Dáil debates

Wednesday, 4 March 2015

Social Welfare (Miscellaneous Provisions) Bill 2015: Second Stage (Resumed)

 

3:15 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

I understand the purpose of the Bill is to provide for the back to work family dividend announced in budget 2015. This scheme will allow some people who have ceased claiming jobseeker's allowance or the one-parent family payment by moving into or increasing their hours of employment since 5 January 2015 to hang on to their qualified child payments for the first 12 months and half the amount for a further 12. Collectively, most of us in the House welcome this provision and on that basis will not be opposing the Bill. However, as other speakers have said, the Bill is a missed opportunity to do much more to improve social protection which has come under strain from the Government's two-tier recovery project, as all sides of the House would agree.

The back to work family dividend, though a welcome development, fails to compensate for the incremental cuts already made for lone parents, a point that was touched on by the last speaker, nor does it take into account the changes that will be made this July when the cut-off age for receipt of the one-parent family payment scheme is lowered to seven years, with a significant consequential loss of income for lone parents in work on low pay.

At the beginning of February the Central Statistics Office, CSO, published its annual survey of income and living conditions and the findings pointed to the rocketing rates of deprivation amongst lone parent households. We were all concerned about the figures, which seem to be following a pattern. The CSO has reported that 63% of lone parent households are now living without basic necessities and additionally are strained by the absence of affordable after-school care. Many of us have been arguing about the crisis in this sector for years. This should have been a wake up call for the Minister for Social Protection and another reason for her to abandon her proposals to lower the cut-off age for receipt of the one-parent family payment. If this savage cut goes ahead on 2 July, almost 12,000 lone parents will suffer a financial loss of up to €86 per week. Even for those from a wealthy background, taking €86 from someone's income represents a huge loss, particularly so for those already suffering from deprivation. Children in lone parent households are being forced to go without heating in their homes, or a warm coat or sufficient food. How many more children will be forced to go without new clothes, a joint of meat or a birthday party this summer when their mother's or father's weekly income suddenly drops by €30, €50 or even €86?

The figures from the tenancy protection service which was set up as an emergency measure to protect families facing homelessness in Dublin show that more than 60% of households seeking urgent assistance are lone parent households. We received figures the other day for the numbers of people facing homelessness who were being forced out because they could not afford the rent in much of the accommodation available in Dublin. Does the Minister of State agree that the cuts will lead to greater deprivation?

They will result in more families facing homelessness. I again take this opportunity to urge the Minister to abandon her plans to lower the cut-off age to seven next July.

I call for the deletion of section 3, which concerns eligibility for caring payments, such as the carer's allowance, the carer's benefit and the respite care grant. The Government presented this as a benign change of a technical nature but FLAC, the independent law centre, said it does not seem to have any other purpose except to make it more difficult for carers to access income supports. In what direction are we going? It seems to be part of the process to make it more difficult for people to access what they are entitled to. FLAC believes this to be the case because it alters the conditions for eligibility by introducing a presumption that claimants are ineligible unless they can prove otherwise. This constitutes an unacceptable shift in the burden of proof placed on the applicant. I am putting forward weaknesses in the Bill. I hope the Minister of State is listening and can come up with some changes.

FLAC is in no doubt that this will have the effect of increasing the number of legitimate claims that are rejected which will, in turn, lead to a corresponding increase in the number of appeals submitted to the social welfare appeals office. This is completely unacceptable because according to the social welfare appeals office report in 2013, an average of 58% of those appealing decisions in respect of carers payments were successful. We have a situation where it is almost part of the system for someone to apply for the grant, to be turned down, to appeal and to perhaps wait two years after which he or she possibly gets the grant. It is a crazy system at which we again need to look. It prevents people who are entitled to the payment from getting it.

In addition, the appeals process can take six months, although at one stage it took up to two years. The proposed amendment would increase the rate of appeals and cause further delays in processing appeals, resulting in undue hardship and distress for claimants who are entitled to this payment. We have all had individuals come to our advice centres to talk about their personal circumstances and how this is impacting on them.

Unfortunately, the Bill does not reverse the Government's policies, which are based on low paid, insecure and precarious work and actually increase the need for social welfare to subsidise poverty wages into the future. The Government needs to end measures which actively drive down wages, including JobBridge and the soon to be commenced JobPath. The Minister of State is a cheerleader for those schemes but my experience has been the opposite of his. I am sure some people swear it has worked for them but, unfortunately, it is the opposite in the majority of cases with which I am dealing. Although some individuals have had a positive experience, the scheme leaves thousands of jobseekers vulnerable to exploitation. Last week's damning report on JobBridge by the National Youth Council of Ireland confirms this viewpoint. Some 44% of those surveyed in the report believe they were treated as free labour. How can we treat people like that in a fair society? People believe they are being exploited. Key stakeholders and unions unanimously agree that the JobBridge scheme is failing young people by displacing paid work and compounding unemployment. The scheme maximises the benefits to the employers through free labour and the Government through lower live register figures, while minimising any real benefits to workers.

Sinn Féin is committed to bringing about a fair recovery. It is focused on getting people back to work and bringing our young people home. My colleague, Deputy Ó Snodaigh, brought forward an alternative, which was launched two weeks ago. This alternative envisaged a substantial increase in the range of apprenticeships available. The model Sinn Féin proposes would not displace apprenticeships, paid in-work training or jobs but it would afford those genuinely in need of some work experiences with meaningful opportunity. Tailored internships would be developed sector by sector in full co-operation with trade unions and the education training boards. Employers would be supported to be the best mentor that they can be. Sinn Féin's proposals will maximise decent pay for decent work. We will support the Bill but we have concerns in regard to elements of it.

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