Oireachtas Joint and Select Committees

Thursday, 18 May 2017

Select Committee on Social Protection

Estimates for Public Services 2017
Vote 37 - Social Protection (Revised)

10:40 am

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I thank the Minister for his presentation. We will go through this heading by heading but I will ask the Minister one general question which affects all headings. In the supplementary document issued subsequent to our receipt of the main documentation, there is an item titled "administration". Administration costs are divided between pay and non-pay. Pay has not increased significantly. It seems to be non-pay that has increased. Pay has gone down slightly, actually, but non-pay has increased from €190 million to €254.9 million, which is quite a considerable increase. It is an increase of €50 million and perhaps the Minister would like to comment on that.

The pension figures are interesting. There is almost a 5% increase in the Estimate for contributory pensions. As the Minister will be aware, there was an increase in the rate of pensions this year which kicked in in March. Can the Minister tell us how much of that actual estimated increase is due to the extra numbers? The Minister made the point, when we were discussing this prior to the budget, that he must find a certain amount of money before he provides for any increase in the pensions. How much of this is due to the actual budgetary increase and how much to increased numbers of pensioners? I notice that the increase in provision for non-contributory pensions is very low in comparison - only 0.7% - despite the fact pensioners under this scheme have also benefitted from the increase. I can only speculate that the numbers may have dropped there.

The Minister will also be aware of ongoing controversy surrounding the methods used to calculate contributory pensions. Two changes were made to the pensions system in 2012. A different averaging system was introduced and basic qualification changed from 260 contributions to 520. If we were to go back to 2012, could the Minister tell us how much it would cost from here on in, on an annual basis, to undo those change and return to the position in 2012? I would like separate figures for each change.

Finally, I congratulate the Department on the more rapid processing times but there seems to be a bit of a drop in the processing times for non-contributory payments. Obviously, a different situation applies in that regard - a means test must be carried out etc. - but perhaps the Department would take note of that. It is down to about 75% now. The target processing time for non-contributory pensions is ten weeks. Ten weeks is two months. If the chart here is correct, it shows that while processing times have improved - they improved quite considerably last year - they seem to have dropped back again. They were up to 85% at some stage last year. They are now back to 75%. Perhaps the Minister would comment on that.

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