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Written Answers Nos. 644-668Regional Development Policy 644. Deputy Carol Nolan Minister for Rural and Community Development (Deputy Michael Ring): The National Planning Framework will, among other issues, address the future development direction of our cities, towns and rural areas. In this context, Ireland 2040 underpins two key policy initiatives which come under the remit of my Department: the Government’s Action Plan for Rural Development, which is seeking to maximise the economic and social potential of rural Ireland; and the Framework Policy for Local and Community Development which seeks to create vibrant, sustainable and self-determining communities across Ireland. I and my Department are actively involved in the development of the Framework, with a particular focus on ensuring that development is balanced and recognises the contribution of the regions to the long-term sustainable economic growth of Ireland. My Department is also responsible for progressing the Atlantic Economic Corridor, AEC, proposal, which aims to contribute to effective regional development by creating sufficient scale along the western part of Ireland to attract additional business investment, to grow jobs and to support vibrant local communities. Earlier this year, I established a Taskforce to progress the AEC proposal. The Taskforce comprises representatives from the business sector, key Government Departments, public bodies, and the third-level sector. In addition, my Department has responsibility for oversight of the Western Development Commission, which has a particular remit in relation to the economic and social development of a number of specific counties in the western region. These are counties Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare.. Local Authority Functions 645. Deputy Carol Nolan Minister for Rural and Community Development (Deputy Michael Ring): The Department of Rural and Community Development has provided funding to all 31 Local Authorities to co-fund the assignment of a Broadband Officer. The remit of the Broadband Officer is primarily to manage interactions with any company that is seeking to roll out telecommunications infrastructure in their county. The Broadband Officers will also work with the winning bidder(s) in respect of the roll-out of the National Broadband Plan in the areas to be covered by State intervention. Broadband Officers are also involved in helping to develop local digital strategies to ensure that full use is made of the new broadband infrastructure once it is in place. The telecommunications providers have widely welcomed the assignment the Broadband Officers by the Local Authorities and are actively engaging with them. The Department of Rural and Community Development has, additionally, established two Regional Action Groups involving all Local Authorities to ensure consistency in their engagement with the telecommunications operators and to identify and address obstacles to the roll-out of telecoms infrastructure. A number of sub-groups has been established to progress individual work items associated with the roll-out of high-speed broadband. The appointment of Broadband Officers is just one of 40 actions contained in the report of the Mobile Phone and Broadband Taskforce. An implementation group has been established to oversee the delivery of the Taskforce recommendations. Progress Reports from the Implementation Group are published on a quarterly basis, with the third report due shortly.. Action Plan for Rural Development 646. Deputy Carol Nolan Minister for Rural and Community Development (Deputy Michael Ring): Since the publication of the Action Plan, a number of papers and commentaries has been published on the potential impact of Brexit on Ireland, including rural Ireland. In addition, a number of sectorial workshops on the issue has been held with local communities and other stakeholders by several Government Departments, including the former Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. In light of these developments, I do not propose to commission the carrying out of further research on the impact of Brexit at this time. However, the Government is continuing to work, through various State agencies, to provide support and advice to businesses on how to prepare for and address the possible impacts of Brexit.. Seniors Alert Scheme 647. Deputy Carol Nolan Minister for Rural and Community Development (Deputy Michael Ring):
Local Improvement Scheme Funding 648. Deputy Bernard J. Durkan Minister for Rural and Community Development (Deputy Michael Ring): My Department wrote to Local Authorities, including Kildare County Council, in August to establish the level of demand for an LIS scheme this year. The Local Authorities were advised that any request for funds would be subject to their capacity to complete the proposed works in 2017, and funding availability. Kildare County Council indicated that they would not be requesting funding under the LIS for 2017. The level of funding available for the LIS in 2018 will be considered in the context of the 2018 Budget and Estimates process. If funding for the scheme is available in 2018, I anticipate that the scheme will again be open to applications from all eligible Local Authorities, including Kildare County Council.. Exceptional Needs Payment Applications 649. Deputy Róisín Shortall Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): Jobseeker's Allowance Eligibility 650. Deputy Caoimhghín Ó Caoláin Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): Non-cash benefits are defined in legislation as, “the net cash value to the person of his or her annual housing costs actually incurred and paid by a liable relative insofar as the cash value exceeds €4,952 per annum". A spouse or civil partner is a liable relative. Accordingly, in the case where a mortgage is being paid by a spouse who is living apart from a claimant, this will be assessed as means. It should be noted that mortgage payments are considered as maintenance payments for means-testing purposes. Maintenance payments are assessed at 50% when in