it is estimated that they will reach maturity after 2 years. Projected expenditure on jobseeker’s benefit assume the same incidence rate as prevail in the employed (PRSI Class A) population.
The review indicates that, where these benefits are extended to the self-employed, the Class S rate of PRSI contribution would need to increase substantially in order to ensure that the benefits are delivered in a revenue neutral manner. It estimates that when expenditure on the additional benefits is considered over the entire projection period, PRSI rates would need to increase by 94% under a scenario of no subvention from the exchequer. This is equivalent to an increase of the Class S contribution rate from the current 4% rate to 7.8%.
This increased contribution is attributable to the costs of extending these additional benefits to PRSI Class S contributors. It does not take account of the value to PRSI Class S contributors of access to the range of existing benefits, and in particular state pension contributory.
The consultants estimated that the typical cost of state pension (contributory) on its own is of the order of 10% to 15%, depending on other factors including rate of average earnings and date of commencing paying PRSI. Adding in the other benefits referenced the total Class S rate of contribution to ensure revenue neutrality would be of the order of 20% per annum.
The projections provided in the 2015 actuarial review are based on the system of social insurance, currently in legislation.
Extending any benefits would have financial implications for the cost of paying social insurance benefits. Such an extension would have to be considered in a Budgetary context of additional costs and how such costs could be met.
I hope this clarifies the matter for you.
553. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection her views on a matter (details supplied) regarding carer's allowance; and if she will make a statement on the matter. [10926/18]
Amharc ar fhreagraThe details supplied raise the question as to whether “one and a half times carers allowance be available if both parents cannot work or have to drastically scale back work to take care of a child”.
Carer's allowance is a means tested social assistance payment, made to persons who are providing full time care and attention to a person requiring such care. The carer may work or engage in training for a maximum of 15 hours per week and still be regarded as providing full-time care and attention.
Only one carer's allowance is payable in respect of any one caring situation, however two carers who are sharing care in an established pattern can be accommodated on the carer's allowance scheme. All the usual qualifying conditions for carer's allowance apply to carers availing of these arrangements. Each carer may share the carer's allowance income support payment and the annual carer’s support grant. A carer providing full time care on a part time basis is required under legislation to provide care for a complete week i.e. Monday to Sunday.
Other financial assistance may be available to the family. Domiciliary Care Allowance (DCA) is a monthly payment for a child aged under 16 with a severe disability, who requires ongoing care and attention, substantially over and above the care and attention usually required by a child of the same age. It is not means tested. The family may also claim a non means tested Carer's Support Grant, which is paid each year during the month of June.
I have no plans to change the current care sharing arrangements which would have to be considered in a budgetary context.
I hope that this clarifies the position for the Deputy.
554. Deputy Fergus O'Dowd asked the Minister for Employment Affairs and Social Protection her views on agency staff in large corporations being overlooked or unable to apply for permanent positions within the same company; her plans to address the matter; and if she will make a statement on the matter. [10936/18]
Amharc ar fhreagraThe Protection of Employees (Temporary Agency Work) Act 2012 applies the principle of equal treatment in terms of basic working and employment conditions for agency workers in the same way as applies to employees recruited directly by the hirer (provider of agency work) to do the same or similar work.
Section 11 of the Act provides for access to employment by hirer.
“A hirer shall, when informing his or her employees of any vacant position of employment with the hirer, also inform any agency worker for the time being assigned to work for the hirer of that vacant position for the purpose of enabling the agency worker to apply for that position.”
Schedule 2 of the Act outlines the redress provisions for certain contraventions of the Act including breaches of Section 11.
If an agency worker believes they are not receiving equal treatment in relation to their basic working and employment conditions, they should firstly raise the issue with the employment agency. If this does not resolve the matter, the agency worker may pursue a case to the Workplace Relations Commission. This is done by an online form. The case may go to mediation or adjudication. If the Adjudication Officer (or the Labour Court on appeal) finds in favour of the agency worker, the redress awarded is enforceable in the District Court.
The Workplace Relations Commission Customer Service provides information to employees and employers. It can be contacted at Locall 1890 80 80 90 or www.workplacerelations.ie.
555. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when an application by a person (details supplied) will be processed; and if she will make a statement on the matter. [10957/18]
Amharc ar fhreagraInvalidity pension (IP) is a payment for people who are permanently incapable of work because of illness or incapacity and who satisfy the pay related social insurance (PRSI) contribution conditions.
