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

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

As Deputies will be aware, the purpose of the Social Welfare Bill is to give legislative effect to the changes announced on budget day. Budget 2023 was framed in uncertain times. As the world emerged from the public health crisis caused by Covid-19, the war in Ukraine and the ensuing geopolitical instability has meant that inflation in this country is at its highest rate in a generation. The cost of living is rising and it is more expensive to do the weekly shop, fuel one's car, pay one's bills and make ends meet. That is why the Government compiled a budget that puts money back in people's pockets. Whether one is a pensioner, a carer, a person with a disability, a lone parent or a working family, the measures in this budget were designed to reach the people who need it most. This year's budget represents the largest social welfare budget package in the history of the State.

It is important to point out that many of the social protection measures announced on budget day do not require primary legislation and, therefore, are not reflected in this Bill. These include the unprecedented eight lump-sum payments which we are providing at a cost of €1.2 billion to assist people with the cost-of-living pressures they are now facing. Deputies will appreciate that traditionally measures announced in the budget relating to social welfare normally take effect the following January at the earliest. That is not the case with these eight lump-sum payments. My Department has, just as it did during the pandemic, acted swiftly to ensure that people receive these payments now over the winter months when they need the support most. I am pleased to inform the House that six of the lump-sum cost-of-living payments have already been paid. These are the autumn double payment; the €500 disability support grant paid to all people receiving a long-term disability payment; the €200 lump-sum payment to people receiving the living alone allowance; the €400 lump-sum payment to all households in receipt of fuel allowance; the €500 lump-sum working family payment; and the double child benefit payment. The latter two payments are vital measures to support hard-working families. The seventh lump-sum payment, which is the special €500 carer's support grant, will be paid to over 114,500 carers on Thursday next in recognition of the vital work our carers do and the pressure they are under. The final lump-sum payment, the Christmas bonus, will be paid out in early December and will support our pensioners, carers, people with disabilities, lone parents and other vulnerable groups.

Other measures announced by the Government on budget day but which do not require primary legislation in the Social Welfare Bill include the extension of access to the JobsPlus scheme to marginalised groups to support them into the workforce; enhancements to the reasonable accommodation fund to assist people with disabilities into to work; and the increase in the weekly earnings disregard for disability allowance and blind pension from €140 to €165. On budget day, I announced my intention to introduce a new over-70s fuel allowance scheme. Under the new scheme, a single person over the age of 70 can have income of €500 per week and a couple can have income of €1,000 per week and still qualify for fuel allowance.

Deputies will appreciate that the immediate priority for my Department following the budget was to ensure we issued the eight lump-sum payments as quickly as possible. My next priority is to open the over-70s fuel allowance scheme for applications. Work is advancing well on developing the necessary IT systems and it is my intention to open the scheme for applications in December. As Minister, I recognise the contribution that pensioners have made to this country. After working all their lives, they have put in their shift. I do not want to see any senior citizen afraid to turn on the heat. I am pleased to pioneer the new over-70s fuel allowance scheme. This is not a once-off measure. It is a permanent change for the better to support our old people.

I am pleased to have the opportunity to update the House this evening on these budget measures which are designed to support our most vulnerable. I will now turn to the Social Welfare Bill itself, by section. Section 1 provides for definitions of the relevant Acts.

Section 2 is a measure to preserve the craft of making and fixing musical instruments of cultural significance to the Irish nation. The low number of uilleann pipe and harp makers in the State suggests that Government intervention is warranted to support these crafters. It provides that the first €20,000 of relevant profits for those who are wholly or mainly engaged in the production, repair or maintenance of harps and uilleann pipes will be exempt from income tax but continue to make PRSI contributions so that their pension and social insurance based benefits can continue to build up.

I am sure all Members of the House will agree that participants in community employment, CE, schemes do very valuable work in our local areas, whether it is meals on wheels, the upkeep of amenities or other vital local services. At a time of full employment, I know some CE schemes have struggled to find participants. Therefore, I am pleased that section 3 extends eligibility for participation on CE schemes to adult dependants, that is spouses, civil partners or cohabitants, of jobseeker's allowance recipients. This is a pilot project and, if it works well, I will look to extend it to other groups of people in the future.

