Dáil debates

Tuesday, 11 November 2014

Social Welfare Bill 2014: Second Stage (Resumed)

 

9:35 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael) | Oireachtas source

It was only a short number of years ago that a bailout was imposed on this country. We had to accept this bailout in order to pay the bills relating to social welfare, education, policing and everything else. There are all kinds of debates about why the bailout was necessary but, as a nation, we were forced to accept it. A few short years later, we were informed that we should cut another €2 billion from the economy in 2015. There were people who were in favour of and opposed to this suggestion. The Government decided not to cut €2 billion and instead it put money back into the economy. Again, there are arguments for and against this action. If one listened to some, however, one would believe that we are again taking money out of the economy rather than putting it back in. Much of this money relates to the social welfare budget. Child benefit is going to be increased by €5 per month per child and the living alone allowance will also be increased by a modest amount. These are small increases but they must be viewed in the context of the position in which we previously found ourselves. At the time, we were the laughing stock of the world and we could not borrow money anywhere. We had to be given money in the form of a bailout. Three years later, we now find ourselves in a situation whereby we can increase social welfare payments. The amounts involved will be small but they are a start and I wish people would acknowledge that. As already stated, a few years ago Ireland was a laughing stock and perhaps those in government could have made different choices. However, we found ourselves in a particular position.

As has been the case with much of what the Government has been doing, many of the measures contained in the budget and in the Bill before the House are designed to try to get people back into employment. We need to move away from the dependency-entitlement culture which has been built up over decades in this country. We must help people to help themselves, to stand on their own two feet and to go out to work each morning. That is why the back-to-work family dividend is particularly welcome. It is a very good measure that will support people in returning to work. I am delighted that the allocation in respect of the JobsPlus scheme is being increased from €3,000 to €6,000 and that €12 million is being invested in JobPath activation services to help people who have been out of work for more than 12 months. JobsPlus provides a payment of €7,500 to employers to hire people who have been unemployed for 12 months or more and €10,000 to hire those who have been unemployed for 18 months or more. This is another good measure. However, I am aware of cases in respect of which a greater level of flexibility might be shown.

I was my party's spokesperson on social welfare for quite a number of years and I am aware that there are always anomalies in the system. Such anomalies often only have an impact on a very small number of people. However, I am of the view that we should try to identify and remove them. I wish to provide an example. One of my constituents was on jobseeker's allowance for two and a half years when his wife passed away. He previously worked in a construction-related retail position and was transferred by the Department of Social Protection - with his agreement - to widower's pension because this would lead to him being financially better off. It was the correct thing to do. The man wanted to return to employment and a local business indicated a willingness to take him on but only if he could get onto the JobsPlus scheme. He pursued the matter and discovered that he was not eligible for this scheme because widower's pension is not a qualifying payment. Will the Minister of State consider making it a qualifying payment? It could be done at the stroke of a pen. There would only be a tiny number of people involved and if they qualified for the scheme, it would be of enormous assistance to them. I have been in contact with the Department on numerous occasions about this matter and have been informed that there is no way it can be done. However, I take this opportunity to ask the Minister of State to make the change that is required. It would be a small change which would only have an impact on a handful of people and would not cost a great deal of money. I am of the view that this change should be made. The man in question has not been able to get onto JobsPlus and he remains unemployed.

These are the types of anomalies at which Deputies should be looking in terms of discovering how they might be removed from the system or how small changes that can make a difference might be introduced. Another such anomaly is that relating to Student Universal Support Ireland, SUSI, eligibility and jobseeker's payments. Again, a little flexibility should be shown in this area, particularly in the context of the eligibility of the dependants of those in receipt of jobseeker's allowance for SUSI grants at the special rate. I am aware of the case of a person whose mother is in receipt of jobseeker's allowance. The girl's mother is married to a jobseeker's allowance claimant but he never adopted the girl so he is not her legal guardian. At the time of application, she was over 18 and was not in a position to be adopted. As a result of the fact that her mother was not in receipt of one of long-term social welfare payments listed under the terms relating to the student grant scheme, the girl in question was only entitled to the maintenance grant at standard rate as opposed to at the special rate. I accept that this anomaly relates to the area of education and SUSI but I am of the view that the Minister of State should discuss it with the relevant officials in the Department of Education and Skills. The student should be receiving the maintenance grant at the special rate in order that she might remain in third level education. As a result of the anomaly in question, however, she does not qualify. Perhaps the Minister of State will ensure that the necessary changes are made in order that individuals such as this girl will qualify for payment.

In the context of the rental accommodation scheme, the housing assistance payment, HAP, is directly payable to landlords. I have come across a number of cases, however, where those in receipt of rent allowance did not pass it on to their landlords. The HAP will change the position in this regard. In addition, those in receipt of it will be able to work, which is a major advantage. I ask that those in receipt of rent supplement be transferred to the HAP over time. Some new applicants are discovering that supplement is not available to them because they do not meet the criteria and that HAP is not available to them either. There is a lacuna in this regard to which consideration must be given.

As stated earlier, the main thing we should be doing is trying to encourage people to return to work. The cost of child care is an issue which often arises and it is one on which we must begin to focus. I am aware that in the past matters arose in the context of lone parents and in terms of how we might ensure that people's children will be cared for when they return to work, education or training. We should engage in a detailed examination of the position in this regard.

I welcome the important increase in the living alone allowance, which will take effect from the beginning of January 2015. I also welcome the payment of 25% of the Christmas bonus. I accept that the full amount will not be paid but what is on offer is much better than I expected. This time last year I did not think we would be in a position to pay any form of Christmas bonus this December. However, things have changed and we are in a position to pay something. I expect that next year the amount paid will increase and that we will be able to roll back many of the cuts that have been introduced, particularly as more people return to work and pay tax and as fewer draw down social welfare payments. I reiterate the need to encourage people to stand on their own two feet, earn a living and enjoy the dignity of being able to go out to work. There is nothing worse than being obliged to stay home all day looking at the four walls and having nothing to do or nowhere to go.

I am sure that, like me, colleagues have come across the Men's Sheds movement, whereby males - many of whom retired from work early - meet their peers in workshops and engage in all sorts of activities, including crafts, arts, etc. The enjoy companionship and camaraderie, which, very often, is all people want. There is no better way to experience either than by going out to work. We must do everything to ensure that people can obtain employment. The JobsPlus, JobPath and Tús schemes, which are similar to the community employment schemes that obtained in the past, are proving successful in getting people active and out to work and in restoring their dignity. I accept that some of these schemes are only stopgap measures but at least they are getting people of out their homes in order that they might obtain training, a small income and enjoy the camaraderie of their colleagues. If nothing else, it is better than staying home and looking at the four walls.

As I said at the outset, a number of years ago Ireland was in a bailout. This year the budget deficit will be €8 billion. We will be borrowing that amount to keep the country going rather than to pay the costs relating to the bailout or whatever. It is an awful lot of money. The plan is to gradually reduce the deficit to a manageable level in the coming years in order that we might get citizens back to work. Some young people who emigrated in recent years are beginning to return home. Like many others, I have been affected by emigration. I have two sons who are currently abroad and my dearest wish is that they will return to Ireland and obtain employment here.

I commend the Bill to the House.

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