Written answers
Thursday, 19 February 2015
Department of Social Protection
Social Welfare Benefits Data
Brendan Griffin (Kerry South, Fine Gael)
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52. To ask the Minister for Social Protection if she will provide a detailed breakdown of reductions in the rates and the discontinuation of social protection payments issued by her Department in each year since 2007; if she will provide details of the amounts of expenditure reduced each year, in respect of each heading; and if she will make a statement on the matter. [7490/15]
Joan Burton (Dublin West, Labour)
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The following tables detail the Department's Budget measures over the period 2009 to 2014 inclusive, including reductions in rates and discontinuation of payments. There were no rate reductions or discontinuation of social protection payments in Budgets 2007, 2008 or 2015.
Table 1: Savings Measures - Budget 2009 and Supplementary Budget 2009
| Summary description of adjustment | Effect of Measure 2009 €m | Effect of Measure 2010 €m | Full Year €m |
|---|---|---|---|
| 1. (a) Reduce Jobseeker's Benefit entitlement from 15 to 12 months for recipients with 260 or more contributions and (b) Reduce duration of Jobseeker's Benefit from 12 months to 9 months where a person has less than 260 contributions paid. | 53 | 86 | 86 |
| 2. Increase the current weekly earnings threshold for the payment of reduced rates of Illness Benefit, Jobseeker's Benefit and Health and Safety Benefit (known as graduated rates) from €150 to €300. | 8 | 10 | 10 |
| 3. Increase underlying number of paid contributions for entitlement to Jobseeker's Benefit, Illness Benefit and Health & Safety Benefit, from 52 to 104 and introduce a condition whereby 13 paid contributions are required in the relevant tax year (and certain other tax years) for eligibility for Jobseeker's Benefit and Health and Safety Benefit. | 11.7 | 23.1 | 23.1 |
| 4. Limit Illness Benefit to two years duration for new claimants. | 0 | 0 | 101 |
| 5. Halve entitlement to Child Benefit for 18 year olds; Abolish in 2010 and recycle some CB savings for offsetting measures on children to protect social welfare families. | 27.6 | 67.2 | 79 |
| 6. Discontinue provision for the Christmas Bonus. | 156 | 171 | 171 |
| 7. Introduce a reduced personal rate of payment of €100 per week for new Jobseeker's Allowance claimants aged 18 and 19 years and new Basic SWA claimants aged under 20 years. | 12 | 26 | 26 |
| 8. Rent/Mortgage Interest Supplement measures including:Increase minimum contribution for Rent and Mortgage Interest Supplement by €11 per week to €24 and Reduce maximum rent limits where appropriate by up to 10% for all new tenancies/renewals and reduce all existing Rent Supplements by 8%. | 69 | 97 | 97 |
| 9. Additional Control Savings | 82 | 125 | 125 |
| Total | 419 | 605 | 718 |
Table 2: Savings Measures - Budget 2010
| Summary description of adjustment | Saving 2010 €m | Full Year €m |
|---|---|---|
| 1. Child Income Support A reduction of €16 per month in both the Lower and Higher Child Benefit Rates, bringing the Lower Rate from €166 to €150 per month and the Higher Rate from €203 to €187 per month. | 221.10 | 221.10 |
| Less Compensatory measures: An increase of €3.80 per week in the rate of Qualified Child Increase, from €26 per week to €29.80. | -84.03 | -84.03 |
| An increase of €6 per week per child in all Family Income Supplement weekly earnings thresholds. | -14.54 | -14.54 |
| Child Income Support Total | 122.53 | 122.53 |
