Dáil debates

Wednesday, 13 February 2008

Social Welfare and Pensions Bill 2008: Second Stage (Resumed)

 

12:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)

I welcome the opportunity to continue my contribution on our deliberations on the Social Welfare and Pensions Bill 2008. Section 8 raises the earnings limit for those in receipt of one-parent family payment to €425 per week. I note from discussions of this matter that some lone parents find themselves in a poverty trap. While I welcome the provisions governing family income supplement and efforts to enable people to return to part-time work, much more needs to be done because lone parents find themselves raising children alone for 101 different reasons. As public representatives, we meet lone parents in our clinics and see the difficulties they encounter in securing housing. They can only dream of getting on the property ladder. I welcome the disregard applicable to the one-parent family payment and ask that the Government continue to monitor the position.

Regarding the disregard for the non-contributory pension, the change to the disregard for insurable employment introduced in the 2006 budget has affected self-employed people on low incomes. While self-employed people earning below a certain threshold are not required to pay PRSI contributions, they are not entitled to a State pension when they reach 66 years. Those most affected tend to be single people and farmers who, for one reason or another, did not make insurable contributions. The State should consider extending the disregard for insurable employment for non-contributory pensions to moneys earned in self-employment. While disregards are in place for REPS and other payments to farmers, insurable employment must also be examined.

In my concluding remarks last night, I referred to the introduction of the provision concerning PRSI and the self-employed. The introduction in 1998 of what was known as the pro rata pension affected a small number of people who had reached the age of 55 years and had paid contributions for less than nine years. I ask the Government to consider giving this small group full pensions.

Expenditure on social welfare has increased substantially in recent years, as has the number of people entitled to a social welfare payment. Recent budgets have introduced record increases in social welfare payments, from old age pensions to carer's allowance. We must encourage people to make submissions on the Government's strategy on carers which will be chaired by the Department of the Taoiseach.

Farm assist was introduced almost ten years ago to help those in the farming community on low incomes. Subsequently, the scheme was considered a qualification point for the rural social scheme, which has delivered significant benefits across rural areas. The leadership and partnership groups are doing excellent work under the scheme by providing insulation for elderly people and engaging in many other worthwhile activities at little cost to the taxpayer. Many innovative initiatives under the scheme have benefited communities and taxpayers in the long term and the individuals participating in them. I have seen this throughout my constituency. The raft of social inclusion measures introduced by the Government and implemented by partnership and leadership groups have resulted in many people being employed in various projects, ranging from child care provision to rural social activities and beyond. Exchequer figures on their cost would not show their benefits to individuals and communities.

To recap, we must ensure that people connect with the strategy on carers which is being developed by the Government. Those involved in the care sector should tell their stories and ensure the position of carers is improved. It is also important to examine the habitual rule as it applies to overseas pensions for missionaries. I commend the Bill to the House and thank the Government, particularly the Minister, for the work it is doing on social welfare on behalf of the less well-off.

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