Written Answers Nos. 428-441
428. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection her views on whether the criteria to receive PRSI treatment benefit is resulting in the discrimination of young persons; and if she will make a statement on the matter. [19023/18]
Amharc ar fhreagraEntitlement to treatment benefit is based on having paid PRSI contributions, with customers required to have a certain number of PRSI contributions paid or credited in order to qualify. The number of contributions required varies with age, to take account of the capacity of the person concerned to have paid the required contributions. For example, a customer aged 20 needs a total of 39 qualifying PRSI weeks paid, while someone aged 30 needs 260, plus 39 in the governing contribution year (which this year is 2016).
The contribution conditions applying to the scheme and the precise age at which the conditions change are kept under review. I also wish to assure the Deputy that all PRSI contributions paid are retained on the customer’s record and even if they are not sufficient to provide treatment benefit cover at present, they will help towards the provision of cover in the future.
I trust this helps clarify the position.
429. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the number of families in receipt of family income supplement or FIS in circumstances in which the worker is employed in the public sector or the semi-State sector by public or semi-State areas; and if she will make a statement on the matter. [19025/18]
Amharc ar fhreagraWorking Family Payment (WFP) formerly known as Family Income Supplement (FIS) is a weekly tax-free payment which provides additional income support to employees on low earnings with children.
There are currently some 3,423 families in receipt of WFP who are employed in the public sector.
The Department is unable provide a detailed breakdown of the number of families in receipt of WFP who are employed in the semi-State sector.
I trust this clarifies the matter for the Deputy.
430. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection if she will address a matter (details supplied) regarding an assessment by the Scope unit; and if she will make a statement on the matter. [19027/18]
Amharc ar fhreagra431. Deputy Tom Neville asked the Minister for Employment Affairs and Social Protection if a matter regarding persons (details supplied) will be addressed; and if she will make a statement on the matter. [19033/18]
Amharc ar fhreagraI propose to take Questions Nos. 430 and 431 together.
The Scope insurability section of my Department makes statutory decisions on the insurability of employment under the Social Welfare Acts. It deals with employers, employees and the self-employed, who may apply, where there is doubt, to have an employment or self-employment status investigated and the correct class of pay-related social insurance (PRSI) determined. Scope section can also determine if a person genuinely worked in a partnership and to do so will require that the person or persons concerned apply to it for a determination and provide any details necessary to assist with the determination.
The persons concerned should apply to Scope section to have the circumstances of their partnership status investigated. The address is Gandon House, Amiens Street, Dublin 1 and phone number is (01) 6732585.
I trust this clarifies the matter for the Deputy.
432. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the amount spent by her Department on State pension payments in 2017; and the number of recipients for each payment. [19042/18]
Amharc ar fhreagraThe total amounts spent on State Pension payments in 2017 and the number of recipients of each payment is detailed in the following table. The amounts for 2017 are provisional and are subject to audit by the Comptroller and Auditor General.
|
Pension Type |
Amount (€000) |
Recipient numbers |
|
State Pension (Contributory) |
4,915,853 |
394,378 |
|
State Pension (Non-Contributory) |
994,740 |
95,140 |
|
State Pension (Transition) |
159 |
55 |
|
Pension for Widows/Widowers/Surviving Civil Partners (Contributory) |
1,466,597 |
121,091 |
|
Pension for Widows/Widowers/Surviving Civil Partners (Non-Contributory) |
14,226 |
1,490* |
|
Death Benefit |
9,371 |
700* |
* Average Recipient numbers
433. Deputy Michael McGrath asked the Minister for Employment Affairs and Social Protection the rationale for asking parents of teenage children with a disability to complete the section of the application form for disability allowance entitled authority to appoint an agent; the position on the retention of receipts for disability allowance; and if she will make a statement on the matter. [19049/18]
Amharc ar fhreagraWhere a customer is unable to manage their own financial affairs an agent may be appointed to collect the payment and if necessary act on behalf of the customer.
The circumstances in which a customer is deemed to be unable to manage his or her own financial affairs may include one or more of the following:
- an inability to understand the basis of possible entitlements to benefit;
- an inability to understand and complete the claim form;
- an inability to understand and deal with correspondence and enquiries concerning the claim; or
- an inability to manage benefit payments received.
If a deciding officer identifies that, based on evidence provided, that an agent may be required to either collect the payment on behalf of the customer and if necessary act on behalf of the customer, then they may request that an agent form be completed.
In this type of situation, a formal application must be made on behalf of the customer and documentary evidence provided. If the customer is unable to manage their own affairs then they must be certified by a registered medical practitioner to be a person who is unable for the time being to manage their own financial affairs.
