Written answers

Thursday, 21 September 2017

Department of Employment Affairs and Social Protection

Social Welfare Benefits Data

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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220. To ask the Minister for Employment Affairs and Social Protection the estimated cost in 2018 and full year cost of increasing the qualified child payment from €29.80 by €3.20 to €33 and €5.20 to €35 and knock on effects on other payment schemes; the estimated cost for similar increases to the back to work family dividend; and if she will make a statement on the matter. [40030/17]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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221. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the living alone allowance by €5 per week from €9 to €14, by €6 per week, and by €11 per week, in 2018; the full year cost of same; and if she will make a statement on the matter. [40031/17]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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224. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the jobseeker's allowance rates for those under 26 years of age to the full adult rate in 2018; the full year cost of same; the estimated cost of increasing it to €147.80 for all those from 18 to 24 years of age; and if she will make a statement on the matter. [40034/17]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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229. To ask the Minister for Employment Affairs and Social Protection the estimated cost for 2018 of indexing all weekly payments in line with increases to HICP and CPI; the estimated cost of an across the board €5 increase by each scheme; and if she will make a statement on the matter. [40039/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 220, 221, 224 and 229 together.

The cost of increasing the qualified child increase by €3.20, from €29.80 to €33 per week, is estimated at €62.4 million in 2018 and a full year. This includes the costs associated with the Back to Work Family Dividend (€2.3 million), the weekly rate of which is based on the rate of the qualified child increase.

The full year cost of increasing the qualified child increase by €5.20, from €29.80 to €35 per week, is estimated at €101.4 million in 2018. This includes the costs associated with the Back to Work Family Dividend (€3.7 million).

The cost of increasing the Living Alone Allowance, from €9 per week, by €5 per week, by €6 per week and by €11 per week is estimated at €52.2 million, €62.6 million and €114.8 million respectively in 2018 and a full year.

The full year cost of increasing the age-related reduced rates of Jobseeker’s Allowance, from €102.70 per week (for 18 to 24 year olds) and €147.80 per week (for 25 year olds) to €193 per week is €108.9 million in 2018 and a full year. The full year cost of increasing the age-related reduced rate of Jobseeker’s Allowance from €102.70 per week (for 18 to 24 year olds) to €147.80 per week is €50.1 million in 2018 and a full year. These costs include bringing the qualified adult rate for those on the €102.70 rate up to the maximum of €128.20 per week, and increasing the equivalent age-related reduced rates for Supplementary Welfare Allowance.

The Department of Finance’s Summer Economic Statementprovides a 2018 forecast for HICP of 1.2%. Increasing all weekly payments (as listed below) by 1.2% would cost €177 million in 2018 and a full year. The Central Bank’s most recent Quarterly Bulletin(Q3, 2017) forecasts CPI in 2018 at 1.3%. Increasing all weekly payments by 1.3% would cost €193 million in 2018 and a full year.

The cost of a €5 increase in the weekly rates of payment across all schemes would cost €350 million in 2018 and a full year. The breakdown of cost by scheme is detailed in the following table. The costs include proportional increases for qualified adults and for those on reduced rates of payment.

Weekly paymentsCost of €5 increase

(€m)
State Pension (Contributory)103.2
Widow/er's or Surviving Civil Partner's (Con) Pension28.7
Deserted Wife's Benefit2.2
Invalidity Pension17.1
Guardian's Payment (Contributory)0.3
Death Benefit Pension0.2
Disablement Pension1.2
Illness Benefit14.5
Injury Benefit0.4
Incapacity Supplement0.3
Jobseeker's Benefit8.4
Carer's Benefit0.7
Health and Safety Benefit0.0
Maternity & Adoptive Benefit 5.2
Paternity Benefit 0.2
State Pension (Non Con)25.2
Blind Person's Pension0.3
Widow/ers or Surviving Civil Partner's (Non-Con) Pension0.4
Deserted Wife's Allowance 0.0
One-Parent Family Payment10.1
Carer's Allowance15.9
Guardian's Payment (Non-Contributory)0.1
Jobseeker's Allowance 55.5
Pre-Retirement Allowance0.0
Disability Allowance37.7
Farm Assist2.4
Employment Support Schemes (BTWEA & BTEA)5.3
Employment/Internship Schemes (CE, Tús, RSS etc.)10.4
Supplementary Welfare Allowance4.7
TOTAL350.0

It should be noted that all of these costings are subject to change over the coming weeks in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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222. To ask the Minister for Employment Affairs and Social Protection the estimated cost of increasing the family income supplement thresholds by €5, €10, €15 and €20 respectively in 2018; the full year cost of same; and if she will make a statement on the matter. [40032/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The Family Income Supplement (FIS) is an in-work support, which provides an income top-up for employees on low earnings with children. FIS is designed to prevent in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment. There are currently nearly 57,000 families with more than 126,000 children in receipt of FIS. The estimated spend on FIS this year is approximately €422 million.

To qualify for FIS, a person must be engaged in full-time insurable employment which is expected to last for at least 3 months and be working for a minimum of 38 hours per fortnight or 19 hours per week. A couple may combine their hours of employment to meet the qualification criteria. The applicant must also have at least one qualified child who normally resides with them or is supported by them. Furthermore, the average family income must be below a specified amount, which varies according to the number of qualified children in the family.

The estimated cost of increasing the family income supplement thresholds by €5, €10, €15 and €20 respectively in 2018; and the full year cost of same is as follows:-

IncreaseEstimated Additional AmountTotal Estimated Cost
€5€8.7m€404m
€10€17.4m€413m
€15€26.2m€423m
€20€34.9m€430m

Budget 2016 increased the income thresholds of €5 for families with one child and €10 for families with two or more children. Any changes to the FIS income thresholds would have significant cost implications and would have to be considered in an overall budgetary context.

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