Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My department provides a number of income supports for those who are unable to work due to illness or disability. These include insurance-based schemes, based on Pay Related Social Insurance (PRSI) contributions, and means tested social assistance schemes.

The Indecon Cost of Disability Report identified that additional costs of disability run across many areas of expenditure, including housing, transport, health, and education. These need to be addressed across Government.

The report found that the cost of disability is significantly broader than income supports and that there is not a single, typical cost of disability. Rather, there is a spectrum from low to high additional costs of disability, depending on individual circumstances.

The report concluded that disability payments should be targeted at those most in need and who face the greatest additional cost of disability rather than spreading resources thinly.

I am committed to addressing the cost of disability and improving outcomes for people with a disability. I announced a suite of measures to support disabled people in Budget 2024, including a €400 lump-sum payment in November, a Christmas Bonus double payment in December, a Cost-of-Living Bonus payment in January and a €12 increase in the maximum personal rate of weekly disability payments.

However, despite the measures in the recent budget, there is still a need to reform our system of disability payments to better account for the cost of disability in income supports. In September, I published the Green Paper on Disability Reform to begin the conversation about improving these supports and further addressing the cost of disability.

The aim of the Green Paper is two-fold. Firstly, it aims to support a higher level of employment for people with disabilities, which will improve their outcomes; and secondly, to better insulate disabled people who cannot work from poverty and deprivation.

The Paper’s key proposal is to introduce a new long-term disability payment that has three tiers of payment with associated employment supports.

This takes into consideration the recommendations of the Cost of Disability report, which found that income supports should be differentiated by need and that government policy should facilitate employment among those who can work.

The Green Paper is not a cost cutting measure. Based on a conservative estimate, the Green Paper proposals, if introduced, would increase spending by more than €130 million per year.

Nobody will lose their payment or have their payment reduced. The objective is to increase people’s payments and provide more employment supports for those who can and want to work.

I would like to emphasise that the Green Paper is not a final design. It is only a starting point for a structured discussion on what the future of long-term disability payments could look like. It offers one possible approach on how to target limited resources - its proposals are intended to invite discussion, debate and suggestions.

I encourage all those with an interest to express their views in our public consultation by making a submission in writing or by video. It is essential that we hear from as many disabled people and representatives as possible. We would like to hear what people like and don't like about the proposals and suggestions on how they could be improved or replaced with alternatives. I have extended the consultation period until 15 March 2024 to ensure everyone has adequate time to make a submission.

I trust this clarifies the matter for the Deputy.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I secured approval of Government on 21st November 2023 to proceed with design proposals for a new Pay-Related Benefit for Jobseekers which would link the rate of benefit to a person's previous earnings. Budget 2024 included provision for such a scheme to be introduced in late 2024.

The aim of a pay-related benefit scheme is to soften the income shock that a worker may face if they suddenly lose their job and will bring Ireland in line with its European neighbours.

I launched a public consultation process on proposals for the Pay-Related Benefit for Jobseekers with the publication of a Strawman document in December 2022. My Department undertook an extensive consultation process and engagement with interested stakeholder groups including the Irish Congress of Trade Unions. Feedback received during the consultation process informed the final proposals I brought to Government on 21st November, including the proposal to keep a nine-month payment duration in line with the existing Jobseeker's Benefit.

The Pay-Related Benefit will be available to newly unemployed persons who have a strong and recent attachment to the labour market, and who are available for and genuinely seeking employment.

The weekly rate of payment for people who have at least 5 years paid PRSI contributions will be set at 60% of previous earnings subject to a maximum of €450 for the first 3 months. After that, the rate will reduce to 55% of earnings subject to a maximum of €375 for the following 3 months. A further 3 months will be paid at the rate of 50% up to a maximum €300 payment.

For persons who have between 2 and 5 years paid contributions, the rate will be set at 50% of previous earnings subject to a maximum of €300 per week and 6 months duration. The duration of payment is the same as which a person would get under jobseeker's benefit.

A minimum weekly payment of €125 will apply to the scheme.

In line with the current arrangements, a person will be able to opt for the means-tested jobseeker's allowance if they would be financially better off on that scheme.

I am satisfied that the model for the Pay-Related Benefit approved by Government addresses concerns raised about the payment duration while ensuring that the scheme will not act as a disincentive to employment.

I trust this clarifies the position for the Deputy.