Gary Gannon
Ceist:64. Deputy Gary Gannon asked the Minister for Social Protection the work that remains in the process of introducing the auto-enrolment pension scheme. [7893/24]
Amharc ar fhreagraPension Provisions
Ceisteanna (64)
Freagraí scríofa
The introduction of an auto-enrolment retirement savings system is a Programme for Government commitment, and a key priority for me as Minister for Social Protection.
Last year, I published 'The Design Principles for Ireland’s Automatic Enrolment (AE) Retirement Savings System', which sets out the new system in detail. 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 has been gathering pace, with the intention to commence the scheme towards the end of this year.
The legislation to underpin AE is currently being drafted, with my officials working with the Office of the Parliamentary Counsel. It is my intention to publish the AE Bill in the coming weeks with initiation of its passage through the Oireachtas immediately thereafter. This will be a major milestone in progressing towards implementation.
A procurement exercise for a Managed Service for the Provision and Operation of the Automatic Enrolment Retirement Savings Scheme is well advanced with an RFT now published for prospective service providers to respond to by the 15th of March. A procurement exercise for outsourced investment management services is also at an advanced stage of development and will commence in the coming months.
In parallel, discussions with the Revenue Commissioners regarding data exchanges to facilitate the identification of eligible participants have progressed and my officials are engaged in ongoing discussions with the Payroll Software Developers Association regarding AE.
A three-phase multichannel communications strategy has been developed incorporating an awareness phase, an information phase, and a launch phase. This will be timed with major milestones of the project such as the introduction of the legislation in the Houses for the first phase and the imminent commencement of roll-out for the third phase.
While there remains much to be done in this ambitious project, considerable progress is being made on multiple workstreams.
I hope that this clarifies matters for the Deputy.
Question No. 65 answered with Question No. 58.
Social Welfare Rates
Ceisteanna (66)
Gary Gannon
Ceist:66. Deputy Gary Gannon asked the Minister for Social Protection her views on whether the domiciliary care allowance payment of €340 per month is sufficient to care for a child with a severe disability that requires full time care and attention. [7889/24]
Amharc ar fhreagraFreagraí scríofa
The main income supports to carers provided by my department are Carer’s Allowance, Carer’s Benefit, Domiciliary Care Allowance and the Carer’s Support Grant. Spending in 2024 is expected to amount to over €1.7 billion on these payments.
Domiciliary Care Allowance is a non means tested payable to a parent or guardian in respect of a child aged under 16 who has a severe disability and requires continual or continuous care and attention substantially over and above the care and attention usually required by a child of the same age, and requires this care for at least 12 consecutive months.
At the end of January there were 54,171 families in receipt of the payment in relation to 60,784 children. Expenditure in 2024 is estimated at almost €274 million. Between 2021 and the end of 2023, expenditure on this scheme has increased by 28%.
From January, the rate of Domiciliary Care Allowance increased from €330 to €340 per month. This reflects a cumulative payment increases of €30.50 per month on the payment under this Government.
The Deputy should also be aware that Domiciliary Care Allowance is not paid in isolation, parents or guardians in receipt of Domiciliary Care Allowance are eligible for an annual non means tested Carer's Support Grant of €1,850.
In November 2023 a further 400 euro lump sum was paid to people receiving the Carer's Support Grant.
Subject to satisfying a means test or having sufficient PRSI contributions, those receiving Domiciliary Care Allowance may also be eligible for Carer’s Allowance or Carer’s Benefit.
As part of Budget 2022, the Government doubled the period of time for which Domiciliary Care Allowance is paid for children who are hospitalised. This support now continues to be paid for 26 weeks, in a twelve month period, to the parents or guardians of children under 16. Parents of babies who remain in an acute hospital after birth can also receive Domiciliary Care Allowance for 26 weeks in a twelve month period.
I will continue to keep the supports for Domiciliary Care Allowance recipients under review.
I trust this clarifies the matter for the Deputy.
Departmental Schemes
Ceisteanna (67)
Paul Murphy
Ceist:67. Deputy Paul Murphy asked the Minister for Social Protection if she will extend the free travel scheme to all social welfare recipients; and if she will make a statement on the matter. [7897/24]
Amharc ar fhreagraFreagraí scríofa
The Free Travel scheme provides free travel on the main public and private transport services for those eligible under the scheme.
