Written answers

Tuesday, 5 July 2011

Department of Social Protection

Social Welfare Code

9:00 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 323: To ask the Minister for Social Protection if legislation will be required to implement the commitment in the programme for Government to amend the 30 hour rule for rent supplement and mortgage interest supplement for persons moving from welfare to work. [18287/11]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 327: To ask the Minister for Social Protection if legislation will be required to implement the commitment in the programme for Government to make changes to the rent supplement scheme. [18292/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 323 and 327 together.

As the Deputy is aware there are several commitments contained in the Programme for Government in relation to the rent supplement scheme including removing barriers to employment.

The most appropriate way for this to happen is for local authorities to take over responsibility for meeting the accommodation needs of these individuals. In this regard the Minister for the Environment, Community and Local Government and the Minister for Housing & Planning on the 16th June 2011 announced a new housing policy framework statement reflecting the content of the Programme for Government (Government for National Recovery 2011 – 2016) and setting out the principles to underpin the development of housing policy into the medium term. This policy framework statement contained an announcement in relation to the transfer of responsibility for providing for the housing needs of long term rent supplement recipients to housing authorities on a phased basis.

This transfer of tenants from rent supplement to the local authorities will help achieve a key Government commitment of removing barriers to employment and return rent supplement to its original intention of a short–term income support payment. Officials are currently considering what legislative changes, if any, will be needed to bring about this change.

Removing the 30 hour rule for the rent and mortgage interest supplement schemes would require a change to legislation.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 324: To ask the Minister for Social Protection if legislation will be required to implement the commitment in the programme for Government to activate persons on a reduced week who refuse extra days employment. [18288/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The programme for Government contains a commitment to examine the social protection system with a view to identifying and eliminating poverty traps including activating people on a reduced week who refuse extra day(s) employment.

A fundamental qualifying condition for both the jobseeker's benefit and jobseeker's allowance is that a person must be available for and genuinely seeking full-time work.

To satisfy this condition, it is necessary for the person to demonstrate that he or she has taken some positive action and is making genuine efforts to secure employment. If a person fails to satisfy this condition his/her claim will be disallowed. In addition, an unreasonable refusal to accept an offer of suitable employment may also lead to a disallowance.

A key objective of the Government is to offer a high level of appropriate employment support and prioritise the provision of more intensive support for those on the live register who are identified as being most at risk of long-term unemployment. This will be achieved through the use of proactive activation approaches and modern case management systems. As one pillar of this overall approach, reduced rates for failure to co-operate with the activation process were provided for in the Social Welfare Act 2010. Such measures will encourage jobseekers to improve their skills, in order to avoid the risk of becoming long-term unemployed, and help them to progress into sustainable employment on a long-term basis. The intent of the reduced rates, commenced in April, is to ensure compliance with the activation processes.

In accordance with the programme for Government I recently set up an Advisory Group on Tax and Social Welfare. The first meeting of the Group, which is chaired by Ita Mangan, Barrister, took place on 30 June. While the programme for Government proposes to establish a commission on taxation and social welfare, it was considered that the term 'advisory group' better reflects the purpose and working methods of the group than the term 'commission'. Given that the Advisory Group is not a statutory body; no legislation was required to establish it.

The main rationale for setting up the group is to harness expert opinion and experience to address a number of specific issues around the operation and interaction of the tax and social protection systems. The Group will also be tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes, and with identifying the specific practical institutional and administrative improvements to their operation. While the terms of reference include a number of specific issues, including social insurance cover for self-employed persons, the Group will initially prioritise the area of family and child income supports.

It is envisaged that the Group's work programme will be based, where possible, on producing modular reports on the priority areas identified above in line with a timetable agreed by myself, in consultation with the Ministers for Finance and Public Expenditure and Reform. Where possible, the aim is to provide recommendations that can be acted upon in time for the annual budget/estimates and legislative cycle and to allow the Government to best address its commitments under the EU/IMF Programme of Financial Support.

In early 2012, the Group will put forward a programme of rolling reviews in order to address the remaining priority items.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 325: To ask the Minister for Social Protection if legislation will be required to implement the commitment in the programme for Government to replace the one parent family payment with a parental allowance. [18289/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Any such change would require legislation. The proposal for ending the contingency of lone parenthood and introducing a parental allowance to replace the OFP was contained in the Government Discussion Paper, "Proposals for Supporting Lone Parents", which was published in 2006. It was envisaged that this allowance would be made to all parents (living alone or with a partner) with young children on a low income. It was proposed that payments would be individualised, with no limitation – therefore, the family would receive two full payments where the household means test was met. This would reduce but not eliminate the disincentive to forming relationships or declaring same. The recommendation to replace the OFP with a parental allowance has not been implemented due, in part, to the current economic climate. Such a move would have involved significant costs as the rate of payment for a couple would have been equivalent to two single rates of payment.

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