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Dáil Éireann debate -
Thursday, 2 Dec 1999

Vol. 512 No. 2

Written Answers. - Tax Incentives.

Paul Bradford

Question:

74 Mr. Bradford asked the Tánaiste and Minister for Enterprise, Trade and Employment if the extra allowances and incentives available to recipients of the back to work scheme will also be granted to those people who are working on social employment schemes; and if she will make a statement on the matter. [25788/99]

Community Employment – CE – is a labour market intervention measure targeted at the long-term unemployed. The primary focus of the programme is the reintegration of the long-term unemployed into the open labour market. Participants on the programme take up part-time employment with a sponsor for a period of one to three years without losing their secondary benefits.

The back to work allowance – BTWA – is available to persons who have completed their CE programme and to other unemployed persons and lone parents who are in a position to take up employment or self-employment. Both CE and BTWA are schemes designed to prepare individuals for work in the open labour market. It would not be appropriate to combine use of these schemes in a manner which would reduce the incentives available to work in the open labour market and thereby impede the transition to work by the long-term unemployed.

BTWA participants are paid 75% of their existing social welfare payment for the first year, 50% for the second year and 25% for the third year along with their earnings. In addition, they retain their secondary benefits. In this way individuals can retain their secondary benefits for a period of up to six years and BTWA acts as an incentive to take up employment and is furthering the aims of the CE programme.

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