Department of Social Protection

Transcription

1 Department of Social Protection Follow Up Material to Queries Raised at PAC Appearance, 20 th October 2016 A. Officially Requested by PAC Secretariat 1. A breakdown of the costs associated with the new debt-receipts accounting system including the cost of staff time during the implementation of the system. Over the past number of years, the Department has been engaged in a programme to modernise its services. The programme underpins the Department s objectives to provide and deliver a comprehensive service to the public and to better meet its accountability, data management and quality service delivery obligations. The development of the Debt and Receipts Accounting System (known as DRAS) formed part of this modernisation programme. It replaced an earlier system for the recording and management of overpayments and expanded on the functionality previously available to the Department. The new system enables the operation of best practice standards in overpayment recording and debt recovery, including improved accounting and reporting capacity. The costs outlined below relate to the development costs of DRAS. Following a tender process, Accenture was selected to design, build and deliver the new system. This work was undertaken from early 2014 and DRAS was delivered and became operational in November The direct cost of the consultancy was million (incl. VAT). The direct internal staffing costs were estimated at some 466,000. Overall, therefore, the total direct costs of developing the DRAS project were just over 3 million. The table below provides a breakdown of the staffing costs and the basis on which they are estimated, using the Department of Public Expenditure and Reform ready reckoner to estimate staff and overhead input costs for such projects Table: DSP staffing costs related to the development of the Debt-Receipts Accounting System Grade Civil Service Staffing costs per day* Number of days worked Principal Officer ,364 Assistant Principal ,723 Higher Executive Officer Cost ,837 Executive Officer ,663 Total* * Inclusive of PRSI, pension and overhead allocation ,587

2 2. A note on the individuals excluded from receiving a contributory pension, the costs associated with the policy change to give these individuals full entitlements and the impact of pension increases to be introduced for these individuals (1) 2012 change in state pension (transition/contributory) minimum paid contributions The minimum number of paid contributions for entitlement to a State pension transition/contributory (SPT/C) was increased from 260 to 520 for claimants reaching pension age on or after 6 th April This measure was originally provided for in legislation in 1997, and was included in the Department s Information publications since that time. Table: The impact of the minimum 520 paid contributions rule in SPC applications received and processed from 2011 to 2016 Total applications received, where pension was disallowed because claimant had less than 520 (full-rate) contributions paid Year Male Female Total 2011* Total 1,595 1,911 3,506 Notes: - *These were early applications received in 2011, where the persons concerned reached state pension age, 66, on/after 6 April 2012, and were thereby subject to the minimum 520 contributions rule. - Approx. 10% of the above total (350) had modified insurance or EU/Bilateral country insurance which may explain why they did not have a more substantial (full rate) Irish insurance record, falling short of the 520 contributions required. - Certain applicants, although not eligible for SPC, may subsequently have been awarded a state pension (non-contributory), or may have become an increase for qualified adult (IQA) beneficiary on their spouse/civil partner/co-habitant s state pension (statistics not available). It is not possible to definitively answer Deputy Farrell s question relating to stay-at-homeparents (Page 32 of the transcript refers) as it would require precise data on each of the following (and that data is not available to the Department or elsewhere) The number of people with between Total Contributions Paid (TCP) where their child raising years prevented them from achieving a minimum of 520 paid contributions; The number of people with TCP > 520, where their child raising years prevented them from achieving a minimum 48 as a yearly average; and The number of people with full or partial child raising time-outs prior to 1994, with > 520 TCP, whose child raising period(s), even where 'Homemakers' concession applied, caused their yearly average to be assessed at either or 30-39, thereby entitling them to less than the 98% weekly SPC rate than would have been awarded to them pre- September

