Seanad debates

Wednesday, 25 November 2015

Social Welfare and Pensions Bill 2015: Second Stage

 

10:30 am

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

There is an increase of €2 for adult dependants aged under 66 years and an increase of €2.70 for adult dependants aged 66 years or older. The name of the respite care grant is to be changed to carer's support grant and its rate will be increased by €325 to €1,700 from 1 June next. Following the death of the person being cared for, carer's allowance will be paid for 12 weeks from January next instead of the current six weeks. There is an increase of €5 per week in the family income supplement income threshold for families with one child and an increase of €10 per week in the threshold for families of two or more children.

There is a new tapered PRSI credit for insured class A employees whose earnings are between €352 and €424 a week. The lower 8.5% class A employer PRSI rate will apply to weekly earnings up to €376, which is up from €356, with effect from 1 January next. Regulations were signed this week to provide for the 75% restoration of the Christmas bonus which will be paid during the first week of next month. The Government will also make regulations to provide for an increase in the earnings disregard for the jobseeker's transitional payment from €60 per week to €90 per week, as mentioned by the Minister for State.

I remind my colleagues that the Christmas bonus, which was abolished in 2009, will benefit many people, including older people, carers, people with disabilities, long-term job seekers and lone parents, at a financially stressful time of the year.That will benefit older people, carers, people with disabilities, long-term jobseekers and lone parents at a financially stressful time of the year. Some 1.25 million people will receive the Christmas bonus this year at a cost of €197 million. It is important to stress that the Christmas bonus is spent within the local economy and will give a significant boost to local businesses and communities.

The Department of Social Protection is now actively involved in helping jobseekers to find employment as well as working closely with employers in every region of the country to help them to find recruits for their businesses. The new tapered PRSI credit for class A contributions for employees earning between €352 and €424 per week will reduce the weekly PRSI bill for over 88,000 people as the Minister of State pointed out earlier. In addition, the lower 8.5% class A rate of employer PRSI will be extended to over 26,000 employers, with the employer threshold being increased. I welcome the increase in the top-up payments for jobseekers availing of community employment, the rural social scheme, the jobs initiative and other such schemes.

Child benefit is due to be increased next January and 632,000 families will enjoy an increase of €5 per child per month, at a cost of €72 million next year. Pensioners and carers will also receive increased payments, with 583,000 recipients to benefit at a cost of €93 million next year. A carer's support grant, previously known as a respite care grant, valued at €1,700 will be paid to 86,000 carers throughout the country at a cost of €30 million. The increase in family income supplement threshold means that over 59,000 families will benefit.

The Minister of State spoke about the improvements in our economy and referenced, in particular, the drop in unemployment from 15.2% to 8.9%, which is a significant achievement. I would prefer to say that almost 45% of those who were unemployed five years ago are now working.

The Tús scheme benefits communities throughout the country. However, given the increase in employment opportunities, the numbers available for participation in Tús schemes has reduced significantly. I am aware of two men who have performed extremely well in my community on the Cooley peninsula who performed well on Tús schemes. They are most anxious to continue working after the 52 weeks allowed under the scheme. Furthermore, the community wants them to continue working and recognises the contribution they have made. Those men, unfortunately, will have to go back on social welfare at the scheme's end which they do not want to do; they want to work. Given that the number of people available to embark on Tús schemes is reducing, the Government should consider extending the schemes from 52 weeks to two years. Common sense should prevail in this regard. The managers in charge of the various Tús schemes should be given the opportunity to acknowledge and recognise the work done by scheme participants. I am sure there are many Tús schemes throughout the country experiencing the same difficulty. The Minister of State would not believe the extent to which the men in question implored me to help them. They want to continue working, to get up in the morning and contribute to their community. They do not want to go back to claiming social welfare. We must look at this issue carefully. Allowing participants to continue on these schemes for longer would further reduce the unemployment figures. It might be possible to stipulate that if there are new applicants for the schemes, those who have been participating for longer than a year must come off them to give others a chance. The schemes could be reviewed two months before their end date to determine whether there are people waiting to replace those already on the schemes. If there are no new applicants, then those participating should be given the option of extending their contract for a further year.

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