Seanad debates

Monday, 1 February 2021

Response to Covid-19 (Social Protection): Statements

 

11:00 am

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

I thank Members for their kind words of congratulation on the birth of Arthur, my new and first grandchild.

I also thank Members for their kind comments about the staff in the Department of Social Protection. On behalf of the staff, I wish to state it is important that the extraordinary work they have done since last March be acknowledged. They have managed to continue all the other payments along with the additional workload of the pandemic unemployment payment. They certainly have been essential front-line workers. On behalf of the staff, I thank the Senators for the acknowledgement of the great work they have been doing.

This was an engaging discussion on the important and relevant supports for people during this pandemic. It is evident from the discussion that there is recognition of the importance of the much-needed and deserving supports that my Department has provided and will continue to provide to the hundreds and thousands of workers and their families.

The future of the virus remains uncertain, as we know. For this reason the continued impact of Covid-19 on individual incomes and economic activity remains a key priority for this Government. I appreciate the concern around the availability of supports post March but I wish to reassure Members that the Government will not be found wanting in its support for people who will continue to be impacted. My Department's Estimate for 2021 is €25 billion, which is €4 billion or €5 billion more than our normal Estimate and will be increased, if necessary, in the months ahead.

As outlined earlier this month, I secured approval for the PUP to remain in place at the current rates of payment until 31 March this year. Obviously, given the extension of current restrictions until 5 March, we will now need to examine the future of the PUP beyond this point. That is a discussion that I will be having with my Government colleagues over the coming weeks. As part of those discussions, we will be taking into account where we are in terms of the trajectory of the virus, the roll-out of the vaccine programme and our plan to reopen the economy.

I have introduced a range of measures over the past 11 months to support those who are ill with the virus and their families, lone parents and the elderly. I am acutely aware of the effect that fuel costs have on households at this time. This is the reason the fuel season was extended by my predecessor for four weeks last year until Friday, 8 May 2020, which was the latest end date of any season in the past 30 years. In budget 2021, I also increased the fuel allowance by €3.50 per week to €28 per week for a period of 28 weeks from 4 January 2021. I will continue to monitor this support in the coming months.

I wish to emphasise that financial supports remain available to people who need them under the supplementary welfare allowance scheme, notably the exceptional needs payment. That support is in place and it can include assistance towards costs that are not budgeted for in advance. I know many Senators raised that issue with me. The supplementary welfare allowance is available and people may make applications to the local social welfare officer. This support could assist towards additional heating or electricity costs at a time when children are out of school. Reference was made to the issue of fuel poverty. The Government is committed absolutely to supporting the retrofitting of the housing stock, which is the ultimate solution to fuel poverty. This year will see the largest budget for retrofitting in the history of the State, with more than €100 million in capital funding to support lower-income households to retrofit their homes through the warmer homes scheme. The figure represents a €47 million increase on the 2020 allocation.In addition, funding of €65 million is being made available in 2021 through the Department of Housing, Local Government and Heritage to support the retrofitting of up to 2,400 social housing homes.

On taxation of the PUP and the comments made around it, this matter was extensively debated during the passage of the Finance Bill in November and December last. As a regular weekly payment, the PUP shares the characteristics of jobseeker's benefit, which is also taxable. More people who received the PUP are due a refund than are being asked to make an additional payment. I assure Members that Revenue will be adopting a fair and flexible approach to collecting tax due on payments made under the PUP. However, it is very important to remember that the PUP was put on a statutory footing so that people could get their full social insurance contributions for the time they spent in receipt of the payment. This is very important as it means people's future entitlements will not be affected. Consequently, their social insurance contributions for the time they spent on PUP will be equivalent to what they would have been had they been working. That is a very important point to make.

Senators Ahearn and Currie raised parent's leave. The additional three weeks of parent's leave for each parent is very welcome. That brings it up to a total of five weeks for children born, I think, after November 2019. The Minister for Children, Equality, Disability, Integration and Youth, Deputy O'Gorman, wants to get this legislation passed as quickly as possible and it is my understanding that the Bill has been with the Joint Committee on Children, Disability, Equality and Integration since 8 January awaiting pre-legislative scrutiny. I understand that Deputy Kathleen Funchion is the Chairman of that committee. The Senators may wish to raise with the committee the matter of how we can progress the Bill as quickly as possible.

As we move beyond Covid, my Department will refocus its efforts on supporting people back into employment. We have the financial supports and the necessary skills and expertise to do this. The jobs stimulus package, worth €200 million, contains a variety of initiatives in the areas of skills development, work placements, training and education, recruitment subsidies and job search and assistance. I am confident these measures will provide the necessary support to ensure that people who, unfortunately, do not return to their employment will have new opportunities to retrain and to re-enter employment.

The issue of pensions for supervisors on community employment schemes was raised. The Minister for Public Expenditure and Reform, Deputy McGrath, met the supervisors before Christmas and there is engagement between my Department and his in an effort to resolve the issue.

Senators Craughwell and Chambers raised the plight of airline pilots. I commit to raising that issue at Cabinet because I understand it is a difficult situation.

I thank Senator Garvey for raising the issue of remote working, an area in which Senator Currie also has a strong interest. Over 50% of Department of Social Protection staff are working remotely and are doing so very effectively. We are at an advanced stage of developing a €5 million call for hubs. I have a keen personal interest in this matter and my Department will continue its efforts to grasp this once in a lifetime opportunity to change the way we do things.

I thank Senators for their contributions, suggestions and ideas. I will take them into account as we adapt our response to Covid in the months ahead.

Senator Black raised the issue of musicians. I changed the requirements for the PUP to allow people who are self-employed to earn up to €960 over an eight-week period while continuing to receive the payment.That is some help. However, I do recognise that they are having a very difficult time.

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