Seanad debates

Wednesday, 13 June 2018

Commencement Matters

Home Care Packages

10:30 am

Photo of Colm BurkeColm Burke (Fine Gael)
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I welcome the Minister of State to the House and thank her for dealing with this matter. The question I raise is in regard to homecare providers. A presentation was given recently to a meeting of the Joint Committee on Health that I chaired on 29 May last at which homecare providers advised that they are finding it difficult to recruit people because of full employment and the fact that people now have jobs and are working full time. There is a cohort of people who are prepared to provide homecare for three hours per day but the problem is that if they do so five days a week, they are precluded from claiming a social welfare allowance of any description. One proposal is that the calculation be based on the number of hours worked rather than the number of days. For example, a person working three hours a day, five days a week would amass a total of 15 hours. That is the proposal and amendment which people are now seeking.

We will need between 10,000 and 15,000 additional homecare providers in this country over the next few years. As the Minister of State is aware, the number of people aged over 65 will increase from its current level of 637,000 to more than 1 million over the next ten years. We want to keep more people out of hospitals and nursing homes and the only way to do that is through the provision of adequate homecare services. Such homecare services can be provided by people who are prepared to work part time. It is in that context that I set out my proposal that a person be permitted to work for three hours a day, five days a week without losing all of his or her social welfare allowance as he or she would under the current system whereas a person who works for two days a week is still able to get his or her social welfare allowance for three days a week. The Department should take that proposal on board in planning the social welfare requirements in the coming budget and it should be given very serious consideration at this stage.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank Senator Burke. The first part of my answer on behalf of the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, will deal with the Senator's question as tabled. I will also address the second part of his question, regarding the day-based system versus the hour-based system.

The main social welfare schemes for jobseekers are the jobseeker’s allowance and the jobseeker’s benefit schemes. Both schemes provide significant support such that individuals who are casually employed or working part-time can work up to three days a week and retain access to a reduced jobseeker’s payment. For instance, an individual can earn a little over €20,190 per year and retain a small jobseeker’s allowance payment, while the equivalent threshold for an individual with a qualified adult is almost €4,700 if they are both working.

In addition to the two jobseeker’s schemes, the Department’s main in-work support is the working family payment, formerly known as the family income supplement, which supports families who have children and where the parents are on low incomes and work at least 19 hours per week. The back to work family dividend scheme allows recipients of jobseeker’s allowance or jobseeker’s benefit who have been jobseekers for 12 months or recipients of the one-parent family payment to retain their full increase for qualified children for the first year in employment, tapering to 50% in the second year.

A long-term unemployed jobseeker who is offered employment of more than three days but less than 24 hours a week may be eligible for the part-time job incentive scheme. Under this scheme a jobseeker can receive a weekly payment of €124.40 per week if he or she is single or €204.50 if he or she has an adult dependant. The combination of schemes available provides considerable income support for individuals in part-time employment by allowing them to retain access to a social welfare payment.

Reflecting the impact of Government policy and the overall improvement in the labour market, long-term unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15% to 5.8% in May 2018.

As regards the second part of the Senator's question, it is recognised that a changing labour market has resulted in a move away from traditional work patterns. Any changes to the current criteria, however, such as moving to an hours-based system, could result in a significant additional number of individuals becoming eligible for a jobseeker's payment, with substantial corresponding cost implications for the Exchequer. In addition, if there were a change from the day-based system to an hours-based system, existing part-time workers would lose out if their current hours of work over three days exceeded the new hours threshold, thereby creating a disincentive to working more.

Other schemes to support families on low incomes include the working family payment and the back to work family dividend.The part-time job incentive scheme can provide assistance to long-term unemployed persons who can only part-time employment for fewer than 24 hours per week.

Photo of Colm BurkeColm Burke (Fine Gael)
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I thank the Minister of State. There are two sides to this issue. One is about providing home care, which is a major challenge we now face. Home care providers have told me they cannot get people to work because if they employ them for three hours a day for five days a week, they will get no allowance of any description. They have said that if it was an hours-based system, they could get a lot more people into their labour market. There is an actual net saving for the Department as well because instead of making social welfare payments for five days a week, it would only be paying for three days. It is a particular scheme the Department should look at based on people providing home care. It is to encourage people into that area where we have a shortage of workers and a growing demand for care.

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)
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I am sure the Minister of State will pass on the concerns of the Senator, who made a strong case, to the line Minister.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I will.

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)
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I thank the Minister of State.