Seanad debates

Monday, 14 December 2020

Social Welfare Bill 2020: Second Stage

 

2:00 pm

Photo of Seán KyneSeán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister to the House. I welcome the total budget of some €25.1 billion for social protection for the year ahead, which in itself is an increase of some €4 billion compared with what was announced on budget day. This increase is mainly for the pandemic unemployment payment and jobseeker's supports. This is a clear example of the Government reacting to changing circumstances, and most importantly, being able to react. We are able to react because of the work that previous Governments have done since 2011 to restore the economy and good name of this country and to enable us to borrow at low rates. That is hugely important.

The social welfare budget is indicative of the cost and importance of supporting people and businesses through the worst of the Covid-19 crisis. Many people and businesses have been protected by the provision of a basic income during recent months. That is what social welfare is about. It is a safety net that is available when it is needed so that there are guarantees in times of unemployment and illness. I agree with my colleague, Senator Craughwell, however, and I urge the Minister to look at the issue of the class K contributions for former Members. The class K contributions effectively mean there will be no social insurance payments for people insured under class K.

Cuirim fáilte roimh an ardú sa liúntas oileánda do dhaoine ag fáil íocaíochtaí leasa sóisialta atá ag cónaí ar oileán sainithe amach ón gcósta ó €12.70 in aghaidh na seachtaine go dtí €20 in aghaidh na seachtaine. Tá costas breise ag baint le saol ar oileán amach ón gcósta agus cabhróidh an t-ardú seo leis na costasaí sin. Tá mé an-bhuíoch don Aire as ucht na tacaíochta sin, an chéad ardú sa liúntas seo ó 2000. The increase of the living on a specified island allowance by €7.30 to €20 per week from this January is hugely welcome. This is the first increase in this allowance since 2000.I welcome this initiative. The Minister's unique position of being the Minister for Social Protection and the Minister for Rural and Community Development gave her a greater ability to enact this change and I welcome it. It has been warmly received by our offshore island communities.

I welcome the initiatives to increase various supports, such as the increase in the widowed surviving civil partner grant by €2,000 to €8,000. That is the first increase in that allowance since 2008. I welcome the flexibility being provided for those in receipt of the PUP, whereby they can earn the PUP while continuing to carry out some work. This will benefit taxi drivers, musicians, electricians, plumbers and other self-employed workers.

I welcome the measure to reduce the waiting period for those unable to work due to injury or occupational disease sustained in the course of their employment from six days to three days. I welcome the removal of the earnings limit on the one-parent family payment and the increase in the carer's support grant by €150, raising the payment to €1,850, the highest rate ever.

The issue of pensions is fraught and I welcome the decision not to increase the pension age, as well as the establishment of the pensions commission. The commission will have to deal with an issue we have not been able to grapple with for some time. In 2010, the then Government under the then Taoiseach, Brian Cowen, the then Minister for Finance, Brian Lenihan, Lord have mercy on him, and the then Minister for Social and Family Affairs, Mary Hanafin, produced the national pensions framework. That report stated:

The inescapable fact is that for every pensioner we have now there are another six people at work to support them; by 2060, that figure will be less than two. The sooner we face this inevitability, the better prepared we will be to meet it.

The pensions commission has serious issues to deal with. The decision not to go ahead with the increase in the pension age from next year is welcome because there are many people who are not able to work past a certain age because they are physically not able to work. I am talking about tradesmen, whether it be plumbers, blocklayers or plasterers, who have jobs that are tough on their joints, knees, backs and necks. It all impacts on their ability to continue working past 66 years of age and some of them who are younger than that unfortunately have to carry on if other supports are not available. These are very difficult issues for some people but it is an issue the pensions commission will have to grapple with in terms of providing a sustainable footing for our pension system to ensure that people pay into it and that they can reap the reward in their old age.

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