excess of €95.23 per week (€4,952 per annum). These arrangements ensure that there is always an incentive to receive a maintenance payment. . Public Services Card 651. Deputy Jonathan O'Brien Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): The increase in costs arises from changes to processes, enhancements/improvements to the security of the card, and from delays impacting the timetable for production of the cards. Following the award of the contract, the then Data Protection Commissioner requested that each recipient of a PSC should contact the helpdesk as proof that the PSC had been delivered correctly. This increased the helpdesk costs from €347,000 (excluding VAT) as per the contract, to payments to date of €2.597 million (excluding VAT). Security features for cards have been improved and enhanced over the lifetime of the contract. To ensure that the PSC met the best international security standards, a Kinegram was added at a total cost of €1.140 million excluding VAT. Extending the contract period to the end of 2017 from the end of 2016 resulted in an increased price per card amounting to approx. €0.5 million to date excluding VAT. Costs associated with the deployment of the free travel variant of the PSC in 2012 amounted to just over €700,000 excluding VAT. I hope this clarifies the matter for the Deputy.. Public Services Card Data 652. Deputy Jonathan O'Brien Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): One-Parent Family Payment Eligibility 653. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): The review was to assess the financial and social effects of the OFP changes taking into account the effects on welfare dependency and the poverty rates of those affected. The scope of the review included the long-term age-related policy changes to the scheme that were implemented since January 2012, in addition to the shorter-term changes required to achieve savings across all social welfare expenditure over the same period on foot of the economic downturn. In order to complete the review, Indecon carried out a detailed quantitative and econometric analysis of a number of relevant datasets to assess the impact of the changes on lone parents. The review also included one of the largest surveys targeting one-parent families in Ireland, with 33,000 lone parents surveyed. Responses were received and analysed from almost 3,700 lone parents who were directly affected by the changes. This provided an excellent opportunity to gather the views and experiences of lone parents affected by the changes. I have received the review, and I laid it before the Houses of the Oireachtas on Monday, 9 October 2017, as provided for in the Social Welfare Act, 2016. I welcome a number of positive findings in the review: - The policy changes introduced have been successful in increasing employment and in reducing welfare dependency – the reforms increased the probability of both employment and of higher employment income; - Responses to the survey showed that the percentage of lone parents in full-time employment increased from 15% to 22%; - Welfare dependency rates fell in the year after One-parent Family Payment was lost, and continued to fall in subsequent years. I believe that these findings indicate that the broad policy intentions of the changes are having positive results and making real changes to the lives of lone parents, where they have been able to transition into employment. I acknowledge, however, that the review has also raised a number of matters of concern: - Many of those who lost the One-parent Family Payment remain unemployed, or are in low paid or part-time employment; - The balance of evidence indicates that there is an increased probability of being at risk of poverty as a result of the changes; - Further supports, aimed at assisting lone parents to obtain full-time employment or increased hours of work, need to be put in place. The impacts on lone parents arose from the combination of the policy changes to the scheme, and from the imposition, simultaneously, of the financial cuts imposed to welfare schemes across the board, arising out of the economic downturn. I and my predecessors have already taken action in recent Budgets to improve the position of lone parents, for example by progressively increasing the income disregarded for those on Jobseekers Transition, JST, from a low of €60 a week to €110 a week, and by targeting improved, tailored activation measures toward this group to assist them into training and employment. For example, lone parents who wish to participate in education can continue to receive support from the Department either through the retention of their primary payment or Family Income Supplement, or they can transfer to the Back to Education Allowance. Furthermore, to support lone parents to participate in education, SUSI grants (both maintenance and fee grants) are payable concurrently with One-parent Family Payment and Jobseekers Transition. Therefore, a lone parent can participate in education and receive the dual support of the One-parent Family Payment/Jobseekers Transition and the SUSI maintenance grants. Where lone parents are on Jobseekers Allowance, they can, should they wish to participate in education, transfer to the Back to Education programme. The additional childcare supports coming on-stream are also of particular benefit to lone parents. I consider that these measures are a step in the right direction, and I am working to ensure that there is no loss in the momentum to enhance the support for lone parents. The review points to the need to intensify both the engagement with lone parents as they move off One-parent Family Payment, and the activation supports available, and I am requesting my officials to prioritise this. The Department’s employment services provide a case-managed approach to assist lone parents to avail of various opportunities within an ever-improving labour market. This case-managed approach will be developed further, specifically to offer more tailored and holistic progression plans for lone parents that better reflect their individual circumstances. The move to more tailored progressions plans for lone parents will incorporate supports to access the childcare, education and training and other appropriate supports that they require to, in turn, access the labour market. These changes should help to improve the living standards of, and reduce the risk of poverty faced by, lone parents. I intend to continue to prioritise supports for lone parents, particularly those which incentivise work over welfare. I intend also to provide for the further review of the scheme. As there is a time lag before the benefits of labour market reforms appear, I anticipate that this review will include data to the end of 2018.. Homemakers Scheme 654. