Dáil debates

Thursday, 30 May 2013

Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013: Second Stage (Resumed)

 

1:55 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael) | Oireachtas source

I too welcome the Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013. This Bill gives effect to a number of social welfare and pension reforms, some of which will bring about savings to the annual budget of the Department of Social Protection. We know that the Department has already made substantial savings this year and hopes to achieve net savings of €390 million for the year.

One of most important measures introduced in the Bill is to address the problem of benefit fraud. It is another issue this Government has inherited and must deal with. Clearly the system has been too loose for too many years. This Bill will provide comfort for the genuine public concern that exists. As a public representative, I have received representations from people who are concerned about the level of benefit fraud. The new system will require photo identification and a signature for access to the social welfare system. There was an idea of finger printing being introduced at one stage so perhaps we could clarify why that was not further considered.

The media have reported on the issue on many occasions, particularly "Prime Time". We have been approached by members of the public who have highlighted certain cases they are aware of where a person is claiming and receiving benefits he is not entitled to. I am aware the Department has undertaken a number of measures already to address this problem. Recent reports in the media have shown 100 people have been caught at Dublin Airport flying into the country to sign on for social welfare payments. Welfare tourism is a problem here and I was heartened to hear a significant number of people have been caught. I am concerned to hear 1,400 reports of fraudulent claims made by people outside Ireland last year.

Similarly I am happy to hear that more people are reporting their concerns over social welfare fraud to the Department. The number of people reporting has almost doubled between 2011 and 2012, when more than 28,000 reports were made to the Department. The figures show the Department has saved €91 million in misspent jobseeker's benefits, €173 million in one-parent family payments and €83 million in child benefit. The Department recorded control savings of €666 million in 2012.

An increased target in control savings of €710 million is proposed for 2013. The Minister has assured me and other Deputies that the Department reviews claims on a regular targeted basis, particularly where there is a higher risk of fraud.

I believe the new welfare card system will be effective and will contribute to decreasing social welfare fraud in this country. Up until now, all a welfare applicant has needed is a PPS number or a public services card to confirm his or her identify. From now on, a recipient's photograph and signature will be recorded electronically on the system to check against in the future. Obviously, this is necessary. If recipients fail to comply with this new regulation, they will put themselves at risk of not receiving further payments or of their payments being stopped.

There are citizens who must rely on welfare payments and are dependent on them. There are large numbers of unemployed genuinely trying to find work. These, quite rightly, are being supported by the Government in every way possible in their search. I very much welcome today's statement about the reduction in unemployment numbers to below 300,000 for the first time since 2010. Certainly, that is a good news story. It is a psychological lift for the country when we need a lift.

I would agree that those falsely claiming benefits under someone else's identity should be stopped from doing so. They do a disservice to the genuine recipients of welfare payments because everyone is in danger of being tarred with the same brush. They also do a disservice to taxpayers, particularly with them put to the pin of their collar. Everything that needs to be done, I am sure, will be done.

The Bill also introduces measures to allow for the transition of those on the one-parent family payment to the jobseeker's allowance scheme or another payment. Parents with a child over the age of seven will now be placed on a targeted version of jobseeker's allowance called jobseeker's transition. The transition period allows for lone parents who have been out of the job market for some time and who may have difficulties securing child care to seek work on a part-time rather than a full-time basis, and applicants will be exempt from a number of conditions for jobseeker's allowance for a transitional period until the child is 14 years of age.

The Government recognises that lone parents applying for jobseeker's allowance may find it difficult to meet the requirements of the payment, which are to be available and genuinely seeking full-time work. Therefore, lone parents of children between the ages of seven and 14 will not have to meet this requirement. Instead, they will have to take part in training and in educational opportunities which will help to get them ready for employment when their parenting obligations are less intense in the future. It is my understanding that the Department of Social Protection will hold a series of information meetings next month to inform recipients of the one-parent family payment so that they can get more details of what is being proposed, and a letter will issue in due course.

Other measures introduced in the Bill include changes to the Pensions Board which aim to increase consumer trust in and generate greater public awareness of the system in the pensions area, changes in liability for PRSI to broaden the PRSI base thus supporting the Social Insurance Fund to continue paying pensions and benefits to those who need them, and changes to the index information from the registers of births, deaths, marriages and civil partnerships allowing historical indexes to go online and making Irish genealogical research easier. The latter measure is particularly important this year with The Gathering. Given the large Irish diaspora, there is a broad level of interest among people in wanting to know who they are, where they come from and their background. Having this online will make the research much easier.

I welcome the contents of the Bill. I trust that every measure will positively impact on those it affects.

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