Seanad debates

Tuesday, 22 October 2024

Social Welfare Bill 2024: Second Stage

 

1:00 pm

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

I thank the Leas-Chathaoirleach for his kind words. It is great to be back in Seanad Éireann to introduce this Bill, my fifth and final budget measure, for approval.The purpose of the Bill is to give legislative effect to many of the very substantial improvements in social protection announced on budget day. I am pleased to say that this year's budget represents the largest social welfare package in the history of the State, with over €2.6 billion being invested to support families across the State. This should have a real impact in alleviating the ongoing cost-of-living pressures that many households continue to face.

There are 19 sections in the Bill, which I will outline to the House now. Section 1 provides for definitions of the relevant Acts. Section 2 provides that employers with employees on the national minimum wage will continue to attract the lower rate of employer PRSI following the increase in the national minimum wage in January of 2025. This section will come into operation on the same day as the national minimum wage increase on 1 January 2025 and will result in savings of €616 in employer PRSI for each full-time employee on the minimum wage. Section 3 along with section 10 provides access to carer's benefit for the self-employed. Section 4 provides for a €15 increase in the weekly rate of maternity benefit to €289 from this coming January. Sections 5 to 7, inclusive, provide for the equivalent increases with regard to adoptive benefit, paternity benefit and parent's benefit, respectively. Section 8 gives effect to the increases in the graduated rate of jobseeker's benefit and jobseeker's benefit for the self-employed. Section 9 is a minor amendment to correct a layout error in the existing legislation. Section 11 provides for a once-off payment of €282 for newborn or adopted children born after 1 December 2024. I am particularly glad, as I am sure Senators are too, that Christmas babies this year will be included, as the date was brought back from the original date of 1 January. This payment will be given in addition to child benefit and will generally be paid in the first month after the child's birth or adoption. Section 12 increases the carer's support grant from €1,850 to €2,000. This is the highest it has ever been and is €300 more than the rate when I became Minister.

Section 13 provides for a €60 increase in the weekly income thresholds of the working family payment for all family sizes. This will mean that existing recipients whose employment earnings do not increase will see their payments rise by €36 per week. The working family payment is a key tool in helping to address child poverty. Section 14 provides the regulatory power to vary rates of payment of child benefit and the working family payment. This will enable the implementation of the following cost-of-living measures: the payment of a double rate of child benefit in November and December 2024 and the payment of a €400 lump-sum to recipients of the working family payment early next month. Following the enactment of this legislation, the necessary regulations will be signed by me in conjunction with my colleague, the Minister for Public Expenditure, National Development Plan Delivery and Reform, Deputy Donohoe. In line with my request of Deputies in the Lower House, I would appreciate the co-operation of Members of this House to expedite the passage of this Bill. It is necessary that this Bill is passed by both Houses of the Oireachtas before the Hallowe'en recess to enable those important measures to be implemented.

Section 15 increases the reduction from €44 per week to €90 per week to the maximum rate of jobseeker's allowance or jobseeker's benefit in cases of non-compliance with my Department's programmes to help jobseekers to secure employment. Reductions in jobseeker's rates are intended to encourage compliance with the requirements that jobseekers are available for, and genuinely seeking, employment; actively engaging with the Department's Intreo public employment service; and where appropriate, participating in supported employment, education or training programmes. Reduced rates are only applied of jobseekers do not engage with the State's employment services. In addition, prior to the application of the reduced rate, jobseekers will receive at least two notifications inviting them to engage or to offer a reasonable explanation for their inability to engage. The consequences of not engaging are clearly communicated to them and where they have valid reasons for any failure to engage, like illness or childcare considerations, for example, these will be considered. There will be a pro ratareduction for supplementary welfare allowance. In circumstances where a jobseeker's payment has been reduced for non-compliance, full payment rates are immediately restored once jobseekers re-engage with the support programmes on offer from my Department. The current reduced rates are in place since 2011 and weekly social welfare rates have increased significantly in the interim. In a time of full employment and a tight labour market, with many employers seeking additional staff, this is an appropriate change to make. Section 16 and Schedule 1 make provisions for increases in the rate of social insurance payments. I am very pleased that the Bill will facilitate a €12 per week increase in the maximum personal rate of PRSI-based benefits.

Similarly, section 17 and Schedule 2 provide for a €12 per week increase in social assistance payments, which are subject to a means test. It also provides for increases to qualified adults and other increases where relevant, for example, the living alone allowance.

Section 18 provides for an increase in the rate of domiciliary care allowance from €340 to €360 per month. The domiciliary care allowance is a payment in recognition of the additional burden involved in caring for children with a severe disability, it is not means-tested and it is paid monthly. This is the third year in a row that I have increased the rate of domiciliary care allowance. I am also proud of all the various improvements that I have delivered to support carers over my term in office. Supporting carers was a particular priority of mine on taking up office. I am sure Senators will agree that we have made significant strides in this regard. There is more work to do here but we have made a good start.

Finally, section 19 is the Short Title of the legislation.

As I said in my opening remarks, this is my fifth and final budget as Minister for Social Protection. At the outset of this Government, we were presented enormous challenge of responding to a global pandemic, and respond we did with a very significant set of supports for businesses, employees and those in receipt of social welfare. Following that, we were faced with the pressures of rising prices arising from Brexit and the war in Ukraine. We have responded with successive budgets to cushion vulnerable people in our society through increases in core social welfare rates, and also by way of some generous lump sums. I know that these payments were very much welcomed by those most in need.

I am very proud of what has been achieved in social protection, for example, long-term carer's pension contributions, pay-related benefit and auto-enrolment. All of this could not be done without the resilient staff of the Department of Social Protection. As I bow out of my role, I would like to thank the staff in the Department. I know that I speak for everybody here when I pay tribute to the wonderful service they provide, not just at departmental level but in every single office right across the country. In fairness to the staff, when a person rings up looking for benefits or to apply for something they will always give every possible option and they are very good at informing people that they can apply for other benefits. They do a wonderful job.

I also thank the House. Debates have always been constructive. I commend the Bill to the House and look forward to hearing the contributions of the Senators.

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