Bernard Allen (Cork North Central, Fine Gael)
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Question 8: To ask the Minister for Social and Family Affairs his views on the NESC opinion that although unemployment has been massively reduced in recent years, dependence on means-tested social welfare by people of working-age has increased (details supplied); the figures for same; and if he will make a statement on the matter. [17669/06]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 37: To ask the Minister for Social and Family Affairs his views on the finding of the NESC report (details supplied) that many people in receipt of means-tested payments become long-term dependent on social welfare; the implications of same; the efforts he is making to counteract it; and if he will make a statement on the matter. [17667/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 8 and 37 together.

In May 2005, the National Economic and Social Council published a report entitled The Developmental Welfare State in which it examined the evolution of the Irish welfare state, considered the issues that remain despite Ireland's economic progress and proposed a framework in which these might be addressed. The report raises a number of important issues and, in the shorter term, will inform the current social partnership discussions and influence thinking on a successor social partnership agreement.

The sustained economic progress of recent years has driven unemployment to historically low levels and significant levels of inward migration are now required to fill job vacancies and sustain economic development. Despite this, significant numbers of people of working age are not economically active and are at risk of or experiencing poverty. The proportion of people of working age who are receiving a weekly social welfare payment has remained more or less constant at approximately 20% for the past 15 years during which the economy was transformed. While the numbers unemployed have fallen, the number of lone parents and people with disabilities has risen. This is partly as a result of societal changes such as greater acceptance of lone parenthood and improvements in social provision such as the introduction of disability allowance. The introduction of and improvements to the carers schemes recognises a significant group of people of working age and beyond.

There has been a substantial increase in the number of people receiving the means-tested disability allowance payment over the past ten years. The number of recipients has more than doubled since the scheme was transferred to my Department from the health boards in 1996, from 37,054 in that year to more than 77,000 currently in payment. The number of carers in receipt of a carers payment has increased by almost 190%, from 9,200 to 26,625, since 1997, while the numbers in receipt of the one parent family payment have increased from 57,200 in 1997 when the scheme was introduced to 80,366 in 2005.

The main focus of my Department is to provide income support to persons who cannot provide for themselves. The newer policy orientation will seek to deliver these supports in a way that reduces the risk of dependence and allows people, including people with disabilities, to move from a position of income dependence to one where they can meet their income needs from employment to a greater extent. In this regard, there are a number of specific incentives to encourage people with disabilities to take up or return to employment or to undertake education and training options, including an income disregard of €120 per week from the means-tested disability allowance and blind pension payments. There are more than 6,000 people currently availing of this disregard. For similar reasons, it is estimated that as many as 60% of people in receipt of a lone parent payment are engaged in part-time employment.

The question of long-term dependency on social welfare transfers must be considered on a scheme by scheme basis. For instance, a carer would have no control over the duration of the contingency for which the carers allowance is in payment. On the other hand, family income support policy is designed to encourage low-income families to remain in employment rather than become fully dependent on social welfare payments. Recipients of other payments, such as one parent family payment and, to some extent, the disability allowance would also benefit substantially in both a social and financial sense from an approach more focused on employment.

The NESC report points out that, while social welfare income support remains crucial and must be adequate to meet needs, passive income support alone is not sufficient if poverty and social exclusion are to be comprehensively addressed and people are to have financial independence and reach their potential. While many of the recommendations in this regard resonate with efforts to make the social welfare system more active since the early 1990s, the NESC model allows these efforts to be seen in a more integrated fashion and strengthens the arguments for intensifying them. The proposed approach involves treating all people of working age in a similar way whether they present as unemployed, lone parents, people with a disability or in some other category. This puts less emphasis on contingencies and more on activation, facilitating progression, regardless of the circumstances that led the person to require income maintenance. In line with this approach, my Department is considering a number of options with a view to increasing activation for all people of working age.