The department received a claim for IP for the lady concerned on the 29 November 2017. Medical eligibility has been assessed and she satisfies the medical conditions for the scheme. However the application form was unsigned and the deciding officer has requested a signed declaration in order to process her claim. Upon receipt of same, the IP claim will be finalised and she will be notified directly of the outcome.
I hope this clarifies the matter for the Deputy.
556. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection the status of an application by a person (details supplied); and if she will make a statement on the matter. [10958/18]
Amharc ar fhreagraAn application for Domiciliary Care Allowance (DCA) was received from this lady on the 1st February 2018. Applications received in early January 2018 are currently being finalised. The application will be considered by a deciding officer and the decision notified as soon as possible.
I hope this clarifies the matter for the Deputy.
557. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when an application by a person (details supplied) will be processed; and if she will make a statement on the matter. [11002/18]
Amharc ar fhreagraAn application for carer's allowance (CA) was received from the person concerned on 29 September 2017.
It is a condition for receipt of CA that the person concerned must be providing full-time care and attention.
The evidence submitted in support of this application was examined and the deciding officer decided that this evidence did not indicate that this condition was satisfied. The person concerned was notified on 18 January 2018 of this decision, the reason for it and of her right of review and appeal.
A review of this decision was requested on 23 January 2018. As part of that review, further information was requested from the person concerned on 6 March 2018. Once this information is received the review will be progressed further and the person concerned will be notified directly of the outcome.
I hope this clarifies the matter for the Deputy.
558. Deputy Pat Breen asked the Minister for Employment Affairs and Social Protection when an application by a person (details supplied) will be processed; and if she will make a statement on the matter. [11039/18]
Amharc ar fhreagraThe person concerned has been awarded disability allowance with effect from 20 December 2017. The first payment will be made by his chosen payment method on 28 March 2018.
Arrears of payment due will issue as soon as possible once any necessary adjustment is calculated and applied in respect of any overlapping payments (if applicable).
I trust this clarifies the matter for the Deputy.
559. Deputy Brendan Ryan asked the Minister for Employment Affairs and Social Protection the section of legislation which requires persons in receipt of the State pension (contributory) to provide bank statements and supporting documentation for dependants as part of a means test; and if she will make a statement on the matter. [11051/18]
Amharc ar fhreagraThe State Pension (Contributory) is paid to people from the age of 66 who have paid sufficient social insurance (PRSI) contributions. It is not a means-tested payment.
Under Section 112 of the Social Welfare Consolidation Act 2005 (as amended), a person receiving State Pension (Contributory) may get an increase for an adult dependant (called a qualified adult). Section 2 (2) of the same Act sets out the definition of a qualified adult as “a spouse, civil partner, or cohabitant of that person who is wholly or mainly maintained by that person.…“ and also provides a number of limitations and clarifications of this definition. Further clarification of the definition of a qualified adult is contained in Articles 6 and 7 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations, 2007, and amending regulations. This specifies that, in order to be regarded as a qualified adult, the spouse, civil partner or cohabitant must have a weekly income below a specified income limit. This limit is currently set at €100 per week for the maximum rate of payment, with tapered rates where the qualified adult has income above this level. To qualify for the increase for a qualified adult, the customer must provide sufficient evidence to prove that s/he is wholly or mainly maintaining the spouse, or partner or co-habitant, as well as evidence of the spouse, partner or cohabitant’s income.
Article 181 (1) of the Social Welfare (Consolidated Claims, Payments and Control) Regulations, 2007 (Statutory Instrument No 142 of 2007) states that “every claimant shall furnish such certificates, documents, information and evidence as may be required by an officer of the Minister for the purposes of deciding the claim and in any particular class of case, shall, for the purposes of making any such claim, attend at such office or place as an officer of the Minister may direct.”
I hope this clarifies the matter for the Deputy.
560. Deputy Jack Chambers asked the Minister for Employment Affairs and Social Protection if there are subsidised courses or workshops for spouses of self-employed persons who are not working or receiving unemployment benefits; and if she will make a statement on the matter. [11052/18]
Amharc ar fhreagraThe Back to Education Allowance (BTEA) is a scheme that allows persons in receipt of long-term social welfare payments the opportunity to pursue a course of study, while still maintaining their income support, subject to satisfying a number of conditions. These conditions include age and being in receipt of a qualifying social welfare payment for a specific period of time.
