Written answers
Wednesday, 23 June 2021
Department of Employment Affairs and Social Protection
Social Welfare Schemes
Claire Kerrane (Roscommon-Galway, Sinn Fein)
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173. To ask the Minister for Employment Affairs and Social Protection the estimated full-year cost of increasing each weekly social welfare scheme by €1 per week in tabular form. [33663/21]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The estimated cost of increasing each weekly social welfare payment by €1 is shown in the table below.
| Payment | Personal €m | Qualified Adult €m | Total €m |
|---|---|---|---|
| Social Insurance Schemes | |||
| State Pension (Contributory) | € 22.0 | € 3.0 | € 25.0 |
| Widow/er's or Surviving Civil Partner's (Con) Pension | € 6.2 | € 6.2 | |
| Deserted Wife's Benefit | € 0.3 | € 0.3 | |
| Invalidity Pension | € 3.1 | € 0.2 | € 3.3 |
| Partial Capacity Benefit | € 0.1 | € 0.0 | € 0.1 |
| Guardian's Payment (Contributory) | € 0.1 | € 0.1 | |
| Disablement Pension | € 0.2 | € 0.2 | |
| Illness Benefit | € 2.5 | € 0.1 | € 2.6 |
| Jobseeker's Benefit | € 6.6 | € 0.4 | € 7.0 |
| Jobseeker's Benefit (Self Employed) | € 0.2 | € 0.0 | € 0.2 |
| Carer's Benefit | € 0.2 | € 0.2 | |
| Maternity & Adoptive Benefit | € 1.0 | € 1.0 | |
| Paternity & Parent's Benefit | € 0.1 | € 0.1 | |
| Social Assistance Schemes | |||
| State Pension (Non Con) | € 5.0 | € 0.1 | € 5.1 |
| Blind Person's Pension | € 0.1 | € 0.0 | € 0.1 |
| Widow/ers or Surviving Civil Partner's (Non-Con) Pension | € 0.1 | € 0.1 | |
| One-Parent Family Payment | € 2.1 | € 2.1 | |
| Carer's Allowance | € 2.6 | € 2.6 | |
| Half Rate Carer's Allowance | € 1.1 | € 1.1 | |
| Jobseeker's Allowance Max Rate | € 6.4 | € 1.1 | € 7.5 |
| JA age 18 to 24 | € 0.7 | € 0.0 | € 0.7 |
| Disability Allowance | € 8.0 | € 0.6 | € 8.6 |
| Farm Assist | € 0.3 | € 0.1 | € 0.4 |
| Employment Support Schemes (BTWA & BTEA) | € 0.7 | € 0.1 | € 0.8 |
| Employment/Internship Schemes (CE, Tús, RSS etc.) | € 1.7 | € 0.3 | € 2.0 |
| Supplementary Welfare Allowance | € 0.7 | € 0.1 | € 0.8 |
| TOTAL* | € 72.1 | € 6.1 | € 78.2 |
*Rounding may affect totals.
The costs shown above are based on the estimated number of recipients in 2021. This costing is subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.
Claire Kerrane (Roscommon-Galway, Sinn Fein)
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174. To ask the Minister for Employment Affairs and Social Protection the estimated full-year cost of reintroducing the State pension transition scheme for 65 year olds. [33664/21]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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When the State Pension (Transition) existed, it was a scheme which allowed those who were retired to get a transitionary payment between the ages of 65 and 66 years. The maximum personal rate was equivalent to the then maximum rate for the State Pension (Contributory). Eligibility was based on PRSI contributions and credits.
It is important to note that the conditions and eligibility requirements for State Pension (Transition) were different to those for the State Pension (Contributory). For example, a person had to have a minimum average of 24 contributions per annum to be eligible for the previous model of State Pension (Transition) whereas an average of 10 contributions per annum is required for State Pension (Contributory) eligibility. In addition, recipients of the previous model of State Pension (Transition) were not eligible for Free Travel, the Household Benefits Package (electricity, gas, TV licence) or Living Alone Allowance.
My Department’s best current estimate for the gross cost of reintroducing State Pension (Transition), on the same basis as it previously operated, is €293 million for a full year. It is expected that these costs would be offset by savings of some €166 million on Working Age Schemes, arising from recipients transferring from these schemes to State Pension (Transition), giving a net cost of €127 million each year. These figures are based on current payment rates and are likely to increase over time in line with demographic changes.
In February of this year, I introduced the new Benefit Payment for 65 year olds in line with the Programme for Government commitment, to provide a benefit payment for people who are aged 65 and who are required to retire, or who chose to retire, without a requirement to sign on, engage in activation measures or be available for and genuinely seeking work. This new payment is designed specifically to bridge the gap for people who retire from employment or self employment at 65 but who do not qualify for the State Pension until age 66..
I trust this clarifies the matter for the Deputy.
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