Seanad debates

Thursday, 26 June 2014

Social Welfare and Pensions Bill 2014: Second Stage

 

1:20 pm

Photo of Terry BrennanTerry Brennan (Fine Gael) | Oireachtas source

Ba mhaith liom fáilte a chur leis an Aire. The Social Welfare and Pensions Bill 2014 is important. It clarifies qualifications for payment, makes the system more fair, and strengthens the position of the Department of Social Protection in recouping money that is overpaid. This Bill aims to make the system stronger and will therefore improve the social welfare system for others. The social welfare system supports those most in need. Most people who claim social welfare are fully entitled to do so and the Government is committed to ensuring the system is transparent, robust and fair for all. It will also ensure equal treatment of self-employed men and women. At the moment the spouse of a self-employed man or a woman who dies does not enjoy the same treatment he or she would have enjoyed had the spouse not been self-employed. This issue has been brought to my attention and that of many other public representatives over many years. Under the Bill liability for self-employment PRSI contributions in the case of such spouses or civil partners will be subject to the annual income threshold that applies to self-employed contributors in general, that is, €5,000.

The Bill will strengthen the residence requirement for entitlement to social assistance payments and child benefit to ensure that people who are entitled to a social welfare payment receive it. The Bill will also strengthen control of social welfare expenditure by extending the powers to recover social welfare overpayments. If someone who should not claim does so the Department of Social Protection will be able to reclaim the money. This protects those most in need and those who are fully entitled to support.

The Bill will also amend the Pensions Act 1990 relating to the notification of a member of a pension scheme that the pension has been restructured or is being wound up. The Bill contains provisions to regulate the refund of PRSI to certain seafarers employed on board vessels registered in a member state of the EU or European economic area and providing scheduled passenger services between ports within those states. At present if someone is made redundant where an employer does not pay such a lump sum the Minister for Social Protection can make the payment. The Minister can then recover such amounts from the employer but according to this Bill, where an employer has a debt owing to the Minister and qualifies for a refund of PRSI contributions the debt to the Minister can be recovered from the PRSI refund. This is a logical way for employers to pay their debt to the Department to the benefit of all.

The Bill addresses increases in payment and will stipulate that these will not be payable for any period during which the qualified adult is resident, temporarily or permanently, outside the State, or in prison or is otherwise detained in legal custody.

In respect of family income supplement, if the claimant lives apart from his or her spouse or civil partner and children, the worker must maintain his or her spouse or civil partner and contribute substantially to the maintenance of the children. If the worker is no longer engaged in full-time employment or qualifies for certain weekly social welfare payments, family income supplement, which is paid for 52 weeks, can be reviewed. If there is an increase in the number of children, or if changes in payments have taken place, an increase in the weekly amount of family income supplement is payable. Under this Bill the presumption that persons are not habitually resident in the State if they have not been present here or in any other part of the common travel area for a continuous period of two years is being removed. A person must satisfy the habitual residence condition for the duration of his or her claim in order for entitlement to continue. This allows for the review of habitual residence in cases of people who already receiving payment. The measures contained in the Bill will strengthen the powers to recover social welfare overpayment and will lead to savings in overall social welfare expenditure.

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