| 2. Weekly Rates of Payment Weekly Personal Rates of Payment – A reduction of €8.30 in the weekly personal rate of Jobseeker's Benefit and Allowance, Invalidity Pension (under 65 years), Widow/er's (Contributory) Pension (aged under 66 years), Widow/er's Non-Contributory Pension, Deserted Wife's Benefit (under 66 years) and Allowance, Illness Benefit, Incapacity Supplement, Health and Safety Benefit, Injury Benefit, Pre Retirement Allowance, Disability Allowance, Blind Pension, Farm Assist, One-Parent Family Payment, Supplementary Welfare Allowance, Back to Work Allowance and Back to Education Allowance. Lowest rate of €196 per week down from €204.30. Reduction of €8.20 per week in the rates of Death Benefit Pension (aged under 66) and Carer's Benefit. A reduction of €8.40 per week in Disablement Pension and a reduction of €8.50 per week in the rate of Carer's Allowance. A €7.50 (4.2%) reduction in the rate of Guardian's Payment (both Contributory and Non-Contributory). | 395.97 | 395.97 |
| Weekly Qualified Adult Rates of Payment – A reduction of €5.90 per week for Invalidity Pension qualified adults aged under 66, from €149.70 to €143.80 per week. A reduction of €5.50 per week for all other qualified adults of working age schemes. Proportionate reductions for all persons in receipt of reduced rates. | 29.50 | 29.50 |
| Reduction of €10 (3.6%) in the maximum rate of Maternity and Adoptive Benefit from €280 pw to €270 and a as well as an €4.50 reduction in the minimum rate, from €230.30 to €225.80 per week. Reduction in the minimum rate takes account of the increase in the QCI. | 11.10 | 11.10 |
| Weekly Rates of Payment Total | 436.57 | 436.57 |
| 3. Activation Measures Introduce a new rate of €100 per week for new recipients of Jobseeker's Allowance & Supplementary Welfare Allowance for persons aged 20 and 21 years of age. | 37.89 | 97.13 |
| Introduce a new rate of €150 per week for new recipients of Jobseeker's Allowance & Supplementary Welfare Allowance for persons aged 22 to 24 years of age, inclusive. | 15.70 | 58.90 |
| Introduce a lower rate of €150 for Jobseeker's Allowance/SWA for persons who do not avail of labour activation measures and training courses. | 40.00 | 40.00 |
| Activation Measures Total | 93.59 | 196.03 |
| 4. Rent Supplement - Savings from a review of maximum rent levels. | 20.00 | 20.00 |
| Rent Supplement Total | 20.00 | 20.00 |
| 5. Limit entitlements under the Treatment Benefit scheme in 2010 to the Medical and Surgical Appliances Scheme and the free examination elements of Dental and Optical Benefits. | 54.00 | 0.00 |
| Treatment Benefit Total | 54.00 | 0.00 |
| 6. Additional Control Savings. | 33.31 | 33.31 |
| Control Savings Total | 33.31 | 33.31 |
| 6. Agencies Reduction in grant to the Family Support Agency. | 2.00 | 2.00 |
| Reduction in grant to the Citizen's Information Board. | 0.33 | 0.33 |
| Agencies Total | 2.33 | 2.33 |
| Overall Total | 762 | 811 |
Table 3: Details of DSP Budget Package 2011
| Budget Measure | 2011 €m | 2012 €m | 2013 €m | 2014 €m |
|---|---|---|---|---|
| 1. €10 per month reduction on both lower and higher Child Benefit rates with an additional €10 per month reduction for 3rd child only. New rates of €140 (first and second child), €167 (third child only) and €177 (fourth and subsequent child). | 149.38 | 149.38 | 149.38 | 149.38 |
| 2. Weekly Rates of Payment – a reduction of €8 per week in most payments to people aged under 66 with proportionate reductions for qualified adults. However, the rate of Supplementary Welfare Allowance was reduced by €10 per week and the rate of Jobseeker's Allowance for those aged 22 to 24 years was reduced by €6 per week. The rate of Jobseeker's Allowance for those aged 18 to 21 years was maintained at €100 per week. | 384.51 | 384.51 | 384.51 | 384.51 |
| 3. The discontinuation of most elements of the Treatment Benefit scheme was extended over the period up to 2014. | 76.75 | 76.75 | 76.75 | 76.75 |
| 4. Efficiency savings in the energy and communications elements of the Household Benefits Package. | 30.00 | 30.00 | 30.00 | 30.00 |
| 5. Reform of the Rent Supplement scheme including €2 per week increase in the minimum contribution for all non SWA basic recipients - consequent on the extra €2 reduction in SWA. | 60.00 | 60.00 | 60.00 | 60.00 |
| 6. Activation Measures – enhanced activation. | 100.00 | 100.00 | 100.00 | 100.00 |
