Written answers

Tuesday, 3 February 2009

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 130: To ask the Minister for Social and Family Affairs the efforts she has made to ensure that the restrictions introduced in the Social Welfare (Miscellaneous Provisions) Act 2008 to jobseeker benefit payments do not negatively impact on the eligibility of persons applying for the back to education scheme and community employment schemes. [3227/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The recent changes to the duration of the payment of jobseeker's benefit are necessary to control expenditure on the scheme by aligning the contribution conditions for these benefits more closely to the level and duration of the benefits being provided. The changes are designed to ensure a uniform, rationalised, approach across the short-term social insurance schemes.

The back to education scheme is designed to enable people in receipt of social welfare payments to pursue an approved full-time education course, subject to fulfilling the qualifying conditions. The underlying objective is to raise education and skill levels among the long-term unemployed, improve their skills and qualifications and, therefore, their prospects of returning to the work force. One of the conditions for the back to education allowance is that a person must be in receipt of a qualifying payment for a specified period immediately prior to commencing the relevant course.

For a person in receipt of jobseeker's benefit or jobseeker's allowance, the specified period is 6 months (156 days) for second level courses and 12 months (312 days) for third level courses. In order to support the activation of the unemployed, the specified waiting period for access to the third level option was reduced to nine months for participants in the National Employment Action Plan.

There is no waiting period for an unemployed person who is awarded statutory redundancy and who has established entitlement to a social welfare payment. A person with no jobseeker's allowance or other social welfare payment entitlement after the exhaustion of jobseeker's benefit may access the BTEA on the basis of credited contributions and qualify for the cost of education allowance only.

Community Employment (CE) is an active labour market programme designed to provide eligible long term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a fixed term basis. The current eligibility criteria set by the Department of Enterprise, Trade and Employment for entry onto the CE programme allows for the combination of periods on different social welfare payments provided they add up to at least 12 consecutive months (where applicable) and the person is currently in receipt of the payment at the time of application.

A person in receipt of jobseeker's benefit can normally apply for jobseeker's allowance when their contribution-based payment is exhausted and the combined periods will count for access to the schemes.

The operation of the schemes have been subject to review and modification over the years to ensure that they continue to assist those furthest from the labour market. The qualifying conditions will continue to be monitored in the context of the objectives of the schemes and the changing economic circumstances.

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 131: To ask the Minister for Social and Family Affairs the number of people who receive the half rate carer's allowance; if her attention has been drawn to the fact that many of those people would be legally entitled to hold onto their existing social welfare benefits and retain full employment if they did not opt to care for their loved ones; her views on whether this care is saving the country a lot of money in keeping the elderly and disabled out of full-time nursing home care; and if she will make a statement on the matter. [3331/09]

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 138: To ask the Minister for Social and Family Affairs the changes she will implement to the half-rate carer's allowance; and if she will make a statement on the matter. [3200/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 335: To ask the Minister for Social and Family Affairs if she will confirm that no reduction in payment of carer's allowances is anticipated in 2009 and that no change will take place in the qualification criteria which might restrict the level and scale of payments to carers or those in receipt of care; and if she will make a statement on the matter. [3529/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 131, 138 and 335 together.

Budget 2007 provided for new arrangements whereby people can receive a maximum payment equivalent to a half rate carers allowance while receiving another social welfare payment, other than jobseeker's benefit or allowance. These measures came into effect in September 2008 and there are currently just over 16,100 people in receipt of half-rate carer's allowance and another social welfare payment.

Eligibility for a carers payment, including half-rate carer's allowance is dependent on the person providing full time care and attention to a person who needs it. If a person ceases to provide such care and takes up full time employment they may be eligible to retain another social welfare payment, depending on the conditions of the scheme in question. For example, a person can engage in full time employment while in receipt of state pension (contributory). However, a person engaged in full time employment would be likely to have means in excess of the thresholds for a means tested payment, such as widow/er's (non-contributory) pension.

The introduction of the half-rate carer's allowance is only one of a number of improvements to payments to carers in recent years. Since 1997 weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit and the respite care grant have been introduced and extended. The means test for carer's allowance has been significantly eased over the years, most notably with regard to spouse's earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. These levels surpass the Towards 2016 commitment to ensure those on average industrial earnings continue to qualify for a full carer's allowance.

From June 2005, the annual respite care grant was extended to all carers who are providing full time care to a person who needs such care, regardless of their income. The rate of the respite care grant has also been increased to €1,700 per year in respect of each care recipient since June 2008.

In June 2006, the number of hours for which a person can engage in employment, self-employment, education or training and still be considered to be providing full time care for the purposes of carer's allowance, carer's benefit and the respite care grant was increased from 10 to 15 hours per week.

In Budget 2009, I increased the rate of carer's allowance for those aged 66 or over by €7 to €239 per week and for those aged under 66 by €6.50 to €220.50 per week. These increases took effect from January 2009. Recipients of carer's allowance are also eligible for household benefits and free travel and the respite care grant. It is estimated that combined expenditure on carer's allowance, carer's benefit and the respite care grant will be €643 million in 2009. I have no plans to change the conditions associated with half-rate carer's allowance.

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 132: To ask the Minister for Social and Family Affairs if she will review the rules applying to jobseeker's allowance in relation to the assessment of self-employed people to social assistance payments in view to the sudden drop in income affecting many self-employed people. [3206/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 136: To ask the Minister for Social and Family Affairs the steps she proposes to take to meet the needs of persons becoming unemployed with particular reference to easing the qualifying criteria for the initial payment and eligibility of those previously self-employed who meet the usual means test guidelines; and if she will make a statement on the matter. [3231/09]

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Question 150: To ask the Minister for Social and Family Affairs if she will review the rules applying to jobseeker's allowance in relation to the assessment of contract workers to social assistance payments in view of the sudden drop in income affecting many people engaged in contract work. [3207/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 132, 136 and 150 together.

The combined employee and employer social insurance contribution for general employees, paying class A PRSI, is 14.05%, excluding levies. Self-employed people, on the other hand, are only liable for PRSI at the Class S rate of 3%. These much lower contributions give coverage towards long-term benefits such as State and Widow's Pension but do not enable a person to qualify for short-term insurance payments such as Illness Benefit or Jobseeker's Benefit.

A system of separate arrangements for employed and self-employed workers within a social insurance context is common in other European social protection systems. Self-employed people can apply for the means-tested Jobseeker's Allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services.

Their means would be taken as any net profit that they will earn in the coming 12 months. While their income from the previous twelve months is used as an indication in estimating their likely future earnings, it is not simply assumed that the previous year's earnings will be received in the coming year. Instead, account is taken of the potential for significant upward or downward variations in income from one year to the next. For example, if a self-employed person lost a contract and was unlikely to find a substitute contract in the coming year, this would be factored into the assessment of future income. The implications of the present downturn in the economy would of course be taken into account.

If a self-employed person's situation changes after they have made an initial claim for Jobseeker's Allowance, they can apply to have their means reviewed in the light of their changed circumstances. In addition it is open to the individual if he or she is dissatisfied with the means assessed to appeal to the Social Welfare Appeals office.

I appreciate the difficulties currently being faced by many self-employed people. However, extending social insurance cover for short-term benefits to this group would have significant financial implications and would have to be considered within a budgetary context.

Consideration would also have to be given to an appropriate increase in the rate of the PRSI Class S contribution. In that context, the Government has no immediate plans to change the current arrangements.

Instead, we will continue to ensure that the mechanisms used for assessing means for the Jobseeker's Allowance are sufficiently adaptable to meet the challenges presented by the current economic situation.

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