Written Answers Nos. 41-60
41. Deputy Colm Burke asked the Minister for Social Protection the number of persons that have benefited from the reduction in the number of waiting days for illness benefit claims since the changes were made to the scheme. [14839/22]
Amharc ar fhreagraIllness Benefit is not paid for the first 3 days of an illness. Up to March 2021, there was no payment for the first 6 days. The “waiting days” reduced to 3 from 01 March 2021. There are no waiting days where a customer is getting certain other social welfare payments within 3 days of the start of the claim.
154,274 customers benefitted from the reduction in waiting days in the period since 1 March 2021. These claims were put into payment from the 4th day of illness, resulting in the customer receiving payment for a period for which they would have previously been ineligible.
I trust this clarifies the position for the Deputy.
42. Deputy John Lahart asked the Minister for Social Protection the planned priority measures for 2022 under the Roadmap for Social Inclusion 2020-2025; and if she will make a statement on the matter. [14821/22]
Amharc ar fhreagraThe Roadmap for Social Inclusion 2020 - 2025 is a whole of Government strategy that aims to reduce consistent poverty and improve social inclusion in Ireland. The Roadmap contains seven high level goals with 22 specific targets, which will be delivered by 66 unique commitments.
Implementation of Roadmap commitments is underway with a number of commitments fully achieved or close to completion and with work ongoing in relation to a number of other commitments. This was achieved despite a challenging backdrop with many Departments having to redirect resources during 2020 and 2021 to address the range of social, health, community and economic consequences of COVID-19.
Delivery of Roadmap commitments will continue throughout 2022 including:
- The completed expansion of Parent’s Leave and Parent’s Benefit in July when 7 weeks leave will be available to each parent within 2 years of the birth or adoption of a child (Commitments 7 & 29).
- Department of Social Protection communications campaigns in 2022 will include campaigns on welfare benefits that can be retained when taking up employment and in-work income support payments available to families on low-incomes (Commitments 6 & 16).
- Under the Primary Care Education, Pathways and Research in Dementia (PREPARED) project GPs and primary care teams will continue to be trained in the management of dementia (Commitment 26).
- The implementation of a range of sectoral strategies that will support people who are experiencing poverty or social exclusion and contribute to the achievement of Roadmap goals including: Action Plan for Apprenticeship 2021-2025; Further Education and Training Strategy: Future FET; Pathways to Work 2021-2025; National Childcare Scheme; DEIS Plan 2017; National Disability Inclusion Strategy; Comprehensive Employment Strategy; Our Rural Future; and the National Volunteering Strategy (Commitments 1, 3, 8, 39, 41, 47 & 48).
- As part of the annual budgetary process the Department of Social Protection will continue to target a reduction in poverty among children and families on low incomes (Commitment 18).
- The 2021 Progress Report is expected to be published later this year and will provide an update on progress towards the Roadmap Goals. It will be the second progress report, following the publication in January 2022 of the first report, which covered the period January 2020 to September 2021. It will be accompanied by a Report Card detailing progress on each of the Roadmap commitments. The Progress Report and Report Card are available on the Department of Social Protection pages on Gov.ie.
- The Mid Term Review of the Roadmap is scheduled to take place in the second half of 2022. This will facilitate an evaluation of the impact of Roadmap commitments and progress towards the achievement of the Roadmap goals.
43. Deputy Mick Barry asked the Minister for Social Protection if she will prepare options to expand the eligibility and rates for the fuel allowance given the rapid increase in fuel prices; and if she will make a statement on the matter. [14201/22]
Amharc ar fhreagra72. Deputy James O'Connor asked the Minister for Social Protection her strategy to review the payment rate of the fuel allowance in view of increased costs; and if she will make a statement on the matter. [14828/22]
Amharc ar fhreagraI propose to take Questions Nos. 43 and 72 together.
The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of supports, energy efficiency awareness initiatives and investment in programmes to improve the energy efficiency of the housing stock in Ireland.
As part of the overall welfare budget package of €600m in increases secured for 2022, I was pleased to be able to increase the Fuel Allowance payment by €5 per week effective from Budget night. I also increased the weekly income threshold for Fuel Allowance by €20 from €100 to €120 over the relevant State Pension Contributory rate.
Aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices, the Government recently announced additional expenditure measures to a total of over half a billion euro to help mitigate the effects of these rising costs.
As part of these measures, an additional lump sum payment of €125 was paid to all households in receipt of the Fuel Allowance payment. It is expected that this additional lumpsum will cost an estimated €49 million.
This payment in addition to the Budget increase will mean low-income households will see an increase of 41% this fuel allowance season compared to last season.
The recently announced Electricity Costs Emergency Benefit Payment is another key measure and will be paid in addition to the gas and electricity element of the HHB package to qualifying households. Approximately 2.1m households will benefit by €200 each from the new scheme.
The combined worth of these payment to fuel allowance recipients is €325, which is the equivalent of almost 10 weeks of Fuel Allowance payment.
Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the Government recently reduced excise duty on fuel.
Finally, the Department of Social Protection operates both Exceptional and Urgent Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
Any further expansion of the qualifying criteria or increase in rate of Fuel Allowance would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.
I hope this clarifies the matter for the Deputies.
44. Deputy Peadar Tóibín asked the Minister for Social Protection the salaries and pensions paid out to special advisers to Ministers and Ministers of State in her Department in 2020 and 2021, broken down by Minister in tabular form. [11393/22]
Amharc ar fhreagraThe following table outlines the salaries paid to Ministerial special advisers in the Department of Social Protection in the years 2020 and 2021.
My Department holds no record of any pensions that may be payable to former special advisers. This is a matter for the Payroll Shared Services Centre.
|
Minister |
Adviser |
Year |
Salary |
|
Regina Doherty T.D. |
Special Adviser |
2020 |
49,408.86 |
|
Regina Doherty T.D. |
Press Adviser |
2020 |
56,307.06 |
|
Heather Humphreys T.D. |
Special Adviser |
2020 |
43,101.98 |
|
Heather Humphreys T.D. |
Special Adviser |
2021 |
103,901.59 |
45. Deputy James O'Connor asked the Minister for Social Protection if social welfare payments including the living alone allowance and the fuel allowance will be impacted by those offering to pledge accommodation for refugees; and if she will make a statement on the matter. [14829/22]
Amharc ar fhreagraThe European Union has put in place a temporary protection Directive to allow Ukrainian citizens and others fleeing Ukraine to move through the EU akin to EU citizens. This Department will provide support and services to assist people covered by this Directive who are fleeing Ukraine and who arrive in Ireland. As the situation is evolving, the Government will, of course, keep all aspects of the Department's various schemes under review to ensure that this cohort of people receive the supports and services they require.
Where a person in receipt of social welfare income supports (such as fuel allowance or the living alone allowance) provides accommodation in their home to a person fleeing Ukraine, the Department is exploring the implementation of any necessary changes to regulations or guidelines to ensure that providing such accommodation does not impact on the person’s social welfare entitlements. Proposals in this regard will be brought forward shortly.
I hope this clarifies the matter for the Deputy.
46. Deputy Maurice Quinlivan asked the Minister for Social Protection if consideration will be given to an additional bonus fuel allowance payment given the dramatic increase in fuel prices; and if she will make a statement on the matter. [14880/22]
Amharc ar fhreagraThe Government is committed to protecting vulnerable households from the impact of energy costs. As part of the overall welfare budget package of €600m in increases secured for 2022, I increased the Fuel Allowance payment by €5 per week effective from Budget night. I also increased the weekly income threshold for Fuel Allowance by €20 which enables more people to qualify for this support.
Further Government measures were recently announced to help mitigate the effects of rising energy costs. As part of these measures totaling over half a billion euro, an additional lump sum payment of €125 was paid to all households in receipt of the fuel allowance payment. It is expected that this additional lumpsum will cost an estimated €49 million.
This payment in addition to the Budget increase will mean low-income households will see an increase of 41% this fuel allowance season compared to last season.
The recently announced Electricity Costs Emergency Benefit Payment is another key measure and will be paid in addition to the gas and electricity element of the HHB package to qualifying households. Approximately 2.1m households will benefit by €200 each from the new scheme.
The combined worth of these payments for fuel allowance recipients is €325, which is the equivalent of almost 10 weeks of the Fuel Allowance payment.
Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the Government recently reduced excise duty on fuel.
The provision of any further additional supports such as an additional bonus Fuel Allowance payment would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.