3 Notwithstanding this unavailability of data, the Department has estimated that the extension of the Homemaker s Scheme to periods before its introduction in 1994 would cost an estimated 286 million extra in 2017, with that figure growing in the years to come. (2) Budget 2012 State pension (contributory) Yearly-Average band Changes As part of the Budget 2012 package, the Minister for Social Protection announced the introduction of additional yearly-average bands for State pension (transition/contributory) to more fairly reflect the proportionality of attachment to the workforce by the claimant (the attached Appendix shows the pre and post-september 2012 tables, and the 2016 and 2017 pension rates structures). The relevant legislation is contained in Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 8) (Reduced Rates) Regulations 2012, (S.I. No. 321 of 2012), which provides for the application of reduced rates of SPC to certain claimants who attain pension age (66) on or after 1 September Existing recipients and claimants who attained pension age before 1 September 2012 are not affected by the new rate bands. The pre-september 2012 state pension (contributory) yearly-average contributions band of was replaced by three bands; 20-29, and The pre-september 2012 state pension (transition) yearly-average band of was also replaced by three bands; 24-29, 30-39, and State pension (transition) has since been abolished, and is no longer payable to people who reached age 65 on or after 1 January Under the state pension (contributory) revised bandings, the and 48-plus yearlyaverage categories retain the same previous pension rate entitlement (98% of weekly maximum-rate pension). At 30 September 2016, of a total of 372,603 state pension (contributory) recipients, there were 112,202 in receipt of pension whose applications were processed under the 2012 revised payment structure outlined above. Of this total, 34,152 (approximately 30% of all applicants processed under the new 2012 rates structure) were negatively impacted by the new bandings structure see detail in following Table. 3

4 Table: (i) (ii) the overall number of SPC recipients, by gender, processed under the September 2012 revised banding structure of that total, the number of recipients whose weekly rate of pension would have been higher had they reached pension age (66) prior to 1 September 2012: Yearly-average banding Male Female Total Numbers affected by the September 2012 bandings change 10 to ,040 1,918 1, to 19 1,868 3,049 4,917 4, to 29 4,447 9,594 14,041 14, to 39 5,788 7,488 13,276 13, to 47 5,253 3,416 8,669 0 (payment rate not affected) ,221 15,828 58,049 0 (payment rate not affected) Was on SPT, and born before 7,189 4,143 11,332 0 (payment rate not affected) 01/09/1947 Total post-sept 2012 new yearlyaverage banding awards 112,202 34,152 (30% of 112,202) Policy reasons for the rate bands change Eligibility for state pension (contributory) is based on contributions paid and credited over the course of the applicant s working life. Accordingly, those who have less attachment to the workforce qualify for lower rate pensions. The new payment rate bands more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life benefit more. The social protection system provides alternative methods of supporting people who have been less attached to the workforce. These include the homemakers scheme, increases for qualified adults, widow s, widower s and surviving civil partner s pensions (which can be based upon the PRSI record of the worker or the spouse), and the means-tested state pension (non-contributory). In relation to women and social insurance payments, it is worth noting that the Actuarial Review of the Social Insurance Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors, due to the distributive nature of the Fund (those on higher earnings pay more for contributions with the same value as those on lower earnings), and due to the award of credited contributions to people in receipt of social welfare payments. The Actuarial Review also examined the changes in the contribution rules and the associated rates of payment due to be introduced in September Its finding was that those with lower earnings and those with shorter contribution histories will still continue to obtain the best value from their contributions. 4

5 The combination of measures under the entire state pension system under the social protection code have resulted in very similar outcomes for male and female pensioners in Ireland, with poverty rates for women over 65 being, in statistically measurable terms, the same as those for men. Rates of payment of the state pension are higher both in monetary and real terms than they were at the height of the economic boom, despite the very significant savings the State has been required to make since then, and despite the very significant reductions in incomes borne by workers in both the public and private sectors. Aside from the SPC application outcome statistics in the table above, it is not possible to state to what extent, if any, women, overall, have been disadvantaged by the changes made in 2012 to new entrants to the state pension (contributory), as most of those whose pension entitlement would have been reduced, would have had access to other benefits. Such benefits would be either derived from their spouse s contribution record (such as the widow s, widower s and surviving civil partner s (contributory) pension), through being a beneficiary of an increase for qualified adult on their spouse s pension, or through qualifying for an alternative pension in their own right, such as the state pension (non-contributory). Since the introduction of state pension (contributory), men have been more likely to have a complete social insurance record than women, and yet, as stated above, the outcomes for women over 65 show that they are not more likely to experience poverty than men of the same age. Over time, there has been a very significant increase in female participation in the workforce, and this will impact on the gender profile of the various benefits claimed under the Irish pensions system. The Department is looking in more detail at the impact of the September 2012 changes. However, any such figures will only ever be an estimate, given that many people who would have been affected may instead apply for an alternative payment (or become the beneficiary of an increase for qualified adult on their spouse/civil-partner/cohabitant s pension) which will afford them a higher weekly payment rate. The Department is satisfied that the state pension system, in its entirety, works effectively at protecting pensioners from poverty. The following Tables shows the yearly-average banding structures and the corresponding weekly state pension (contributory) payment rates, from 2012 to

