Claire Kerrane (Roscommon-Galway, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on the Social Welfare Bill 2020. Typically, the Social Welfare Bill comes before the House in October and November each year. It is a shame that this Bill has come so late this year, particularly in view of the importance of the section which will repeal the pension age increases to 67 in January 2021 and to 68 in 2028, a move I welcome.This will provide the certainty needed to those approaching retirement.

I was just outside the convention centre with the Stop 67 campaign group. It comprises several organisations that came together in order to put this campaign to the fore back in February, during the general election campaign. The campaign will continue while the Commission on Pensions does its work looking at what the future pension age increase will be. I also met a number of workers outside who will turn 66 in January. Up until recently, they did not know whether they would get their pensions in January. This measure is a welcome certainty for them.

The issue not addressed in this Bill is the ongoing practice of 65-year-olds having to sign on the dole at retirement, in many cases after a lifetime of work. I received an email last week from a colleague's office in Dublin about a 65-year-old man who has retired after many years at work. The man in question was refused jobseeker's allowance because he has not committed to seek work. In fairness, I had not come across that before. I understood that the Department was allowing leniency where a 65-year-old person on retirement would be put on jobseeker's allowance but that there would not be an onus on that individual to actually seek work. That is regrettable, and we must ensure that we end the practice. It must stop.

We all acknowledge that it has been an extremely difficult year for workers. Thousands of workers have lost their jobs while thousands more are on reduced incomes. The cuts planned for the pandemic unemployment payment - I appreciate they remain under review - cannot even be contemplated in January. A commitment in respect of the pandemic unemployment payment should be made that those cuts will not happen in the new year. Workers and families need certainty in this regard. When we look at the higher rate of the pandemic unemployment payment, namely, the €350 paid to those who were earning €400 before the onset of the pandemic, we have to acknowledge that it is only covering, on average, 65% of prior net earnings. This means many workers are on a substantially reduced income. They are typically people with mortgages. While rent supplement is available to renters in some circumstances, that same support is not there for people who have mortgages. It is really regrettable that the mortgage interest supplement was abolished in 2014. Perhaps there is room to look at it going forward. Those are the people who are really struggling. This is compounded by the decision of the banks not to reintroduce the mortgage break. That is a regrettable decision by the banks when people needed that little bit of help at this time in the midst of a global pandemic.

I welcome that the Minister has agreed to accept an amendment from myself and Deputy Joan Collins. I also welcome that she engaged with the Music and Entertainment Association of Ireland and with musicians on the ground. These are the people we have to listen to when we look at new schemes like the pandemic unemployment payment and how it works.

With regard to the household debt on the backs of all the thousands of people who have lost their jobs this year, we need to look at mechanisms in dealing with it and how we support families. Thousands of people have lost their jobs or are on reduced income, yet the same payment obligations and bills remain. I did a survey on household debt and the real-life experiences of the over 300 people who took it are heart breaking. As we approach Christmas, we must acknowledge that household debt is an issue. We need to put supports in place to help families. There is an onus on the Government to do that.

I launched proposals this week on what we can do to deal with household debt. Will the Minister take those proposals on board, one of which is to cap the extortionate interest rates, sometimes up to 288%, being charged by moneylenders? I raised this with the Taoiseach during the week but he told me that there are options available to people other than going to moneylenders. However, approximately 300,000 people use moneylenders. It is not good enough to say there are other options. We need to ensure the regulation concerning interest is put in place and that we protect families in some small way when it comes to moneylenders.

In fairness to the Taoiseach, his party was quite happy to pass and support the Sinn Féin Bill on this issue in 2018. When that Bill progresses to Committee Stage in January, Fianna Fáil and the rest need to get behind it because families are struggling. They are extremely vulnerable. Moneylenders are taking advantage in some cases, particularly with interest rates of up 288%. We need to take action on this. The Society of St. Vincent de Paul, along with lone parent organisations Single Parents Acting for Rights of Kids and One Family Ireland have all been calling for supports to deal with household debt. They are at the coalface dealing with families in these situations. We need to see measures from the Government on this.

I welcome the €3.50 increase in the fuel allowance. Any increase in the fuel allowance is to be welcomed. We have to remember, however, it still is not back to the 32 weeks that it once was, remaining at 28 weeks. That cut has not been restored. The €3.50 increase is good and well but it has to be matched with a carbon tax increase of €7.50. I welcome the publication of the Department's report on the impact that current and projected increases in the carbon tax will have on low-income families. That report concluded:

It shows, from various researches conducted, that carbon tax increases will impact (disproportionately) on low income households. Consequently, in order to protect low income families from the impact of such tax increases, mitigating measures, in the form of various welfare and/or taxation supports, are needed.

Of course we all knew this but it is telling that the Department now has a report that tells the Minister and the Government that these increases need to be matched with supports. I acknowledge these supports cannot always mean an increase in the fuel allowance over and over again. We need further measures and I accept this. At present, given the energy increases and the fact people are facing increased energy bills, we need to look at tackling energy poverty. It is a serious issue.

I note an amendment I tabled that came from Family Carers Ireland on paying the carer's support grant in two parts next year has been ruled out of order and I expected such. It is an amendment the Minister could at least consider in recognition of the really difficult year that carers have had. Family Carers Ireland has asked that the carer's support grant be split in two so that in January there would be a payment of €925 and in June, when the annual payment is paid, another payment of €925 would be made. This would be really beneficial to carers and it is something the Minister should look at.

When we speak about things that are worthwhile and worth the cost, I always turn to JobPath and the continuous line from the Government that it is value for money. We know that to date, JobPath has cost the taxpayer almost €250 million. It was due to finish taking referrals in 2019. It was given a 12-month extension into 2020 and the Minister has announced it will be given another 12-month extension into 2021. There are several issues with this. There is the issue of the amount of money being paid to these private companies, which is €311 for each of the more than 280,000 people who have been referred, just for being referred. Last week, I asked about the more than 33,000 people who have been referred more than once as to whether the companies get the same referral fee for the same person twice. I do not think this is value for money. There has been a 7% job success rate to date. I have also asked, given that the contract is being allowed to continue for another 12 months, whether there is a clause whereby some of the fees can be reduced. I have also asked the Minister to look at the impact that JobPath is having on existing schemes, such as the community employment scheme, which cannot fill their places. We need to look at the impact JobPath is having on these schemes.

I want to make reference to the child maintenance review group which has been established. It is very welcome. I do not think we needed a review group to tell us it is wrong to put lone parents in front of judges in courts to get child maintenance. It is regrettable the Department pursues the other parent for recouping costs for the one-parent family payment but not when it comes to maintenance. I hope the group will report back very quickly.

Poverty is a huge issue in the State. Hundreds of thousands of people live in poverty. I ask the Minister to look at the Social Welfare Commission Bill I have brought forward. We need to bring our social welfare payments above the poverty line. It is the most basic level that any social protection system should aim to achieve and we are not achieving it.

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