The agent appointed may or may not be a relative of the customer. Once appointed, they have a duty to act in the best interests of the customer. Amongst their duties is the responsibility to:
- receive and deal with any sum payable by way of benefit on behalf of the customer;
- make payments only on items or services which are of benefit to the customer;
- ensure the balance of any benefit is lodged to an interest bearing account for the benefit of the customer;
- keep a record of all sums received by way of benefit which have been lodged to an interest bearing account on behalf of the customer;
- keep a record of all other transactions made in relation to sums received by way of benefit on behalf of the customer;
- produce these records when requested to do so by the customer or by their nearest relative or by an officer of the Department; and
- notify the Department of any changes in the customer's circumstances.
I trust this clarifies the matter for the Deputy.
434. Deputy John Curran asked the Minister for Employment Affairs and Social Protection the stage reached by the provision set out in section 5 of the Social Welfare, Pensions and Civil Registration Bill 2017 that enables customers to volunteer their public services card in circumstances in which they wish to use it as a form of proof of identity and-or age; and if she will make a statement on the matter. [19050/18]
Amharc ar fhreagraThe Social Welfare, Pensions and Civil Registration Bill 2017, including the provision set out in section 5, has passed the Second Stage that was concluded on 4 October 2017. It is expected that the Bill will progress to Committee Stage in the coming months. I hope this clarifies the position for the Deputy.
435. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the timeline for the changes that will enable participants of JobPath to also participate on Tús and community employment schemes. [19071/18]
Amharc ar fhreagraThe primary goal of my 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 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.
Currently, once a jobseeker is referred to JobPath, they are required to complete the requisite time with the service and will not be referred to a Work Placement programme such as Community Employment (CE) and Tús, as they can only participate with one activation service at a time.
Having listened to the Department’s customers and those delivering local services, I was happy to announce that from 1 June this year, customers currently engaged with the JobPath service and those who may be referred in future will have the option of applying for CE and Tús placement while continuing to engage with JobPath.
This has a number of benefits both for the vital services provided at a local level by participants on CE and Tús programmes and directly for the Department’s customers. It maximises the assistance and services for people who are long-term unemployed through a combination of a quality work placement and personalised job seeking support provided through the JobPath service.
I am confident that our customers will benefit from the job seeking support of the JobPath service while also availing of part-time work experience and quality training and development opportunities provided by a Work Placement programme.
I trust this clarifies matters for the Deputy.
436. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the percentage and number of unskilled workers over 50 years of age who received full-time employment through Turas Nua from April 2016 to April 2017; and if she will make a statement on the matter. [19116/18]
Amharc ar fhreagraMy Department provides a range of activation supports catering for long-term unemployed jobseekers and those most distant from the labour market to secure and sustain full-time paid employment. These supports include the JobPath service. The JobPath service is designed to support people who are long-term unemployed to secure and sustain paid employment. This service is delivered by two companies, Seetec Ltd. and Turas Nua Ltd.
My Department does not collate and process outcomes based on skills profile of clients nor are there defined categories such as skilled or unskilled and therefore the specific information requested by the Deputy is not available. However, I can advise the Deputy that approximately 73,000 Jobseekers started their engagement with JobPath service between April 2016 and April 2017, and some 20,500 or 28% were over the age of 50.
Of this cohort, some 63% had been unemployed for over three years and a further 11% were over two years unemployed.
My Department has commenced an econometric review of the JobPath service which, it is expected, will assist in accurately estimating the impact of JobPath interventions on people’s labour market outcomes. My Department is developing a new approach using a cluster analysis. The review will spilt long term jobseekers who have engaged with JobPath into clusters based on age, gender, location employment history, education and so forth. The review will then examine the actual interventions which each of these clusters experienced and using a statistical analysis to identify which interventions led to the best outcomes for each cohort. This will provide a sound evidential base for the improvement of existing activation services and the design of new ones.
Work on this review has commenced and it is expected to be completed by Q4 2018.
I trust that this information is of some assistance to the Deputy.