6 State pension contributory weekly rate bands September 2012 Payment Rates - State Pension Contributory (Aged 66 pre Sept 2012) Yearly Average Increase for Contributions Personal Rate Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over September 2012 Payment Rates - State Pension Contributory (Aged 66 post Sept 2012) Yearly Average Contributions Personal Rate Increase for Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over January 2016 Payment Rates - State Pension Contributory (Aged 66 pre Sept 2012) Yearly Average Contributions Personal Rate Increase for Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over

7 January 2016 Payment Rates - State Pension Contributory (Aged 66 post Sept 2012) Yearly Average Contributions Personal Rate Increase for Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over March 2017 Payment Rates - State Pension Contributory (Aged 66 pre Sept 2012) Yearly Average Contributions Personal Rate Increase for Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over March 2017 Payment Rates - State Pension Contributory (Aged 66 post Sept 2012) Yearly Average Contributions Personal Rate Increase for Qualified Adult Aged under 66 Increase for Qualified Adult Aged 66 or over 48 or over

8 3. A list of Department of Social Protection Offices or offices where Department staff are based around the country. Please see list provided at Appendix 1. The list contains locations where DSP staff are currently based. A programme of significant consolidation has been undertaken in the period since 2011 / 2012 when employment support and community welfare services were transferred to DSP from FÁS and the HSE. As a more integrated service was developed, the need for different premises in the same local area was no longer necessary. Where possible and where the opportunity arose, DSP moved to deliver services from the one location. 8

9 4. A note on the JobPath scheme. JobPath is an employment activation service that supports people who are long-term unemployed and those most at risk of becoming long-term unemployed to secure and sustain paid employment. JobPath is part of Ireland s Public Employment Service (PES). The PES is managed by the Department of Social Protection and delivered by the Department s own staff (Intreo Centres) and via contracted companies i.e. the Local Employment Service (LES) and two JobPath companies (Seetec and Turas Nua). JobPath is simply a method of increasing the level of support provided to long-term unemployed jobseekers it provides intensive case management and advisory support. It complements /augments the Department s own case officers and the LES. Planning and Design The planning and design of JobPath drew on extensive research and experience elsewhere. It took account of OECD reports on labour market activation and experience in countries such as the UK, Australia, Germany, Holland, France, Norway, Japan and Finland. In addition, the Department engaged the independent Centre for Economic and Social Inclusion (London) to advise on the design of JobPath. Consultations were also held with the Department for Work and Pensions in GB and the Department for Employment & Learning in Northern Ireland. Advice was also obtained from leading academics such as Prof Dan Finn (University of Portsmouth) as well as the NESC, ESRI, Geary Institute and NUI Maynooth. The planning and design was overseen by an Interdepartmental Board, chaired by the Department of Social Protection. The board also had representatives from the Department of Public Expenditure and Reform, the National Economic and Social Council, the Offices of the Attorney General and the Chief State Solicitor. The Department also held a number of consultative fora with interested stakeholders as part of the process of finalising the procurement process. Companies The Department of Social Protection contracted two companies (Turas Nua Limited and Seetec Limited) to deliver the JobPath service. Turas Nua is a joint venture between an Irish owned cooperative FRS Recruitment, based in Roscrea County Tipperary, and Working Links a UK based specialist provider of employment services to long term unemployed people and other people facing significant barriers in securing employment. Seetec, like Working Links, is a UK based specialist provider of employment services to long term unemployed people and other people facing significant barriers in securing employment. Seetec deliver services in the northern half of the country including Dublin while Turas Nua delivers services in the southern half of the country. In line with its contractual agreement Seetec, in addition to delivering services directly itself, has subcontracted 5 companies to deliver the JobPath service on its behalf as follows: Network Personnel in Cavan/Monaghan; People 1st Employment & Skills in Donegal; CMD Group in Sligo; Cenit College in Edenderry/Maynooth and Skills Team Employment Services in Dun Laoghaire area and Santry/Coolock. Contracts JobPath contracts were signed with Turas Nua and Seetec on 5 June Contracts are for 4.5 years with an additional 2 year run out period. This means that where a person is referred to a provider at the end of the fourth year, the provider must provide the service for the next 52 9

