Last week, I welcomed improved social welfare provisions included in the Social Welfare Bill.
I welcome the Minister to the House. I welcome the total budget of some €25.1 billion for social protection for the year ahead, which in itself is an increase of some €4 billion compared with what was announced on budget day. This increase is mainly for the pandemic unemployment payment and jobseeker’s supports. This is a clear example of the Government reacting to changing circumstances, and most importantly, being able to react. We are able to react because of the work that previous Governments have done since 2011 to restore the economy and good name of this country and to enable us to borrow at low rates. That is hugely important.
The social welfare budget is indicative of the cost and importance of supporting people and businesses through the worst of the Covid-19 crisis. Many people and businesses have been protected by the provision of a basic income during recent months. That is what social welfare is about. It is a safety net that is available when it is needed so that there are guarantees in times of unemployment and illness. I agree with my colleague, Senator Craughwell, however, and I urge the Minister to look at the issue of the class K contributions for former Members. The class K contributions effectively mean there will be no social insurance payments for people insured under class K.
Cuirim fáilte roimh an ardú sa liúntas oileánda do dhaoine ag fáil íocaíochtaí leasa sóisialta atá ag cónaí ar oileán sainithe amach ón gcósta ó €12.70 in aghaidh na seachtaine go dtí €20 in aghaidh na seachtaine. Tá costas breise ag baint le saol ar oileán amach ón gcósta agus cabhróidh an t-ardú seo leis na costasaí sin. Tá mé an-bhuíoch don Aire as ucht na tacaíochta sin, an chéad ardú sa liúntas seo ó 2000. The increase of the living on a specified island allowance by €7.30 to €20 per week from this January is hugely welcome. This is the first increase in this allowance since 2000.
I welcome this initiative. The Minister’s unique position of being the Minister for Social Protection and the Minister for Rural and Community Development gave her a greater ability to enact this change and I welcome it. It has been warmly received by our offshore island communities.
I welcome the initiatives to increase various supports, such as the increase in the widowed surviving civil partner grant by €2,000 to €8,000. That is the first increase in that allowance since 2008. I welcome the flexibility being provided for those in receipt of the PUP, whereby they can earn the PUP while continuing to carry out some work. This will benefit taxi drivers, musicians, electricians, plumbers and other self-employed workers.
I welcome the measure to reduce the waiting period for those unable to work due to injury or occupational disease sustained in the course of their employment from six days to three days. I welcome the removal of the earnings limit on the one-parent family payment and the increase in the carer’s support grant by €150, raising the payment to €1,850, the highest rate ever.
The issue of pensions is fraught and I welcome the decision not to increase the pension age, as well as the establishment of the pensions commission. The commission will have to deal with an issue we have not been able to grapple with for some time. In 2010, the then Government under the then Taoiseach, Brian Cowen, the then Minister for Finance, Brian Lenihan, Lord have mercy on him, and the then Minister for Social and Family Affairs, Mary Hanafin, produced the national pensions framework. That report stated:
The inescapable fact is that for every pensioner we have now there are another six people at work to support them; by 2060, that figure will be less than two. The sooner we face this inevitability, the better prepared we will be to meet it.
The pensions commission has serious issues to deal with. The decision not to go ahead with the increase in the pension age from next year is welcome because there are many people who are not able to work past a certain age because they are physically not able to work. I am talking about tradesmen, whether it be plumbers, blocklayers or plasterers, who have jobs that are tough on their joints, knees, backs and necks. It all impacts on their ability to continue working past 66 years of age and some of them who are younger than that unfortunately have to carry on if other supports are not available. These are very difficult issues for some people but it is an issue the pensions commission will have to grapple with in terms of providing a sustainable footing for our pension system to ensure that people pay into it and that they can reap the reward in their old age.
Heather Humphreys
I thank all of those Senators who have contributed, including Senators Lombard, Craughwell, Ardagh, Wall, Warfield, Burke, Boylan, Dolan, Buttimer, Kyne, Currie, Cummins, Murphy and Ahearn. The social protection system is designed, as we know, to help people and ensure there is a safety net and baseline of income support, and that nobody falls under. Like all Members of the House, I meet people regularly through my constituency work who absolutely depend on their weekly social welfare payment. We are coming to the end of what has been an extraordinarily difficult year and the scale of the supports the Government has put in place this year is unprecedented but they were absolutely needed. Between Covid and Brexit we simply have not been able to do everything we wanted to do but in the circumstances we are in we have sought to target the resources where they are needed most. The measures in the Bill will seek to make the social protection system work better for people who are unemployed, pensioners, carers, people with disabilities and lone parents.
I thank all of the Members for the tributes and thanks to the staff and I will certainly pass them on to the staff in the Department and the wider social welfare staff up and down the length and breadth of the country. I appreciate all of the kind comments each Senator has made about the staff. To be honest, we are very proud of them and they have done a great job.
A number of questions have been asked and I will try to answer them as best I can. Senators Lombard, Boylan, Kyne and Murphy all mentioned the islands. I had the pleasure of visiting Arranmore during the summer. The previous year I was at a wedding on Clare Island. Even though I did not have responsibility at that stage I took the opportunity to speak to some of the local people on both occasions. There are certainly challenges when people are living on an island. The one that struck home for me is that when young people living on Arranmore want to go to the cinema, my goodness they really have to make the effort. They have to get a boat then a car and then drive the whole way to Letterkenny. I know this is to help certain categories of people on social welfare payments but I am very conscious that the islands are part of the whole country.
Just because one must get on a boat to reach them does not mean that we should forget about them. I know Senator Kyne had responsibility for the islands prior to this and was very committed to them. He put a lot of effort and work into helping everybody there. I thank him for his comments.
Senators Craughwell, Burke and Kyne raised the issue of K class contributions for public representatives. Senator Craughwell also tabled an amendment that, unfortunately, I cannot accept but I will certainly give it consideration and will ask my officials to look at it. I agree with the Senators that some Senators and Deputies with young families who lost their seats earlier this year have been unable to get a job, possibly due to Covid, so have been left with no income. Regardless of what party they belong to, that is a very tough situation for people who have worked extremely hard and cannot even sign on for credits. People who lose their seats receive a severance payment, which must be considered when looking at the issue. The matter should be referred to an Oireachtas committee for consideration because whatever recommendations, and Senator Craughwell has a Private Members’ Bill—–