I hope this clarifies the matter for the Deputy.
47. Deputy Richard Boyd Barrett asked the Minister for Social Protection the steps that she will take in relation to the recent review of pension age that recommended not moving the pension age to the 67th year; and if she will further consider returning the pension age to 65 years in line with many countries across Europe; and if she will make a statement on the matter. [14564/22]
Amharc ar fhreagraThe Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund. The 2020 Programme for Government committed that, pending the Commission’s report and any subsequent Government decisions, the State Pension age would remain at 66 years and the increase to 67 years would be deferred. This was implemented in the Social Welfare Act 2020, which repealed the legislative provisions increasing the State Pension age.
The Pensions Commission’s Report was published on 7th October 2021. The Report established that the current State Pension system is not sustainable into the future and that changes are needed. The Report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including a recommendation to gradually increase the State Pension age beginning in 2028. The Report notes that this recommendation is in line with other EU Countries. In almost every EU Member State, current legislation means that State Pension qualifying ages will rise over the next 50 years.
The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views. The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the PRSI related recommendations at the end of February. These various views will be carefully considered as part of our deliberations over the coming weeks.
In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system. I think it is really important that we complete that work before reaching conclusions on any one recommendation such as the recommendation to gradually increase the State Pension age. In this regard, I intend bringing a recommended response and implementation plan to Government in April.
As the bedrock of the pension system in Ireland, the State Pension is very effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
48. Deputy Jennifer Murnane O'Connor asked the Minister for Social Protection the status of the report of the Pensions Commission including their proposals to remove the PRSI exemption on supplementary pensions; and if she will make a statement on the matter. [14825/22]
Amharc ar fhreagraThe Pensions Commission’s Report was published on 7th October 2021. It established that the current State Pension system is not sustainable into the future and that changes are needed. The report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including potential PRSI base broadening measures.
In the interests both of older people and future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically.
The Government agreed in October 2021 that the Commission’s report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views. The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the PRSI related recommendations at the end of February. All of these various views will be considered as part of our deliberations over the coming weeks.
My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system. I think it is really important that we complete that work before reaching conclusions on any one recommendation such as the Commission's recommendation to remove the exemption to pay PRSI on supplementary pension income, occupational and personal pensions and public sector pensions. In this regard, I intend bringing a holistic recommended response and implementation plan to Government in April.
As the bedrock of the pension system in Ireland, the State Pension is very effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
49. Deputy Jennifer Whitmore asked the Minister for Social Protection the role that local Intreo offices are playing in facilitating Ukrainians coming to Ireland under the Temporary Protection Directive 2001/55 EC; and if she will make a statement on the matter. [14883/22]
Amharc ar fhreagraThe Department of Social Protection is prioritising the allocation of Public Personal Service numbers (PPSNs) to people arriving from Ukraine and the immediate provision of income supports. A fast track approach in processing these supports has been put in place which includes a simplified decision making process and quick processing of PPSNs to allow people access to public services.
Officials from my Department and the Department of Justice are in Dublin Airport and other entry points to meet with people arriving from Ukraine to ensure that temporary residence certificates and PPSNs are allocated quickly and that financial supports are provided. To further support this process the Department has also established a number of dedicated centres in Dublin and Cork cities and intends to open a further centre in Limerick this week.
Those who have already arrived in the country or arrive without coming through a reception centre are invited to call into their local Intreo or local office to apply for a personal public service number, supplementary welfare allowance and child benefit if applicable.
The aim in all settings is to process applications as quickly and efficiently as possible to provide immediate financial assistance to these people. Thereafter arrangements will be made to approve the appropriate primary social welfare payments. We have also arranged for payments such as child benefit to be made within a very short period.
People will be eligible for financial support initially under the Supplementary Welfare Allowance scheme. Ukrainian citizens and others fleeing the war who are covered by the Directive are deemed to satisfy the Habitual Residence Condition, or HRC, and their means are assessed as nil.
50. Deputy Michael Moynihan asked the Minister for Social Protection the progress regarding implementation of Budget 2022 measures to support employment opportunities for people with disabilities; and if she will make a statement on the matter. [14830/22]
Amharc ar fhreagraThis Department provides a wide range of income and employment supports to assist jobseekers and existing employees with disabilities, and their employers.
