Dáil Éireann debate -
Wednesday, 26 Jan 1994

Vol. 437 No. 6

Written Answers. - Back-to-Work Allowance Scheme.

Gay Mitchell

Question:

245 Mr. G. Mitchell asked the Minister for Social Welfare if he will review the back-to-work allowance scheme as persons, such as a person (details supplied) in Dublin 12, who would find this scheme attractive except for the fact that his local authority rent is likely to increase from £8.90 per week to £27 per week; if he will consult with the Minister for the Environment and try to remove this anomaly which does not appear to pertain in other schemes such as the social employment scheme; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

The back-to-work allowance scheme which I introduced last September is a pilot scheme designed to encourage the creation of new job opportunities for up to 3,000 people. It provides a financial cushion to people receiving unemployment payments and lone parents allowance who wish to return to paid employment or to engage in self-employment. The long-term unemployed and lone parents can retain up to thee quarters of their weekly entitlements in addition to a range of secondary benefits for two years. The only limitation is that the combination of their income from employment or self-employment and the back-to-work allowance cannot exceed £250 per week.

The secondary benefits which participants in the scheme can retain for two years include medical cards, back to school clothing and footwear allowance, butter vouchers, fuel allowance and Christmas bonus. The retention of such benefits during the currency of the allowance is a critical factor in making the scheme attractive to persons receiving unemployment payments and in providing them with the necessary incentive to make the transition to work. In this context the possible disincentives in relation to differential rent will be examined. I am therefore raising this matter with the Minister for the Environment.