Róisín Shortall (Dublin North West, Labour)
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Question 131: To ask the Minister for Social and Family Affairs her estimate of the saving in a full year in respect of her proposal to reduce the rate of child benefit in respect of 18 year olds in 2009 and to abolish the payment in respect of 18 year olds in 2011; and her estimate of the number of families affected by this measure in 2009, 2010 and 2011. [43175/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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As announced in the Budget, the Government has decided that from now on child benefit will no longer be paid in respect of those who are 18 years old. At that stage, they are effectively treated as adults in most respects. This change will be phased in gradually. A half payment will be made in respect of existing and future qualifying children from January 2009 and from January 2010 the payment will cease from the 18 birthday. Special transitional alleviating measures are being introduced for young people in social welfare dependent and low income families.

The net savings from this change to child benefit entitlements is expected to be €27.6 million in 2009, €67.2 million in 2010 and €79 million per annum from 2011 onwards. It is estimated that the savings arising from the halving of the rate of child benefit from the 18th birthday will be €39.4 million in 2009 and will affect payment in respect of 39,600 children. This will be offset by compensatory payments for families on social welfare payments costing €11.8 million which will benefit 13,000 children approximately in 2009 and 2010. It is estimated that savings of €79 million will arise in 2010 from the removal of the entitlement to child benefit from the 18 birthday and that around 39,600 children will be affected.

Róisín Shortall (Dublin North West, Labour)
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Question 132: To ask the Minister for Social and Family Affairs her estimate of the saving in a full year in respect of her various proposals to increase the minimum contributions criteria for illness benefit, jobseekers benefit and health and safety benefit respectively; and her estimate of the number of persons in respect of each benefit in a full year who will not qualify as a result of this proposal. [43177/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Social insurance is intended both to enable people to insure themselves against adverse life events such as illness or unemployment and to provide for their state pensions and other benefits, through contributions to the national Social Insurance Fund. Social insurance benefits are not means-tested. Instead, entitlement depends on having paid the required number of PRSI contributions relevant to the particular benefit you wish to claim.

For the past eleven years, the Social Insurance Fund has been in surplus, with more than sufficient income to the fund to cover the payments being made from it each year, without the State having to provide a subsidy. However, that is changing. As a result of further increases in the live register, expenditure is expected to exceed income to the Fund by over €200 million this year and about €900 million next year. Although these current deficits can be met from the accumulated surplus, it looks likely that the Exchequer may yet again have to subsidise expenditure from the Social Insurance Fund within a few years. In that context, it is appropriate to look at some of the instances where people with a very limited or distant contribution record have been able to qualify for very significant benefits, regardless of their household income.

Two sets of proposals were introduced in the Budget in relation to the minimum contributions required for entitlement to certain social insurance benefits. The number of paid contributions required for underlying entitlement to illness benefit, jobseeker's benefit and health and safety benefit was increased from 52 to 104 paid contributions over a person's working life. At present people can qualify for such benefits after only one year's work. In addition, a claimant for jobseeker's benefit or health and safety benefit will now be required to have paid 13 contributions in the relevant tax year. This condition, which already applies in the case of illness benefit, will ensure a uniform rationalised approach across all short-term social insurance schemes.

It is estimated that the net full year savings arising from these measures will be €5 million in the case of illness benefit and €18.1 million in the case of jobseeker's benefit. It is estimated that the weekly average number of recipients affected in a full year will be 920 in the case of illness benefit and 4,500 in the case of jobseeker's benefit. Such persons will be able to claim supplementary welfare allowance instead of illness benefit and jobseeker's allowance instead of jobseeker's benefit if they have limited means.

A very small number of people are in receipt of health and safety benefit at any one time. As a result, the estimated weekly savings arising from the changes in the contribution requirements and the numbers of people affected are minimal.

Róisín Shortall (Dublin North West, Labour)
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Question 133: To ask the Minister for Social and Family Affairs her estimate of the saving in a full year in respect of her proposal to limit the duration of illness benefit; and her estimate of the number of persons in a full year who will not qualify as a result of this proposal. [43178/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Illness Benefit was intended to provide income replacement for insured persons during short spells of incapacity or illness, while other payments are available to people who can't work long-term because of a disability or a medical condition. However, there is currently no limit on the amount of time for which Illness Benefit can be paid to people who have more than 260 social insurance contributions. As a recently published OECD review notes, this is very unusual because there is a great risk that people in such circumstances will never return to the labour market. Accordingly, the Government has decided to confine entitlement to Illness Benefit to two years (or 624 days) duration for claims arising after the 5th January 2009. Persons currently in receipt of Illness Benefit will not be affected by the change.

It is estimated that net savings of €101 million will arise from the measure in a full year. Around 28,500 persons would be affected by the measure in a full year, but approximately two thirds of these would be entitled to another social welfare payment instead of illness benefit. As the measure is only applying to new applicants from January 2008, it will take a number of years before the full year impact is realized.

Róisín Shortall (Dublin North West, Labour)
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Question 134: To ask the Minister for Social and Family Affairs her estimate of the saving in a full year in respect of her proposal to increase the reckonable salary ceiling to €300 per week in order to qualify for the maximum rate of jobseekers benefit; and her estimate of the number of persons in a full year who will not qualify for the maximum rate of jobseekers benefit as a result of this proposal. [43179/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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At present some people who were previously working part-time can receive a higher rate of payment from jobseekers benefit than what they were actually earning whilst at work. This is because the graduated rating structure which applies in such cases has not been revised since 2003. This situation is inappropriate and a disincentive to employment and so, from next January, the situation will be addressed by increasing the earnings thresholds which currently apply to the reduced or graduated rates of payment from €150 to €300 per week. It is estimated that net savings of €3.4 million will arise from the measure in a full year and that a weekly average of around 3,300 recipients will be affected.