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): The homemaker's scheme makes qualification for a higher rate of State pension contributory easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect for periods from 1994, allows up to 20 years spent caring for children under 12 years of age, or caring for incapacitated people over that age, to be disregarded when a person’s social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for State pension contribution also being satisfied. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of his or her pension. While the Deputy has requested the estimated cost of backdating the homemaker scheme to 1970 in incremental steps of five years from 1994, there are a number of factors that make it difficult to estimate that cost for specific year bands. In the first instance, it should be noted that there are 20 methods by which someone can qualify for a contributory pension depending upon their PRSI record, and so the impact of incremental changes to the Homemakers scheme is not possible to estimate without doing an analysis of the actual contribution records of potential claimant groups. There are further data-related issues which make it even more challenging. For example, much of the data (e.g., child benefit records) used in the operation of the scheme at present for periods from 1994 is not readily available in computerised form for periods prior to 1984. Any projection, therefore, has to make assumptions regarding the composition of gaps in contribution records. Costing multiple partial backdatings over a range of years would require very detailed analysis of the distribution of gaps in individual records during particular periods, an estimation of which gaps were driven by child rearing and which are a result of alternative reasons, and then re-calculation of those individual entitlements under the various qualification rules. While no analysis of the particular proposal contained in the Deputy’s question has been conducted, it is clear that any backdating would entail a significant and ongoing cost to the Social Insurance Fund. It is estimated that backdating it in respect of periods before its introduction in 1994 would cost some €290 million per year, and this figure would rise at a faster rate than the overall rise in the cost of State pensions. Limiting that backdating to 1970 would moderate that cost somewhat. However, it is unlikely to have a significant impact, as the bulk of the cost would likely arise in the years immediately prior to 1994 and would decrease the further number of years from which backdating was taken. Where someone does not qualify for a full-rate contributory pension, he or she may qualify for an alternative payment. If a person's spouse has a contributory pension, he or she may qualify for an increase for a qualified adult, amounting up to 90% of a full-rate pension. Alternatively, one may qualify for a means-tested non-contributory State pension, which amounts to up to 95% of the maximum contributory rate. Work is under way to replace the yearly average system with a Total Contributions Approach. Under this approach, the rate of pension paid will more closely reflect the total number of contributions made by people, not when they paid them. The position of homemakers is being carefully considered in developing this new system of calculating the contibutory State Pension. It is hoped that this approach to pension qualification will replace the current one from 2020. Following publication of the current actuarial review of the Social Insurance Fund, a refined proposal will be developed. My Department will conduct a period of consultation with relevant stakeholders, including interest groups, representative bodies and the Oireachtas. Following the consultation period, I will submit a proposal to Government seeking approval for the new approach, and then proceed to introduce legislation to give effect to this reform. I hope this clarifies the matter for the Deputy.. State Pension (Contributory) 655. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): The current rate bands applying to the SPC were introduced from September 2012, replacing previous rates introduced in 2000. These rate bands more closely reflect the social insurance contributions history of a person than those in place between 2000 and 2012. It is estimated that to revert to the previous bands from January 2018 would result in an annual cost of over €60 million in 2018, and this annual cost would increase by an estimated €10 million each following year (e.g. it would be expected to cost some €70 million in 2019). This estimate reflects the numbers of those in receipt of reduced-rate SPC payments, and does not include those who are claiming an alternative payment at a higher rate than their reduced SPC entitlement, and who might qualify for a higher rate of SPC if such a change were introduced. This estimate also assumes that any such change to rate bands would generally be implemented from a current date and as a result would not generate retrospective arrears. The main beneficiaries from such a decision would be younger (post-September 2012) pensioners who both: a. haven’t sufficient paid contributions into the Social Insurance Fund to qualify for a contributory pension at the maximum rate, or for the 98% rate applying to those with a yearly average of €40-47 weekly PRSI contributions paid or credited per year; and b. do not qualify for means-tested pension