Colm M. Hilliard
Question:36 Mr. Hilliard asked the Minister for Social Welfare the number of people approved under the back-to-work scheme; and if he will make a statement on the matter. [10630/95]
Written Answers. - Back-To-Work Scheme.
Seamus Kirk
Question:39 Mr. Kirk asked the Minister for Social Welfare if he will consider paying 50 per cent of the back-to-work allowance in advance to allow recipients to set up a business. [10631/95]
I propose to take Questions Nos. 36 and 39 together.
The back-to-work allowance was introduced in September 1993 as an integral part of my Department's programme of initiatives designed to encourage the long-term unemployed to return to the active labour force. This scheme has proved to be a significant success. To date just over 7,300 people who were previously long term unemployed or lone parents have returned to real jobs as either employees or self-employed persons. Approximately 4,700 (64 per cent) recipients of the allowance are engaged in a wide range of self employment enterprises while the remainder are working as employees. The average weekly payment being made under the scheme is £64.36. Back-to-work allowance payments are not subject to income tax or PRSI. I am very pleased with the success to date of this scheme. It has proved to be very attractive to the long-term unemployed and has encouraged the creation of new job opportunities in both the services and indigenous industries sectors.
In particular it has demonstrated that there is a wide reservoir of diverse ideas and talents among the unemployed. The financial incentive provided by the back-to-work allowance has given many of them the opportunity to apply those ideas and talents in what, hopefully, will become profitable enterprises. A number of the enterprises created as a result of the scheme have now started to generate employment themselves and this is a particularly significant and important development.
The scheme is being carefully monitored by my Department. I have recently commissioned an independent evaluation of the impact of the scheme and this should be available to me towards the end of the year. The results of this survey will be important in the context of the future development of the scheme.
There is no provision for making advance payments of the back-to-work allowance along the lines suggested. This would be contrary to the rationale behind the allowance in the case of persons engaging in self employment which is to provide financial support to the person and his family for a period of three years while the project is getting off the ground. I would not therefore, in general, favour such an arrangement. I am, however, aware of the difficulties which persons who have been unemployed for considerable periods can experience in securing even small loans through the normal commercial outlets. It was for this reason that I recently established a Joint Enterprise Fund of £500,000 with the First Step organisation. Small interest-free loans are available from this Fund to existing and new back-to-work allowance customers who have failed in their efforts to secure funding through normal channels. They should contact my Department's local job facilitator for further information.