Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move: "That the Bill be now read a Second Time."

Before I begin, I know many workers tonight, particularly those in the hospitality and night-time economy sectors, will be worried by the latest restrictions. Almost €9 billion has been spent on the pandemic unemployment payment, PUP, to date. This Government has stood four-square behind workers every step of the way throughout the pandemic and that will continue to be the case.

For this reason, I intend to reopen the PUP for new applications from workers who lose their jobs as a result of the new restrictions, which will take effect from 7 December. I have asked my officials to work on reopening the scheme as a matter of urgency. Full details will be announced over the coming days.

As Deputies know, the purpose of the Social Welfare Bill is to give legislative effect to the changes announced on budget day. The priority of my Department and the Government is to provide the right policies and services at the right time and place for people throughout society, including pensioners, families with young children, people of working age and employers. Deputies will agree that the schemes introduced to deal with the pandemic - enhanced Covid illness benefit and the PUP - delivered on that.

However, we must continue to be progressive. The social protection budget package amounts to €558 million in 2022. It is the largest social welfare package in 14 years. This Government is conscious of the cost-of-living pressures facing our citizens. Therefore, I am pleased to say that this year's budget provides for across-the-board increases to weekly payments for pensioners, people with disabilities, carers, lone parents and jobseekers. In parallel with this, I have continued the policy of targeting increases at people at most risk of poverty, including families with children and pensioners and people with disabilities who are living alone.

It is important to point out that some of the social protection measures announced on budget day do not require primary legislation and, therefore, are not reflected in this Bill. These measures include the Christmas bonus, which I am pleased to say is being paid next week to 1.4 million recipients, with payments totalling €313 million. I wish to take this opportunity again to encourage people to spend their Christmas bonuses locally this year and to support SMEs. Other budget day measures that are not included in the Bill include a provision to reduce the minimum number of contributions required for people aged between 25 and 28 years to access the treatment benefit scheme. This means that young people will be able to avail of visits to the dentist or optician much sooner after entering the workforce.

Deputies will be aware of the significant amendments to the carer's allowance income disregard, which has increased to €350 per week for a single person and €750 for a couple. These are the first changes to the means test for carer's allowance in 14 years. I was pleased to work with carers representative groups on these changes, which they have warmly welcomed. These improvements, like the Christmas bonus, will be done by regulation.

The increase of €5 per week in the fuel allowance payment and the uplift in its income threshold for qualification, both of which I ensured took effect from budget week, do not require amending legislation. Nor does the extension of the hot school meals programme, a programme that is close to my heart and that I have been pleased to increase tenfold since my appointment as Minister last year.

Another budget measure that does not require legislative amendments is the equalisation of the back to school clothing and footwear allowance thresholds for one- and two-parent households. The costs associated with the return to school are the same regardless of whether it is a one- or two-parent household and I was pleased to work with representative groups like One Family to introduce this change. I am also increasing the allowance itself by €10, bringing the rate for each child under 12 years of age to €160 and for each child over 12 to €285.

Other budget measures that do not require legislative amendments include the extension of access to support grants for jobseekers with disabilities, for example, towards a sign language interpreter, personal reader or workplace adaptation, and increasing the rate of wage subsidy scheme for employers of people with disabilities by €1 per hour, making it equivalent to 60% of the national minimum wage. This rate has not changed since 2008 and it is timely to do so now. This and many other measures announced on budget day will benefit people with disabilities and it is appropriate that we are discussing them today on International Day of Persons with Disabilities.

Section 1 is the commencement provision.

Section 2 provides for definitions in the Bill.

The weekly earnings of an employee determine the PRSI rate of employer contributions paid on behalf of that employee. Currently, employer PRSI is charged at a rate of 3.8% on weekly earnings of between €38 and €398. Weekly earnings in excess of €398 attract employer PRSI at a higher rate of 11.05%. The earnings threshold increase from €398 to €410 in section 3 is designed to take account of the increase in the minimum wage from €10.20 to €10.50 per hour from 1 January 2022. Employers with employees benefiting from the increase in the national minimum wage will continue to attract the lower rate of employer PRSI. It is intended that this section will come into operation on the same day as the national minimum wage increase, that is, New Year's Day.

Section 4 provides that, for the purposes of the Covid-19 employment wage subsidy scheme, EWSS, the employer PRSI contribution rate of 0.5% will cease on 28 February. The effect will be a reversion to the standard employer social insurance contribution rates of 8.8% and 11.05% for EWSS the following day.

Section 5 provides for a €5 increase in the weekly rate of maternity benefit from €245 to €250 from 3 January. Sections 6 and 7 provide for the equivalent increases in adoptive benefit and paternity benefit, respectively.

The purpose of section 8 is to extend the duration for which parent's benefit is payable from five weeks to seven weeks in line with Ireland's commitments under the EU work-life balance directive. Parent's benefit is popular and we have seen a significant increase in claims this year. I am pleased to be able to extend it by a further two weeks next year to support young families. My colleague, theMinister for Children, Equality, Disability, Integration and Youth, Deputy O'Gorman, will make a corresponding amendment to the associated parent's leave provisions. I understand that this is likely to be done by way of regulation. Section 9 provides for the rate increase for parent's benefit.