10 weeks and if the person gets a job at the end of the 52 weeks the provider may claim payments for up to 52 weeks of employment thereafter. Payment Structure and Costs The companies are paid a registration fee for each client (upon completion of a Personal Progression Plan). Once a person is placed in a job a job sustainment fee is payable upon completion of each 13 week period of sustained employment of no less than 30 hours per week. JobPath is a payment by results model and all costs, including the establishment, fit-out and staffing of offices have been borne by the companies. JobPath is so structured that the companies will not be able to fully recover their costs until they successfully place sufficient numbers of jobseekers into sustained paid employment. The fees paid are contingent on the providers meeting minimum service standards and minimum performance levels (job outcomes). Failure to meet the contracted levels of service and performance result in retention of penalty payments. In addition fees are subject to the application of discounts related to the overall level of economic activity in the State as measured by the total employment statistics reported in by the Central Statistics Office. It is not intended to publish the individual payments to the JobPath companies as these are commercially sensitive and to do so would place the State at a disadvantage both in terms of the contracts now in place and any future procurement that may be undertaken. JobPath staff recruitment The JobPath companies themselves have recruited over 500 staff to deliver the JobPath service. The companies are required to ensure that at least 10% of their staff are people who have been long-term unemployed. Roll-out The roll-out of JobPath commenced in July 2015 on a soft launch basis and was completed in June All counties now have a JobPath service. The service is delivered in over 80 locations across the country. Referrals are running on average at about 1,500 per week. Over 60,000 people have been referred to JobPath and of these c. 51,000 people have started their JobPath engagement. Nearly 60% of the people referred have been unemployed for more than 3 years. Participant Selection Process Jobseekers who are long-term unemployed are randomly selected by computer. They then receive a letter inviting them to attend a Joint Information Session (JIS). The information session is hosted jointly by the Department and the JobPath provider. At the JIS the jobseekers are briefed about JobPath and introduced to the JobPath provider. They are reminded of their rights and responsibilities as well as receiving information about the services and supports available. Some people also have their first 1:1 meeting with a designated personal advisor (case worker) immediately after the JIS. Services Provided Jobseekers receive intensive individual support to help them address barriers to employment and to find jobs. Each person is assigned a personal advisor who assesses their skills, experience, challenges and work goals and agrees a personal progression plan (PPP) that includes a schedule of activities, actions and job focused targets. Jobseekers are provided with a range of development supports. They spend a year with the service, during which time they may also spend additional periods undertaking educational or training courses and if placed into employment they will continue to receive support for up to a further year. 10

11 Mandatory Engagement and Sanctions All jobseekers are required to engage with the Department s activation services and this applies regardless of whether the service is provided by the Department s own case officers or those employed by contracted companies. A failure to engage with JobPath or to take up a suitable job opportunity may result in the application of a sanction but all decisions regarding a person s social welfare entitlements are taken by Department officials. The JobPath companies may neither recommend nor apply a sanction to a jobseeker. They are entitled to submit cases, duly evidenced, for consideration of a sanction by the Department. Jobseeker Payments JobPath clients remain on the Live Register and retain their social welfare payments while engaged with their JobPath provider. The JobPath provider may, on a case by case basis, provide financial support for such things as travel to appointments and for child minding services while attending appointments. Employer Engagement Engagement with employers is an important part of the work undertaken by the JobPath companies. They work closely with employers to provide them with the best possible candidates and this may involve on the job training or mentoring. A JobPath client who is placed into employment will continue to receive support for at least three months and up to twelve months while in employment. There is an employer engagement protocol in place between DSP and the JobPath companies which aims to optimise the service for employers and avoid duplication/overlap between the work of DSP s own employer engagement staff and those of the JobPath companies. Customer Satisfaction In general, the response to JobPath has been quite positive and the level of complaints has been very low with just 119 complaints recorded - which is only 0.2% of the numbers referred. Most of the complaints concerned clients reluctance to engage with the JobPath service. Other complaints were in respect of service delivery issues, reimbursement of travel expenses and the quality of customer engagement. 76 complaints have been fully processed and 43 are still being investigated. All complaints are referred to the companies for investigation in the first instance. To date no complaints have been escalated to the Department. Oversight and Monitoring The Department meets with the companies on a regular basis to review the operation of the service. The Department also undertakes regular on-site inspections. There have been 21 inspections so far with no major issues of concern coming to light. The Department has also commissioned an independent customer satisfaction survey to assess if jobseekers are satisfied with the level and quality of service delivered by the JobPath companies. This survey is currently being undertaken and results are expected towards year end. Failure by the companies to satisfy the Department s inspectors or to achieve a satisfactory score in the independent survey can result in payment penalties being applied. JobPath Safeguards Significant safeguards have been built into JobPath. These include a service guarantee to ensure that all participants receive a baseline level of service. Both companies are subject to regular on- 11