The student support grant payable by the Department of Education and Skills and administered by Student Universal Support Ireland (SUSI) represents the primary support for persons pursuing education in Ireland. The Department of Social Protection does not offer specific supports for students pursuing qualifications outside of the BTEA.
For those that don’t qualify for a social welfare payment the Springboard Initiative administered by the Higher Educational Authority provides free courses. Springboard may be of interest to anyone considering taking up further education and training to improve their employment prospects.
Other options may include courses administered through Solas and the Education Training Boards (ETBs) which fall under the aegis of my colleague, the Minister for Education and Skills.
561. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection when a decision on a disability allowance application by a person (details supplied) will be made; and if she will make a statement on the matter. [11056/18]
Amharc ar fhreagraI can confirm that my department received an application for disability allowance (DA) from this lady on 22 December 2017.
On 6 March 2018 the person concerned was requested to supply supporting documentation required by the deciding officer in order to make a decision on her eligibility. On receipt of this information a decision will be made on her DA application and the person concerned will be notified of the outcome.
I trust this clarifies the matter for the Deputy.
562. Deputy Noel Rock asked the Minister for Employment Affairs and Social Protection her plans to review the policy on the amount of information required from a non-Irish citizen who applies for child benefit; and if she will make a statement on the matter. [11071/18]
Amharc ar fhreagraThe Department has no plans to review the policy in relation to the amount of information required from any child benefit applicants. Payment of child benefit may be made to both Irish and non-Irish citizens that meet the qualifying criteria. Entitlement to benefit and the rate of payment is subject to national and European legislation. The Department is always careful to restrict the amount of information requested to that which is necessary to determine eligibility. As a result, any information requested from a customer is required by a deciding officer to enable them make a decision on the claim.
I trust this clarifies the matter for the Deputy.
563. Deputy Noel Rock asked the Minister for Employment Affairs and Social Protection her plans to review the policy on child benefit payments that prevents a father applying for child benefit payments; and if she will make a statement on the matter. [11072/18]
Amharc ar fhreagraChild Benefit is a universal monthly payment made to families with children in respect of all qualified children up to the age of 16 years (and up to their 18th birthday if the child is in full-time education, or has a disability). Currently, Child Benefit is paid to 628,788 families in respect of some 1.2 million children, with an estimated expenditure of over €2 billion in 2018.
The needs of the children are the priority consideration in the payment of Child Benefit. Under Section 220 of the Social Welfare Consolidation Act, 2005, Child Benefit is payable to the person with whom a qualified child normally resides. Regulations governing normal residence for Child Benefit purposes are contained in S.I. 142/2007 (Article 159) and they provide inter alia for the following:
(1) In the event that a qualified child is resident with both mother and father, he or she will be regarded as normally residing with the mother (or step-mother);
(2) If mother and father are resident in separate households, the qualified child shall be regarded as normally residing with the person with whom he or she resides for the majority of the time.
The rules of the scheme do not preclude payment to the father, and if a child is living the majority of the time the father only, then Child Benefit will be payable to the father.
Legislation was first introduced in 1974 to provide for payment to the mother. This was seen as a progressive step at the time. Nonetheless, I am aware of the need to keep this approach under review in the light of significant social changes and changing family formation. The Department regularly reviews all of its schemes, including Child Benefit, in order to ensure that they are still delivering on their policy aims and objectives.
564. Deputy Pat Buckley asked the Minister for Employment Affairs and Social Protection her plans to make it compulsory to have a public services card in order to access a range of services; the rationale for this; and the work being done to ensure that persons that do not have a public services card can still access the services they need. [11076/18]
Amharc ar fhreagraThe purpose of SAFE registration is to verify a person’s identity to a substantial level of assurance. Once identity is verified, a Public Services Card can be issued.
My Department makes it clear to our customers that they need to complete a SAFE registration to access, or continue to access, payments and entitlements. This is not an unreasonable condition given the value of payments made to customers on an annual basis.
Where customers are unable to attend in person, other methods for registration are available. A mobile registration facility is available to register customers who face substantial challenges in presenting at a Department at location but still want to continue to avail of their free travel entitlement. Group registration at community venues is the preferred mode of utilising these mobile registration facilities, but in very exceptional circumstances, single individuals may be registered at their place of residence.
Where a customer is incapacitated to the extent that they may not be able to understand what is entailed in SAFE registration, the Department would reasonably expect that their agent or carer would assist them in making contact with the Department.