| 7. Other Measures – various other measures | 49.36 | 68.05 | 76.61 | 81.04 |
| 8. Savings from efficiencies in administration | 11.00 | 11.00 | 11.00 | 11.00 |
| 9. Savings on FÁS Employment Programmes. These savings are consequential on social welfare rates. | 12.00 | 12.00 | 12.00 | 12.00 |
| Overall Total | 873 | 892 | 900 | 905 |
| In addition, the Social Welfare and Pensions Act 2011 included the provision that the State Pension Transition would be closed to new entrants from the 1st January 2014. Savings at the time were estimated at €30m in 2014 and €60m in 2015 and a full year. | 30.00 |
Table 4: Details of DSP Budget Package 2012
| BUDGET 2012 Measures | 2012 €m | 2013 €m | 2014 €m | 2015 €m | Full Year |
|---|---|---|---|---|---|
| 1. Children & Families 1.1 Child Benefit: The grant of €635 paid at birth on all multiple births and further grants of €635 paid when the children are aged 4 and 12 was discontinued. | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 |
| 1.2 Child Benefit was maintained at €140 per month for the first two children. The rate for third and subsequent children was standardised at €140 per child per month from 2013. In 2012, the monthly rate for the third child is €148 and for the fourth and each subsequent child is €160. | 42.75 | 68.75 | 68.75 | 68.75 | 68.75 |
| 1.3 The age at which a child is eligible for the Back to School Clothing and Footwear Allowance increased from 2 to 4 years of age. | 9.3 | 9.3 | 9.3 | 9.3 | 9.3 |
| 1.4 The Back to School Clothing and Footwear Allowance was reduced from €305 to €250 (children over 12) and from €200 to €150 (children aged 4-11 years). | 17.0 | 17.0 | 17.0 | 17.0 | 17.0 |
| 1.5 The upper age limit of the youngest child for new claimants of the One-Parent Family Payment will be reduced to 7 years on a phased basis. | 0.3 | 2.0 | 5.8 | 11.9 | 29.9 |
| 1.6 Where a person claiming Invalidity Pension, Carer's Benefit, State Pension (Contributory or Transition) or Incapacity Supplement has a spouse or partner with income of over €400 a week, payment of the half-rate increase in respect of a qualified child was discontinued. | 0.4 | 3.1 | 4.9 | 5.5 | 8.0 |
| Children & Families Total | 71.65 | 102.05 | 107.65 | 114.35 | 134.85 |
| 2. Working Age Payments 2.1 Where a Jobseeker's Benefit recipient is working for part of a week, the payment entitlement is now based on a 5 day week rather than a 6 day week. | 5.9 | 11.6 | 11.6 | 11.6 | 11.6 |
| 2.2 Sunday working will be taken into account when calculating the amount of Jobseeker's Benefit or Jobseeker's Allowance to be paid, from 2013. | 0.0 | 16.0 | 16.0 | 16.0 | 16.0 |
| 2.3 New applicants for Disablement Benefit must have a disability classified at > 15% to qualify for the payment. | 2.6 | 5.0 | 5.0 | 5.0 | 5.0 |
| 2.4 Restrict access to Exceptional Needs Payments. | 8.5 | 8.5 | 8.5 | 8.5 | 8.5 |
| 2.5 New applicants for Carer's Allowance, who are not living with the person for whom they are providing care, are no longer entitled to the Household Benefits package. | 1.0 | 2.2 | 3.7 | 5.2 | 5.9 |
| 2.6 The employer rebate of statutory Redundancy payments was reduced from 60% to 15%. | 81.0 | 122.0 | 104.0 | 104.0 | 104.0 |
| 2.7 Fuel Allowance season was reduced from 32 to 26 weeks. | 51.0 | 51.0 | 51.0 | 51.0 | 51.0 |
| 2.8 Treatment Benefit - the frequency of the grant for hearing aids increased from 2 years to 4 years. Also, the maximum grant available for one hearing aid was reduced from €760 to €500 and for two, from €1,520 to €1,000. | 2.0 | 3.0 | 4.0 | 4.0 | 4.0 |
| 2.9 The training and materials grant for Community Employment participants reduced from €1,500 to €500 per participant per annum. | 28.05 | 28.05 | 28.05 | 28.05 | 28.05 |
| 2.10 The Cost of Education Allowance, the annual grant which accompanies the Back to Education Allowance, was reduce from €500 to €300. | 5.4 | 5.4 | 5.4 | 5.4 | 5.4 |
| 2.11 Discontinue payment of the training budget for participants of Jobs Initiative and reduce the materials allowance by 50%. | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