12 site inspections to ensure that JobPath is delivered in accordance with contractual obligations and the Department undertakes customer surveys to determine the level of jobseeker satisfaction with the services provided by the JobPath provides. As payments are linked to sustained employment outcomes (jobs must provide work of at least 30 hours per week for a period of at least 13 weeks with a maximum of four outcome fees being paid in arrears over a 52 month period) providers are incentivised not just to find, but also to sustain, employment for clients. The companies have target employment placement rates and payment penalties can be applied if performance is less than these levels. Payment penalties can also be applied if service quality, as assessed through Department inspections or customer surveys, does not meet required standards. In addition payment rates are linked to employment levels in the economy and reductions can be applied if employment levels exceed defined levels set out in the Request for Tenders (RFT). Briefings for Oireachtas Members Briefings on JobPath were provided by Department officials for Oireachtas members on 16 July 2015, 29 September 2015 and on 19 October

13 5. A note on the Appeals Office. A copy of the SWAO Annual Report 2015 was sent to the PAC secretariat and is available at The Social Welfare Appeals Office (SWAO) was established in 1991 and is responsible for determining appeals against decisions on social welfare entitlements and insurability of employment. The appeals system is underpinned by primary legislation Part 10, Chapter 2 of the Social Welfare Consolidation Act, 2005 and by Regulations - Social Welfare (Appeals) Regulations (Statutory Instrument No. 108 of 1998 (as amended). The office is headed by a Director/Chief Appeals Officer, Joan Gordon, who is supported by a Deputy Chief Appeals Officer, an Office Manager, 38 Appeals Officers, 3 Higher Executive Officers and 42 other administrative staff. Its headquarters are located at D'Olier House, D'Olier Street, Dublin 2. The independence of the SWAO is of paramount importance. Appeals Officers are quasi-judicial officers appointed by the Minister. The Supreme Court has held that Appeals Officers are required to be free and unrestricted in discharging their functions. The Chief Appeals Officer is required under law to submit an annual report each year to the Minister on the activities of her office. In accordance with legislation a copy of this report is also laid before each House of the Oireachtas. The quasi-judicial nature of the appeals system means that there are inevitable time lags involved but every effort is made to keep these to a minimum. Appeal processing times are kept under constant review. Many of the procedures which impact on appeal processing times are in place in order to ensure that due process, fair procedures and natural justice are adhered to and that every appellant is given the opportunity to make their case and have all of their evidence fully considered by an Appeals Officer. The time taken to process an appeal is proportionate to the complexity of many of the issues under appeal, the vast majority of which require a high level of judgement and some of which involve complex legal questions. More information on appeal processing times is set out below. The system allows for review and appeal and for further information to be submitted at any stage up to and including the oral hearing in order to be as fair as possible to an appellant. 13

14 Appeal Processing Times/Appeals on Hand During 2015, 1.7 million new claims were decided by the Department. By comparison, 24,475 appeals were received last year and 25,406 appeals were finalised. Appeal processing times peaked in 2011 at 52.5 weeks on average for an oral hearing and 25.1 weeks for a summary decision and have improved year on year since then: Oral Hearing Summary Decision weeks 21.1 weeks weeks 18.1 weeks 2016 (to date) 24.3 weeks 17.7 weeks. The number of appeals on hand has also improved in recent years. At the end of 2015 there were 8,697 appeals on hand (a 57.4% decrease on the peak of 20,414 in 2012). The downward trend has continued in 2016 with 8,713 appeals on hand at the 24th of October Appeal Outcomes 58.8% of the 25,406 appeals finalised in 2015 had a favourable outcome for the appellant, i.e. were either allowed in full or in part, or resolved by way of a revised decision by a Deciding Officer/ Designated Person. However, this does not necessarily mean that the initial decision was incorrect. It is often the case that when customers appeal a decision, they submit new information in support of their claim. As a first step in the process, the appeal papers are forwarded by the SWAO to the Department for review and for preparation of a submission on the appeal contentions. 20.5% (5,200) of the 25,406 appeals which were finalised during 2015 were revised by the Deciding Officer in favour of the appellant during this stage of the process. However, if, following review by the Deciding Officer, the decision remains unchanged the appeal will then be considered by an Appeals Officer either on a summary or oral basis. Where an oral hearing is convened and the Appeals Officer meets with the appellant, the Appeals Officer may gain additional insights into the appellant s situation or circumstances which may lead to a favourable appeal outcome Workload of the Appeals Office Appeal receipts peaked in 2012 at 35,484 from an average of 15,000 p.a. prior to the economic downturn, the unprecedented increase in social welfare appeals between 2009 and 2013, which mirrored a similar dramatic increase in the number of claims received by the Department, placed considerable pressure on the SWAO. This impacted adversely on appeal backlogs and on the time taken to process appeals. Appeal receipts increased from an average of 15,000 per year up to 2009 to a peak of 35,484 in 2012, reducing to 32,777 in 2013, 26,069 in 2014 and 24,475 in