payments at the maximum rate because, in addition to their state pension, they also have means above a certain level (e.g. they are in receipt of an occupational pension and/or own a second residential property). The savings created by the new rate bands were an alternative to cutting the core rate of pensions, at a time when Exchequer savings were required, and other social protection payments were being reduced across the board. Had a similar approach been taken with pensions, affecting everyone over State pension age – regardless of their means and their contribution record – the hardest hit would have been pensioners with no additional incomes, notably those paid a non-contributory State pension, and widows and widowers living alone on only one pension payment. A very significantly higher proportion of such pensioners are women, and this approach would have been expected to result in more women over 65 years of age experiencing consistent poverty, relative to men of the same age. The most recent CSO statistics show that this negative outcome has been avoided. The alternative approach, taken by the Government at that time, made savings in respect of the contibutory State pension by making rates of payment for new pensioners more reflective of contribution history, while maintaining the rates of payment for non-contributory and Widows/widowers pensions, as well as for contributory pensions paid to those who had contributed into the Social Insurance Fund throughout their working lives (i.e. with a yearly average of 40 or more). This approach safeguarded those most vulnerable pensioners, while avoiding undermining the contributory system, which is the basis for collection of PRSI, which funds the SPC on a "Pay-As-You-Go" basis. Where people do not qualify for a maximum-rate contributory pension in their own right, the social protection system provides alternative methods of supporting such pensioners in old age. Where their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full-rate pension, which by default is paid directly to them, and is subject to a personal means-test. Alternatively, they may qualify for a means-tested non-contributory State Pension, based on their household means, amounting up to 95% of the maximum contributory pension rate. There are very significant income and capital disregards in these means tests, which result in the large majority being paid at the maximum rate. I hope this clarifies the matter for the Deputy.. State Pensions 656. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): In most cases, it is hoped that workers will continue to work up to the new State pension age. Where this is not possible, and where a person is available for work, there are specific measures which apply to someone claiming Jobseeker’s Benefit from a date after their 65th birthday. Where qualified, these recipients may continue to be eligible for that payment until reaching pension age. In 2013, the cost of the transition State pension was €137 million. Its abolition was not expected to save that amount of expenditure in full, as some people who were affected would alternatively claim working age payments such as Jobseeker's Benefit (albeit at a lower rate than the rate of the State pension), or may claim an Increase for a Qualified Adult in respect of their spouse’s pension. However, it is estimated that well over half of that cost has been saved each year as a result of this measure, and this would be expected to increase as (a) the number of 65-year-olds increases, (b) the change results in a higher percentage of people working while aged 65, and (c) there have been two Budget increases in the rate of the State Pension since then. It is estimated that the net saving in 2018 is likely to be in the region of €84 million, and this is expected to rise to €87 million by 2020. These figures do not include future rate increases. Reversing this decision would, therefore, significantly increase the annual cost of State pensions and would reduce the funds available to pay for any future increases in the rates of the payment. The Deputy should note that there is no statutory retirement age in the State, and the age at which employees retire is a matter for the contract of employment between them and their employers. While such a contract may originally have been entered into with a retirement age of 65 years, in the context of the previous State Pension arrangements, there is no legal impediment to the employer and employee agreeing to increase the duration of employment for one or more years, if both parties wish to do so. In January 2016, an Interdepartmental Group on Fuller Working Lives, chaired by the Department of Public Expenditure and Reform, was established specifically to examine the implications arising from prevailing retirement ages. The final report of the Group made a number of recommendations to support working and retirement practices. This included a request to the Workplace Relations Commission to prepare a Code of Practice under Section 42 of the Industrial Relations Act, 1990, to help manage the engagement between employers and employees regarding retirement issues and longer working. The final report, the recommendations of which were accepted by Government in August 2016, is available on the Department of Public Expenditure and Reform’s website. I hope this clarifies the matter for the Deputy.. State Pensions Reform 657. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): Departmental Reviews 658. Deputy Willie O'Dea Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): Rent Supplement Scheme Administration 659. Deputy Willie O'Dea 678. Deputy Fiona O'Loughlin 691. Deputy Kevin O'Keeffe Minister for Employment Affairs and Social Protection (Deputy Regina Doherty):
Tabular Statement: Increased Rental Payments by County: January – September 2017