The requirement for SAFE registration for services outside of my Department is a matter for the relevant Department. However, the eGovernment Strategy 2017 – 2020 lists a number of public services for which SAFE 2 registration will be required. Others are likely to be listed in the future. The transition plans, including communications, interim arrangements, exceptions, etc., will be worked through by those Departments with the Office of the Government Chief Information Officer (OGCIO) in the Department of Public Expenditure and Reform.
I hope this clarifies the matter for the Deputy.
565. Deputy James Browne asked the Minister for Employment Affairs and Social Protection the credits available to pensioners vis-à-vis the State pension; and if she will make a statement on the matter. [11086/18]
Amharc ar fhreagra584. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection the eligibility criteria for the State pension (contributory) that will apply for persons who will reach pension age in 2020; and if she will make a statement on the matter. [11400/18]
Amharc ar fhreagraI propose to take Questions Nos. 565 and 584 together.
PRSI contributions can be credited to people in a number of contexts, for example when in receipt of a Jobseekers or Illness benefit payments. Where applicable, these may be used towards PRSI-based social protection payments, including the State pension contributory.
A policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.
On the 23rd January, the Government agreed to a proposal that will allow pensioners affected by the 2012 changes in rate bands to have their pension entitlement calculated by a new interim “Total Contributions Approach” (TCA) which will include up to 20 years of a new HomeCaring credit.
This approach is expected to significantly benefit many people, particularly women, whose work history includes an extended period of time outside the paid workplace, while raising families or in a caring role. It will make it easier for pensioners assessed under the current yearly average model, to qualify for a higher rate of the State Pension (contributory). The TCA will ensure that the totality of a person’s social insurance contributions - as opposed to the timing of them - determines their final pension outcome. Under this new arrangement, a person who reached pension age after 1st September 2012 and has a 40 year record of paid and credited social insurance contributions, subject to a maximum of 20 years of the new HomeCaring credits, will qualify for a maximum contributory pension where they satisfy the other qualifying conditions for the scheme. Up to 10 years of other credits, for example when unemployed or ill, may also be used, subject to the total number of credits not exceeding 20 years. So, for example, a person might receive a maximum pension based on 20 years paid PRSI contributions, 5 years jobseeker credits, and 15 years HomeCaring Credits, over a 50 year period. Invalidity pensioners and Widows will continue to generally qualify for a full pension.
For those who do not qualify for the State Pension (contributory) (SPC), there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension.
The TCA model for post-2020 pensioners has yet to be decided upon, as the design will not be finalised until after a public consultation later this year. There are a number of factors, not just the number of years required for a full pension, which influence outcomes, and I will consider very carefully the priorities identified by stakeholders in that consultation process.
I hope this clarifies the matter for the Deputies.
566. Deputy John Brady asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 485 of 5 December 2017, the reason local authority representatives as office holders and not employees of local authorities are not entitled to family income support; her plans to address this issue; and if she will make a statement on the matter. [11088/18]
Amharc ar fhreagraThe Working Family Payment (WFP) is an in-work support that provides an income top-up for employees on low earnings. 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.
There are currently almost 57,700 families with more than 129,000 children in receipt of the WFP. The estimated spend on WFP this year is approximately €431 million.
The legislative basis for the scheme provides that to qualify for WFP a person must:
a) be engaged in remunerative full-time employment as an employee which is expected to last for at least 3 months;
b) be working for a minimum of 38 hours per fortnight or 19 hours per week; and
c) have a qualified child/children who normally resides with them or is supported by them.
A couple may combine their hours of employment to meet the qualification criteria. Furthermore, the average family income must be below a specified amount, which varies according to the number of qualified children in the family.
Elected members of local authorities (better known as ‘councillors’) are office holders. They are not local authority employees and therefore do not qualify for WFP on foot of their role as county councillors. However, a councillor who is otherwise engaged in remunerative full-time employment may qualify for WFP, subject to meeting the criteria outlined above. It is also possible for the household of a County Councillor to receive a WFP payment where the spouse, civil partner or cohabitant of the County Councillor meets the qualifying criteria. I have no plans to extend the WFP to the role of officeholders, as distinct from employees.
The status of county councillors and the question of their remuneration is a matter for my colleague the Minister for Community, Planning and Local Government. I understand that there are a range of financial supports in place to assist councillors in their work, including a representational payment worth €16,891 per annum, fixed annual expenses allowances, travel and subsistence allowances, a mobile phone allowance, a retirement gratuity, and conference and training provisions.