15 The following table shows appeal receipts and the workload of the appeals office in the period 2004 to Year On hands at start of year Received Finalised On hands end of year Oral hearing processing time Summary decision processing time ,331 14,083 14,089 5, ,325 13,797 13,419 5, ,704 13,800 14,006 5, ,498 14,070 13,845 5, ,723 17,833 15,724 7, ,832 25,963 17,787 16, ,008 32,432 28,166 20, ,274 31,241 34,027 17, ,488 35,484 32,558 20, ,414 32,777 38,421 14, ,770 26,069 31,211 9, ,628 24,475 25,406 8, Initiatives to manage appeal backlogs and improve processing times Significant effort and resources have been devoted to reforming the appeals process in recent years: Appointment of additional AOs Development of a structured programme of training & continuous professional development for new and existing AOs An overhaul of the appeals operating model Introduction of new technology to support appeals officer work Work undertaken in the Department to reduce delays in submitting appeal files and Deciding Officer submissions This resulted in a marked improvement in appeal processing times and reduction in appeal backlogs. As can be seen from the table above, the average time taken to determine an appeal requiring an oral hearing reduced from 52.5 weeks in 2011 to 25.5 weeks in 2015 and the average time taken to finalise an appeal decided by way of a summary decision dropped from 25.1 weeks in 2011 to 18.1 weeks in Further statistical tables are in Appendix 2. 15

16 6. A detailed note on the system whereby certain individuals can lose part of their entitlement to a full contributory pension. Please see response to Item 2, which deals with pension issues. Use of Contributions in a Self-Employed person s 66 th year. In general PRSI is charged on income, including income from self-employment, where the individual is over 16 years and under pensionable age, currently 66 years i.e. up to the person s 66 th birthday. Self-employed persons, who earn 5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of 500. The payment of Class S contributions entitles self-employed workers to a range of benefits including state pension (contributory). The regulations governing the award of Class S social insurance prescribe that where a selfemployed person is assessed as being liable for a compulsory insurance charge, the person is granted a full annual complement of 52 Class-S contributions for that tax year once the liability is discharged (irrespective of whether their self-employment was pursued throughout the year, or if it was just for a portion of the year). Therefore, in a self-employed person s initial year of assessment of having an insurance liability, on payment of the due amount, the person will be recorded as having paid 52 weekly contributions for that year. Where the self-employed discharge their combined Income Tax, USC and PRSI liability through Revenue s self-assessed system of collection, a single payment is made in respect of their combined liability for all complete tax years up to and including the year in which the self-employed worker reaches their 65th year. As Revenue does not have the facility to collect a part of a year s PRSI liability in respect of the individual s 66th year, payment can be facilitated by the Department s Client Eligibility Services, Department of Social Protection, Government Buildings, Cork Road, Waterford. Such additional (66 th year) S-Class contributions may be used, where necessary, to satisfy the minimum 520 paid contributions condition for state pension (contributory) eligibility, but cannot be used in the yearly-averaging assessment of pension rate entitlement, for which the cut-off point in totalling contributions is the end date of the immediately preceding (full) tax year. This is exactly the same 66 th year approach that is facilitated in the case of standard employees (rather than self-employed) who may require some additional contributions to satisfy the 520 contribution condition. 16

