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Tuesday, 16 Apr 2024

Written Answers Nos. 455-472

Departmental Schemes

Questions (455)

Matt Carthy

Question:

455. Deputy Matt Carthy asked the Minister for Social Protection if she will review the position regarding the mandatory retirement age for participants on the job initiative scheme to ensure that those who wish to can remain on the scheme past the State pension age; and if she will make a statement on the matter. [16007/24]

View answer

Written answers

As the Deputy is aware Job Initiative (JI) is an employment support scheme which was designed to provide eligible long-term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities.  Recruitment onto the scheme ceased from November 2004, while existing participants have their annual contracts renewed until they reach 66 years of age.

In response to the recommendations from the Commission on Pensions, a set of new pension measures were approved by Cabinet in September 2022.  The set of reforms agreed included maintaining the State pension age at 66 and introducing a new flexible pension model, which came into effect from January 2024, whereby people have the option to continue working up until the age of 70 in return for a higher pension.

The new measures are specifically for people in standard employment situations and do not apply to State supported schemes like JI, where the participant qualifies due to having been on a specific social welfare payment in advance of their placement on the scheme.

Accordingly, the position regarding funding for participants on employment support schemes, including the JI scheme, remains the same.  Funding for participants will continue to be available to State Pension Age, which is currently 66.

Should participants wish to continue to work after they reach 66, it is open to them to apply for positions that are not state funded.  There may also be the option to work with the JI scheme in a voluntary capacity.

I trust this clarifies the matter for the Deputy.  

Pensions Reform

Questions (456)

Rose Conway-Walsh

Question:

456. Deputy Rose Conway-Walsh asked the Minister for Social Protection the projected annual cost to the Exchequer of the planned auto-enrolment pension scheme; and if she will make a statement on the matter. [16009/24]

View answer

Written answers

The introduction of an automatic enrolment (AE) retirement savings system is a Programme for Government commitment and a key priority for me as the Minister for Social Protection.  Implementation of the AE system is well underway, with the Automatic Enrolment Retirement Savings System Bill 2024 now published and a tender process to contract for administration services well advanced.  Enrolment of the first participants is expected to commence in January 2025. 

Implementation of the AE system will require additional resources in the form of the costs of the State top-up and may require resources for potential set up costs for the National Automatic Enrolment Retirement Savings Authority, which is being established to maintain and administer the AE retirement savings system on behalf of its participants.

Under the final design principles of the AE system, the State will make a contribution to participant’s retirement savings funds at a rate of €1 for every €3 saved by the employee.  Initially, contributions will be set at a rate of 1.5% of a worker’s annual gross income for both employee and employer.  The contribution rates will then auto-escalate every three years by 1.5 percentage points, until reaching the maximum contribution rate of 6% from Year 10 onwards.  Therefore, during the first three years of the system’s operation, while the employees’ contribution would be set at 1.5% of their gross earnings, the State’s contribution would be equivalent to 0.5%.

In estimating the costs of the State contribution, it is assumed that 90% of enrollees will remain enrolled in the scheme.  The full year cost of the State top-up is then estimated to be €138 million in 2025.  By Year 10, when the full contribution rates are phased in, the full annual cost is estimated to be €760 million.

While the cost of incentivising AE appears to be significant, it represents an investment in retirement savings in order to safeguard the standard of living of the retired population in the future.  Accordingly, it is expected that the investment made now will be returned to the economy in higher levels of expenditure by retired people in the future.  Furthermore, by way of comparison, the estimated cost of the existing marginal tax relief on occupational pensions was approx.  €1.8 billion in 2020, which largely benefits higher rate income taxpayers.  If tax relief were used instead of a State top-up, Department of Finance figures indicate that the cost of extending the existing tax relief system to the target AE cohort would amount to approx.  €750 million per year from Year 10 onwards, which includes tax relief on employer contributions of approx. €200 million.  (This is based on 2020 data and the Year 10 calculations do not take account of any typical inflators).

