Chapter 4:
Action for Greater Social Inclusion
Introduction
4.1 - The impact of this Partnership in promoting greater social inclusion will come through:
4.2 - Expenditure of £525 million on a full year cost basis on social inclusion measures will protect the real value of social welfare payments during the period of the new Partnership and provide significant additional improvements in the social inclusion areas within the framework set down in this Chapter and Chapter 5.
4.3 - Social exclusion can be succinctly described as cumulative marginalisation: from production (unemployment), from consumption (income poverty), from social networks (community, family and neighbours), from decision making and from an adequate quality of life. Social exclusion is one of the major challenges currently facing Irish society. To minimise or ignore this challenge would not only result in an increase in social polarisation, which is in itself unacceptable, but also an increase in all the attendant problems such as poor health, crime, drug abuse and alienation, which impose huge social and economic costs on our society.
4.4 - Social inclusion will therefore be pursued not in any residual way, but rather as an integral part of this Partnership and a strategic objective in its own right. The primary objective of a social inclusion strategy is to ensure that the benefits of economic growth, and related social improvements, are shared by all sections of the Irish population. Access to jobs is a key to this.
4.5 - The tackling of social exclusion requires an integrated approach, with full inter-sectoral co-ordination, and appropriate mid to short-term and strategic long-term measures. This will be the approach as outlined in the following sections.
4.6 - The macroeconomic and fiscal framework, envisioned by NESC and outlined in Chapter 2, establishes the parameters within which a strategy to tackle social exclusion must take place. That is, as in all areas of public policy, it must be consistent with the management of public finances such that the targets set out in the Maastricht Treaty can be met. The implementation of the proposals set out in this Chapter will require a reordering of some Government spending priorities with increases in expenditure in some areas being compensated elsewhere.
National Anti-Poverty Strategy
4.7 - A central feature of this Partnership will be the adoption of a National Anti-Poverty Strategy (NAPS) by the Government early in 1997.
4.8 - The Strategy, which reflects the Government's commitment at the UN Social Summit in Copenhagen in 1995, is at an advanced stage of preparation, involving extensive participation by and consultation with those experiencing poverty and social exclusion, and those organisations articulating the interests of these groups.
4.9 - Arising from the consultation process, the NAPS will address five key themes which are central to the tackling of poverty and social exclusion:
4.10 - In each case, the NAPS will outline a series of objectives to be pursued, and the strategy to be followed in the interest of reducing poverty and social exclusion. This will involve an explicit framework and a more co-ordinated response across the range of relevant public policies and agencies. Within this broad framework, particular policies and programmes will be developed in the normal way, as resources permit, whether through changes in existing measures or the development of new measures. For example, the delivery of health services will continue to reflect the progressive implementation of the Health Strategy published by the Department of Health.
4.11 - Discrimination is being addressed in all of the themes listed in paragraph 4.9 as an overarching theme. In addition the NAPS will be based on the following principles:
4.12 - The parties to the agreement are committed to putting a National Anti-Poverty Strategy in place as soon as possible. Appropriate institutional arrangements will be put in place to support a NAPS, in particular by facilitating consultation, monitoring and evaluation, with a view to securing a targeting of resources and a mainstreaming of poverty issues.
4.13 - Funding of the national anti-poverty networks will be continued. The Green Paper on Voluntary Activity, to be published early in 1997, will outline options for permanent funding arrangements for these networks and other national networks concerned with equality and social inclusion. Final decisions on further funding arrangements and levels will be made in the light of the consultations and discussion to follow publication of the Green Paper.
4.14 - The following sections indicate the priority issues in the context of this Partnership, arising from the reports of the NESC and the NESF, in respect of each dimension of the strategic approach to tackling exclusion set out in paragraph 4.9.
Support for Families
4.15 - The relationships sustained in families are an important foundation for full participation in economic and social life. In the context of this Partnership, the Government reaffirms its policy on supporting families and strengthening their capacity to deal with changing social and economic realities. To that end, the recommendations contained in the Interim Report of the Commission on the Family, published recently, and the Commission's Final Report which is due to be published in mid-1997 will be fully considered in the context of developing coherent, progressive and effective policies for families.
Social Inclusion and Unemployment
4.16 - The single biggest contributor to social exclusion, and poverty, is unemployment. Conversely, access to work, to adequately paid employment, is a major source of participation. Thus the most effective strategy for the achievement of greater social inclusion is one which focuses, across several fronts, on increasing employment and reducing unemployment. This Partnership 2000 for Inclusion, Employment and Competitiveness, like its predecessor the PCW, while acknowledging the importance of all the dimensions of social exclusion and seeking to address them, focuses in particular on tackling unemployment, through enterprise promotion, job growth, employment incentives, active labour market measures and tackling discrimination within the framework set out in paragraph 4.22.