Jobseeker's benefit rates are graduated according to earnings in the relevant tax year. Section 10 will give effect to the increases in the graduated rates. Section 11 provides that the amount payable for a qualified adult on a graduated jobseeker's benefit will increase from €87.20 to €89.30 per week.

The purpose of section 12 is to provide for a grant of up to €500 towards the cost of a wig or hairpiece for people suffering from hair loss as a direct result of illness or treatment for an illness. This is a new measure that I am introducing under the treatment benefit scheme and will be of particular benefit to persons who suffer hair loss as a result of conditions like alopecia or who are undergoing chemotherapy.

As I have said, today is International Day of Persons with Disabilities. As a result of section 13, 18,000 disability allowance recipients will gain up to €5 per week on top of the general increase. That is because this section provides for an increase in the general weekly means disregard for disability allowance.

The working family payment, formerly known as family income supplement, is a weekly tax-free supplement available to employees with children. It gives extra financial support to people on low pay. Section 14 provides for a €10 increase in the weekly income thresholds of working family payment for all family sizes. Working families on the scheme will benefit by up to €6 per week.

Section 15 is the first of two provisions that were not announced on budget day. It provides for periods spent on PUP to be counted towards the number of days of continuous unemployment required on a relevant payment to qualify for back to work family dividend. This is a weekly payment to help people with children to move from social welfare into work.

Section 16 is a technical amendment to remove an out-of-date reference to section 238F.

The other provision that was not announced on 12 October is section 17. The aim of this is to provide that the Minister may designate one or more persons to act as deputy chief appeals officer. That person will be designated to deputise for the chief appeals officer if the latter is not available to perform his or her duties. This should ease the administrative burden on the chief appeals officer and I hope will help to speed up the social welfare appeals process and improve turnaround times, something I know Deputies will welcome.

For most social insurance payments, an increase is paid for dependent children. The €3 increase for qualified child dependants aged 12 and over from €45 to €48 per week recognises the extra expenditure required during the teenage years. The payment in respect of qualified children under 12 increases by €2 from €38 to €40. This continues the policy of recent years that has been informed by research on the minimum essential standard of living.

The living alone increase is an extra payment for people on certain social welfare payments who are living alone. Section 18 gives effect to increases in the qualified child payment and the living alone allowance for claimants in receipt of social insurance benefits.

Section 19 provides for increases in the rates of social insurance payments. I am very pleased to say there will be a €5 per week increase in the maximum personal rate of PRSI-based benefits. The purpose of section 20 is to allow for a significant expansion in the list of agri-environmental schemes attracting the specific means disregard applicable to farm assist, jobseeker's allowance and State pension (non-contributory). These schemes attract a disregard of €2,540, with the remaining balance assessed at 50%. This provision supports Ireland's climate action agenda by removing a potential barrier for low-income farmers to participate in agri-environmental schemes.

Family carers have been a priority for me since I became Minister for Social Protection. Section 21 relates to carer's allowance, which is a means-tested payment. Assessment of capital is part of the means test along with an assessment of income. Capital includes savings, investments and property, other than the family home or principal private residence. This section provides for an increase from €20,000 to €50,000 in the exempted capital value when calculating means for carer's allowance. Increasing the capital disregard will allow carers who have accumulated savings to retain their investment without it impacting upon their carer's payment. Together with the increase in the weekly earnings disregard, thousands of carers across the country will benefit from these changes, including those who are currently on reduced payments and new applicants.

Section 22 provides for increases for qualified children and the living alone allowance for social assistance, or in other words, means-tested payments. The increase in the living alone allowance by €3 to €22 will benefit more than 230,000 pensioners and people with disabilities. The uplift in increases for qualified children will be received by 372,000 beneficiaries.

Section 23 provides for increases in the rates of social assistance payments, including a €5 per week increase in the maximum personal rate. Section 24 provides for an amendment to the end date of the Covid credit guarantee scheme, CCGS. I agreed with the Tánaiste to carry this provision in the Social Welfare Bill. The Government approved the €2 billion Covid credit guarantee scheme in 2020 as one of the main supports for Covid-impacted businesses. The scheme was due to end on 31 December 2021. It is now intended that this scheme be extended until the end of June 2022. However, this legislation allows it to be extended to 31 December 2022, in case the more relaxed state aid rules are extended beyond the end of June.

It is important to remember this budget has been developed against the backdrop of a pandemic, with almost €9 billion spent on just one support, the pandemic unemployment payment, alone. While we cannot do everything we wanted, I am pleased in my second budget as Minister for Social Protection to introduce what is the largest social welfare budget package in 14 years. This Bill is focused on supporting the vulnerable groups in society and those who are at most risk of poverty. This is a progressive Bill, and it will provide extra help to those who need it most. It tackles inequalities and strengthens the social safety net.

Given that some of these measures, such as the across-the-board increase in payments, are to be introduced from January, it will be necessary that the Bill is passed by both Houses of the Oireachtas before the Christmas recess. I look forward to working with all Deputies to ensure that we can make this happen so that people can benefit from these changes in January. I commend the Bill to the House and I look forward to hearing the contributions of Deputies.

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