Budget 2022 introduced several measures to encourage the employment of people with disabilities in respect of the Disability Allowance, the Blind Pension, the Wage Subsidy Scheme and the Reasonable Accommodation Fund grants.
Regarding the Disability Allowance and the Blind Pension, Budget 2022 introduced an increase of €25 per week in the earnings threshold from €350 to €375.
Currently, when an individual commences employment, they can avail of an income disregard of €140 per week. In addition, 50% of earnings between €140 and €350 are also disregarded for the purpose of the means test. Earnings above €350 are assessed at 100% - this means that for every euro earned above €350 a euro reduction is applied.
The increase in the earnings threshold means that from June 2022, only earnings above €375 are assessed at 100%. As a result, people on Disability Allowance and Blind Pension will be able to earn more and keep more of their disability payment.
Budget 2022 also increased the general weekly means disregard entry point for Disability Allowance from €2.50 to €7.60. The effect of this measure will be to increase the weekly rate of payment by up to €5.10 per week for Disability Allowance recipients who have means. This measure also brings the general weekly disregard for the Disability Allowance in line with that of the Blind Pension. This measure will take effect from June 2022.
Budget 2022 provided for three of the Reasonable Accommodation Fund grants to be made available to people with disabilities and their employers through EmployAbility contractors in 2022. These grants were previously only accessible through the department’s Intreo offices. The three grants are the Workplace Equipment/ Adaptation Grant, the Job Interview Interpreter Grant and the Personal Reader Grant.
Work is ongoing to put the necessary processes in place to make the grants available through individual contractors. In the interim, the grants continue to be available through the network of Intreo centres.
Budget 2022 also provided for an increase in the Wage Subsidy Scheme’s basic hourly rate (Strand I subsidy) from €5.30 to €6.30 in January 2022.
The Wage Subsidy Scheme is an active labour market programme that targets private sector employers and is aimed at encouraging the employment of people with disabilities through the provision of financial incentives (a wage subsidy).
The increase in the Strand I subsidy will have an impact on the amount of Strand II subsidy as well. In situations where an employer employs between 3 and 6 employees, a Strand II 10% top-up is applied to the hourly rate, increasing the payment rate to €6.93 for each employee. In the case of an employer who has more than 23 qualifying employees, the payment rate is €9.45 per hour for each employee.
Currently there are 1,506 employers availing of the subsidy in respect of some 2,376 employees.
My Department continues to keep the range of income and employment supports under review. Any changes to the current system would need to be considered in an overall policy and budgetary context.
I trust this clarifies the matter for the Deputy.
51. Deputy Sean Sherlock asked the Minister for Social Protection if she has made any contact with the Commission for the Regulation of Utilities in respect of a moratorium on disconnections. [14857/22]
Amharc ar fhreagraI wish to inform the Deputy that this is a matter that falls within the remit of my colleague the Minister for Environment, Climate and Communications.
I trust this clarifies the matter for the Deputy.
52. Deputy Éamon Ó Cuív asked the Minister for Social Protection if she intends increasing the payment of the energy element of the household benefits package in order that the real purchasing power of the package is maintained in view of the recent rapid increase in the price of energy; and if she will make a statement on the matter. [14836/22]
Amharc ar fhreagra61. Deputy Kieran O'Donnell asked the Minister for Social Protection if the household benefits package will be enhanced given the increased cost of living; and if she will make a statement on the matter. [14863/22]
Amharc ar fhreagraI propose to take Questions Nos. 52 and 61 together.
The Household Benefits package (HHB) comprises the electricity or gas allowance, and the free television licence. The package is generally available to people living in the State aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test. The package is also available to some people under the age of 66, who are in receipt of certain welfare type payments. My Department will spend approximately €273 million this year on HHB.
In 2022 the estimated cost of the gas and electricity element of the package is €203 million and will benefit over 479,000 households. The gas and electricity element is paid at a rate of €35 per month, 12 months of the year.
Any decision to enhance or increase the electricity and gas aspect of the package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.
The Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices. To help mitigate the effects of these rising costs, the Government has announced additional expenditure measures to a total of over half a billion which will make a positive impact on the incomes of all households in our country.
As part of these measures, I was delighted to announce an additional lump sum payment of €125 that was paid to all households in receipt of the Fuel Allowance payment. It is expected that this additional lump sum will cost an estimated €49 million.