4.17 - In seeking to reduce unemployment traps, a key issue is improving take home pay and non-wage benefits of those at work on low incomes. The incentive and reward dimensions are crucial. These arise in relation to:
The NESC and NESF analysis envisaged action being required in three areas: family income support, supplements for housing, rent or mortgages, and active labour market measures. Tax polices affecting the take home pay of those at work on low incomes, as well those addressing the problem of tax and social welfare fraud, are dealt with in Chapter 3.
Reform of Child Benefit and Family Income Supplement
4.18 - The Expert Group on the Integration of Tax and Social Welfare identified significant unemployment and poverty traps associated with child income support. In the 1995 and 1996 Budgets, Child Benefit was significantly increased in the context of a strategy to move towards a more integrated child income support system. It is recognised that there are very substantial costs involved in moving towards a more universal system of income support for children and that it has significant implications for women in the context of the distribution of household finances.
4.19 - In the context of the priority of reducing disincentives to work, priority will be given to the Family Income Supplement (FIS) system as a means of increasing the net return from work to families with children. Accordingly, during the lifetime of this Partnership, FIS will be reformed so as to be calculated on a net income basis, rather than on gross wages, as at present. This will significantly increase the supplements payable and hence the rewards from work. This will complement the beneficial impact on incentives, jobs and equity of the tax measures to be implemented as part of this Partnership, as outlined in Chapter 3.
Modification of Withdrawal Rate of Housing Supplement
4.20 - Under the Supplementary Welfare Allowance Scheme, a weekly supplement may be paid in respect of rent or the interest element of a mortgage repayment, provided a person is not working for more than 30 hours per week. The withdrawal of this allowance can constitute a severe unemployment trap.
4.21 - Specific consideration will be given to alleviating this unemployment trap, through the introduction of an appropriate tapering arrangement. The Government will consider this issue within the first year of this Partnership, in consultation with the Social Partners.
Expansion of Targeted Employment Measures
4.22 - Directly targeting sectors of the unemployed by providing active labour market policies is a key part of the action programme to tackle social exclusion. Accordingly, as resources permit, action will be taken during this Partnership to:
4.23 - In this context, the priority target groups will be:
4.24 - The range of labour market interaction measures, including the Community Employment Programme (both the integration and part-time job options), the Pilot Part-Time Jobs Opportunities Programme and the Jobs Initiative will be reviewed to ensure that priority is given to those most disadvantaged. The objective will be to meet then-needs through a greater choice of full-time or part-time options. As resources permit, there will be an increase of 10,000 places, with particular provision for those unemployed for more than 5 years.
4.25 - The progression of participants from labour market programmes to open employment will be enhanced by ensuring that adequate resources are available to support the personal development of participants, by providing certification of the experience gained in such programmes (to be developed by TEASTAS in partnership with the Social Partners), by reviewing the effectiveness of job subsidy schemes which support the recruitment of the unemployed and by developing new approaches as necessary. In addition, provision will be made for the development of independent and accessible outreach information services to advise the target population of the services available.
Further Development of Employment Services
4.26 - The development of an effective public employment service, especially through the Local Employment Service (LES), is essential to address the needs of the unemployed, and particularly the long term unemployed, through providing:
4.27 - The initial phase of the establishment of the LES in 14 areas is currently being evaluated. The LES will be extended, through the country on a phased basis, initially to areas of concentrated unemployment, such that the LES will have commenced in all designated partnership areas during the period of this Partnership. The operational agreements for an extended LES will reflect the outcome of the current evaluation and consultation with all interested parties. There will be a commitment to user representation on management committees. The expanded LES will provide advice and support services to all those seeking work, with priority being given to the groups specified in paragraph 4.23.
Education
4.28 - The link between educational disadvantage and unemployment and social exclusion is very strong. Accordingly, education policy will continue to be oriented in such a way as to give priority in the allocation of resources to those in greatest need. This will take account of the priorities in the White Paper on Education, the Report of the Commission on the Status of People with Disabilities, the Report of the Task Force on the Travelling Community, the Review Body on Special Education, the NESC recommendations and the forthcoming report of the NESF, and the deliberations of the NAPS theme group on educational disadvantage.
