Written answers
Tuesday, 2 February 2016
Department of Social Protection
Departmental Expenditure
Willie O'Dea (Limerick City, Fianna Fail)
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147. To ask the Tánaiste and Minister for Social Protection the savings made to all schemes under the auspices of her Department as a result of reductions in rates or services since she took office, in tabular form; and if she will make a statement on the matter. [4392/16]
Joan Burton (Dublin West, Labour)
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When this Government came into office in 2011, we set out to regain control of our public finances and make economic recovery a reality.We have achieved that, and recovery is now solidly under way. Unemployment has fallen from a crisis peak of 15.1% to 8.6% in January 2016, and the number of people in employment has increased by over 140,000. As a result of healthy, sustainable, economic growth, we were able to introduce a range of welfare improvements in Budgets 2015 and 2016, far sooner than most economists had imagined was possible.
Since coming into office, our priority has been to protect the core rates of weekly welfare payments. However, savings measures were introduced in Budgets 2012 to 2014, inclusive, (see Tables 1 to 3 below) and were required in order to ensure that we would be able to provide for a sustainable welfare system in the years ahead. It should be noted that the cost of reversing the various measures could be higher or lower than the estimates prepared at the time, having regard to trends in recipient numbers, demographic pressures and the positive developments in the labour market and the wider economy.
The recovery has enabled us to introduce a range of welfare improvements over the last two Budgets (see Tables 4 and 5 below). In addition, I was able to restore a Christmas Bonus payment (abolished by the previous Government in 2009) of 25% in 2014 and to increase it to 75% in 2015.
Table 1: 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 2: 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 |
Table 3: Details of DSP Budget Package 2014
| BUDGET 2014 Measures | 2014 €m | 2015 €m | 2016 €m | 2017 €m | Full Year €m |
|---|---|---|---|---|---|
| 1. Bereavement Grant Discontinue payment of the €850 Bereavement Grant in respect of deaths on or after 1 Jan 2014. | 17 | 22 | 22 | 22 | 22 |
| 2. Jobseeker's Allowance and SWA Apply the reduced €100 rate of Jobseeker's Allowance and SWA (currently applicable to 18 to 21 year olds) to persons without children who reach the age of 22 from Jan 2014 and to new claimants aged 23 and 24 also from Jan 2014. AND Apply the reduced €144 rate of Jobseeker's Allowance and SWA (currently applicable to 22 to 24 year olds) to persons without children who reach the age of 25 from Jan 2014. BTEA maximum rate for 25 year olds to be reduced to €160 per week for relevant new entrants. The lower rates of JA will apply to persons aged 25 and under who have exhausted their entitlement to JB. | 32 | 52 | 64 | 72 | 72 |
| 3. Activation Activation Savings. | 10 | 10 | 10 | 10 | 10 |
| 4. Maternity & Adoptive Benefit Standardise the minimum and maximum rates of Maternity & Adoptive Benefit at €230 per week (this means an increase of up to €12.20 for those receiving the less than €230 per week and a reduction of up to €32 per week for all other claimants). Applies to new claimants only from Jan 2014. Existing claimants will not be affected. | 30 | 36 | 36 | 36 | 36 |
| 5. Exceptional Needs Payments Reduce the expenditure on the exceptional needs payment scheme by €2.1m in 2014 and in each subsequent year by a general review of payments under the scheme to ensure consistency with regard to payment levels on a national basis. | 2.1 | 2.1 | 2.1 | 2.1 | 2.1 |
| 6. Diet Supplement Discontinue the Diet Supplement Scheme for new recipients from 1 January 2014. Existing recipients are unaffected. | 0.4 | 1 | 1.3 | 1.7 | 3.2 |
| 7. Employment Supports Efficiencies in employment supports schemes. | 12 | 12 | 12 | 12 | 12 |
| 8. Recovery of Social Welfare Payments Provide that welfare benefits paid by the department to individual, arising from an accident or injury are repaid to the department (by insurers) in those cases where the insured person has also been compensated for the same via a settlement. | 21 | 22 | 22 | 22 | 22 |
| 9. Illness Benefits Increase the number of waiting days for entitlement to Illness Benefit from 3 days to 6 days, from Jan 2014. | 22 | 22 | 22 | 22 | 22 |
