Written answers

Tuesday, 24 January 2017

Department of Social Protection

Social Welfare Schemes

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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318. To ask the Minister for Social Protection if he will carry out an evaluation of the various social welfare payments that had to be reduced during the period of recession due to lack of resources with a view to identifying the most sensitive wherein some restoration could take place while keeping in mind the need for prudent management; and if he will make a statement on the matter. [3229/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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In the preparation of this year’s Budget, I gave consideration to a number of approaches to improve the position of social welfare recipients generally and to make the social insurance system more comprehensive. As part of this consideration, I took account of the views of members of the Oireachtas and a wide range of welfare representative groups including those relating to the reversal of measures which had to be introduced in order to stabilize the country’s financial position.

The last Budget was a prudent budget within the resources available. It was a Budget which looked forward, not backwards. There were no giveaways. My aim was to make sure that everyone benefits from the recovery - employed, self-employed, retired people, people with disabilities, carers, those who cannot work, urban, rural, young and old.

More than 840,000 people will benefit from the first increase in weekly Social Welfare payments since 2009 and 650,000 from the €5 increase in the State pension. The Budget also set out to make work pay through reforms to the PRSI system, including a new deal for the self-employed and it includes a number of targeted measures to assist lone parents, farmers and school children.

In addition, I was able to pay a Christmas Bonus at an increased rate of 85%. The Bonus was one of the first items to be abolished at the start of the financial crisis and was now been restored on a progressive basis by the previous and current Governments. It should be noted that the Bonus paid last December cost close to €220 million.

In addition to providing cash increases to all those in receipt of weekly welfare payments, I was also anxious to begin reforming the social insurance system. Budget 2017 expands the new deal for up to 380,000 self-employed people who pay PRSI at the S class. This includes people like farmers, professionals, taxi drivers and tradesmen who will have new benefits extended to them from next year.

From March, Class S contributors will be able to avail of Treatment Benefit, which includes free eye and dental exams, and contributions towards the cost of hearings aids and contact lenses. In addition, and more significantly, self-employed contributors will be eligible for the Invalidity Pension. For the first time, this will give the self-employed access to the safety-net of State income supports if they have a serious illness or injury that prevents them from working without having to go through a means test. This will be available from December 2017.

These measures are all part of the Government’s policy of making work pay and encouraging self-employment and entrepreneurship.

There is also a package of measures supporting lone parents in the Budget, encouraging them into the workplace and into education, and helping to reduce their childcare costs. All lone parents on One-Parent Family Payment and Jobseeker’s Transition and Jobseekers Allowance will benefit from the €5 increase in the weekly rates of payment.

A new €500 annual Cost of Education Allowance will be made available to Back to Education Allowance participants with children from the next academic year in September. This will help parents, including lone parents, to return to education.

The income disregards for the One Parent Family Payment and Jobseeker’s Transition payment will rise by €20, from €90 to €110 per week, reversing in part previous reductions, to encourage one parent families to stay in, and return to, work. This will benefit lone parents earning more than €90 per week. For those earning €110 per week or more, it will increase the combined social welfare and earnings income by up to €15 per week.

The Single Affordable Childcare Scheme being provided by the Government will also significantly reduce the cost of childcare for lone parents and is a step change in state support for childcare in Ireland.

The Budget focus on children is on the provision of services rather than on income supports. Ireland already has the third highest child benefit in the western world. Where we fall down is on the cost of education and child care and access to services like health and speech and language therapy. So, this is where resources will be focused in future. This includes the Childcare package that I just mentioned, the extension of medical cards to all recipients of Domiciliary Care Allowance and measures in Education, like more teachers and SNAs and better and new school buildings.

For my Department, the main Budget provision for children is increased funding for school breakfasts. This includes extending the School Breakfast programme to the new DEIS schools from next year. Also, we are opening the free breakfast programme to non-DEIS schools. Up to 35,000 children in non-DEIS schools will benefit from free breakfasts. This is in recognition that the majority of disadvantaged children do not attend a DEIS school. School breakfasts have been shown to increase attendance and improve concentration.

There is also a special increase of an additional €10 in payment for guardians who take care of orphans, or those children who cannot be cared for by their parents.

As part of the Government’s commitment to rural Ireland, I announced the total reversal of cuts to Farm Assist, a programme which helps more than 8,000 farm families. At a time of falling farm incomes, it’s essential that we strengthen the safety net for farmers who are on the margin. And even for farmers who do not qualify for Farm Assist, they have the reassurance of a strong safety net should they need it. The introduction of additional income disregards for farmers with children further ensures that farm families will benefit.

I also introduced a number of other targeted improvements. Looking ahead, our priority is that everyone in Irish society can, and will, benefit under this Government from the economic recovery. This includes people who rely on welfare payments whether on a long or short term basis. While I will continue to have regard to the impact of the measures introduced during the crisis, the best approach in future Budgets is not necessarily reversing all of individual measures introduced in past years. This is the approach adopted by some in this House. My approach was to ensure that the level of income support for all was improved while at the same time enhancing the social protection system through a wide range of targeted improvements. I plan to continue this approach in future Budgets, as resources allow.

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