| 2.12 Farm Assist – the assessment of means from self-employment was raised from 70% to 85%. The deductions from income for children were halved to €127 per year for each of the first two dependent children and €190.50 per year for each subsequent child. | 5.15 | 5.15 | 5.15 | 5.15 | 5.15 |
| Working Age Payments Total | 193.1 | 260.4 | 244.9 | 246.4 | 247.1 |
| 3. Securing Sustainable Pensions 3.1 A lower pension is payable to new applicants of State Pension (from Sept 2012) who have a yearly average of less than 48 PRSI cons. | 0.50 | 2.80 | 5.50 | 8.20 | 25.0 |
| 3.2 Currently, late claims for certain contributory pensions can be backdated for more than 12 months provided the relevant qualifying conditions are fulfilled. The backdating period will be reduced to a max of 6 months. | 18.50 | 27.20 | 27.20 | 27.20 | 27.2 |
| 3.3 The total number of paid PRSI contributions needed to qualify for Widow(er)'s Contributory Pension and Surviving Civil Partner's Contributory Pension will increase from 156 to 260 contributions. | 0.00 | 0.50 | 5.11 | 10.16 | 20.28 |
| Securing Sustainable Pensions Total | 19.0 | 30.5 | 45.56 | 72.48 | 72.48 |
| 4. Concurrent Payments 4.1 Currently, a person who gets a Widow(er)'s Pension, Surviving Civil Partner's Pension or One Family Parent Payment may be entitled to half rate Jobseeker's Benefit, Illness Benefit or Incapacity Supplement. These half rate payments will cease for new applicants. | 12.0 | 22.6 | 22.6 | 22.6 | 22.6 |
| 4.2 New participants on Community Employment schemes will not be able to claim another social welfare payment at the same time. | 9.0 | 26.3 | 43.7 | 61.2 | 61.2 |
| 4.3 Payment of two qualified child increases where the person is on a Community Employment Scheme and One Parent Family Payment, Deserted Wife's Allowance/Benefit or Widow(er)'s Pensions will be discontinued for new and existing recipients. | 6.25 | 6.25 | 6.25 | 6.25 | 6.25 |
| Concurrent Payments Total | 27.25 | 55.15 | 72.55 | 90.05 | 90.05 |
| 5. Fraud & Control Measures | 41.0 | 41.0 | 41.0 | 41.0 | 41.0 |
| 6. Rent & Mortgage Interest Supplements 6.1 The minimum contribution by single tenants for Rent Supplement scheme increased by €6 to €30 per week. The minimum contribution payable by couples increased to €35 per week. Rent limits also reviewed. | 55.0 | 55.0 | 55.0 | 55.0 | 55.0 |
| 6.2 The minimum contribution for the purposes of the Mortgage Interest Supplement (MIS) scheme increased by €6 to €30 per week for a single person, and by €5 to €35 for couple. In addition, payment of MIS will be deferred for 12 months while the person engages with the Mortgage Arrears Resolution Process. | 22.5 | 22.5 | 22.5 | 22.5 | 22.5 |
| Rent & Mortgage Interest Supplements Total | 77.5 | 77.5 | 77.5 | 77.5 | 77.5 |
| 7. Means Testing 7.1 For new and existing claimants, income from employment as a home help funded by the HSE is now assessed in means tests for Social Assistance schemes. | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 |
| 7.2 The amount of earnings disregarded for the purposes of the OPFP means test reduced from €146.50 to €130 per week in 2012 for all recipients. Further reductions will be introduced over the following 4 years. | 14.2 | 32.0 | 50.0 | 63.0 | 76.1 |
| 7.3 Income from weekly carers payments is now included for the purposes of calculating entitlement to Family Income Supplement in line with other welfare payments. | 0.5 | 1.06 | 1.06 | 1.06 | 1.06 |
| 7.4 Transitional payment where One Parent Family Payment recipient's earnings exceed €425 per week was discontinued. Existing recipients not affected. | 0.8 | 1.03 | 1.03 | 1.03 | 1.03 |
| Means Testing Total | 20.5 | 39.09 | 57.09 | 70.09 | 83.19 |
| 8. Miscellaneous Savings 8.1 Savings will be achieved on the Electricity/Gas Allowance of the Household Benefits Package. | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 |