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 8.8% on weekly earnings between €38 and €410. Weekly earnings in excess of €410 attract employer PRSI at a higher rate of 11.05%. The earnings threshold increase from €410 to €441 in section 4 is designed to take account of the forthcoming increase in the minimum wage from €10.50 to €11.30 per hour.

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 2023. This measure should continue to stimulate employment especially in the services sector.

Section 5 provides for a €12 increase in the weekly rate of maternity benefit from €250 to €262 from 2 January next. Sections 6, 7 and 8 provide for the equivalent increases in relation to adoptive benefit, paternity benefit and parent's benefit, respectively.

Section 9 gives effect to the increases in the graduated rates of jobseeker's benefit and jobseeker's benefit for the self-employed. The working family payment, formerly known as family income supplement, gives extra financial support to families with children on low pay. Section 10 provides for a €40 increase in the weekly income thresholds of working family payment for all family sizes. Of course, recipients of working family payment received a cost-of-living lump sum of €500 last week. This benefited 44,000 families, many of whom are lone parents.

Partial capacity benefit is a very worthwhile scheme and I encourage Members to make their constituents aware of it. Partial capacity benefit is a scheme which allows people who have been in receipt of illness benefit for a minimum of six months, or invalidity pension, to return to employment or self-employment and continue to receive a payment from the Department if capacity for work continues to be reduced by their medical condition. The purpose of this section is to provide, like other PRSl-based benefit schemes, for an application window for claims. To encourage people with an illness or disability back to employment, it is a generous application period, from up to 13 weeks prior to commencement of employment through to three weeks after commencement of employment. However, similar to other social protection schemes, a deciding officer may relax these already generous time limits in exceptional circumstances.

Section 12 provides for the long awaited ex gratiascheme for CE scheme supervisors and assistant supervisors. Deputies are aware that last December, CE supervisors and assistant supervisors voted to accept the terms of a settlement negotiated between unions and the Department of Social Protection on the ex gratiascheme.

Section 13 provides for increases in the rates of social insurance payments. I am very pleased to say that there will be a €12 per week increase in the maximum personal rate of all PRSl-based benefits.

The purpose of section 14 is to provide for an increase in the disregard in income from agri-environmental schemes applicable to farm assist, jobseeker's allowance and the non-contributory State pension. These schemes, for example the agri-climate rural environment scheme, ACRES, will now attract a disregard of €5,000 from the new year. This provision supports Ireland's climate action agenda by removing a potential barrier for low-income farmers to participate in these agri-environmental schemes.

Section 15 and Schedule 2 provide for increases in social assistance, or in other words, means-tested payments. They also provide for increases to qualified adults and to qualified children where relevant.

Domiciliary care allowance is a payment in recognition of the additional burden involved in caring for children with a severe disability. It is not means tested. Section 16 provides for an increase in the rate of payment from €309.50 to €330. I am pleased to be the first Minister since 2009 to increase this payment. I am doing so in recognition of the significant and difficult role that family carers perform in Irish society. Domiciliary care allowance recipients will also receive the €500 carer's support grant this week. I might also take this opportunity to inform the House that regulations are being drafted which will allow a parent or guardian to receive domiciliary care allowance if the child remains in the care of the hospital after birth if the other conditions of the scheme are met. This measure, which I announced on budget day, is under the radar of many people but I know it is vital for the families it affects who find themselves in these very difficult circumstances.

Section 17 exempts the ex gratiapayment for CE supervisors and assistant supervisors from income tax. Section 18 is the Short Title of the Act.

I believe this is a fair and balanced Social Welfare Bill. It will provide extra help to those who need it most and strengthen the social safety net. I commend the Bill to the House and I look forward to hearing Deputies' contributions. I might just add that last year during the debate on the Social Welfare Bill, the issue was raised of half-rate carer's payments and disablement benefit excluding people from fuel allowance. I do listen and I am pleased to say that both payments will be disregarded in the means test for fuel allowance from the new year.

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