asked the Minister for Social Welfare the number of claimants in receipt of reduced unemployment benefit arising from the requirement of an average of 40 paid contributions for each of the previous seven years; the reason these claimants are paid at the equivalent of short term unemployment assistance instead of long term unemployment assistance; and if he will arrange for such claimants to opt for means tested unemployment assistance where this could be financially beneficial to them.
Written Answers. - Social Welfare Statistics.
49.
Payment of unemployment benefit is made for a maximum duration of 15 months. The rate of benefit payable after six months is reduced where the claimant has less than 280 paid contributions in the seven years prior to the first date of claim. The reduced rate of benefit payable in such cases for the last nine months of the claim is equivalent to the maximum short-term rate of unemployment assistance payable to persons living in urban areas who have been unemployed for less than 15 months. It is estimated that of the 71,000 current recipients of unemployment benefit, some 16,000 claimants are in receipt of the special rate.
This reduced rate of benefit is equivalent to the highest rate of unemployment assistance payable to any claimant with the exception of the long-term rate of assistance which is payable to persons who have been unemployed for over 15 months. This higher rate was introduced some years ago to cater for the special needs of the long-term unemployed.
Section 142 (1) (d) of the Social Welfare (Consolidation) Act, 1981, precludes a person from applying for unemployment assistance while entitled to or in receipt of unemployment benefit. There are no proposals to amend this provision. When claimants' entitlement to unemployment benefit expires after the maximum duration of 15 months and they qualify for unemployment assistance, they are entitled to the long-term rate in common with other claimants who have been unemployed for at least the same length of time.
The gap between the full rate and the special rate unemployment benefit was reduced arising from the 11 per cent increase in the rates of unemployment assistance in the context of the 1988 Budget, effective from last July. Any further changes would have significant cost implications and would have to be considered in a budgetary context.