| 10. Invalidity Pension In line with the abolition of the State Pension Transition from Jan 2014, discontinue the personal weekly rate of €230.30 payable to Invalidity Pensioners at age 65 and align with the personal weekly rate of €193.50 currently payable to Invalidity Pensioners aged under 65. This measure to apply to persons reaching their 65th birthday from Jan 2014. AND Discontinue the qualified adult weekly rate of €206.30 payable to qualified adults who are aged 66 or over of Invalidity Pensioners and align with the qualified adult weekly rate of €138.10 currently payable to qualified adults who are aged under 66 of Invalidity Pensioners. This measure to apply to qualified adults reaching their 66th birthday from Jan 2014. | 5 | 9 | 9 | 9 | 10 |
| 11. Back to School Clothing and Footwear Allowance The abolition of payment of the Back to School Clothing and Footwear Allowance (BSCFA) for children over the age of 18 years, other than those attending secondary school, for 2014 and subsequent years. | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
| 12. Rent & Mortgage Interest Supplement Increase the minimum contribution for couples by €5 from €35 to €40 further aligning Rent Supplement contributions with the Local Authority rents structure, for new and existing recipients. This also applies to Mortgage Interest Supplement, from Jan 2014. | 6 | 7.1 | 7.1 | 7.1 | 7.1 |
| 13. Mortgage Interest Supplement Discontinue the Mortgage Interest Supplement scheme for new applicants and allow a winding down of the current MIS recipient base over a four year period, from Jan 2014. | 12 | 16 | 20 | 24 | 30 |
| 14. Household Benefits - Telephone Allowance Discontinue the Telephone Allowance for all recipients, from Jan 2014. The current value of the Allowance is €9.50 per month. | 44 | 46.7 | 46.9 | 47.1 | 47.1 |
| 15. Household Benefits - Free TV Licence Reduce the annual payment to RTÉ for the Free TV Licence from €59.17 million to €54.17 million. | 5 | 5 | 5 | 5 | 5 |
| 16. Fraud and Control Additional Fraud and Control Measures. | 30 | 30 | 30 | 30 | 30 |
| 17. Administrative Savings Additional administrative savings. | 5 | 5 | 5 | 5 | 5 |
| 18. ELS Technical Adjustment ELS Technical Adjustment | 34 | 34 | 34 | 34 | 34 |
| BUDGET 2014 NET EXPENDITURE REDUCTION | 290 | 334.4 | 350.9 | 363.50 | 372 |
Table 4: Details of DSP Budget Package 2015
| BUDGET 2015 Measures | Cost 2015 €m | Cost 2016 €m | Cost 2017 €m | Cost - Full Year €m |
|---|---|---|---|---|
| 1. Back to Work Family Dividend Scheme The Back to Work Family Dividend Scheme was introduced. | 22 | 46 | 42 | - |
| 2. JobsPlus The number of employees supported by the JobsPlus scheme increased from 3,000 to 6,000. | 12 | 13.50 | 13.50 | 13.50 |
| 3. JobPath Funding provided for the introduction of new employment services (JobPath). | 12 | - | - | - |
| 4. Child Benefit The rate of Child Benefit was increased by €5, from €130 to €135 per month. | 72 | 72 | 72 | 72 |
| 5. School Meals Programme The funding for the School Meals Programme increased by €2 million. | 2 | 2 | 2 | 2 |
| 6. Living Alone Allowance The Living Alone Allowance was increased by €1.30, from €7.70 to €9.00 per week. | 12 | 12 | 12 | 12 |
| OVERALL TOTAL | 132 | 145.5 | 141.5 | 99.5 |
Table 5:Details of DSP Budget Package 2016
| Cost | ||
|---|---|---|
| Budget Measure | 2016 €m | Full Year €m |
| 1. Weekly Personal and Qualified Adult Rates of Payment Increase the weekly rate of all pension payments (for those aged 66 and over) by €3 per week with proportionate increases for qualified adults. | 93.00 | 93.00 |
| 2. Paternity Benefit Introduce a new 2 week Paternity Benefit Scheme. [September 2016] | 5.00 | 20.00 |
| 3. Child Benefit Increase the rate of Child Benefit by €5, from €135 to €140 per month per child. | 72.00 | 72.00 |
| 4. Family Income Supplement Increase all FIS income thresholds by €5 per week for families with one child, €10 per week for families with two or more children. | 18.00 | 18.00 |
| 5. School Meals Programme Increase funding for the School Meals Programme by €3 million. | 3.00 | 3.00 |
| 6. Respite Care Grant Increase the rate of Respite Care Grant by €325, from €1,375 to €1,700. | 30.00 | 30.00 |
| 7. Carer's Allowance Extend Carer's Allowance by 6 weeks, from 6 weeks to 12 weeks, where care recipient dies. | 1.00 | 1.00 |
| 8. Fuel Allowance Increase the rate of Fuel Allowance by €2.50 per week, from €20 to €22.50 per week for the duration of the fuel season (26 weeks). | 25.00 | 25.00 |
| 9. Free Travel €3 million in additional funding to allow for new routes, higher passenger numbers and increases in fares. | 3.00 | 3.00 |
| 10. Jobseeker's Transitional Payment Increase the JST income disregard from €60 to €90 per week and reduce taper from 60% to 50%. | 8.00 | 8.00 |
| 11. Top-up payments for Community Employment, Tús, Rural Social Scheme, Gateway, JobBridge and Job Initiative Increase the top-up payments for CE, Tús, RSS, Gateway, JobBridge and Job Initiative by €2.50 per week. | 5.60 | 5.60 |
| Overall Total | 263.60 | 278.60 |
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