Dáil debates

Thursday, 23 February 2006

Social Welfare Law Reform and Pensions Bill 2006: Second Stage (Resumed).

 

1:00 pm

Photo of Seán ArdaghSeán Ardagh (Dublin South Central, Fianna Fail)

In 1996, the payment for a third child and subsequent children was approximately €41 and it now stands at €185 per month. The increase over ten years is in excess of 400%.

In 1996, the old age contributory pension was less than €93 per week. Today the amount is €193.30 per week. In 1996 the figure for the old age non-contributory pension was less than €80 per week and it now stands at €182 per week. This is an increase of more than 100%, and these substantial increases are still not enough. I am sure we will see further increases. Whatever was stated in the media when he was appointed to the position, the Minister for Social and Family Affairs, Deputy Brennan, has shown during the period he has been in the position that he is innovative and cares about equality and justice. He cares about his clients and customers. I do not know how many millions of customers there are. I am sure the Minister will tell us. He has shown he cares through the work he has done and effort he has made, and through the budgetary improvements that have come about. As Deputy Lynch stated, the Department is now courteous, available and anxious to help. All of the new systems are being introduced with style and management competence and ability second to none. I congratulate the Minister and ask him to keep up the good work.

Regarding matters in the Bill, as I stated, child benefit has improved greatly. Do people realise that 540,000 families receive child benefit? It benefits in excess of 1 million children. These figures are huge. They are nothing like the figures we would have dreamt of ten years ago. The early child care supplement for children under six years is received by 250,000 families and 350,000 children. Each of those will get €1,000 a year towards child care costs. That is a significant figure. There is no meanness involved. If a child is born within a quarter, the parents will receive €250. If a child reaches his or her sixth birthday within that quarter, no matter at what stage of the quarter it happens the parents will receive the full €250 for that quarter. This generous spirit was not seen before in the former Department of Social Welfare. Previously the amount was worked out to the exact fraction. The Minister's hand is obvious in this type of measure and he is to be congratulated on that.

The family income supplement is definitely the most important supplement available to families. It is not fully utilised. Deputy Lynch spoke about a particular lone parent who went out to work, and who was entitled to the family income supplement but did not avail of it. I can understand that. People on lower incomes spend so much time trying to live from hand to mouth that they cannot get into the schemes that are available. We all send out leaflets because full colour printing is now provided by the taxpayer free of charge. We as Deputies have a duty to inform all the people about the family income supplement.

I did not realise until I went through the Bill that contributions to the personal retirement savings account, PRSA, will now be disregarded as far as the threshold amount is concerned. People aged up to 30 years can put up to 15% of their income into such an account. Will the Minister consider putting in place a scheme regarding the personal retirement savings account to give a tax equivalence to people entitled to the family income supplement? The State should increase by one third the amount of money put into a PRSA by anybody entitled to the family income supplement. For every €3 a person receiving the family income supplement puts into a PRSA, the State should put in €1. It is unlikely that people receiving family income supplement pay tax in the first place. There must be an incentive for it. If that is put together with everything else, it would inform people more of their entitlements and would allow more people to claim family income supplement.

Regarding the one-parent family payment, I am delighted that, as Deputy Lynch stated, the amount of the disregard has increased by €82 to €375 per week. This gives an impetus, a reason and encouragement to lone parents to take a job. It would help them through the great expenses they have in bringing up young children.

I would like the Minister to also consider the problems that widows, deserted wives and prisoners' wives have. People who may not have children, and who have been separated through no fault of their own, may find themselves in a position they never imagined. A one-parent family can earn up to €375 per week. If possible, will the Minister consider changing the anomalous situation within the system to allow a widow, deserted wife or prisoner's wife in a peculiarly nasty situation avail of this slightly better facility to earn money and get more involved in society?

I am particularly delighted about the changes in maternity leave. I know it is not strictly a social welfare issue. However, the four extra weeks paid maternity leave effective from 1 March are extremely welcome. The four extra weeks unpaid leave, also effective from 1 March, are also welcome. A provision for a further four extra weeks to both paid and unpaid leave comes into effect in March 2007, when a total of 56 weeks paid and unpaid leave will be available to parents. Paid maternity leave will be 26 weeks, unpaid maternity leave will be 16 weeks and 14 weeks unpaid parental leave will also be available.

I expect fathers will take this parental leave and take some of their family responsibility as is allowed under these Acts. It is a challenge to all new fathers. Many fathers today are older than in the past. In our day, men were fathers in their 20s. Now, a man is lucky if he is a father in this 30s. They should get in there and get to know their children early and avail of the parental leave.

A person in receipt of the old age non-contributory pension can now earn up to €100 per week in a part-time nixer job. This allows those who want to remain active to do so. They can work a few hours a day to help out in the local community or take up a job and it will not affect their non-contributory pension. That is a great development and will give great encouragement to elderly people.

I should be rapped on the knuckles for using the term "elderly". According to the Minister one is not elderly at 65 years of age.

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