Written Answers Nos. 1-90
78. Deputy Thomas Pringle asked the Minister for Social Protection if her Department has considered the benefits to the State coffers of a smoothed approach to the automatic enrolment pension system being proposed by Government; and if she will make a statement on the matter. [22110/23]
Amharc ar fhreagraThe introduction of an automatic enrolment (AE) system is a Programme for Government commitment and a key priority for me as the Minister for Social Protection. Under AE, employees will have access to a savings scheme, co-funded by their employer and the State. For every €3 a worker pays into it, they'll have another €4 credited to their account. These contributions will then be invested, with members holding their own individual retirement savings accounts that they can drawdown when they retire. Implementation of the AE system is well underway, with the first enrolments expected in 2024.The proposal referred to in the question has been considered by officials in my Department and discussed with other relevant Government Departments and agencies. I recently referred this proposal to the Pensions Council for an independent external evaluation of the issues involved.The Pensions Council was set up to advise the me on matters relating to policy on pensions. Membership of the Council has been constituted to ensure the relevant skills, specialist knowledge, and experience is in place to allow for the provision of collective advice, information and assistance in the development of pensions policy. I have requested the Pensions Council to prioritise this piece of work, in advance of progressing the legislation required to underpin the AE system later this year.I hope this clarifies the matter for the Deputy.
85. Deputy Thomas Gould asked the Minister for Social Protection if there are any additional supports for parents coming into the summer months. [24631/23]
Amharc ar fhreagraThe Government recognises the challenges of rising prices. In February, we announced details of a new cost-of-living measures package worth €1.2 billion, which included a €410 million Social Welfare package.
These measures included a once-off lump sum payment of €200 to families in receipt of the Working Family Payment, which was paid last month.
In June, recipients of Child Benefit will receive a €100 lump sum for every child for whom Child Benefit is paid. The payment will be made to 638,000 recipients in respect of 1,203,000 children. The estimated cost of this measure is €122 million in 2023.
Furthermore, the Back to School Clothing and Footwear Allowance payment has been increased by €100 for the 2023 scheme year, to assist families with the increased cost of returning to school. The rates of payment for the 2023 scheme year are €260 for children aged between 4 and 11 years and €385 for children aged 12 and over. This payment will provide additional support to approximately 153,000 families, including those availing of the Temporary Protection Directive. The estimated cost of this measure is €27.3 million.
In addition, since my appointment as Minister for Social Protection, I have introduced significant expansion to the school meals scheme. including hot school meals, which also support parents and children with a daily school meal.
I trust this clarifies matters for the Deputy.
86. Deputy Aindrias Moynihan asked the Minister for Social Protection if she will consider a review of the child benefit scheme, including students still in full-time second level education after reaching their 18th birthday; and if she will make a statement on the matter. [24640/23]
Amharc ar fhreagraChild Benefit is a universal monthly payment made to families with children up to the age of 16 years. The payment continues to be paid in respect of children until their eighteenth birthday who are in full-time education, or who have a disability. Estimated expenditure on the scheme will be approximately €2.1 billion in 2023.There are currently no plans to extend Child Benefit in respect of full-time students who are over 18 years of age and in full time education. Such an extension would have significant cost implications and would have to be considered in an overall budgetary context.Families on low incomes may be able to avail of a number of targeted social welfare schemes that support children in full-time education until the age of 22, including the Increase for a Qualified Child with primary social welfare payments.I introduced a number of Budget measures specifically for families with children, such as the double Child Benefit payment and the €500 lump sum payment to recipients of the Working Family payment. In addition, low-income families benefited from the €12 increase in the weekly personal rate for recipients of working age payments.A further €470 million package of measures to assist social welfare recipients was announced in February. These measures include a €200 lump sum which was paid in April to all long-term social welfare recipients, including families in receipt of Working Family Payment. Next month the lump sum Child Benefit payment of €100 per child will be paid, and in July there will be a one-off increase of €100 in the Back to School Clothing and Footwear allowance.There is also financial support available for students through the Student Grant Scheme operated by the Student Universal Support Ireland. Under this scheme eligible students can achieve financial support through fee grants or maintenance grants.I trust this clarifies matters for the Deputy.
87. Deputy Pádraig O'Sullivan asked the Minister for Social Protection if she will provide an update on the research conducted within her Department for linking jobseeker's benefit to previous earnings; if she is seriously considering such a reform; the likely implementation date for same; and if she will make a statement on the matter. [24158/23]
Amharc ar fhreagraThe Programme for Government and the Economic Recovery Plan include commitments to consider a pay-related jobseeker's benefit scheme. This would bring Ireland in line with the majority of other EU Member States.The core rationale for the introduction of a pay-related benefit is twofold.First, to recognise and cushion people against the ‘income shock’ that arises on loss of employment.Second, to provide a tangible return to people who make social insurance contributions.I published a Strawman document in December 2022, which sets out the broad parameters of a possible approach to a pay-related jobseeker's benefit scheme. The key features of the proposal set out in the Strawman include that:The Benefit would be paid to employees who:
• are under State pension age, who are fully unemployed;
• have a demonstrated strong, recent attachment to the labour force, and
• are available for and genuinely seeking paid employment.