With regard to the costs associated with the operation of the National Automatic Enrolment Retirement Savings Authority, the intention here is for the Authority to become self-financing from fees charged to the participants.  However, as costs will arise in advance of contribution collection commencing, it is expected that the costs of setting up the Authority itself will be financed from a loan to be amortised as part of its operating costs over the following 10 to 15 years.  Thereafter, it is expected that the Authority should be self-financing, requiring no funding from the Exchequer.

I hope that this clarifies matters for the Deputy.

Pensions Reform

Questions (457)

Bríd Smith

Question:

457. Deputy Bríd Smith asked the Minister for Social Protection the reason the Automatic Enrolment Retirement Savings System Bill 2024 (No.22 of 2024) has ignored the Joint Oireachtas Committee on Social Protection, Community and Rural Development and the Islands' pre-legislative scrutiny recommendation number 15, which states that the investment funds be prohibited from investing in fossil fuels or the arms industry (details supplied); and if she will make a statement on the matter. [16047/24]

View answer

Written answers

The introduction of an automatic enrolment (AE) retirement savings system is a Programme for Government commitment and a key priority for me as Minister for Social Protection. Implementation of the AE system is well underway, with the Automatic Enrolment Retirement Savings System Bill 2024 now published and a tender process to contract for administration services being well advanced. Enrolment of the first participants is expected to commence in January 2025.

I am aware that the report of the Joint Oireachtas Committee (JOC) on Social Protection on its pre-legislative scrutiny of the Heads of Bill to establish the AE system set out 21 observations and recommendations and that among them are some relating to environmental concerns and the arms industry.

To manage and administer the AE system, a new body, the National Automatic Enrolment Retirement Savings Authority (NAERSA) will be established. It will openly procure investment management services on behalf of AE participants. In this regard, it is important to note that the Bill does indeed provide for environmental, social and governance (ESG) concerns such as those highlighted by the JOC. They feature in terms of the investment rules applicable to contracted service providers set out in Section 74 and the obligations of the State under international agreements on environmental sustainability and climate change that must be taken into account under Section 75. The State’s obligations with regard to relevant international agreements, although not specified in the Bill, would include the Sustainable Finance Disclosure Regulation, the UN Global Compact and the Paris Agreement. The inclusion of these measures will therefore ensure that ESG concerns are well represented in the AE system.

I want to make it clear to the Deputy that the NAERSA will not be administering a new State fund, but rather will be administering hundreds of thousands of individual savings accounts that are, and will remain, the personal property of the AE participants. The AE project is, in that sense, a State-incentivised personal retirement savings scheme for individuals rather than a new national fund. In that context, it is important that we treat AE participants' money on a par with those invested in occupational or supplementary private pension schemes and that we do not force AE participants' investments into overly concentrated or niche risk profiles. To safeguard against this, the legislation also provides for a set of investment rules that at a high level include the ‘prudent person principle' that already applies to other pension schemes as regulated by the Pensions Act and the IORP II Directive.

I hope this clarifies matters for the Deputy.

Social Welfare Appeals

Questions (458)

Aengus Ó Snodaigh

Question:

458. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she will ensure that an application for disability allowance for a person (details supplied) will be awarded as soon as possible. [16155/24]

View answer

Written answers

Disability Allowance (DA) is a weekly allowance paid to people with a specified disability who are aged 16 or over and under the age of 66. This disability must be expected to last for at least one year and the allowance is subject to a medical assessment, means test and Habitual Residency conditions.

I confirm that my Department received an application for DA from the person concerned on 15 February 2022. Based on the information provided to my Department, they were awarded the maximum personal rate of Disability Allowance effect from 16 February 2022.

A review of their DA payment was conducted based on information provided in regard to the whereabouts of this individual and their DA claim was suspended with effect from 14 February 2023 in order to establish their whereabouts.

As part of the review in February 2023 the person concerned was requested to provide confirmation of their address and bank statements covering the period 01 August 2022 to February 2023.