437. Deputy Eamon Ryan asked the Minister for Employment Affairs and Social Protection the administrative cost of means testing each social welfare payment that is subject to means testing in 2016 and 2017; the cost of administering all non means tested social welfare payments in 2016 and 2017, in tabular form; and if she will make a statement on the matter. [19117/18]
Amharc ar fhreagraMy Department's administration expenditure is split between Vote (means tested schemes) and Social Insurance Fund (non-means tested schemes). Details of the total administration expenditure for 2016 and 2017 are outlined in the following table. These costs also include services provided for and charged to my Department by other Departments and Agencies.
|
Administration Category |
2016 |
2017 (Provisional Figures) |
|
Vote 37 |
€309,088,000 |
€343,666,000 |
|
Social Insurance Fund |
€272,632,000 |
€274,014,000 |
|
€581,720,000 |
€617,680,000 |
438. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the position regarding the design of a total contributions State pension model; when it will be released for public consultation; and if she will make a statement on the matter. [19119/18]
Amharc ar fhreagraFirstly, the new interim Total Contributions Approach to determining the level of payment, including the introduction of the new HomeCaring credit, for recipients of the State Pension (contributory) affected by the 2012 rate band changes was agreed by the Government in January. Instructions for legislation to give effect to this change are currently being set out. When drafted, the legislation will be brought forward at the next available opportunity. Changes in payment level for those pensioners who benefit will be effective from 30 March 2018.
Separately, my Department is planning for the introduction of a Total Contributions Approach for all new pensioners from 2020 onwards. A final decision on the design of the scheme and how it will operate will be made by the Government following a period of consultation which I expect to launch in the coming weeks.
I hope this clarifies the matter for the Deputy.
439. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the status of her plans to allow post-2012 pension recipients on reduced rates to utilise the total contributions model by 2019; the first and full-year cost of this measure; and if she will make a statement on the matter. [19120/18]
Amharc ar fhreagraA policy to introduce the Total Contributions Approach (TCA) to the State Pension contributory (SPC) 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 2018 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.
Preparations for this change are being advanced by officials in my Department, notably in the areas of legislation, administration, and IT-related work. I expect my officials to begin writing to people affected by the 2012 rate band changes before the end of the year and for the first payments to be made in the 1st Quarter of 2019.
The cost in 2019 of introducing TCA for those who reached state pension age after September 2012 will depend on a number of factors. These include the likely take-up of HomeCaring Credits, particularly among men. Current estimates suggest that the full year cost in respect of 2019 may be in the region of €35 million for people already in receipt of a State pension (contributory). However, this figure does not include expected inflows from other schemes such as State pension (non contributory) and from Increase for Qualified Adult payments, who have not previously made an SPC claim. Additionally, payments made in 2019 will also include arrears payments in respect of 2018 as payments will be effective from 30 March 2018 where applicable. Therefore, the total cost in 2019 will not be evident until next year.
I hope this clarifies the matter for the Deputy.
440. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the position regarding the development of a consultation paper on a rate setting or funding approach for the Social Insurance Fund; and if she will make a statement on the matter. [19121/18]
Amharc ar fhreagraThe Deputy is referring to a commitment in the Roadmap for Pensions Reform 2018-2023 which was published on 28 February 2018 that a consultation paper be published on an appropriate rate-setting/funding approach for the Social Insurance Fund by the end of Quarter 4 2018.
The consultation paper will be informed by the Roadmap and in particular by the findings of the Actuarial Review of the Social Insurance fund (SIF) as at 31 December 2015, published in October 2017, which was carried out by independent consultants, KPMG. This is a review required by legislation. 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.
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 assumes 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 findings of the Review play an important role in informing the overall debate on policy developments in relation to the SIF in the years ahead including the financial sustainability of the Fund given the expected demographic challenges and consideration of extending the scope of benefits for workers generally, including the self-employed. The Actuarial Review provides government with a timely and evidence-led opportunity to undertake a full review of our social insurance system and to consult with stakeholders.
Work has commenced on preparation of the consultation paper in my Department with a view to adhering to the timetable set out in the Pensions Roadmap.
I hope this clarifies the matter for the Deputy.
441. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the progress she has made to set a formal benchmark target of 34% of average earnings for State pension (contributory) payments and institute a process whereby future changes in pension rates of payment are explicitly linked to changes in the consumer price index and average wages; and if she will make a statement on the matter. [19122/18]
Amharc ar fhreagraThe level of income provided to pensioners in the form of the State pension is currently decided through the annual budget process. The Roadmap for Pensions Reform commits the Government to examine and develop proposals this year. In order to protect the adequacy into the future the Government intends to examine and develop proposals to set a formal benchmark target of 34% of average earnings for the State pension (contributory), and institute a process whereby future changes in pension rates of payment are explicitly linked to changes in the consumer price index.
Preliminary work has commenced to support the development of these proposals. It is intended that a detailed proposal on this matter will be developed before the end of this year for consideration by the Government.
I hope this clarifies the matter for the Deputy.