The Rate of Benefit would be set as follows:
• for people who have at least five years paid PRSI contributions, the rate would be set at 60% of the person’s prior gross income subject to a cap of €450 per week;
• for people who have fewer than five years paid PRSI contributions but at least two years, the rate would be set at 50% of the person’s prior gross income subject to a cap of €300 per week; and
• payment would be payable for up to a maximum six months.
This strawman proposal is not a final design. The objective of the objective Strawman is to elicit feedback through a national consultation process to develop a preferred policy design. Written submissions have been received from over 80 individuals and from 32 stakeholder groups.Officials in my Department are currently analysing all feedback received through the consultation process. This will inform the design of a proposal that I intend to bring Government for consideration in the coming months.
88. Deputy Thomas Gould asked the Minister for Social Protection the supports in place for people struggling to pay their grocery bills. [24630/23]
Amharc ar fhreagraI fully recognise the challenges the increased the cost of living has brought to many people and families in all areas of their lives, including increases in weekly grocery bills. The Government has, since its formation in 2020, provided unprecedented supports to protect people and families, first through the Covid-19 pandemic and now through cost-of-living supports.In September, I announced the largest Social Protection Budget package in the history of the state with measures worth almost €2.2 billion. This included eight separate additional lump sum payments throughout October, November and December. From the start of January, a wide range of increases came into effect which were announced as part of Budget 2023. This included a €12 across the board increase to weekly rates – the largest increase to weekly rates since the mid-2000s.A third energy credit was paid in March and delivered an extra €200 to virtually all households in the state.In addition, a €200 Spring Bonus was paid to all long-term social welfare recipients at the end of April.I also announced the largest ever expansion in the Fuel Allowance scheme - we had more than 35,000 additional households in receipt of this payment when the scheme ended.We are providing a continued range of additional supports focusing particularly on families with children over the coming months, targeting Child Benefit, Back to School Clothing and Footwear Allowance and the School Meals.Furthermore, the supplementary welfare allowance scheme administered by the Community Welfare Service of my Department is available to provides, where necessary, Additional Needs Payments to help meet essential expenses that a person cannot pay from their weekly income.I can assure you that we are keeping the cost of living situation under close review; however, I am confident that the wide range of measures we have introduced is making a real difference in people's lives. Research by the ESRI shows that the combination of a base rate increase with the special one-off measures has effectively cushioned low income families from the impact of inflation and, in fact, that such families have fared better than they would have done if the base social welfare rates had simply increased by the rate of inflation.
89. Deputy Peter Fitzpatrick asked the Minister for Social Protection the number of claims in the education sector for short-term jobseeker’s payments from substitute teachers and all non-permanent education employees in each of the past five years to date for school summer-holiday periods; the average length of time for processing the claims; if she will review the way in which claims are processed to ensure that payments are issued in a timely manner; and if she will make a statement on the matter. [24668/23]
Amharc ar fhreagraThe number of Educational Sector Workers in receipt of a Jobseeker's Payment in the last week of August in each of the years 2018 to 2022 was 6,756, 6,939, 6352, 10,391 and 13,239 respectively.Educational Sector Workers, who wish to avail of income support while temporarily laid-off during the school breaks can apply for a jobseeker’s payment but must satisfy all the qualifying conditions to receive this payment. This includes completing the relevant claim application forms and supporting documentation in a timely manner. Seasonal workers including educational workers should apply for Jobseeker’s payment as soon as they become unemployed. A jobseeker’s payment is paid for days of unemployment where the person is not being remunerated for by their employer, including receipt of any holiday pay entitlement during the school break.Educational sector workers, who are employed on a temporary basis and who have previously been in contact with the Department, are issued with a repeat jobseeker’s application form and holiday form in advance of the school holiday periods. This advance process facilitates an efficient service to these customers and allows for speedy processing of their claim when the period of unemployment actually arises.Applying online is the fastest and most convenient way to commence the application process.Scheme processing times are monitored on an on-going basis and processing procedures are reviewed to ensure that claims are processed and paid to customers as quickly as possible.
90. Deputy Thomas Pringle asked the Minister for Social Protection if she is satisfied that the automatic enrolment pension system being proposed by Government can stay below the 0.5% maintenance costs proposed in the scheme; and if she will make a statement on the matter. [22107/23]
Amharc ar fhreagraThe introduction of an automatic enrolment (AE) system is a Programme for Government commitment and a key priority for me as the Minister for Social Protection. Under AE, employees will have access to a savings scheme, co-funded by their employer and the State. For every €3 a worker pays into it, they'll have another €4 credited to their account. The contributions will then all be invested, with members holding their own individual retirement savings accounts that they can drawdown when they retire. Implementation of the AE system is well underway, with the first enrolments expected in 2024.As Minister, I am keenly aware of the need to keep costs in the AE system low and transparent for its participants. A core objective for AE is to provide quality assured investment services for retirement savings at low cost to AE participants. This is especially true given that a large proportion of the initial 800,000 employees in the AE target population are lower and medium income earners.The AE system will be managed and overseen by a Central Processing Authority. As provided for in the final design of the AE system, an annual administration and investment management charge of up to 0.5% of assets under management will be set as a target to be achieved by the CPA. This will be achieved via tendering for services and by utilising economies of scale as the system grows. My Department and the CPA will work to ensure that fees are as close as possible to 0.5% of the value of the assets under management over the medium to long term and that costs are shared fairly among the participants.I hope this clarifies the matter for the Deputy.