567. Deputy Tony McLoughlin asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to the importance of a proposed development (details supplied) in County Sligo; when a decision on the Pobal application for the ability programme will be made; and if she will make a statement on the matter. [11104/18]
Amharc ar fhreagraThe Ability programme is a new pre-activation programme for young people with disabilities (aged 15 – 29) designed to assist participants in their transition from school to further education and employment. This will be undertaken using person-centred, case management approaches that support participants to identify and follow progression pathways based on both their needs and their potential. The programme will be delivered by national, regional or local organisations from around the country that have experience of working with people with a disability.
The funding for this programme will amount to some €10 million over a three year period and is being provided under the ESF Programme for Employability, Inclusion and Learning (PEIL) operational programme, 2014-2020 (PEIL, 2014 – 20) and the Irish Exchequer.
The programme is being managed by Pobal on behalf of the Department. Pobal’s call for applications for funding closed at the end of January. There has been a significant level of interest in the Ability programme, with 59 applications received.
Pobal has confirmed that it has received an application from the organisation referred to by the Deputy. All applications are currently being appraised against the selection criteria for the programme as published on Pobal’s website: www.pobal.ie.
Following consultations with the Department, Pobal will notify the successful applicants by May 2018.
568. Deputy Thomas Byrne asked the Minister for Employment Affairs and Social Protection when an application for a contributory pension by a person (details supplied) will be decided. [11113/18]
Amharc ar fhreagraAccording to the records of my Department, the person concerned has a total of 679 reckonable contributions/credits recorded for the period from October 1963 to end-2012 inclusive. This is equivalent to a yearly average of 14, which would entitle them to a reduced state pension (contributory). There is a gap in the person’s social insurance record for the tax years 1966/67 to 1967/68 and from 1969/70 to 2002 inclusive. This affects their overall yearly average and, consequently, their rate of weekly pension entitlement.
The person concerned is currently in receipt of state pension (non -contributory) at a higher rate. It is therefore more financially beneficial for them to remain on their current payment. The person concerned was advised accordingly on 5 March 2018. A copy of their social insurance record upon which their state pension (contributory) was calculated was included with that decision letter. If the person concerned considers they have additional contributions or credits that have not been recorded, it is open to them to forward documentary evidence to my Department and their pension entitlement will be reviewed.
Under European Union regulations the insurance records of other member states can be combined to give entitlement to a proportional or pro-rata pension. As the person concerned was also employed in the UK, their Irish and UK contributions can be combined to establish entitlement to a pro-rata pension. The person’s UK record was requested on 29 January 2018. Once this has been received by my Department, their entitlement to a state pension (contributory) EU pro rata will be determined, and the person will be notified of the outcome without delay.
The Deputy will be aware that the Government recently announced proposals that pensioners who qualified for state pension (contributory) since September 2012, and whose rate of entitlement was impacted by the 2012 rate band changes, may apply for a review to have their entitlement considered under a new Total Contribution Approach (TCA). It will take some time to draft and pass the necessary legislation, and then develop the systems and procedures necessary to administer the new pension entitlement option. Accordingly, it is not necessary for any person to contact the Department about their situation. Instead, the Department expects to start issuing invitations to these pensioners from late 2018 to apply for a review under the new pension eligibility arrangements, and to notify any periods spent caring for which HomeCaring credits may be due. Review applicants will be notified of the outcome of their review and any applicable higher rate of entitlement will be paid to them. Such payments are expected to commence from early 2019. Where an increase is awarded, it will be backdated to 30 March 2018.
I hope this clarifies the matter for the Deputy.
569. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the provisions which will be put in place for those who qualified for a reduced State pension post-2012 pension changes when a person was self-employed and lost out on pension contributions as a result; the measures which will apply further to the announcement made on the 2012 changes for this category of persons; and if she will make a statement on the matter. [11154/18]
Amharc ar fhreagraA policy to introduce the Total Contributions Approach (TCA) to pensions calculation was adopted by Government in the National Pensions Framework in 2010, as was the decision to base the entitlements of all new pensioners on this approach from around 2020.