4.29 - Accordingly, policy and strategy will give priority to the following key objectives of:
4.30 - Over the course of the Partnership priority will be given to:
Income Adequacy
4.31 - The real income position of those dependent on social welfare will be protected and enhanced. It is agreed that the minimum rates recommended by the Commission on Social Welfare will be implemented before the end of this Partnership. Meanwhile the analysis of poverty and income adequacy measures, carried out by the ESRI and published in December 1996, will be considered in the context of the NAPS. This consideration will take account of the labour market consequences of the scenarios presented by the ESRI, when assessed in conjunction with the pay and personal taxation development outlined in this Partnership.
4.32 - The impact of the £60 earnings ceiling on the payment of adult dependant allowances and child dependant allowances creates poverty traps, particularly for low-paid workers. Measures to alleviate those poverty traps will be considered, in consultation with the Social Partners.
4.33 - In the context of the focus on unemployment and exclusion, enhancement of the real value of payments to the unemployed is based on the reciprocal obligations of society to provide decent incomes and worthwhile supports in job seeking for the unemployed, and of the unemployed to seek and accept reasonable employment, development and training opportunities. In this context, continuing progress will be made during this Partnership, in enhancing the quality of labour market programmes.
Social Insurance System
4.34 - The importance of the role of the Social Insurance System in the overall provision of social protection is recognised. The reform and development of the Social Insurance System will be continued over the course of this Partnership.
Basic Income
4.35 - A further independent appraisal of the concept of, and the full implications of introducing a basic income payment for all citizens will be undertaken, taking into account the work of the ESRI, CORI, and the Expert Group on the Integration of Tax and Social Welfare and international research. A broadly based steering group will oversee the study.
Pensioners
4.36 - The recent ESRI Report on Occupational and Personal Pension Coverage in 1995 has led the Department of Social Welfare and the Pensions Board to undertake the National Pensions Policy Initiative. The purpose of the Initiative is, following wide-ranging consultation, to produce recommendations on the future development of a national pensions policy. The application of the Revenue Commissioners regulations on pensions will be reviewed in the light of the Initiative.
4.37 - The Minister for Social Welfare will also request the Pensions Board to examine the following issues:
Account will be taken of the forthcoming Opinion of the NESF on older people and pensions.
The Social Economy
4.38 - The EU White Paper, Growth, Competitiveness, and Employment (1994), gave a clear endorsement to the concept of the social economy. The White Paper identified the possibility of encouraging new types of social services provision and useful social employment along a 'continuum' between pure, commercial service provision, on the one hand, and pure statutory provision, on the other.
4.39 - A Working Group will be established immediately to undertake a detailed examination of the potential of the social economy, both in terms of employment and also in the supply of services, such as childcare, elder-care and services improving the quality of life in disadvantaged areas. The Working Group will comprise representatives from relevant Government Departments and the Social Partners. Appropriate support mechanisms to facilitate the achievement of the full potential of the social economy will be established, in the light of the recommendations of the Working Group.
Local Development
4.40 - The area-based approach to tackling long-term unemployment, established under the PESP, will be continued with the active support of the parties to this Partnership. The identification of good practice and of national policy implications will be matters for priority attention, in line with the recommendations of the OECD review of local development policy and practice in Ireland. In particular, there will be a focus on producing a more concentrated policy response to the needs of communities with the greatest concentrations of unemployment and disadvantage. Special attention will be paid to enhancing community and business participation in the Programme of Urban and Village Renewal.
Devolution
4.41 - Local development, including locally-based strategies to tackle unemployment and social exclusion, will be supported through the development of an appropriate partnership between local development bodies and a renewed local government system. This will reflect the work of the Devolution Commission, providing a local government system with an extended range of functions and powers. In the course of this Partnership preparations will be made for an integrated approach to local government and local development, building on the achievements of the Local Development Programme and continuing the emphasis on participation and partnership which is being developed with the support of the structural funds committed up to 1999. The development of arrangements for the post-1999 scenario will involve the participation of the Social Partners.
Enterprise Trust
4.42 - The employer bodies will co-operate with the overall strategy for local development and will promote the establishment of Local Enterprise Networks within the framework of the Operational Programme for Local Urban and Rural Development. Enterprise Trust, a body formed by them in 1992, which has special tax status to maximise the potential of the private sector support for local economic and social development, will support this commitment on the part of the employer bodies.
