Alan Farrell (Dublin North, Fine Gael) | Oireachtas source

I thank Deputy Joe O'Reilly for sharing his time. The Social Welfare (Miscellaneous Provisions) Bill is welcome and I am pleased to contribute to the debate on the Bill on the introduction of the back to work family dividend scheme, as announced in October. The scheme will assist jobseekers with families and lone parents in returning to work. It will provide those who wish to get back to work with all of the supports possible, which is of the utmost importance. Great strides have been made in reducing the levels of unemployment and figures released this morning show unemployment at 10.1%, which is a 34% decrease since March 2012.

This is a significant figure for the Government to stand over but the fact remains that too many people continue to be outside of the workforce. While 90,000 jobs have been created under this Government, we must continue to work towards our aim of achieving full employment by 2018. The implementation of programmes, such as the back to work family dividend scheme, are essential in helping us to meet this goal. The introduction of this scheme, as announced in budget 2015 in October, further reiterates the commitment to getting people back to work and ensuring the benefits of the economic recovery are felt in every home throughout the country. The scheme of continued payment for qualified children, which provides that increases in jobseeker’s benefit or allowance can continue for up to 13 weeks after a person commences full-time employment which is expected to last up to four weeks, will be discontinued upon the introduction of this scheme. While the back to work family dividend scheme will not come into effect until the Bill is enacted, I am pleased that applications for the scheme are being accepted from those who have commenced employment or self-employment and from those who have increased their working hours since 5 January. This will certainly allow the implementation of the scheme to get off the ground and up and running.

I note the Taoiseach's remarks about reducing the tax burden on the self-employed. Above a certain rate of income, the tax burden is quite punitive. We have still to take any action about providing a safety net for young, and not so young, entrepreneurs starting out in self-employment. They do not have any social welfare support if their businesses fail. Whether a number of schemes are available in the Department, self-employed persons are not entitled to social welfare support. That is something we must address.

It is important to note that a person can apply for both the continued payment for qualified children and the back to work family dividend scheme for the period from January up to the enactment of the Bill. However, payment will only be made under one of these programmes. It is certainly positive that the Bill contains measures which provide for the payment of continued payment for qualified children up to the date of enactment, whichever is the more financially beneficial option, or backdated payment of the back to work family dividend scheme where it will be more financially beneficial.

I welcome the extension of the jobseeker’s allowance transitional arrangements to all lone parents whose youngest child is between the ages of seven and 13 years, as contained in the Bill. Under these transitional arrangements, such lone parents are exempted from certain eligibility requirements that apply to the jobseeker’s allowance scheme, particularly the requirement for them to be genuinely available for and seeking full-time employment while the child is under the age of 14 years. Until now, only lone parents who have been in receipt of the one-parent family payment could benefit under the transitional arrangements. However, thanks to the Bill, all lone parents will receive the same supports under these arrangements, regardless of whether they have previously been in receipt of the one-parent family allowance. In order to facilitate the continuation of our economic recovery, the provision of assistance to lone-parents and jobseekers with families is an absolute necessity. I am sure the Minister of State agrees and I commend the Minister of State and the Department on the work in this regard.

I concur with the remarks of Deputy Joe O'Reilly about the cracking down on fraud not being targeted at those legitimately receiving social welfare supports. The Minister is aware of one of the major issues I have come across because I put it on record in the Dáil by way of two parliamentary questions, neither of which was answered in a way that addressed the issue. In the case of a constituent of mine, rent supplement payments exceeding €6,000 were made to an individual but the payments were not passed on to the landlord. While the payment of such social welfare support was suspended, it was suspended for one week without investigation. I am positive no investigation took place because, if one had taken place, it would have been very clear to the Department that an instance of fraud had occurred. A rent supplement payment meant for the landlord did not reach its intended recipient. There has been no attempt by the Department to get back the money. The person has vacated that particular property but has moved on to another property and is in receipt of rent supplement. This amounts to €6,000 in one case and I know of another three cases over the past number of years. Individuals in receipt of rent supplement have not passed on the money and the Department has not thoroughly, or in my view properly, investigated the payments being made. The Minister of State is aware of this as I have brought one particular example to his attention and it is on the record of the House. Notwithstanding that, I compliment the Department on the work done to crack down on inappropriate payments, payments made to individuals who no longer qualify, payments in error, or when it is brought to the attention of the Department that individuals are in receipt of payments they should not be receiving. I compliment the Minister and the Department on cases where sums are being repaid because the figure amounts to a huge amount of taxpayers' money, through PAYE, PRSI and USC and everything else that goes with working in this economy. Any fraud in the social welfare system is wholly unacceptable and we must do everything to ensure it is eradicated. I reiterate points made by Deputy Joe O'Reilly with regard to this not being targeted at those legitimately receiving payments and the purpose of the Bill is to give more support families so that they can hopefully avail of one of the 90,000 jobs this Government has facilitated the creation of, or the 40,000 jobs the Government is hoping to facilitate the creation of in 2015.

The inclusion of measures to allow for the recovery of social welfare benefits from compensation in personal injuries cases, and the clarification of the circumstances in which a person is determined to be in need of full-time care and attention for the carer’s benefit and allowance payments and the respite care grant scheme are important in terms of ensuring our social welfare system is as efficient as possible in supporting the most vulnerable and those in need.

I thank the Minister, Deputy Burton, for her work on this Bill and the Cabinet for announcing it in October. It will assist those who want to get back to work and, in doing so, save the State approximately €20,000 per person who exits the social welfare system. That money can go back into job incentivisation schemes, among other things, and social welfare supports for those who need it most. That is why measures such as these are so important for our economy and the society in which we all live. I thank the Minister of State for his attention and I request that he investigates the matter brought to his attention previously. It is frustrating when we can see something blatant like this and where the Department has not taken any action.

I compliment the Minister and thank the Minister of State, Deputy Kevin Humphreys, for his attention.

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