The Government announced in January that those affected by the 2012 rate band changes will also have the option of availing of a TCA-based pension, if it is to their advantage. The TCA model being made available to them will award a maximum rate pension for those with 40 years contributions (including up to 20 years HomeCaring credits), and pro-rata payments for those with fewer contributions. Up to 10 years ordinary credits (e.g. for Jobseekers or Illness Benefit) may also be used, subject to the total number of HomeCaring and ordinary credits not exceeding 20 years.
Where a person has been in self-employment from the introduction of compulsory Class S contributions from 1988 until reaching State pension age, they may already receive a maximum rate State pension contributory, subject to meeting the general conditions for payment. If not, they may still benefit from the new TCA arrangements, depending on their circumstances.
The main focus of this reform has been to reward those who either made contributions into the Social Insurance Fund, or to recognise the contribution of those who took time out of the workforce to raise children. If someone made very little of either such contributions, and if their means are such that they would not qualify for a 95% state pension non-contributory (e.g. if they have substantial private or occupational pensions), they may benefit more from existing arrangements.
For those who do not qualify for the State Pension (contributory) (SPC), there are other state pension payments available. Notably, they may qualify for the State Pension (non-contributory) which is a means-tested payment (based on their share of household means) with a maximum payment of 95% of the SPC. If their spouse has a contributory pension, they may qualify for an increase for a qualified adult (based on their own means), amounting up to 90% of a full rate SPC pension.
I hope this clarifies the matter for the Deputy.
570. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the number of persons who have been referred to JobPath since it commenced; the number of persons who have been subject to sanctions in each year to date for non-engagement with JobPath; and if she will make a statement on the matter. [11190/18]
Amharc ar fhreagraAs the Deputy will be aware, JobPath is a service that supports people who are long-term unemployed to obtain and sustain paid employment. The service was launched in 2015 on a ‘rolling basis’ with referral numbers gradually increasing over time.
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 without good cause. 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.
Between July 2015 and December 2017, circa 141,000 jobseekers had commenced their engagement period with the service.
Up to the end of December 2017, approximately 6,500 jobseekers had a penalty rate applied to their payment at some point during their engagement period with the JobPath service. The estimated breakdown per year is 63 in 2015, 1,215 in 2016 and 5,222 in 2017.
To be clear, the application of penalty rates is entirely a matter for my department and officials involved will take into account all relevant factors including where appropriate non-engagement with externally provided activation services. In this regard, while I am happy to advise the Deputy on penalty rates applied to those who have engaged with the JobPath service, the factors to be considered in applying a penalty rate precludes me from making a definitive statement that the sole context involved would have been non engagement with JobPath.
571. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the number of persons who have secured employment as a result of participating in JobPath; if her Department collects data on the type and quality of employment secured; and if she will make a statement on the matter. [11191/18]
Amharc ar fhreagraAs the Deputy will be aware, JobPath is a service that supports people who are long-term unemployed to obtain and sustain paid employment. The service was launched in 2015 on a ‘rolling basis’ with referral numbers gradually increasing over time.
There are two phases to the service. During the first phase, of 12 months duration, a personal advisor (PA) provides practical assistance in searching, preparing for, securing and sustaining employment. The second phase starts if the jobseeker is successful in finding work. During this phase the PA continues to work with the jobseeker for a further period of at least three months, and up to 12 months. In addition to the two phases jobseekers may also undertake training while with the service and this may extend the period the jobseeker is supported through the service for up to a further 6 months. The duration of the client journey therefore necessitates the requirement of a cohort based approach to reporting and the updating of individual cohort outcome data over time.
My Department recently published an updated cohort based report on the performance of the service, in January 2018 (the report is available on the Departments website: www.welfare.ie) The report details 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.
Of the 39,603 jobseekers referred to the service during this period,) 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. The total employment outcome across all four cohorts 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. It is important to note, that the latter two cohorts (Q1 and Q2 2016), represent 80% of the 39,603 jobseekers referred between July 2015 and June 2016, and that employment outcomes are expected to improve over time as more jobseekers from these cohorts complete their full engagement period with the service.
An initial analysis of the areas in which participants found employment suggests that some of the more popular sectors includes the construction, manufacturing, sales, clerical / administrative, food service, and customer service sectors. While the results are very positive, these initial reports are subject to review and are based on a relatively small sample size. With this in mind, the department is undertaking an econometric review of this strand of its activation services. Completion of the review is provisionally scheduled for the end of Q3 2018, following which more detailed and robust statistics will be available.
I hope this clarifies the matter for the Deputy.