There are over one million customers with direct eligibility. This increases to 1.75 million customers when spouses and companions are included. The estimated expenditure on the Free Travel in 2024 is €104 million.
The objective of the Free Travel scheme is to ensure older people and people with disabilities remain active within their community. Extending the eligibility of the free travel scheme to include all social welfare recipients would change this objective, and radically change the nature of the scheme.
Given the large numbers involved, extending the free travel scheme to all social welfare recipients, would require significant additional funding. The extension of the Free Travel scheme to all recipients of a social welfare payment would have to be considered in the context of the Budget, having regard to other competing demands for scarce resources.
As part of Budget 2024, I was particularly pleased to announce the expansion of my Department’s Free Travel Pass to support people who are medically certified as unable to drive.
There will be no requirement that a person must be in receipt of a Social Welfare payment in order to qualify for a free travel pass on these medical grounds, provided the other qualifying criteria are met. The implementation date for the measure is July 2024.
It is important to note that my Department can provide support by way of an Additional Needs Payment toward the cost of essential travel. This support is for people who cannot meet this cost from their own resources and is available through our Community Welfare Officers.
I hope this clarifies the matter for the Deputy.
Poverty Impact Assessment
Ceisteanna (68)
Paul Murphy
Ceist:68. Deputy Paul Murphy asked the Minister for Social Protection if a poverty impact assessment was carried out into extending child benefit to 18 year-olds in full-time education or training compared to extending it to 16, 17 and 18 year-olds not in full-time education or training; and if she will make a statement on the matter. [7895/24]
Amharc ar fhreagraFreagraí scríofa
In Budget 2024, the Government decided to extend the payment of Child Benefit to 18-year-olds who are in full-time education or have a disability. This was one of my key priorities in the Budget.
We had originally provided that the change would take effect from September this year. However, I am very pleased that we are now able to bring this important change in from an earlier date and I have secured Government approval to do that.
It is expected that in the region of 60,000 children will benefit from this measure annually. The additional estimated cost of bringing the commencement date forward to May is €21.6 million.
The impact of the extension of Child Benefit to those aged 18 and in full-time education was included in the Budget distributional impact assessments undertaken and included in the Expenditure Report. That report shows that the Budget 2024 core package of tax and expenditure measures has a progressive impact. It resulted in an increase of just over 2 per cent of 2023 base equivalised household income in equivalised disposable income for all deciles. The benefit to the bottom three deciles is driven by the significant social protection package.
Families on low incomes may be able to avail of a number of social welfare schemes that support children up to age 18, whether or not they are in full time education:
• Increase for a Qualified Child with primary social welfare payments; and
• the Working Family Payment for low-paid employees with children.
These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with children.
All of the Department’s budget measures are subject to a poverty impact assessment using the SWITCH model developed by the ESRI. The specific idea suggested by the Deputy of extending Child Benefit in respect of 16, 17 or 18 year olds who are not in full-time education or training was not considered as an option as it would run counter to the policy objectives of encouraging young people to remain in education or to take up any of the many training options available to them if they leave school without employment. Where they are in employment payment of Child Benefit would obviously be unnecessary and inappropriate.
I trust this clarifies matters for the Deputy.
Departmental Schemes
Ceisteanna (69)
Ruairí Ó Murchú
Ceist:69. Deputy Ruairí Ó Murchú asked the Minister for Social Protection if she will provide an update on the work to operationalise the recommendations in the review of the reasonable accommodation fund and the disability awareness support scheme, and the plans to launch a reformed scheme this year; and if she will make a statement on the matter. [7230/24]
Amharc ar fhreagraFreagraí scríofa
My Department provides a wide range of income and employment supports to assist jobseekers and employees with disabilities, and their employers. These supports include the Reasonable Accommodation Fund and the Disability Awareness Support Scheme.
The Reasonable Accommodation Fund provides financial support for people with disabilities and for employers to help make their workplaces more accessible. The Disability Awareness Support Scheme provides funding for disability awareness training for employees.
I published a review of these schemes last year. The review recommends combining the two schemes into a single flexible scheme, simplifying systems and processes, providing approval in principle, and promoting the reformed scheme.
