Vol. 458 No. 2
12 Mr. J. Walsh asked the Minister for Social Welfare if his attention has been drawn to the increase in the number of long-term unemployed on the live register from 1 January 1995, to October 1995; and the plans, if any, he has to address this problem. [16739/95]
The increase in the number of long-term unemployed is of course a cause for concern and is an issue which the Government is urgently addressing. The Deputy will appreciate that my Department's primary responsibility is to provide a level of income support to such persons which will ensure that they do not become socially excluded. A co-ordinated approach by several Government Departments is, however, essential to address the problem of long-term unemployment. My ministerial colleagues in the Departments of Enterprise and Employment and Education for example have significant roles to play in addressing it.
The Government recognises and accepts the seriousness of the problem and is developing a comprehensive strategy which will embrace all policy areas and ensure that the necessary priority is reflected in activities of all relevant Departments. A range of initiatives are being examined and developed and if the Deputy addresses this question to the relevant Ministers they will provide him with details of the measures which they are putting in place.
In so far as my Department is concerned we are taking a pro-active and work supportive approach to assisting unemployed people. A wide range of initiatives is already in place to assist the long-term unemployed to re-enter the active labour market. A number of measures are also in place to encourage the creation of new job opportunities for the unemployed and to assist employers in hard-pressed labour intensive sectors. Unemployed people can also avail of second-chance educational opportunities designed to enhance their prospects of obtaining employment.
The back to work allowance scheme was introduced in 1993 as a pilot scheme designed to allow people who have been long-term welfare dependants to test employment and self-employment options and regain a foothold in the labour market while retaining some financial security for up to three years.
Even though the scheme has only been in operation for just over two years there are nearly 9,500 people currently in receipt of the allowance at an average weekly payment of £62. This scheme has been a significant success and it will continue as my Department's principal incentive to the long-term unemployed to leave the live register. I have just received an interim report of an independent evaluation of the scheme. This is being examined in my Department at present with a view to identifying any further appropriate enhancements and modifications to the scheme.
I have a team of jobs facilitators in place in each of my Department's eight regions who are responsible for maximising awareness of this and other options at local level among employers, the long-term unemployed and lone parents. Their role is to assess the needs of our unemployed customers, support them in seeking job opportunities and direct them towards the wide range of existing initiatives and options provided by various Government Departments, agencies, voluntary bodies and community groups.
In addition my Department has in place a PRSI exemption scheme which grants exemption from employers' PRSI, which is 12.2 per cent, for two years to any employer who takes on an additional employee from the live register or a young person under the age of 23 years taking up their first job. About 1,900 people have to date been approved for exemption under the current scheme which started in April this year.
A package of measures was introduced in last year's Social Welfare Act to assist employers in the labour intensive sectors to retain employment and encourage all employers to create new employment. The package included a reduction in the employers share of PRSI from 12.2 per cent to 9 per cent where employees earn £231 or less per week.
A programme of second chance educational opportunities is also available to unemployed people. These optional schemes encourage people who have been out of the education system for a long time to resume their education and increase their chances of obtaining employment. At present my Department has approved just over 2,000 unemployed people to take part in third level education for the present academic year while almost 4,000 are available for the vocational training opportunities scheme which is operated through the vocational education committees.
Additionally, I recently announced improved arrangements to facilitate long-term unemployed people who wish to avail of second level education opportunities. Under the Social Welfare regulations such persons can participate in recognised second level courses if they are over 21 years of age and receiving a social welfare payment for at least six months. Usually these are second level courses run by the vocational education committees which lead to junior or leaving certificate or city and guilds qualifications.
I should also mention another employment-supportive scheme, the family income supplement, which is designed to support families with children in employment where the wages are low. This scheme reinforces the opportunities for people to remain in employment where family income is not significantly above the level of the unemployment payments which, in the event of unemployment, the family would receive. As a result of improvements made to the scheme over the past few years and other initiatives taken by my Department to promote the benefits of the scheme, the number of families receiving FIS payments has increased to almost 11,000 since mid-1993.
Another area which I am tackling is the question of disincentives to work which may arise for some of those who are dependent on social welfare and other supports. Measures in recent years include raising the tax exemption limits, exemption of the low paid from PRSI and the levies, and the improvements to family income supplement as already stated.
The expert working group on the integration of the tax and social welfare systems is currently completing its examination of disincentives. The working group was set up to identify the problems arising from the interaction of the tax and social welfare systems and to identify the steps necessary to achieve greater co-ordination and integration of the two systems. The group is expected to furnish its report within the next few months.
I will continue to take a pro-active and work supportive approach to job creation and retention and to ensure that all relevant programmes administered by my Department are geared towards this objective. I am confident that the measures which we have in place at present assist the unemployed in returning to the workforce and my Department will work closely with all relevant Departments to maximise their impact.
I am glad the Minister is concerned about the long-term unemployed, but I am disappointed that he fobs off the problem to other members of the Cabinet. I remind the Minister that collective Cabinet responsibility should bear on this matter. Does the Minister not consider it would be a good thing to have the long-term unemployed figures available on a monthly basis, similar to all the other figures we have available? They are only available on a six monthly basis, and if, for example, I were to ask for the most recent figures, in respect of October 1995, I would be told that they were unavailable.
The detail of the reply I made to the Deputy would indicate that, far from fobbing off the issue to other Departments, my Department is involved in seeking to assist the long and short-term unemployed, to access whatever jobs are available. With regard to the second part of the Deputy's question, I will investigate the feasibility and appropriateness of what he suggests.