Other significant measures announced by the Government include the Electricity Costs Emergency Benefit Payment which is a key measure being developed by the Government to help mitigate the effects of the recent rise in electricity prices. The scheme, under the auspices of the Minister for Environment, Climate and Communications and supervised by the Commission for the Regulation of Utilities, will be paid in addition to the gas and electricity element of the HHB package to qualifying households. Approximately 2.1m households will benefit by €200 each from the new scheme.
The combined worth of the Electricity Costs Emergency Benefit Payment and the additional fuel lumpsum payment is €325 or the equivalent of nearly 10 weeks of additional fuel allowance or over 9 months of additional HHB payments. I have also announced that the Working Family Payment budget increase announced on Budget Day will be brought forward from June to April this year.
Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the Government recently reduced excise duty on fuel.
Under the Supplementary Welfare Allowance scheme, my Department also provides Exceptional Needs Payments which may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources, and this may include exceptional heating costs. Decisions on such payments are made on a case-by-case basis.
I hope this clarifies the matter for the Deputies.
53. Deputy Pádraig O'Sullivan asked the Minister for Social Protection if she plans to amend the eligibility criteria for the free fuel allowance scheme in cases in which the income of a person slightly exceeds the allowed threshold; and if she will make a statement on the matter. [14760/22]
Amharc ar fhreagraThe Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, which is supporting up to an estimated 400,000 households in 2022, at an estimated cost of €366 million in 2022. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
In Budget 2022 and with immediate effect the Government increased the weekly means threshold for the fuel allowance scheme by €20 to €120 above the appropriate rate of Contributory State Pension representing a 20% increase and enabling more people to qualify for this support. The €120 allowable means limit is significantly more than the €33 weekly rate of fuel allowance.
Further changes to the Fuel Allowance scheme in Budget 2022 included increasing the weekly rate of fuel allowance by €5 to €33 per week with immediate effect, and with effect from September 2022 the reduction of the qualifying period for Jobseeker’s and Supplementary Welfare Allowance recipients from 15 to 12 months.
The Government has, therefore, implemented significant improvements through Budget 2022. Any proposal to further increase the allowable means for Fuel Allowance purposes or any further changes to the eligibility criteria would have to be considered in this context and in the context of the overall policy and budgetary situation.
Under the Supplementary Welfare Allowance scheme, Exceptional Needs Payments may be made to help meet an essential, once-off cost which customers are unable to meet out of their own resources, and this may include exceptional heating costs. Decisions on such payments are made on a case-by-case basis.
I hope this clarifies the matter for the Deputy.
54. Deputy Sean Sherlock asked the Minister for Social Protection if she plans to amend the back to education scheme payments to take into account time spent on the pandemic unemployment payment. [14859/22]
Amharc ar fhreagraThe Back to Education Allowance (BTEA) provides income support for jobseekers and others in receipt of certain social welfare payments who pursue courses of education at second or third level. The provision for the scheme for 2022 is €105.4 million.
A person wishing to pursue a course of study under the BTEA scheme must satisfy the conditions of the scheme, including being in receipt of a qualifying social welfare payment for a specified time, pursuing a full-time course of study leading to a recognised qualification in a recognised college and progressing in the level of education.
The qualifying period for the second-level option is three months while the qualifying period for third-level courses is nine months prior to the date of commencement of the course. This qualifying period has already been waived for people coming from the Pandemic Unemployment Payment (PUP) where they must first establish an entitlement to a Jobseekers or other qualifying payment.
As the economy has now fully reopened with the removal of trading restrictions the Government has agreed the winding down of the PUP and the transfer of recipients to standard social welfare terms. PUP recipients who remain in receipt of the support at the end of this month will start transitioning to standard jobseeker terms. The BTEA scheme guidelines will be reviewed in advance of the 2022/2023 academic year and will be updated to reflect the closure of the PUP scheme.
The Student Universal Support Ireland (SUSI) Grant, payable by the Department of Further and Higher Education, Research, Innovation and Science, is the primary support for people pursuing third level education.
I trust this clarifies the matter for the Deputy.