Community Development
4.43 - Local Development in disadvantaged areas requires that communities develop the capacity to provide effective leadership. Accordingly, the Department of Social Welfare's Community Development Programme (CDP) will continue to be strengthened and expanded. A priority list of thirty new areas and communities of interest to be pro-actively targeted for inclusion in the Programme over the period of this Partnership will be drawn up. Deprived rural areas and urban neighbourhoods not already served by the CDP and communities of interest, which may require different approaches, will be priorities in this process.
Disadvantaged Urban Areas
4.44 - The particular needs of the major urban centres will be addressed. In the context of the Territorial Employment Pacts proposed by the European Commission, the parties to this Partnership will review and deepen their commitment to locally-based measures to enhance employment and tackle unemployment, in line with the objectives of the Action Plans of the area partnerships in these cities.
4.45 - The scale and concentration of disadvantage in certain areas of Dublin requires a strategic and targeted response. This must be multi-dimensional and must be targeted in such a way as to reach the individuals and communities directly effected. The particular needs of disadvantaged communities in Dublin will be addressed through supporting the conclusion of a Territorial Employment Pact for Dublin, in line with the recommendations of the European Commission. This will provide a renewed focus by the public authorities and the Social Partners on the needs of disadvantaged Dublin communities. In particular, it will provide a new strategic framework to the work of the existing area partnership companies. This will take account of the potential impact on unemployment and social exclusion of the Docklands Development, of the Historical Area Renewal Project (HARP), of the Urban Initiative and of the other major infrastructural developments which are planned. Recommendations for a refocusing of investment and spending programmes to benefit those experiencing the most severe disadvantage will be identified.
4.46 - Estate management policies will be developed to provide more local, more participative and more effective arrangements for the management of the local authority housing stock, especially in the most disadvantaged areas. A programme of physical renewal will be continued which will complement and engage with these management arrangements. These developments will be based on the recommendations of the Housing Management Advisory Committee, taking account of the experience of area partnerships in supporting tenant participation programmes and of the Urban Initiative.
Drugs
4.47 - The tackling of the drugs problem will be an urgent priority under this Partnership. This will reflect a vigorous approach to both the supply and demand dimensions of the problem. The integrated strategy of increased Garda and prison resources, improved inter-agency co-ordination and enhanced legal powers, announced by the Government in July 1996, will be fully implemented. With regard to reducing the demand for drugs, local Drugs Task Forces will be established and supported in each of the areas with the most severe drugs problem, in line with the recommendations of the Ministerial Task Force. A comprehensive range of measures will include: the elimination of waiting lists for treatment, the expansion of community-based treatment facilities, the development and expansion of rehabilitation and support programmes for those completing treatment programmes, linking to the labour market and jobs and a vigorous approach to prevention. The operation of the local Drugs Task Forces will be reviewed at the end of 1997, with a view to ensuring that appropriate structures and resourcing are in place to deal with the problem. The Ministerial Task Force will report early in 1997 on policy in relation to drug abuse, other than opiates, and appropriate arrangements will be put in place to implement these recommendations. The National Drugs Strategy Team will liaise with the Social Partners on the implementation of the strategy.
Rural Exclusion
4.48 - The problems of poverty and social exclusion have a distinct impact in a rural context being compounded by aspects of physical isolation and demographic dependence. This is recognised in the approach being taken to the adoption of the NAPS where one of the five key themes involves tackling poverty in rural areas. In the context of the NAPS, the issue of poverty in farming households will be examined, and the Government will identify, within the lifetime of the Partnership, if there are feasible measures to assist these households. The NAPS will be based on the principles set out in paragraph 4.11 including:
4.49 - The experience of area-based initiatives including LEADER in the areas of capacity building and community development will be reflected in the Strategy. The NAPS will take specific account of the needs of rural women, those engaged in small-scale and marginal farm enterprises, the elderly and those experiencing educational disadvantage.
4.50 - Adequate access to a variety of public services is an important issue for communities living in rural areas. A Pilot Programme for the Delivery of Public Services in Rural Areas is currently underway. An interim evaluation of the Pilot Programme will be completed by mid-1997 and the lessons derived from this Pilot Programme will be reflected in the design and delivery of mainstream public services. A Western Development Commission will be established to address the particular developmental needs of the West of Ireland. The renewal of local government will provide a further support to the development of the rural economy and society. The approaches outlined for urban housing stock management and renewal, outlined in paragraph 4.46, will also apply to rural areas. In this regard, full account will be taken of the conclusions and recommendations of the NESC study of settlement patterns in the context of viable rural communities, and of the NESF report on rural development, both to be published in 1997, and of the report of the Combat Poverty Agency on rural poverty.