Confirmation of their address was received, and the DA payment of the person concerned was reinstated pending the receipt of outstanding bank statements. Their DA Payment remained suspended with effect from 09 May 2023 as the requested bank account information had not been returned.

While this individual submitted bank statements on 19 May 2023, these did not include the statements for period requested. Further requests for the outstanding statements issued to the person concerned via correspondence dated 22 May 2023 and 28 September 2023.

Another request dated 22 November 2023 was sent by my Department seeking the outstanding bank statements covering the periods under review.

Upon a further review of this individual's means, their DA payment has been re-instated from the 24 April 2024. This individual is currently in receipt of Supplementary Welfare Allowance and any arrears from DA will be calculated, less the amount paid on the SWA for the overlapping period.

I trust this clarifies the matter for the Deputy.

Rental Sector

Questions (459)

Louise O'Reilly

Question:

459. Deputy Louise O'Reilly asked the Minister for Social Protection if tenants in cost rental tenancies are able to access rent supplement; and if not, the reason this is the case. [16172/24]

View answer

Written answers

The Department of Housing Local Government and Heritage provides significant funding under the Housing for All strategy to support the provision of Cost Rental homes. Local authorities, Approved Housing Bodies, the Land Development Agency and also private providers (under the new Secure Tenancy Affordable Rental investment scheme) currently provide Cost Rental homes.

Cost Rental is a form of tenure introduced under the Affordable Housing Act 2021, where rents are set only to cover the cost of financing, building, managing and maintaining the homes. It assists a cohort of renters who face significant affordability challenges meeting high rents in the private sector.

One of the qualifying criteria for any type of household applying for a Cost Rental home is that a household member is not in receipt of any social housing supports, including the Housing Assistance Payment or Rent Supplement.

In terms of my own Department, Rent Supplement continues to play a key role in supporting families and individuals in private rented accommodation, with the scheme supporting 7,781 active recipients at the end of March 2024. The purpose of Rent Supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The scheme ensures that those who were renting, but whose circumstances have changed due to temporary loss of employment or income, can continue to meet their rental commitments.

Responsibility for housing related issues rests with the Department of Housing, Local Government and Heritage. Rent Supplement is not intended to cover circumstances where responsibility rests with another Government Department or Agency. The overall aim of Rent Supplement is to provide short term assistance, and not to act as an alternative or extension to other housing supports operated by the Exchequer.

I trust this clarifies the matter for the Deputy.

Social Welfare Appeals

Questions (460)

Marian Harkin

Question:

460. Deputy Marian Harkin asked the Minister for Social Protection for an update on a decision on a social welfare appeal (details supplied); and if she will make a statement on the matter. [16189/24]

View answer

Written answers

The Social Welfare Appeals Office is an Office of the Department of Social Protection which is responsible for determining appeals against decisions in relation to social welfare entitlements. Appeals Officers are independent in their decision making functions.

The Social Welfare Appeals Office has advised me that a Disability Allowance appeal by the person concerned was registered in that office on 16 January 2024. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection.

These papers were received in the Social Welfare Appeals Office on 08 April 2024 and the case has been assigned to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if necessary, hold an oral hearing.

I trust this clarifies the matter for the Deputy.

Covid-19 Pandemic Supports

Questions (461)

Carol Nolan

Question:

461. Deputy Carol Nolan asked the Minister for Social Protection the reasons Catholic clergy and ministers of other religious denominations did not qualify for the pandemic unemployment payment; how these individuals are regarded for tax purposes; and if she will make a statement on the matter. [16212/24]

View answer

Written answers

The Covid -19 Pandemic Unemployment Payment (PUP) scheme was introduced to support individuals who lost their employment on or after 13 March 2020 as a direct consequence of the Covid-19 pandemic. It was also available to self-employed people whose income from self-employment ceased or reduced as a direct consequence of the pandemic to the extent that they would be available to take up full-time employment. Clerics of all religions were eligible for the Covid-19 Pandemic Unemployment Payment provided that they fulfilled the criteria for the payment.

