Dáil debates

Thursday, 5 June 2014

Social Welfare and Pensions Bill 2014: Second Stage (Resumed)

 

3:30 pm

Photo of Catherine ByrneCatherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I will try to be brief and not go over some of what has already been said. I welcome the introduction of the Bill which amends two previous Acts and introduces changes to the areas such as habitual residency, family income supplements, overpayments and pensions. Ireland, compared with many other EU countries, has a relatively generous welfare system. Almost 1.5 million people received a weekly social welfare payment in 2013 and when spouses, partners and children are included, this figure rises to 2.3 million people benefiting from social welfare payments. Approximately 600,000 families received child benefit payments in respect of almost 1.2 million children each month last year. In 2013, the Department spent approximately €20 billion and the largest portion of this went on pensions.

I welcome the change to the habitual residency requirement for making social welfare claims. This will strengthen the residence requirements relating to entitlement to means-assessed social welfare payments. This relates in particular to child benefit, which a parent can claim if living here and the child or children are resident in another EU member state.

They are relevant in particular to child benefit where a parent can claim if he or she is living in the country and the child or children are resident in another EU member state. In 2012 the total cost of paying child benefit in respect of children resident in other EU countries was approximately €13 million, which represents0.65%of the total cost of child benefit expenditure. The Bill will change the qualifying criteria. Current legislation only requires a claimant to be habitually resident at the date of claim but not thereafter, which can result in the State continuing to pay social assistance to claimants who may no longer have an entitlement, for example, by losing their status as a migrant worker.

I compliment the approach in the Bill to tackling fraud. The Government is committed to maintaining core welfare rates, while at the same time taking a zero-tolerance approach towards welfare fraud. The vast majority of people on social welfare are claiming their payment correctly. However, a small group of people are not, and therefore the Department has set down a range of measures to reduce social welfare fraud. Approximately 1.1 million reviews were carried out in 2012 and 2013 and a considerable amount of money was returned. In April, the Minister, Deputy Burton, published the Department’s compliance and anti-fraud strategy for the period 2014 to 2018. I welcome that. I thank the approximately 24,700 people who reported possible fraud. They are our eyes and ears on the ground. Many people want to ensure that those receiving benefit are entitled to do so.

I will now skip forward to the area of equality for self employment. I am pleased the Bill provides for the abolition of the exclusion of spouses and civil partners from self-employed social insurance. It is very important to ensure that those who work together have an opportunity to gain some benefits in the event of a company being dissolved. It is a pity that when their business ceases operation people are not entitled to seek jobseeker's benefit or to pay a stamp which would entitle them to receive social assistance. I met many people in recent weeks and thought it very unfair that they could not avail of State support when they have paid their dues all their lives.

I am most concerned about those who I call the undocumented, the many people who worked in construction and other areas during the boom but who do not qualify for social welfare. Many of them are in their 50s and 60s and have not been able to find work since they were made redundant or lost their jobs. Many are not entitled to claim jobseeker's supports as their spouse or partner works, and they are assessed on their income. If they are not in receipt of a welfare payment they cannot return to education or training. It is a vicious circle for many people. All they can do is sign on for credits every three years; otherwise, they do not exist in the system. The situation is very frustrating for people who have worked all their life and paid their dues and that the only place they are registered in the State is on the register of electors. The situation must be examined.

I welcome the changes to family income supplement, FIS, which will benefit many families, who might now have the opportunity for one parent to go to work and to receive the benefit of FIS for 52 weeks. That could help many people to get back into the workforce and also encourage them to stay in it. I compliment the Minister on the Bill. I do not have much time remaining but I hope she will consider one or two of the points I have made.

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