Written answers

Wednesday, 18 November 2009

Department of Social and Family Affairs

Social Welfare Code

9:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 246: To ask the Minister for Social and Family Affairs if she will put a system in place which makes allowances for the sporadic nature of income of visual artists so that they are not penalised for inconsistent PRSI contributions and are able to access State benefits such as old age pensions; and if she will make a statement on the matter. [42300/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Self-employed people including Artists are liable for PRSI at the Class S rate of 3%. Consequently, they are eligible for a narrower range of benefits than general employees who, together with their employers, pay a total social insurance contribution of 14.05%, excluding levies, under the full-rate PRSI Class A. PRSI Class S contributors are entitled to the following payments: the Widow's or Widower's (Contributory) Pension; the Guardian's Payment (Contributory); the State Pension (Contributory); Maternity Benefit; Adoptive Benefit, and the Bereavement Grant.

Self-employed workers who do not qualify for an insurance-based benefit may establish entitlement to assistance-based payments such as Jobseekers Allowance. They 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.

Similarly, any person who does not satisfy the social insurance contribution criteria for the State Pension (Contributory) may apply for the State Pension (Non-Contributory), award of which is, inter alia, subject to a means test. In addition, self-employed persons who are no longer covered by compulsory PRSI can opt to pay Voluntary Contributions if they meet the necessary requirements. Payment of Voluntary Contributions can help to maintain or improve an individual's contributory pension entitlement. Self-employed persons pay a special rate for Voluntary Contributions and the current amount payable is €253 per year.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 247: To ask the Minister for Social and Family Affairs if she will consider reducing the amount of time people have to be in receipt of social welfare benefits in order to qualify for the back to education scheme especially at third level in view of the current unemployment situation; and if she will make a statement on the matter. [42323/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Since its introduction, the underlying objective of the back to education allowance (BTEA) scheme has been to equip people on social welfare payments with qualifications that will enable them to obtain employment in the labour market. It is a second chance educational opportunities scheme for people on welfare payments who wish to participate in full time education and who would not otherwise be able to do so.

Improvements to the scheme were announced in the supplementary budget and came into effect from 1 May 2009. In order to qualify for participation, an applicant must now be in receipt of a relevant social welfare payment for 3 months if pursuing a second level course or 12 months if pursuing a third level course. The qualifying period for access to third level courses is reduced to 9 months for those who are participating in the National Employment Action Plan process or engaging with the Department's facilitator programme. People who are awarded statutory redundancy may access the scheme immediately, provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

In general, an applicant must be at least 21 years of age prior to commencing an approved course of study. However, lone parents and recipients of jobseekers' payments who are out of formal education for at least 2 years can qualify at 18 years of age. The requirement to be in receipt of a social welfare payment for a minimum period has always been a feature of the scheme. A waiting period is considered essential to confer entitlement to income support for an indefinite period and is considered necessary in the context of targeting scarce resources at those who need it most. The back to education allowance has an important role to play in enhancing the employability skills of jobseekers. The conditionality of the scheme will continue to be monitored in the context of the objectives of the scheme and changes in the economic climate.

Photo of George LeeGeorge Lee (Dublin South, Fine Gael)
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Question 248: To ask the Minister for Social and Family Affairs her plans to introduce a three-tier system of child benefit; and if she will make a statement on the matter. [42016/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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As the Deputy will be aware, the rates of Child Benefit have increased significantly since 2001, having trebled for the first two children and increased by over 185% for the third and subsequent children. Partly as a result of this, and partly as a result of an increase in the number of eligible children, overall expenditure on Child Benefit grew from just under €965 million in 2001 to nearly €2.5 billion in 2008.

If the Government does not take steps now to reduce overall public expenditure and restore stability to the public finances, we risk making the economic situation far worse for everyone, including welfare recipients, in the long term. Excessive borrowing and an unsustainable increase in the national debt will hamper our ability to fund social services, including welfare, in the future. We must find an appropriate balance between protecting the most vulnerable people in the short term and taking necessary action to avoid prolonging our country's current economic difficulties.

It is in this context, that the Government is considering how savings might be made in Child Benefit. We are considering a range of options, including but not limited to those set out in the reports of the Commission on Taxation and the Special Group on Public Service Numbers and Expenditure Programmes. The Government has not yet made a final decision on the future of Child Benefit. I can assure the Deputy that in considering this issue we are mindful of the needs of families that have come to rely on their Child Benefit income. Our final decision will be outlined on Budget day.

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