| 8.2 The Administration cost to the Dept. of medical certs for illness and disability related schemes reduced by 10%. | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 |
| Miscellaneous Savings Total | 18.0 | 18.0 | 18.0 | 18.0 | 18.0 |
| OVERALL TOTAL | 468 | 624 | 657 | 703 | 764 |
Table 5: Details of DSP Budget Package 2013
| BUDGET 2013 Measures | 2013 €m | 2014 €m | 2015 €m | Full Year €m |
|---|---|---|---|---|
| Expenditure Reduction Measures | ||||
| 1. Jobseeker's Benefit: The duration of Jobseeker's Benefit has been reduced from (a) 12 months to 9 months for recipients with 260 or more contributions paid and (b) 9 months to 6 months for recipients with less than 260 contributions paid. | 33.00 | 81.50 | 81.50 | 81.50 |
| 2. Farm Assist: The rate assessment of means from self-employment, including farming, was raised from 85% to 100%. The deductions from income for children are being discontinued (currently €127 per year for each of the first two dependent children and €190.50 per year for each subsequent child). | 3.75 | 5.00 | 5.00 | 5.00 |
| 3. Redundancy Payments Scheme: The employer rebate element (15%) of the statutory redundancy scheme has been discontinued. | 25.00 | 30.00 | 30.00 | 30.00 |
| 4. Supplementary Welfare Allowance: Reductions in expenditure on Exceptional Needs Payments. | 5.50 | 5.50 | 5.50 | 5.50 |
| 5. Back to Education Allowance: - The €300 Cost of Education Allowance payable to Back to Education Allowance participants has been discontinued for new and existing participants. | 7.80 | 7.80 | 7.80 | 7.80 |
| - The up-rating of the Back to Education Allowance payable rate where the person was on a reduced rate of a qualifying payment because of means has been discontinued for new participants. | 2.00 | 6.40 | 10.90 | 11.60 |
| - The up-rating of the Back to Education Allowance payable rate from €188 per week to €160 where the person was on a reduced age related rate of Jobseeker's Allowance (€100 or €144 per week) has been reduced for new participants. | 0.80 | 2.50 | 4.20 | 4.54 |
| 6. Respite Care Grant: The Respite Care Grant has been reduced by €325, from €1,700 to €1,375 for new and existing recipients. | 26.15 | 26.15 | 26.15 | 26.15 |
| 7. Child Benefit: The monthly rate of Child Benefit was reduced by €10 per child in respect of the first, second and third child. From January 2013, the monthly rate for each of the first three children was €130. The monthly rate will reduce by €10 per child, to €130, in respect of the fourth and each subsequent child from January 2014. | 136.00 | 142.47 | 142.47 | 142.47 |
| 8. Back to School Clothing and Footwear Allowance: The rates of BSCFA reduced by €50, from €150 to €100 (children aged 4 to 11), and €250 to €200 (children aged 12 to 17 or aged 18 to 22 in full time education). | 16.80 | 16.80 | 16.80 | 16.80 |
| 9. Household Benefits Package: Gas and Electricity Allowance - The value of the Electricity/Gas element of the Household Benefits package has been restructured based on the average best rate available for an unchanged 150 units per month from Airtricity, Bord Gáis and Electric Ireland. The Allowance no longer covers the PSO contribution and the differentiated rates of payment (urban/rural) will no longer apply. | 20.00 | 22.60 | 22.60 | 22.60 |
| - Telephone Allowance – the value of the Telephone Allowance element of the Household Benefits package was reduced for new and existing recipients. | 61.00 | 61.00 | 61.00 | 61.00 |
| Fraud Control and Overpayment Measures: Additional fraud, control and overpayment measures were introduced. | 60.00 | 60.00 | 60.00 | 60.00 |
| Administrative Savings: The cost to the Department of medical certificates for illness and disability related schemes has been reduced. This is an administrative saving in the Department. | 5.00 | 5.00 | 5.00 | 5.00 |
| Increased funding provision for activation programmes and school meal provision | -13 | -28 | -28 | -28 |
| Subtotal Expenditure Reduction Measures | 390 | 445 | 451 | 452 |
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