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Social Welfare Benefits

Dáil Éireann Debate, Tuesday - 24 July 2018

Tuesday, 24 July 2018

Ceisteanna (2565)

Richard Boyd Barrett

Ceist:

2565. Deputy Richard Boyd Barrett asked the Minister for Employment Affairs and Social Protection the full-year cost for proposals (details supplied). [35067/18]

Amharc ar fhreagra

Freagraí scríofa

The costings sought by the Deputy are outlined below:

1. The cost of increasing the fuel season by two weeks, from 27 to 29 weeks, is estimated at €17.2 million.

2. The current weekly rates of payment are in excess of 2008 levels. The full year cost of increasing social welfare payments to the rates payable in 2009 is estimated at €311.4 million in 2019. This includes the cost of increasing the age-related reduced rates of jobseeker’s allowance up to the maximum rate payable. It should be noted that this costing includes proportionate increases for qualified adults and for those on reduced rates of payment where relevant.

This costing does not include any increase for maternity benefit recipients – in 2009, different rates of maternity benefit were payable depending on the level of earnings, with a minimum rate of €230.30 and a maximum rate of €280 per week. These rates were standardised at €230 per week in Budget 2014. Approximately 80% of maternity benefit recipients were on the maximum rate of payment. Increasing the rate of maternity and paternity benefit from the current weekly rate of €240 per week to the maximum rate payable in 2008 for all recipients would cost in the region of €43 million in 2019.

3. The full year cost of increasing the weekly rate of the State Pension Contributory, Widow(er)’s and Surviving Civil Partner’s Contributory Pension, Death Benefit Contributory Pension and State Pension Non-Contributory to €250 per week is estimated at €269.5 million in 2019. This costing includes proportionate increases for qualified adults and for those on reduced rates of payment where relevant.

4. The cost of a 110% Christmas Bonus payment is estimated to be circa €282.7 million in 2018. As was the case in previous years where a Bonus was subsequently paid (2014 to 2017 inclusive), there is no provision in the 2018 Revised Estimates for the payment (at any rate) of a Christmas Bonus in 2018. Any decision taken regarding the payment of a Bonus in 2018 will have to be consistent with the legal requirements set out in the domestic Fiscal Responsibility Acts 2012 and 2013 and the targets set for Ireland by the EU Stability and Growth Pact.

5. The full year cost of increasing all weekly social assistance and social insurance payments by €10 per week is estimated to be €695.63 million. This costing includes proportionate increases for qualified adults and for those on reduced rates of payment where relevant.

6. The cost of increasing the Working Family Payment multiplier from 60% to 75% is estimated to be in the region of €100 million.

7. Based on figures from the Department of Education and Skills, the current estimated annual cost of extending the upper age limit for payment of Child Benefit for those persons who are 18 years and under 19 years of age and in secondary school, is over €62 million.

8. The full year cost of increasing the age of the youngest child from 7 to 18 for the One-Parent Family Payment (OFP) is difficult to estimate with any accuracy.

Firstly, this change could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible and therefore moving onto a social welfare payment. As members of this cohort are not currently in receipt of a social welfare payment it is difficult to estimate the numbers involved. Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult to estimate the magnitude of this flow between schemes with any degree of accuracy. Finally, such a change to the One-Parent Family payment scheme would also increase the incidence of dual payments of OFP and the Working Family Payment (formerly FIS). It is not possible to predict the impact on payments as a result of the interaction between both schemes without having detailed knowledge of individuals’ working patterns and the degree to which these might change. These factors are critical to providing a reliable costing. The Department is therefore not in a position to provide the costing requested at this time.

9. Based on 2017 recipient numbers, the annual cost of increasing the Back to School Clothing and Footwear rates by €50 per child, from €125 to €175 per child in respect of children aged 4 to 11 and from €250 to €300 per child for children aged 12 years and over in second level education, is estimated at €13.75 million.

10. Each additional week of maternity benefit would cost approximately €9.6m. To increase the duration of paid maternity leave from 26 weeks to 52 weeks would cost approximately €250 million in a full year. 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.

It should be noted that these costings are subject to change in the context of emerging trends and associated numbers of recipients for 2019.

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