SUPPLEMENTARY ESTIMATE 2012
FOR VOTE 37
DEPARTMENT OF SOCIAL PROTECTION
SPEECH
by the
MINISTER FOR SOCIAL PROTECTION
Joan Burton T.D.
to the
OIREACHTAS SELECT SUB-COMMITTEE
ON SOCIAL PROTECTION
Wednesday, 5th December 2012
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I wish to express my appreciation to the committee for the opportunity
given to me to present a Supplementary Estimate for the Department of
Social Protection.
I am seeking a Supplementary Estimate of €685 million for 2012.
This
is necessary for two reasons:
i.
A higher Exchequer Subvention to the Social Insurance Fund
because PRSI contributions will be less than expected this year.
ii.
A higher Live Register than provided for in the estimates.
The Supplementary Estimate of €685 million is made up as follows:
i.
€418 million arising from a higher Exchequer Subvention to the
Social Insurance Fund due to lower than expected PRSI receipts;
ii.
€264 million due to higher expenditure on Vote schemes and
services and administration.
iii.
€3 million in respect of other balances.
I now propose to provide some further information on the make-up of the
first two items.
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The higher Exchequer Subvention to the Social Insurance Fund is made
up as follows:
i.
Lower Social Insurance Fund income estimated to outturn at
€6.63 billion in 2012. This will be €454 million or 6.4% less
than the original estimate and is due to a shortfall in PRSI
receipts.
ii.
Offset by lower expenditure on Social Insurance Fund
schemes expenditure of €8.87 billion. This will be
approximately €36m or 0.4% lower than estimated.
iii.
Arising from lower PRSI receipts and slightly lower
expenditure that I have just mentioned, the Exchequer
Subvention will now be €2.23 billion. This will be
approximately €418 million or 23% higher than estimated.
The excess on Vote 37 schemes, services and administration in 2012 at
€264 million is made up of two main elements:
i.
€271 million over-spend on Jobseeker’s Allowance arising from a
higher Live Register;
ii.
Offset by an under-spend of €7 million on all other schemes,
services and administration funded from the Department’s Vote.
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The Live Register is expected to average at 437,300 compared to 425,000
provided for in the Department’s estimate. The additional cost of the
higher Live Register is expected to be €235 million, with €271 million
arising on Jobseeker’s Allowance, being offset by an under-spend of €36
million on Jobseeker’s Benefit.
Apart from Jobseeker’s Allowance, expenditure on all other schemes,
services and administration, when taken together is expected to be just
below target. While additional sums are necessary for a number of
schemes, this is being by anticipated under-spends on other schemes. The
relevant schemes are outlined in the Supplementary Estimate.
Overview of the Department’s expenditure
Overall expenditure on schemes, services and administration provided by
the Department of Social Protection in 2012 is expected to be just under
€20.77 billion. This is expected to be €228 million or 1.1% more than
provided for in the estimate.
Of this:
a. €8.87 billion will be spent on Social Insurance Fund schemes and
costs associated with administering these schemes. This represents
an under-spend of just under €36 million or 0.4% on the original
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estimate. Excluding the under-spend of €36 million on
Jobseeker’s Benefit, expenditure on everything else when taken
together is expected to be on target.
b. €11.9 billion will be spent on Social Assistance schemes funded
from Vote 37 and associated administration. This represents an
overspend of €264m or 2.2% when compared with the original
estimate.
I now propose going through the programmes of expenditure of the
Department of Social Protection in 2012.
1. The cost of administration is expected to outturn at €585 million.
This is €14.9 million or 2.5% less than provided in the estimate.
Administration is expected to make up 2.8% of overall Department
expenditure this year.
2. Expenditure on pensions is expected to outturn at €6.28 billion.
This is €28m or 0.5% more than provided in the original estimate.
It is also just under €780 million or 14% greater than it was in
2008.
The cost of funding pensions is expected to increase by a
further €200 million in 2013, as the number of people of pension
age continues to grow. The number of people receiving pensions
has increased from 460,000 recipients in 2008 to 540,000
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recipients in 2012, an increase of 80,000 or 18%. €5.3 billion of
the €6.2 billion spent on pensions this year is funded from the
Social Insurance Fund, representing 60% of expenditure from the
Fund.
3. Expenditure on Working Age Income Supports is expected to
outturn at just over €6.0 billion. This is €302 million or 5.3%
higher and costs associated with the higher Live Register
mentioned earlier.
4. Expenditure on Working Age Employment Supports is expected to
outturn at almost €960 million. This represents an under-spend of
€23 million or 2.4%.
5. Expenditure on Illness, Disability and Carer’s is expected to be
€3.4 billion, representing an under-spend of €84 million or 2.4%.
6. Expenditure on Children at €2.4 billion is on target.
7. Expenditure on Supplementary Payments, including Household
Benefits, Fuel Allowance and Free Travel is expected to be €1.18
billion, €20 million or 1.7% ahead of profile.
Conclusion
To conclude, I hope that my opening statement has given you a good
overview of the Department's expenditure in 2012 and the reasons
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underlying the necessity to seek a Supplementary Estimate.
The schemes and services operated by the Department benefit everyone
in society, either directly or indirectly, and are the key platform for the
delivery of social protection in our country. I look forward to discussing
the Supplementary Estimate of €685 million with the committee.
ENDS
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