It also recommends increasing funding, extending workplace needs assessments, and job coaching to new recruits and all existing employees, increasing the number of support hours eligible for funding, providing support for blended working, and opening the scheme to other employers, for example the voluntary and community sector.
I have allocated an additional €1 million to expand the scheme and implement these recommendations.
My Department continues to work to operationalise these recommendations. I expect to launch the reformed scheme at the beginning of April.
I trust this clarifies the matter for the Deputy.
Social Welfare Schemes
Ceisteanna (70)
Matt Carthy
Ceist:70. Deputy Matt Carthy asked the Minister for Social Protection if she intends to add additional schemes to those currently deemed non-assessable income with regard to farm assist; and if she will make a statement on the matter. [7886/24]
Amharc ar fhreagraFreagraí scríofa
Farm Assist is a statutory means-tested income support specifically for farmers on low incomes. There are just under 4,000 claims in payment at present. The Government has provided €50.93 million for the scheme in 2024.
I have introduced a number of improvements to the means test for Farm Assist in recent years.
Under the Farm Assist means test, income from a range of agri-environmental schemes attract a disregard of €5,000, with 50% of the balance assessed as means. The amount disregarded was increased from €2,540, with effect from January 2023.
Further to the commitment in the Programme for Government and in the Rural Development Policy 2021-2025, my Department reviewed the means assessment disregards for Farm Assist in 2021. One of the key recommendations of the report was to provide for an expansion to the list of agri-environmental schemes that qualify for a disregard. I added an additional 19 schemes to this list from June 2022, and a further 4 schemes from April 2023.
In line with the recommendation contained in the review, I am committed to continuing to work with my colleague, the Minister for Agriculture, Food and the Marine, to identify any additional schemes contained in Ireland's CAP Strategic Plan 2023-2027 that could be considered for inclusion in the list of agri-environmental schemes which attract a disregard for Farm Assist.
I trust this clarifies the position for the Deputy.
Social Welfare Benefits
Ceisteanna (71)
Paul Murphy
Ceist:71. Deputy Paul Murphy asked the Minister for Social Protection if she will extend child benefit to 16, 17 and 18 year-olds not in full-time education or training; and if she will make a statement on the matter. [7894/24]
Amharc ar fhreagraFreagraí scríofa
Child Benefit is a monthly payment made to families with children up to the age of 16 years. Currently, the payment continues to be paid in respect of children until their 18th birthday where they are in full-time education, or have a disability.
In Budget 2024, the Government decided to extend the payment of Child Benefit to 18-year-olds who are in full-time education or have a disability. This was one of my key priorities in the Budget.
This is a significant change to the Child Benefit scheme. It requires technical and operational changes before implementation. We had originally provided that the change would take effect from September this year. However, I am very pleased that we are now able to bring this important change in from an earlier date and I have secured Government approval to do that.
It is expected that in the region of 60,000 children will benefit from this measure. The additional estimated cost of bringing the commencement date forward to May is €21.6 million.
Where a child has a disability, Child Benefit continues to be payable until the child's 18th birthday whether or not the child is in full-time education and this is now also being extended until the child's 19th birthday. There are currently no plans to extend Child Benefit in respect of 16, 17 or 18 year olds who are not in full-time education or training. It is important that the Child Benefit payment reflects our policy objective of encouraging young people to remain in education or to avail of the very many training options that are available to them including those available through YouthReach and the Community Training Centres.
Families on low incomes may be able to avail of a number of social welfare schemes that support children up to age 18, whether or not they are in full time education:
• Increase for a Qualified Child with primary social welfare payments; and
• the Working Family Payment for low-paid employees with children.
These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with children.
I trust this clarifies matters for the Deputy.
State Pensions
Ceisteanna (72)
Alan Dillon
Ceist:72. Deputy Alan Dillon asked the Minister for Social Protection to outline the changes to the State contributory pension; and if she will make a statement on the matter. [7876/24]
Amharc ar fhreagraFreagraí scríofa
A number of State pension reforms were enacted in the Social Welfare (Miscellaneous Provisions) Act 2023 on the 14th December 2023, which represent the biggest ever structural reform of the Irish State Pension system.