The tax treatment of Ministers of Religion is a matter for my colleague, the Minister for Finance. However, I can advise the Deputy that Ministers of Religion employed by the Church of Ireland Representative Body pay PRSI at Class E. Other Ministers of Religion, including members of the Catholic clergy, are liable to PRSI as self-employed contributors, paying Class S on their reckonable income.

If the Deputy has a particular case that she would like to have looked at in relation to eligibility she can forward the details and my department officials will review the case.

I trust this clarifies the matter for the Deputy.

Departmental Data

Questions (462)

Darren O'Rourke

Question:

462. Deputy Darren O'Rourke asked the Minister for Social Protection the number of PPS numbers issued in Ireland from 1 January 2023 to 31 March 2024; and the breakdown, by nationality that each of the PPS numbers was issued to, in tabular form. [16282/24]

View answer

Written answers

I can inform the Deputy that for the period from 1 January 2023 to 31 March 2024, an overall total of 326,436 Personal Public Service Numbers (PPSNs) have been allocated by my Department.

Of this overall total, 71,692 PPSNs were allocated for children whose births were registered with the General Register Office.

Some nationalities have been grouped together under the category "other" for presentation purposes.

I trust this clarifies the matter for the Deputy.

TABLE 1 – PPSNs Allocated from 1 January 2023 to 31 March 2024 by Nationality

Afghanistan

2,154

Albania

386

Algeria

2,023

Argentina

1,018

Australia

1,481

Austria

353

Bangladesh

1,756

Belarus

149

Belgium

474

Bolivia, Plurinational State of

1,333

Botswana

819

Brazil

16,175

Bulgaria

2,304

Canada

1,337

Chile

1,636

China

5,339

Colombia

344

Croatia

1,422

Cyprus

168

Czech Republic

960

Denmark

274

Egypt

1,049

Estonia

166

Finland

306

France

5,056

Georgia

1,612

Germany

2,884

Ghana

701

Greece

906

Hungary

1,375

India

31,003

Indonesia

167

Iran, Islamic Republic of

405

Iraq

219

Ireland

80,479

Israel

512

Italy

8,347

Japan

733

Jordan

327

Kenya

504

Korea, Republic of

665

Kuwait

132

Latvia

909

Lebanon

83

Lithuania

1,425

Luxembourg

81

Malaysia

1,173

Malta

257

Mauritius

226

Mexico

2,457

Moldova, Republic of

472

Morocco

437

Nepal

414

Netherlands

1,078

New Zealand

412

Nigeria

6,173

Norway

381

Oman

83

Other

8,191

Pakistan

4,965

Philippines

4,399

Poland

5,441

Portugal

5,982

Romania

15,457

Russian Federation

1,102

Saudi Arabia

237

Serbia

85

Singapore

83

Slovakia

864

Slovenia

97

Somalia

1,824

South Africa

3,531

Spain

11,689

Sri Lanka

850

Sweden

1,565

Switzerland

294

Syrian Arab Republic

436

Thailand

425

Turkey

2,194

Uganda

205

Ukraine

36,457

United Kingdom

15,920

United States

5,434

Unknown or not stated

435

Vietnam

329

Zimbabwe

2,431

Total

245,957

Social Welfare Rates

Questions (463)

Darren O'Rourke

Question:

463. Deputy Darren O'Rourke asked the Minister for Social Protection the estimated cost if the maximum rate of disability allowance rate increased to €242.50 per week. [16283/24]

View answer

Written answers

My Department provides a suite of income supports for those who are unable to work due to an illness or disability. These include contributory payments based on PRSI contributions, such as Illness Benefit and Invalidity Pension, and non-contributory payments based on a means test, such as Disability Allowance.

Disability Allowance is a payment for people who are aged between 16 and 66 with an injury, disease or disability that has continued, or may be expected to continue, for at least one year and, as a result of this disability, the person is substantially restricted in undertaking work that would otherwise be suitable. The allowance is subject to a medical assessment, a means test and a habitual residency requirement.

