Vol. 489 No. 6
559 Mr. Ring asked the Minister for Social, Community and Family Affairs the way in which a person (details supplied) in County Mayo on the back to work allowance scheme could lose his secondary benefits, including rent subsidy of £54 per week in view of the fact that his wages have been increased by £11 to £143 per week leaving his family financially worse off. [9222/98]
The back to work allowance is designed to encourage the long-term unemployed to return to the active labour force. The scheme has proved to be a significant success with over 20,600 persons currently participating.
An important feature 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 allowance is less than £250. As the combined income of the person concerned exceeds the weekly limit of £250, he is not entitled to retain his secondary benefits.
The arrangements for retention of secondary benefits by people taking up employment are kept under review. Any change in these arrangements would have financial implications and could only be considered in a budgetary context.
560 Mr. Ring asked the Minister for Social, Community and Family Affairs when a person (details supplied) in County Mayo will be approved for a back to work allowance scheme. [9224/98]
Where an unemployed person resides in a designated partnership area, and wishes to take up self-employment, appliction can be made to the local partnership company for the area enterprise allowance. This allowance, under which participants can retain their unemployment payment for a year, is available to people who have been unemployed for at least 12 months and who are commencing approved self-employment ventures. After the first year, participants transfer to the back to work allowance under which a further three years of support is available. It is a matter for the local partnership company in the first instance to decide on such applications.
One of the criteria for acceptance into the scheme is that the self-employed activity involved should not lead to displacement of existing activity. It is understood that the person concerned made inquiries with his local partnership company regarding the area enterprise allowance and was informed that they were not accepting applications in respect of the activity proposed.
In these circumstances it is not possible to approve payment of the allowance.
