Written answers
Tuesday, 23 July 2024
Department of Employment Affairs and Social Protection
Departmental Budgets
Gerald Nash (Louth, Labour)
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1361.To ask the Minister for Employment Affairs and Social Protection the projected cost of providing pay related maternity benefit on the same terms as the new pay-related jobseeker’s payment, with the maximum rate available for 26 weeks; and if she will make a statement on the matter. [32716/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Maternity Benefit is a payment for employed women who are on Maternity Leave, and self-employed women, who satisfy certain PRSI contribution conditions. It is currently paid for twenty-six weeks at the weekly rate of €274 per week. Maternity Benefit is currently paid to approximately 19,630 recipients weekly with an estimated expenditure of more than €280 million in 2024.
The introduction of pay related Maternity Benefit would have to be considered in an overall budgetary context. The data required to develop an accurate estimate of the cost of such a measure is not readily available.
By way of example of the cost of increasing the rate of maternity benefit, the estimated full year additional cost of increasing the current rate of Maternity Benefit by €26 to €300 is an additional €26.6 million. This would bring the annual expenditure on the scheme to in excess of €306 million. This estimate is based on a full year basis and on the number of recipients in 2024. It should be noted that this costing is subject to change in the context of emerging trends and associated revision of the estimated number of recipients.
I trust this clarifies the matter for the Deputy.
Gerald Nash (Louth, Labour)
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1362.To ask the Minister for Employment Affairs and Social Protection the projected cost of introducing the bereaved partner payments as outlined in the heads of Bill if such reformed widower’s payments were available from January 2025; and if she will make a statement on the matter. [32717/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Under the law as currently enacted, entitlement to a Widows, Widowers or Surviving Civil Partner’s Contributory pension is only available to a surviving partner who was party to a marriage or civil partnership.
On Monday 22ndJanuary, the Supreme Court delivered its judgment in relation to the entitlement of an unmarried cohabitant to a Widows, Widowers or Surviving Civil Partner’s Contributory pension. The Supreme Court judgment overruled a previous High Court decision and found in favour of the claimant and his children.
In simple terms, the Court found that section 124 of the Social Welfare Consolidation Act 2005 (as amended) is inconsistent with the Constitution insofar as it excluded the claimant from the category of persons entitled to benefit from it. The Court reached that conclusion on the basis of the equality guarantee contained in Article 40.1 of the Constitution. The Supreme Court judgment notes that in order to resolve the issue raised by the judgment, a legislative amendment is required.
My officials, in conjunction with the Office of the Attorney General, considered the measures necessary to respond to the Supreme Court judgment. The judgment raised a number of complex issues, and my officials have been developing the draft legislative changes that are required to implement the decision.
In June of this year I obtained, Government approval for the priority drafting of the legislative changes required to respond to the Supreme Court decision and for the publication of the General Scheme of a Bill and its referral to the Joint Oireachtas Committee for Pre-legislative Scrutiny. Officials in the Department of Social Protection will now work closely with the Office of Parliamentary Counsel to finalise this legislation and I intend to introduce the legislation to Oireachtas as soon as possible.
It should be noted that the General Scheme proposes to commence payments for those eligible under the scheme from the date of the Supreme Court judgment. While the General Scheme provides entitlement to qualifying cohabitants who were bereaved prior to the date of judgment, payments are not retropective before that date.
It is very difficult to predict the number of people who will be entitled under the scheme as there is limited data on cohabiting couples and whether they would meet the proposed criteria. Following analysis carried out by the Department, it is estimated that approximately 3,900 bereaved cohabitants could be entitled to the expanded scheme.
The annualised cost associated with these claimants is in the region of €50 million, however, this is subject to the caveat that it is difficult to predict the numbers entitled with any certainty, particularly where a death has occurred in the past, and payments commencing from January 2024.
The annualised costs relating to extending the Widowed Partner Grant, Occupational Injury Benefit (Death Benefit) and Widow’s, Widower’s or Surviving Civil Partner’s (Non-contributory) Pension to cohabiting couples were examined. The combined annualised cost of these three schemes amounted to less than €5 million.
I hope this clarifies the matter for the Deputy.
Gerald Nash (Louth, Labour)
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1363.To ask the Minister for Employment Affairs and Social Protection the projected cost of increasing the State pension (contributory) to a level equivalent to 34% of average earnings, or the cost to do so over two years; and if she will make a statement on the matter. [32718/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Based on provisional Q1 earnings figures released by the CSO, average earnings (excluding irregular earnings and overtime) is €864.28, and 34% of that figure is €293.86.
To meet this figure, an increase of €16.50 on the current rate of State Pension (Contributory) would be required (rounded to the nearest 50 cent).
The full-year cost of a €16.50 increase in only the State pension contributory scheme is €457.6 million.
The costing includes a proportionate increase for qualified adults and for those on reduced rates of payment, where relevant.
It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2024.
Gerald Nash (Louth, Labour)
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1364.To ask the Minister for Employment Affairs and Social Protection the projected cost in 2025 of increasing the household benefits package by €10 a month; and if she will make a statement on the matter. [32719/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Household Benefits Package comprises the electricity or gas allowance, and the free television licence. The Department of Social Protection will spend approximately €294 million this year on the Household Benefits Package for over 523,000 customers.
People over the age of 70 receive the Household Benefits Package, with one package provided per household. The package is also available to people living in the State aged 66-69 years who are in receipt of certain social welfare payments or who satisfy a means test. The package is available to some people under the age of 66 who are in receipt of certain welfare type payments.
Based on an average of 523,000 recipients of the electricity/gas element of the Household Benefits Package in 2025, if the increases to the electricity/gas element outlined by the Deputy were introduced in 2025, the estimated additional yearly cost would be as follows:
Proposed Monthly Rate Increase | New Monthly Rate | Number of Recipients | Additional Yearly Cost |
---|---|---|---|
€10 | €45 | 523,000 | €62.8m |
All proposals, including the proposals outlined by the Deputy could only be considered while taking account of overall Government policy and in a budgetary context.
Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an essential need which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.
I trust that this clarifies these matters for the Deputy.
Gerald Nash (Louth, Labour)
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1365.To ask the Minister for Employment Affairs and Social Protection the projected cost a permanent €50 or €100 increase in both rates of the back-to-school clothing and footwear allowance; the additional cost if those payment rates were made available to all school going children; and if she will make a statement on the matter. [32720/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Back to School Clothing and Footwear Allowance scheme provides a once-off payment to eligible families to assist with the costs of clothing and footwear when children start or return to school each autumn. The scheme operates from June to September each year.
The rates of payment for the 2024 scheme are €160 for children aged between 4 and 11 years and €285 for children aged 12 and over.
Back to School Clothing and Footwear allowance payments totaling €86.07m issued to 154,014 families in respect of 273,114 qualified children in 2023, which included an additional one-off €100 increase per child in response to the cost of living pressures been faced by households.
Using the total number of children benefitting for the scheme in 2023 as a basis, the additional cost of a permanent €50 increase in both rates of payment would be €13.66 million and the additional cost of a permanent €100 increase in both rates of payment would be €27.31 million.
The additional cost if those payment rates were made available to all school going children, based on 2023 primary and post primary enrolments figures, is €199.16 million for a €50 increased payment and €247.79 million for a €100 increased payment.
I trust that this clarifies the matter for the Deputy.
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