Written answers

Tuesday, 23 May 2023

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

86. To ask the Minister for Employment Affairs and Social Protection if she will consider a review of the child benefit scheme, including students still in full-time second level education after reaching their 18th birthday; and if she will make a statement on the matter. [24640/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Child Benefit is a universal monthly payment made to families with children up to the age of 16 years. The payment continues to be paid in respect of children until their eighteenth birthday who are in full-time education, or who have a disability. Estimated expenditure on the scheme will be approximately €2.1 billion in 2023.

There are currently no plans to extend Child Benefit in respect of full-time students who are over 18 years of age and in full time education. Such an extension would have significant cost implications and would have to be considered in an overall budgetary context.

Families on low incomes may be able to avail of a number of targeted social welfare schemes that support children in full-time education until the age of 22, including the Increase for a Qualified Child with primary social welfare payments.

I introduced a number of Budget measures specifically for families with children, such as the double Child Benefit payment and the €500 lump sum payment to recipients of the Working Family payment. In addition, low-income families benefited from the €12 increase in the weekly personal rate for recipients of working age payments.

A further €470 million package of measures to assist social welfare recipients was announced in February. These measures include a €200 lump sum which was paid in April to all long-term social welfare recipients, including families in receipt of Working Family Payment.

Next month the lump sum Child Benefit payment of €100 per child will be paid, and in July there will be a one-off increase of €100 in the Back to School Clothing and Footwear allowance.

There is also financial support available for students through the Student Grant Scheme operated by the Student Universal Support Ireland. Under this scheme eligible students can achieve financial support through fee grants or maintenance grants.

I trust this clarifies matters for the Deputy.

Photo of Pádraig O'SullivanPádraig O'Sullivan (Cork North Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

87. To ask the Minister for Employment Affairs and Social Protection if she will provide an update on the research conducted within her Department for linking jobseeker's benefit to previous earnings; if she is seriously considering such a reform; the likely implementation date for same; and if she will make a statement on the matter. [24158/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Programme for Government and the Economic Recovery Plan include commitments to consider a pay-related jobseeker's benefit scheme. This would bring Ireland in line with the majority of other EU Member States.

The core rationale for the introduction of a pay-related benefit is twofold.

First, to recognise and cushion people against the ‘income shock’ that arises on loss of employment.

Second, to provide a tangible return to people who make social insurance contributions.

I published a Strawman document in December 2022, which sets out the broad parameters of a possible approach to a pay-related jobseeker's benefit scheme. The key features of the proposal set out in the Strawman include that:

The Benefit would be paid to employees who:>

  • are under State pension age, who are fully unemployed;
  • have a demonstrated strong, recent attachment to the labour force, and
  • are available for and genuinely seeking paid employment.
The Rate of Benefit would be set as follows:
  • for people who have at least five years paid PRSI contributions, the rate would be set at 60% of the person’s prior gross income subject to a cap of €450 per week;
  • for people who have fewer than five years paid PRSI contributions but at least two years, the rate would be set at 50% of the person’s prior gross income subject to a cap of €300 per week; and
  • payment would be payable for up to a maximum six months.
This strawman proposal is not a final design. The objective of the objective Strawman is to elicit feedback through a national consultation process to develop a preferred policy design. Written submissions have been received from over 80 individuals and from 32 stakeholder groups.

Officials in my Department are currently analysing all feedback received through the consultation process. This will inform the design of a proposal that I intend to bring Government for consideration in the coming months.

Comments

No comments

Log in or join to post a public comment.