17 7. A note on the Housing Assistance Payment scheme. The strategic policy direction of the Department is to return rent supplement to its original purpose of being a short-term income support scheme. Under the Housing Assistance Payment (HAP), responsibility for the provision of rental assistance to those with a long-term housing need transfers to Local Authorities, under the auspices of the Department of Housing, Planning, Community & Local Government (DHPCLG). Under the HAP process, new customers assessed by a Local Authority as having a housing need will apply for housing support under HAP rather than rent supplement. The allocation policy of the various social housing options is a matter for the Local Authorities and the DHPCLG. Rent supplement will continue to be paid to households who are already in the private rented sector but who, generally because of a loss of income through unemployment, require a short term income support to pay their rent. In areas where HAP is in operation, persons who are in receipt of rent supplement for over 18 months are being requested to contact their Local Authority to have their housing needs assessed, thus beginning the transfer process from rent supplement to HAP. Failure to engage with this process can affect on-going entitlement to rent supplement. HAP is currently operational in 19 of the 31 Local Authority areas with over 14,500 households in receipt of this scheme. Approximately 5,110 (35%) of HAP cases are direct transfers from rent supplement and the remaining 9,460 cases (65%) are new recipients. HAP will commence in a further 9 Local Authority areas (Cavan, Laois, Leitrim, Longford, Kerry, Roscommon, Westmeath, Wexford and Wicklow) on 1st December 2016 and will be rolled out to the remaining three Local Authority areas in Dublin (Dublin City Council, Dún Laoghaire Rathdown and Fingal County Council) during early Under the accelerated targets outlined in the Action plan for Housing and Homelessness Rebuilding Ireland the HAP target for 2016 is 12,000 (increased from 10,000) and is 15,000 for 2017 (increased from 10,000). The aim is complete the transfers from rent supplement to HAP by Officials in the Department of Social Protection are fully engaged in the roll-out of HAP and work closely with colleagues in DHPCLG and the Local Authorities to ensure the successful implementation of the scheme. 17

18 8. A note on the payment plans that are in place for individuals across all schemes. To be supplied shortly 18

19 B. Additional Material related to PAC Appearance 20 th October (not officially requested) 1. Rent for Galway INTREO The Sean Duggan building carries an annual rent of 583,000 per annum on a building size of 4,514 sq. metres (48,570 sq. ft.). 2. List of counties without a DSP INTREO office There are 3 counties that do not have a DSP INTREO Office: (i) Laois (3 Branch Offices Portarlington, Portlaoise and Rathdowney) (ii) Monaghan (3 Branch Offices Carrickmacross, Castleblayney and Monaghan) (iii) Roscommon (3 Branch Offices Boyle, Castlerea and Roscommon). However, the Intreo Centres in Carrick-on-Shannon and Longford cover parts of Roscommon. 3. Percentage of customers on each SW scheme who have a Public Services Card Scheme % Back to Work Allowance 87% Carers Allowance 77% Child Benefit (only) 58% Disability Allowance 65% Family Income Supplement 55% Free Travel (Only) 57% Free travel 74% Household Benefits 80% Illness Benefit 49% Invalidity 77% Jobseekers Allowance 93% Jobseekers Benefit 88% Jobseekers Credits 97% Maternity Benefit 43% One-Parent Family Payment 92% Paternity Benefit 78% State Pension Contributory 72% State Pension Non Contributory 72% Widows Pension Non Contributory 42% Widows Pension Contributory 65% 19

20 4. Note on Decisions Advisory Office in DSP & link with the Social Welfare Appeals Office The Decisions Advisory Office (DAO) is a support unit for deciding officers and managers to help ensure the quality and consistency of decision making on schemes across the Department. The role of the DAO in this regard is set out briefly below. The DAO is the Department s link to the Social Welfare Appeals Office. The DAO is also the Department s contact point for the Office of the Ombudsman and the unit also encompasses the Department s Freedom of Information Unit. Role of the Decisions Advisory Office (i) Providing advice and support to deciding officers Each scheme area has its own set of guidelines which they keep up to date. In addition, the DAO maintains a set of guidelines on cross-scheme issues such as natural justice and means assessment. Like the scheme guidelines these are kept under review and updated as required. All of these guidelines are available on the Department s intranet. With a small number of exceptions the guidelines are also published on The Department s training material and staff bulletins also include links to the relevant guidelines. Advice on individual complex cases is provided to staff across the Department. The DAO carries out decisions quality projects on particular topics, such as means assessment. A sample of files is examined to identify common errors and this knowledge is used to improve guidelines and develop staff bulletins in order to remind deciding officers of best practice. (ii) Link between the DAO and the Social Welfare Appeals Office The DAO and the SWAO meet formally several times per year. In addition, there is ongoing informal contact between meetings, which may relate to substantive issues. Feedback is conveyed to the relevant areas of the Department and included in the Department s guidelines. Important decisions or trends in decisions are typical of the issues that are discussed at the DAO- SWAO meetings. (iii) Involvement in the Development of Training Material The DAO works closely with the Department s Staff Development Unit (SDU) through inputting into draft training material, handling queries arising from training courses and amending guidelines as required. In particular, in 2014 SDU launched a key initiative to review and redesign staff learning and development programmes, focussing in particular on frontline roles such as that of deciding officer. This has resulted in 70 training modules. 20

