Weekly rates of 5,000 dole claimants slashed

Almost 5,000 dole claimants have had their weekly rates slashed or cut off after refusing to take up work or training opportunities.

The numbers receiving penalties sharply increased last year, according to figures from the Department of Social Protection’s annual report.

Department inspectors say they saved €613m last year by carrying out reviews of welfare payments in a bid to minimise abuse of the system.

Joan Burton, the social protection minister, yesterday ruled out any move in a Cabinet reshuffle later this year and said she wanted to continue with her portfolio.

Her department’s annual report shows that reductions or disqualifications in social welfare have been applied in almost 5,000 cases since tougher rules were initiated in April 2011. Claimants can have amounts reduced or disqualified for up to nine weeks for failing to engage with opportunities.

Some 3,000 of these penalties were imposed last year alone.

Other figures from the report show that savings of €73.5m were made from fraud control activities in 2013, an increase of 17% over 2012. These separate investigations resulted in 4,385 cut-offs or reductions to payments last year.

The report also showed that nearly 1.5m people received a weekly social welfare payment in 2013. When spouses, partners, and children are included, 2.3m people claimed these payments.

Furthermore, 600,000 families received child benefit payments in respect of almost 1.2m children each month last year.

Overall, department spending was estimated at €20.23bn in 2013, the largest portion of which (31.9%) went on pensions.

Meanwhile, Ms Burton yesterday ruled out any desire to move in the Coalition’s upcoming Cabinet reshuffle, which is expected to be decided by Taoiseach Enda Kenny after the local and European elections in May.

The deputy Labour leader said that she was “very passionate” about reform in welfare and committed.

However, asked by Newstalk’s Pat Kenny if she would move to the Department of Foreign Affairs, she said: “I have to say no, I was Minister for Development [before] and very interested in foreign affairs but my priority at the moment is in terms of people who are unemployed and getting those people back to work.”

She said only Mr Kenny and her party leader, Tánaiste Eamon Gilmore, would decide the reshuffle and neither had so far shared their thoughts on the matter with her.

Elsewhere, Independent TD Seamus Healy yesterday called on the Government to introduce an asset or wealth tax in the next budget.

Speaking during Leaders’ Questions in the Dáil, Mr Healy pointed to ESRI findings that the last budget had the greatest impact on low-income groups.

Labour had reneged on election pledges in 2011 and cut payments for the vulnerable, including child benefit, he said.

“It made promises with full knowledge of the situation in 2011. The assets of the super rich are back above peak levels in 2006, according to the Central Statistics Office,” Mr Healy said.

He called on the Coalition to introduce a wealth tax on those who earn over €595,000 a year.

Brendan Howlin, the public expenditure minister, rejected his criticism and said the TD engaged in “fantasy” taxes.