55. Deputy Peadar Tóibín asked the Minister for Social Protection the number of commissions of investigation under the remit of her Department currently ongoing in the State; the cost of each commission to date; and the projected costs of each in tabular form. [12559/22]
Amharc ar fhreagraThere are no Commissions, within the meaning of the Commissions of Investigation Act 2004, ongoing under the aegis of my Department.
56. Deputy Catherine Connolly asked the Minister for Social Protection further to Parliamentary Question No. 82 of 3 February 2022, the details of any analysis carried out to date by her Department into phase 1 of the roll-out of the new local area employment service; her plans to publish this analysis; and if she will make a statement on the matter. [14848/22]
Amharc ar fhreagraMy Department is currently procuring new employment services that will see a significant expansion of employment services, including, for the first time, State-wide services for those farthest from the labour market. My Department is procuring a new Intreo Partners Local Area Employment Service over two distinct phases.
Phase one of the new Intreo Partners Local Area Employment Service is complete and referrals under Phase one commenced in January 2022. New services are now established in seven counties in the Midlands and North West that previously did not have a Local Employment Service (LES).
Phase two of the process has commenced, with the publication on 21 December last of a request for tender for seventeen lots covering 19 counties. The deadline for tenders is 19 April and services for this phase will begin in July 2022.
As part of this process my Department met with trade unions, providers and representative bodies. My Department held a specific stakeholder online Information Session on 9 November last, which was attended by over one hundred and fifty interested parties. My officials provided a comprehensive overview of the planned Phase 2 procurement before engaging in a ninety-minute questions and answers session. Participants were invited to submit written comments and suggestions including feedback from phase 1, in advance of the finalisation of the phase 2 RFT.
It is this feedback and my officials' engagements with relevant stakeholders that informed the design of phase two of the procurement process.
The Phase 2 RFT differs from the Phased 1 RFT in relation to minimum referral numbers, referral contract values and addressing issues such as up-front advances to assist cash flow for potential tenderers. Following feedback received, there were also significant changes to Lot boundaries and sizes to those recommended by consultants.
Other elements of the Phase 2 RFT have also been revised and improved to ensure the employment service reflects best practices and is best positioned to attract quality tenders that can provide the services needed for those furthest from the labour market.
57. Deputy Cathal Crowe asked the Minister for Social Protection the status of the pensions auto-enrolment system including plans to consult with the general public; and if she will make a statement on the matter. [14834/22]
Amharc ar fhreagraThe Programme for Government commits to introducing a pensions automatic enrolment (AE) system. The objective of this commitment is to address the low proportion of employees in Ireland with supplementary pension cover, which includes both occupational and personal pensions.
According to CSO figures, the rate of active supplementary pension coverage is around 56% of the working population (Pension Coverage Survey 2021). It is estimated that this could be as low as 35% when the private sector is considered in isolation. As a consequence of this low supplementary pension coverage rate, many retirees may suffer an unwanted reduction in living standards when they retire.
This Government, recognising the exceptional strain that both employers and employees are under as a result of the COVID-19 emergency and the increases in the cost of living, will seek to gradually deliver an AE system based on the following principles:
- There will be a phased roll-out, over a decade, of the contributions made by workers and employers.
- Matching contributions will be made by both workers and employers and the State will top up those contributions.
- There will be an opt-out provision for those who choose to opt out.
- Workers will have a range of retirement savings products to choose from.
- There will be a charges cap imposed on pension providers.
- My Department has finalised a proposal for Government on the overall design of the AE system and I intend to bring that to Government for formal approval towards the end of this month. The overall design has been informed by a lengthy consultation and development process, including considerable engagement with industry bodies, employer and employee representatives, advocacy groups, as well as members of the public. This included the "Strawman Consultation" process, which provided stakeholders with the opportunity to share their own thinking on various aspects of the system.
- Once the final design is agreed it is intended that the necessary legislative, organisational and process structures will follow over the course of this year and next, as set out in the Economic Recovery Plan 2021, and in this regard ongoing engagement with key stakeholders will continue to inform the process.
I hope this clarifies the matter for the Deputy.
59. Deputy Kieran O'Donnell asked the Minister for Social Protection if consideration is being given to index linking social welfare payments which would help mitigate the impact of inflation. [14864/22]
Amharc ar fhreagraA number of studies in recent years have considered the indexation of various categories of social protection payments.