As of February 2024, there were 162,774 recipients of Disability Allowance. Based on those figures, if Disability Allowance was increased by €10.50 to €242.50 per week, the estimated additional cost per annum would be nearly €89 million.

Any proposals to increase the rate for Disability Allowance would have to be considered in an overall budgetary context.

I trust this clarifies the matter for the Deputy.

School Meals Programme

Questions (464)

Alan Dillon

Question:

464. Deputy Alan Dillon asked the Minister for Social Protection for an update on a matter (details supplied); and if she will make a statement on the matter. [16295/24]

View answer

Written answers

The objective of the School Meals Programme is to provide regular, nutritious food to children to support them in taking full advantage of the education provided to them. The Programme is an important component of policies to encourage school attendance and extra educational achievement. Following the expansion of the Programme in recent years, some 2,600 schools and organisations, covering 443,000 children are now eligible for funding.

I am committed to continuing to expand the School Meals Programme and building further on the significant extension of the Programme that has taken place in recent years. As part of this significant expansion plan, all remaining primary schools were contacted last year and requested to submit an expression of interest form if their school is interested in commencing the provision of hot school meals.

Expressions of interests were received from over 900 primary schools in respect of 150,000 children and late last year these schools were invited to participate in the Hot School Meals Programme from 8th April 2024.

My officials advise me that the school referred to by the Deputy is one of these schools that already participates in the scheme. It has availed of the Hot School Meals Scheme for all of its pupils from the 2022-2023 academic year.

I trust this clarifies the matter for the Deputy.

Social Welfare Appeals

Questions (465)

Robert Troy

Question:

465. Deputy Robert Troy asked the Minister for Social Protection to review the case of a person (details supplied). [16311/24]

View answer

Written answers

Under the law as currently enacted, entitlement to a Widows, Widowers or Surviving Civil Partner’s Contributory pension is only available to a surviving partner who was party to a marriage or civil partnership.

On 22nd January, the Supreme Court delivered its judgment in relation to the entitlement of an unmarried co-habitant to a Widows, Widowers or Surviving Civil Partner’s Contributory pension. The Supreme Court judgment overruled a previous High Court decision and found in favour of the claimant and his children.

In simple terms the Court has found that section 124 of the Social Welfare Consolidation Act 2005 (as amended) is inconsistent with the Constitution insofar as it excluded the claimant from the category of persons entitled to benefit from it. The Court reached that conclusion on the basis of the equality guarantee contained in Article 40.1 of the Constitution. The Supreme Court judgment notes that in order to resolve the issue raised by the judgment, a legislative amendment is required.

My officials and the Office of the Attorney General are now considering the impacts of the very detailed judgment, including the legislative changes required to respond to this decision, and drafting the necessary legislation. This is being done with all expediency.

Social Welfare Appeals

Questions (466)

Michael Creed

Question:

466. Deputy Michael Creed asked the Minister for Social Protection the current situation regarding a carer’s allowance appeal for a person (details supplied). [16335/24]

View answer

Written answers

The Social Welfare Appeals Office is an Office of the Department of Social Protection which is responsible for determining appeals against decisions in relation to social welfare entitlements. Appeals Officers are independent in their decision making functions.

The Social Welfare Appeals Office has advised me that a Carers Allowance appeal by the person concerned was registered in that office on 26 February 2024. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection.

These papers were received in the Social Welfare Appeals Office on 09 April 2024 and the case has been assigned to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if necessary, hold an oral hearing.

I trust this clarifies the matter for the Deputy.

Departmental Funding

Questions (467)

Neasa Hourigan

Question:

467. Deputy Neasa Hourigan asked the Minister for Social Protection if she will provide an update on the implementation of the recommendations outlined in the Review of the Reasonable Accommodation Fund; and if she will make a statement on the matter. [16389/24]

View answer

Written answers

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.

In Autumn 2023 I published a review of these schemes. 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.

I allocated an additional €1 million to expand the scheme and implement these recommendations.