21 5. Mortgage Interest Supplement for 2016 The original purpose of the mortgage interest supplement (MIS) scheme was to provide shortterm support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The most appropriate way in which customers experiencing mortgage difficulties can be supported is through on-going engagement with their lender to explore sustainable solutions. Entitlement to the scheme for new applicants was discontinued from 1 January Customers availing of this support prior to 1st January 2014 have been able to retain entitlement to the scheme up to 1st January There are currently approximately 2,200 people in receipt of MIS with an estimated outturn of 6.33 million for the scheme in The budget estimate for the scheme in 2017 is some 4.12 million. It is expected that over the remaining period existing MIS will continue to exit the scheme through sustainable solutions being put in place with their lenders; securing employment; or exit strategies sponsored by the Department of Housing, Planning, Community and Local Government, such as the Mortgage to Rent Scheme. The Money Advice and Budgeting Service (MABs) has been developed to provide more targeted services to support mortgage holders in arrears. Since mid-2015, a Dedicated Mortgage Arrears MABS (DMA MABS) service has been established across the MABS network of services. This service is focusing on post-mortgage Arrears Resolution Process (MARP) cases and assisting mortgage holders to assess the extent to which the option on offer from the lender is the best and most sustainable option, and where required, negotiating with the lender on the client s behalf. DMA specialist advisors are in place in 25 locations across the country and almost 2,500 clients have benefitted from the service. MABS has also established a national network of Court Mentors to attend relevant Courts nationwide, where repossessions hearings are listed, to provide support to distressed borrowers. More recently, a new Scheme of Aid and Advice for Borrowers in Home Mortgage Arrears has been put in place to assist people who are insolvent and in serious mortgage arrears on their home, to access independent expert financial and or legal advice to help them find the best possible solutions, with the key priority being to support families to remain in their own homes. The scheme is a key component of the ABHAILE the Mortgage Arrears Resolution Service which was formally launched in October The scheme has been in operation since mid-july 2016 and to date almost 2,200 vouchers have been issued. MABS is the Government s one stop shop point of information and guidance for homeowners in arrears and all applications for aid and advice under this scheme are processed through MABS. 21

22 6. Note on Multi Agency Vehicle Checks As part of a number of initiatives to detect and prevent fraud and abuse of the social welfare system, the Department of Social Protection participates in Multi Agency Vehicle Checks (MAVCs) on an ongoing basis. These are set up by An Garda Síochana and planned in consultation with other participating agencies. These MAVCs have been a feature for a number of years. This initiative involves officers from a range of Public Service agencies including An Garda Síochána, Revenue, The Road Safety Authority, the Health and Safety Authority and Local Authorities. The lead agency is generally An Garda Síochána. The Multi Agency Vehicle Checkpoints facilitate an approach whereby all agencies can comprehensively identify individuals engaged in vehicle tax evasion, road traffic irregularities or social welfare fraud in concentrated locations. The main duty of Social Welfare Investigative staff who participates in these checkpoints is the detection and prevention of fraud and abuse of the social welfare system and is provided for in Social Welfare Legislation. The focus of such enquiries is related to individuals driving commercial vehicles, haulage, taxi and transport sectors. Where enquiries adduce that irregularities have occurred these are pursued by further investigation. A review of these Multi Agency Checkpoints is undertaken by An Garda Síochána as the lead agency. The Department participates in this review. The efficacy of these checkpoints, the outcomes achieved as well as the operational views of all agencies who participate in these is assessed. MAVCs are regarded by the participating agencies as being a productive and an effective enforcement and compliance measure. They provide for an integrated approach to the investigation of a range of offences that can be detected in an integrated and joined up way. The deployment of DSP personnel on checkpoints is adjusted having regard to operational priorities and the approach is modified in light of experience. Quite importantly the response of legitimate traders, businesses and their representative organisations especially those involved in transport and other sectors is very favourable towards this measure. They also receive considerable on the ground public support and endorsement. Details of savings attributed directly to the operation of MAVCs are detailed in tabular format below. Multi Agency Vehicle Checkpoints - Summary of Savings 2014 & 2015 ENDS 22