Firstly, the Act introduces flexibility to the State Pension (Contributory). State Pension age remains at 66 years. However a person can now choose to defer drawing down their State Pension to any age between 66 and 70 and receive an actuarially based increase in their weekly payment rate if they wish. They can also use the period between 66 and 70 years of age to build up their contribution record for additional entitlements. If a person has less than 10 years PRSI reckonable paid contributions, they may be able to use this period to establish entitlement. Those who defer claiming their State Pension (contributory) and continue to work, will also have access to certain short-term contingency payments during the period of deferral.
Secondly, the Act introduces an enhanced State Pension provision for people who have been caring for incapacitated dependents for 20 years or more. This will be done by attributing the equivalent of paid contributions to long-term carers to cover gaps in their contribution record. The Long-Term Carer's Contributions will be available to those who provided full time care to incapacitated dependents for 20 years (1,040 weeks) or more.
Finally, the Act introduces a ten-year phased transition from the yearly average method of calculation of State Pension (contributory) to the Total Contributions Approach (TCA) as the sole method of calculation. TCA is a fairer and more transparent method for calculating State Pension (Contributory). The ten-year transitional arrangements are to avoid a ‘cliff edge’ effect. The first year of phasing-out will begin in January 2025.
I hope this clarify the matter for the Deputy.
Departmental Reviews
Ceisteanna (73)
Claire Kerrane
Ceist:73. Deputy Claire Kerrane asked the Minister for Social Protection to provide an update on the Green Paper on Reform of Disability Payments; and if she will make a statement on the matter. [7802/24]
Amharc ar fhreagraFreagraí scríofa
The Government committed as part of the Roadmap for Social Inclusion to develop and consult on proposals to restructure long-term disability payments and to simplify the system. The proposals developed are set out in the Green Paper on Disability Reform.
The aim of the Green Paper is two-fold. First, it seeks to better insulate disabled people who cannot work from poverty by providing for higher rates of payment. Second, it seeks to encourage and support higher levels of employment for people with disabilities by tailoring the provision of employment supports to suit people’s capabilities.
This is not a cost-cutting measure. Many people will see significant increases to their payment of up to €45 per week. Any engagement with employment services will be on a voluntary basis.
The Green Paper is a consultation document. No final decisions have been made. The Paper’s purpose is to invite discussion, debate and suggestions.
We want to hear from as many disabled people and their representatives as possible. My officials held a stakeholder event in October and four public consultation events in November last year. My Department has also been holding bilateral meetings with Disabled Persons Organisations and disability groups.
I have extended the closing date for the public consultation until the 15 March 2024. This was in response to requests for an extension and to allow individuals, Disabled Persons’ Organisations and disability groups time to compose their submission. People can make a submission in writing or by video. I encourage everybody with an interest in improving the lives of people with disabilities to engage in the consultation process. I am open to all ideas and suggestions.
My Department has received over 250 submissions to date, and the feedback from these submissions is currently being reviewed and analysed. I look forward to receiving more submissions in the coming weeks. All feedback from the public consultation will be considered in any future reforms of the system.
I trust this clarifies the matter for the Deputy.
Social Welfare Benefits
Ceisteanna (74)
Christopher O'Sullivan
Ceist:74. Deputy Christopher O'Sullivan asked the Minister for Social Protection to consider increasing the weekly earnings disregard for disability allowance recipients as when using the benefit of work estimator (details supplied) recipients seem to have less take home now post budget than before; and if she will make a statement on the matter. [7804/24]
Amharc ar fhreagraFreagraí scríofa
The earnings disregard for recipients of Disability Allowance has increased by almost 38% over the last four budgets from €120 to €165 currently. This enables those on the scheme to earn more without having a negative impact on their means tested payment. For people in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. A person can now earn a maximum of €505.10 per week and still keep a portion of their Disability Allowance payment.
Based on the figures provided by the Deputy, for a person working 35 hours per week in 2023 at the minimum wage level of €12 per hour, they would have expected to receive €472.81 per week. This was made up of a net salary of €380.31 plus a Disability Allowance payment of €92.50. If the customer works the same number of hours in 2024 at the new minimum wage rate of €12.70 per hour, they could expect to receive €479.78 per week. This is made up of a net salary of €397.78 and a Disability Allowance payment of €82. Overall, this is an increase of €6.97 per week.