My officials have been working to make recommendations from this review operational. I expect to launch a reformed scheme that will give effect to all nine recommendations in the coming weeks.

I trust this clarifies the matter for the Deputy.

Home Care Packages

Questions (468)

Niamh Smyth

Question:

468. Deputy Niamh Smyth asked the Minister for Social Protection to review a case (details supplied); what home care supports are available to this family once their quadruplets arrive to assist them in their home; and if she will make a statement on the matter. [16436/24]

View answer

Written answers

My Department provides a number of social welfare payments to support families and specifically children. Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children who are in full-time education, or who have a disability, until their 18th birthday.

The standard monthly rate of €140 for Child Benefit applies to each child. However, twins are paid at one and a half times the standard monthly rate for each child, that is, €210 per month for each twin. All other multiple births are paid at double the standard monthly rate for each child, that is €280 per child. These higher payments continue for as long as all of the children remain qualified. The additional monthly premia in respect of multiple births acknowledges the existence of additional costs for parents of multiple births.

My Department also provides a number of income supports to new parents, whether they are employees or self-employed, who satisfy the relevant qualifying conditions. These payments are:

Duration

Weekly Rate

Maternity Benefit

26 Weeks

€274

Paternity Benefit

2 Weeks

€274

Parent’s Benefit (available to each parent)

7 Weeks per parent (increasing to 9 weeks from August 2024)

€274

Families on low incomes may be able to avail of a number of targeted social welfare schemes that support children including the Increase for Qualified Child payment, Working Family Payment and Back to School Clothing and Footwear Allowance.

The availability of home care supports is a matter for my colleague, the Minister for Health.

I trust this clarifies matters for the Deputy.

Tax and Social Welfare Codes

Questions (469, 470, 471)

Pearse Doherty

Question:

469. Deputy Pearse Doherty asked the Minister for Social Protection the estimated cost if an employer’s PRSI credit were to be introduced with various credit rates (details supplied). [16438/24]

View answer

Pearse Doherty

Question:

470. Deputy Pearse Doherty asked the Minister for Social Protection the estimated cost if an employer’s PRSI credit were to be introduced at various rates (details supplied). [16439/24]

View answer

Pearse Doherty

Question:

471. Deputy Pearse Doherty asked the Minister for Social Protection the estimated cost if an employer’s PRSI credit were to be introduced at various rates (details supplied). [16440/24]

View answer

Written answers

I propose to take Questions Nos. 469 to 471, inclusive, together.

Given the complexity of the issues raised in the questions, it is not possible to provide the information requested within the timeframe available.

My Department is currently liaising with the Deputy's office in order to clarify the exact features of this proposed PRSI credit and how it is envisaged it would operate.

Once the necessary details are fully available, the data requested will be compiled by my officials and will be sent to the Deputy as soon as possible.

I trust this clarifies the matter for the Deputy.

Question No. 470 answered with Question No. 469.
Question No. 471 answered with Question No. 469.

Departmental Schemes

Questions (472)

Denis Naughten

Question:

472. Deputy Denis Naughten asked the Minister for Social Protection the administration cost of each assistance and benefit scheme operated by her Department, where available in the most recent year for which data is available; and if she will make a statement on the matter. [16447/24]

View answer

Written answers

The Department’s 2024 Administration Budget for Vote 37 and the Social Insurance Fund (SIF), as published in the Revised Estimates for Public Services 2024 is €752.582m.

Some of the administration expenditure incurred by Vote 37 relates to work performed in respect of the administration of SIF schemes. Some costs, such as payment transaction fees, are clearly identified by entity and can easily be charged to either the Vote or the SIF and are not subject to an apportionment analysis. The majority of other administrative costs such as salaries, accommodation, infrastructure etc., can be shared between Vote 37 and the SIF. These other costs are subject to an apportionment analysis to determine the split between Vote and Fund.

Any administrative expenditure incurred by Vote 37 in relation to the administration of SIF schemes is reimbursed by the SIF to Vote 37.

The administration costs of operating individual schemes is not currently captured by the Department.

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