Social Welfare Benefits Eligibility 660. Deputy Ruth Coppinger Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): The means test for weekly social assistance schemes provides for a disregard of €104 per annum for army pensions payments paid under the Army Pensions Acts 1923 to 1980. It should be noted that the State Pension Non-Contributory scheme has a general means disregard of €30 per week. This means that a person can receive an army pension of up to €1,664 per annum (if she or he had no other means) and still receive the maximum weekly rate of the State Pension Non-Contributory. A pensioner with income of €250 per week can still receive a minimal pension payment, which includes supplementary benefits such as the Free Travel pass, the Household Benefits package and Fuel Allowance. The means testing of social welfare payments reflects the fact that there is an expectation that people with income are in a position to use that income to support themselves without having to rely solely on a means-tested welfare payment. Any changes to the current arrangements would have to be considered in an overall policy and Budgetary context.. Social Welfare Benefits Eligibility 661. Deputy Bernard J. Durkan Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): From the information available to the Department, it has been confirmed that the person concerned has not been referred to Tús. However, she was randomly selected to engage with the Jobpath initiative on 2 October, 2017. JobPath is an approach to employment activation which caters mainly for people who are long-term unemployed (over 12 months) to assist them to secure and sustain full-time paid employment or self-employment. Participants on JobPath will receive intensive individual support to help them address barriers to employment and to assist them in finding jobs. If the person concerned is not in a position to engage with Jobpath or meet the other eligibility criteria of the Jobseeker's payment, she should contact her nearest Intreo Office or Social Welfare Branch Office to discuss other scheme options available from the Department that may be more suitable, given her current circumstances. I trust this clarifies the matter for the Deputy.. Social Welfare Benefits Applications 662. Deputy Bernard J. Durkan Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): State Pension (Non-Contributory) Eligibility 664. Deputy James Browne Minister for Employment Affairs and Social Protection (Deputy Regina Doherty):
It should be noted that, for the purposes of the State Pension Non-Contributory, SPNC, the amounts above are doubled in the case of a couple. In addition, the SPNC has a general means disregard of €30 per week. This means that a single claimant of SPNC with no other income can have savings of €40,000 (which would result in a weekly means assessment from capital of €30), and this would have no impact on their SPNC payment. Similarly, a SPNC claimant who is one of a couple can have savings of €80,000 (and no other means) and the claimant would still receive the maximum weekly rate of SPNC. Note that each member of the couple is assessed with half of the total property and income of the couple. Furthermore, no account is taken of interest or dividend payments received in the means assessment. The assessment formula reflects the fact that there is an expectation that persons with reasonable amounts of capital and property are in a position to use that capital or to realise the value of property to support themselves without having to rely solely on a means-tested welfare payment. If the threshold were to be increased, the people who would benefit would be those who had higher levels of income or assets. Any changes to the current arrangements would have to be considered in an overall policy and Budgetary context. Labour Activation Programmes 665. Deputy Jackie Cahill Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): Community Employment Schemes Eligibility 666. Deputy Jackie Cahill : All participants and community groups are aware of the time limits for participation on these schemes. The participation limits aim to ensure the benefit of participation on a work scheme is available to the widest possible number of jobseekers. In addition, it is generally recognised that there is a greater likelihood of a "lock–in" effect where a scheme is of a longer duration. With the ongoing welcome reductions in the live register, issues such as the number of places, the criteria for participation on Tús, including age limits, will all be considered in the coming months. A review of the current rule for CE, which enables a percentage of those aged 62 or over to participate on a continuous basis up to the State Pension age, is currently under way and is expected to be finalised in the coming weeks. I trust this clarifies the matter for the Deputy.. Carer's Allowance Applications 667. Deputy Bernard J. Durkan Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): School Meals Programme 668. Deputy Bernard J. Durkan Minister for Employment Affairs and Social Protection (Deputy Regina Doherty): In addition to providing some increases to existing DEIS schools benefitting almost 6,000 children, Budget 2017 funding also provides for the inclusion in the scheme, from September 2017, of up to 240 new schools supporting 47,000 children. This includes 65 newly designated DEIS schools and 174 non-DEIS schools selected in consultation with the Department of Education and Skills. This is the first time in many years that schools outside of DEIS have been invited to join the scheme. Prior to the introduction of DEIS in 2005, all schools that were part of one of a number of Department of Education and Skills’ initiatives for disadvantaged schools were eligible to participate in the programme, which included Breaking the Cycle, Giving Children an Even Break, the Disadvantaged Area Scheme, Home School Community Liaison and the School Completion Programme. These schools have continued to remain in the scheme. In the previous academic year, 2016-17, there were 118 Breakfast Clubs and 46 Snack Clubs provided in 153 non-DEIS schools at a cost of some €968,000. Applications for the scheme for the 2017-18 school year continue to be received and processed. It is expected that the full funding available under the scheme will be allocated over the coming weeks.. |
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