Dáil Éireann debate -
Tuesday, 27 Feb 1996

Vol. 462 No. 2

Written Answers. - Back to Work Scheme.

Séamus Hughes

Question:

202 Mr. Hughes asked the Minister for Social Welfare the reason changes have been made to the back to work allowance scheme which have the effect of a limited category of persons losing entitlement to secondary benefits such as medical cards in spite of the fact that all statements made in connection with the scheme give an opposite position. [4451/96]

Séamus Hughes

Question:

211 Mr. Hughes asked the Minister for Social Welfare if he will ensure that all applicants approved for the back to work allowance scheme do not lose their entitlement to secondary benefits such as medical card, and that persons earning £250 gross or more a week which is the average industrial wage will continue to enjoy such secondary benefits. [4448/96]

Minister for Social Welfare (Proinsias De Rossa)

It is proposed to take Questions Nos. 202 and 211 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 with over 10,500 persons currently in receipt of the allowance. An independent evaluation of the scheme has just been completed and the final report is expected to be with my Department shortly. Preliminary conclusions show that the scheme is proving to be a success in encouraging the long-term unemployed to leave the live register and to return to work.

An important aspect of the scheme is that participants are allowed to retain their secondary benefits for the three years they are receiving the allowance provided that the combined weekly income from employment or self employment and the back to work allowance is less than £250. No changes have been made to this aspect of the scheme. However, my Department is aware that in a small number of cases, difficulties have arisen with regard to the retention of the medical card and discussions to try to resolve this matter are ongoing between my Department and the Department of Health. I do not have any plans at present to allow people with income in excess of £250 weekly under the scheme to retain entitlement to secondary benefits. The information available from the evaluation of the scheme shows that the vast majority of recipients had income below this weekly figure.