Following publication of the Roadmap for Pensions Reform in 2018, which included a recommendation to benchmark and index State Pension rates, my Department undertook a consultation process in 2019 with interested stakeholders to hear views on possible approaches to the indexation of pensions, and social welfare rates more generally. This process also included discussion with representatives of the community and voluntary sector at the Pre-Budget Forum in July 2019, as well as at bilateral meetings with stakeholders.
The outcome of these discussions was considered, and in consultation with the Department of Public Expenditure and Reform, the Department has developed proposals for setting a formal benchmark for State Pension Contributory payments and the indexation of future changes in pension rates of payment.
The approach developed, known as the “smoothed earnings” approach, aims to ensure that the relative value of welfare payments compared to market earnings would be maintained over time and that, in the short-term, the real value, or purchasing power, of these payments would be protected.
This commitment was reiterated in the Roadmap for Social Inclusion which also outlined a potential approach for benchmarking and indexing pension rates.
Finally, the Pensions Commission report also examined the issue of benchmarking pension rates and has endorsed implementation of the “smoothed earnings” approach.
The recommendations of the Pensions Commission are being considered. I intend to bring proposals to Government in April in relation to these recommendations.
I am acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices. To help mitigate the effects of these rising costs, the Government announced a package of measures in February, costing in excess of a half a billion Euro.
These measures include an additional lump sum payment of €125 which was paid last week to households in receipt of the Fuel Allowance payment. This lump sum payment is intended to target the most vulnerable social welfare recipients to protect against rising fuel costs.
This payment, in addition to the Budget increase to the Fuel Allowance, will mean low-income households see an increase of 41% in their fuel allowance payments this season compared to the last season.
A further measure to help with energy costs is an Energy Credit of €200 to be applied to electricity accounts for all households.
The increase of €10 to the weekly income threshold of the Working Family Payment will be brought forward, now taking effect from early April 2022 rather that than from June. For those in receipt of more than a minimum payment on the Working Family Payment, the €10 increase in all earnings thresholds will result in an increased payment of €6 per week.
These measures are in addition to those introduced as part of Budget 2022, which provided for the largest social welfare Budget package in 14 years. In January, around 1.4 million people received a €5 increase in weekly payments, and more if they have dependents.
There were also a number of targeted measures designed to support those most vulnerable to poverty, including increases in the rates of qualified child payments and the Living Alone Allowance.
60. Deputy Mick Barry asked the Minister for Social Protection if her Department is preparing to make provision for the roll-back on the decision to increase the retirement age; and if she will make a statement on the matter. [14202/22]
Amharc ar fhreagraThe Pensions Commission was established in November 2020 to examine the sustainability of the State Pension system and the Social Insurance Fund. The 2020 Programme for Government committed that, pending the Commission’s report and any subsequent Government decisions, the State Pension age would remain at 66 years and the increase to 67 years would be deferred. This was implemented in the Social Welfare Act 2020, which repealed the then existing legislative provisions which would have increased the State Pension age in 2021 and again in 2028.
The Pensions Commission’s Report was published on 7th October 2021. The Report established that the current State Pension system is not sustainable into the future and that changes are needed. The Report set out a wide-range of recommendations in relation to the State Pension system and Social Insurance Fund, including recommendations to gradually increase the State Pension age.
The Government agreed in October 2021 that the Commission’s Report and recommendations would be referred to the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands and also to the Commission on Taxation and Welfare for its views. The Committee published its views on the 2nd February 2022 and the Commission on Taxation and Welfare submitted its comments on the PRSI related recommendations at the end of February. These various views will be carefully considered as part of our deliberations over the coming weeks.
In the interests both of older people and of future generations of older people, the Government intends to consider the comprehensive and far reaching recommendations in the Pensions Commission’s Report very carefully and holistically. My officials are examining each of the recommendations and consulting across Government through the Cabinet Committee system. I think it is really important that we complete that work before reaching conclusions on any one recommendation such as the recommendation to gradually increase the State Pension age. In this regard, I intend bringing a recommended response and implementation plan to Government in April.
As the bedrock of the pension system in Ireland, the State Pension is very effective at ensuring that our pensioners do not experience poverty. This Government is committed to ensuring that this remains the case for current pensioners, those nearing State Pension age and today’s young workers including those who are only starting their careers.
I hope this clarifies the matter for the Deputy.
