Disability allowances could be reformed to link payments to an applicant's ability to work, according to a briefing document by officials to new Minister for Public Expenditure Paschal Donohoe.
Published on Friday night, the briefing argues that reforms to disability allowances should be considered as existing rules increase welfare dependency and increase poverty, not cut it.
“Expenditure and numbers on disability allowance continues to rise. Current arrangements facilitate long-term welfare dependency, poor employment outcomes and elevated poverty rates,” it goes on.
Income tests, medical and eligibility tests should be used to ensure that those whose “conditions improve” stop getting disability allowances, which will raise echoes of the “fit to work” rules introduced in the UK since 2010.
Advocating “an active case management approach”, the social protection officials suggested restructuring the entitlement for payment from a “disability assessment to a work capacity assessment”.
The document also says that the so-called net "fiscal space" – the amount of money available for new spending commitments next year – could be as high as €800 million, although Minister for Finance Michael Noonan has suggested a figure of €900 million.
Other issues dealt with in the briefing note include an additional €100 million is needed to repair roads damaged by flooding and no specific monies have been set aside for the payment of the social welfare Christmas bonus this year. This is in line with previous practice.
A recommendation that the National Broadband Plan “be fully reviewed before the Government is asked to irrevocably commit to the project”. A failure to reach 2020 emissions targets could cost €600 million.
Challenges laid out
The document lays out challenges facing Mr Donohoe in public service pay, saying “significant” pressures will arise as the economy improves.
"Recruitment and retention considerations may require the public service to improve its offer to access essential but highly marketable skill sets," it says. More money will also be needed to hire extra teachers and build more classrooms, while any additional funding given to An Garda Síochána should be "linked to a clear commitment to reform".
The document suggests the five-year capital investment plan published last year may need to be reviewed if the economy continues to grow, with the department supporting additional spending on housing.
The quickest way to increase social housing supply is to reprioritise funding towards it, it says. More modular homes could also make “a significant impact on the homelessness crisis within a year”.
Private house building is not meeting demand and the reasons include the high cost and hoarding of land; labour costs and taxes; development standards and contributions. The document also says that "it is argued" the Central Bank lending rules "are rendering it uneconomic to build new starter homes" and pushing up the cost of rents.
