Dáil debates

Wednesday, 12 November 2008

Social Welfare (Miscellaneous Provisions) Bill 2008: Second Stage (Resumed)

 

1:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)

Deputy Crawford and I will share our time equally. As with any downturn in any economy, in this economic climate social welfare has become so much more important. So many people who lose their jobs will turn to the State to help them financially and in providing opportunities for them to get back into the workforce, which would be the objective of most of the population. Last week we saw a large increase in unemployment to 260,000 people and it is expected to increase to 300,000 by the end of 2009. That is a lot of people who had not anticipated this and do not want to be in that situation. It is a problem for the Minister in that it will add to her expenditure and the number dependent on the Department of Social and Family Affairs.

I would like to concentrate on that area, particularly those who find themselves unemployed or in a low-skill job and would like to upgrade their qualifications. They will look to the back to education allowance for support on that. Yet people are not entitled to the allowance unless they have been signing on for jobseeker's allowance for a year or six months in some cases. This is a barrier to people who are in low-income jobs and a disincentive to take up a training place. It is an insult to people whose skills are low but who wish to avail of further education to increase their skills and ability to seek alternative employment. They must sign on and avail of social welfare payments for six or 12 months, depending on the course. This does not make sense, particularly in an era of lifelong learning and upskilling when we have so many second and third level courses available to people who would not have benefited from such high quality education. So many courses are available, yet we create such a barrier to them. I would have hoped this was an opportunity for the Minister to change this scheme and help people who want to get back to work.

Last week we had a discussion in this Chamber on the type of workers who are losing their jobs. Many were in the construction sector and these young people find themselves without employment — many of them without the ability to finish a training course they started. We should and must help these people. In September a woman visited my clinic in Cork. She was a mother of four young children, the youngest of whom had just started primary school. She wanted to avail of a training course where she could develop her confidence, upskill herself and get back into the job market and seek work. However she was prevented from doing this because she had not been signing on in the previous year. The options were very limited. She had not signed on before the children went to school as she was not seeking work because she wanted to be with them. Somebody like her should be supported. She needs the skills and confidence that would have been available to her in an education course, so she will sign on for 12 months and wait until next September. This does not make sense. Some 300,000 people are expected to be on the live register next year. It would have made much more sense to support these people rather than force them to sign on for jobseeker's allowance. That was one of the Fine Gael's pre-budget proposals and I am very disappointed the Minister has not addressed it.

Deputy Chris Andrews mentioned energy poverty. The fuel allowance has increased to €20 per week and the number of weeks in which it is paid has increased to 32 weeks. That is welcome, but we are in an era where energy costs are soaring and it will make very little difference to people who depend on the fuel allowance for the winter months. Most of them are elderly. The ones that come to my mind live in poor quality accommodation that is not insulated. They are dependent on this fuel allowance to keep them warm in the winter months. The Commission for Energy Regulation approved a 17.5% increase in electricity costs from September 2008. Gas is due to increase by 20%. The regulator announced this week that there will be further increases in January. The increase in energy prices was not matched by the increase in the fuel allowance. Fuel poverty is a real issue in this country. In 2004-05, people earning low incomes spent an average of 13% of their disposable incomes on energy. The highest earners spent just 1.7% of their wages on energy. The Society of St. Vincent de Paul had to spend €3.4 million last year on supporting people who were struggling to heat their homes. As energy costs such as gas and electricity prices increase, many people will have to turn to the society again this year to help them out in difficult times, unfortunately.

I know the Minister discussed the issue of rent supplement during Question Time yesterday. Many of us who represent people living in cities are regularly contacted by constituents who have difficulty meeting the rent requirements of their landlords. The cap on rent supplement payments has proven to be unrealistic in many areas, particularly large urban districts. As some one who tracks rents on various websites, I do not envisage that rents will decrease in the near future. I pay particular attention to two-bed and three-bed units, as many of those who avail of the rent supplement scheme tend to live in such units. Rents are not decreasing. As the downturn in the housing sector continues, more and more people are choosing to stay in rented accommodation rather than to buy houses. That, in turn, is ensuring that rents are remaining artificially high. People regularly appeal the decision to award them a particular level of rent supplement. Community welfare officers and other people working on the ground face great difficulties because they are restricted in what they can do. I ask the Minister to work with local authorities to ensure responsibility for the rented accommodation scheme is transferred as quickly as possible. It is a slow process. It will be very effective because it will guarantee standards in accommodation and ensure tenants enjoy lower rent levels.

Earlier this week, a report indicated that the quality of rental accommodation is quite low. Some 20% of those who were surveyed did not believe that their accommodation met the required standards in terms of heating, lighting and ventilation. The results of the survey were published earlier this week. The level of inspection of rented premises is low. We need to get to grips with this. Local authorities need to be more reactive in terms of their responsibilities in this area. I have always supported the rental accommodation scheme. I would like it to be expanded and developed as soon as possible. The rate of progress in my local area is slow. I can see it happening, but it is not matching the requirements of those who depend on rented accommodation. As I have run out of time, I will speak about carers at a later stage.

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