Regarding the Benefit of Work Estimator, please note that the figures displayed are an estimate and the actual payment may differ. This will depend on a persons personal circumstances and the information which they have provided.
In order to get an accurate entitlement figure I suggest the person contacts Disability Allowance directly at: Department of Social Protection, Social Welfare Services Office, Government Buildings, Ballinalee Road, Co. Longford. Or by phone at 043 3340000 or 0818 927770.
I trust this clarifies the matter for the Deputy.
Question No. 75 answered with Question No. 58.
Question No. 76 answered with Question No. 58.
Question No. 77 answered with Question No. 59.
Social Welfare Benefits
Ceisteanna (78)
Michael Lowry
Ceist:78. Deputy Michael Lowry asked the Minister for Social Protection to provide an update on the implementation of the new pay-related jobseeker's benefit system; how this reform is improving the social welfare system for persons with a strong work history so they can receive enhanced benefits if they lose their employment; what measures are being taken to ensure its successful implementation; and if she will make a statement on the matter. [7455/24]
Amharc ar fhreagraFreagraí scríofa
I secured Government approval last November for the design proposals for a new Jobseeker's Pay Related Benefit scheme and approval for the draft Heads of Bill on 9th January this year. The draft legislation is currently undergoing pre-legislative scrutiny.
The Department is working on the necessary arrangements to facilitate the introduction of the scheme in Q4 2024.
People entering unemployment often do so with established financial and other commitments, so it is appropriate to provide a stronger short term ‘cushion’ against income shock while a person seeks new employment and adjusts their outgoings following a job loss.
The benefit will be available to newly unemployed employees who have a strong and recent attachment to the labour market. The weekly rate of payment for people who have at least 5 years paid PRSI contributions will be 60% of previous earnings, subject to a maximum of €450, for the first 3 months. The rate will change to 55% of earnings subject to a maximum of €375 for the following 3 months. A further 3 months will be paid at the rate of 50% up to a maximum €300.
For persons who have between 2 and 5 years paid contributions, the rate will be 50% of previous earnings, subject to a weekly maximum of €300 and 6 month’s duration.
I trust this clarifies the situation for the Deputy.
Departmental Schemes
Ceisteanna (79, 103)
Thomas Gould
Ceist:79. Deputy Thomas Gould asked the Minister for Social Protection the reason the Irish Sign Language Act voucher scheme is to be suspended. [7906/24]
Amharc ar fhreagra
Pádraig O'Sullivan
Ceist:103. Deputy Pádraig O'Sullivan asked the Minister for Social Protection for an update on the Irish sign language voucher scheme and when will it be introduced; and if she will make a statement on the matter. [7775/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 79 and 103 together.
Section 9 of the Irish Sign Language (ISL) Act, 2017 assigns responsibility to the Minister for Social Protection to provide funds to facilitate users of ISL to access social, educational and cultural events and services (including medical) and other activities.I have assigned the implementation of this important responsibility to the Citizens Information Board (CIB), the statutory body under the aegis of my Department, which in turn assigned delivery to its relevant Service Delivery Company, the Sign Language Interpreting Service (SLIS).
Following a four-month pilot of an "ISL Voucher Scheme" in 2021 by SLIS, supported by my Department and CIB, I was delighted to see the commencement of the Scheme on a permanent basis from 2nd October 2023. A funding allocation has been secured by my Department for the Scheme for 2024.
On 9th February last, my Department became aware that the ISL Voucher Scheme was due to cease temporarily with effect from 20th February. Following an urgent meeting requested and chaired by my Department on 13th February, with CIB and SLIS, all parties re-affirmed their respective commitments to the Scheme and recognised its vital role in supporting members of the Deaf community to fully participate in society. At that meeting, CIB and SLIS agreed a pathway forward to allow the Scheme to continue.
A joint statement from all three organisations accompanied by an ISL video version, issued last week confirming the continued commitment to the voucher scheme. As I am sure you will understand, I believe it is imperative that this statement and the message therein is communicated to the Deaf community first and foremost, and in a format that ensures its accessibility.
As previously stated, I am fully committed to the ISL Voucher Scheme now and into the future, and I am happy that a pathway forward has been agreed to ensure the continued delivery of the ISL Voucher scheme past the 20th February.
Question No. 80 answered with Question No. 58.