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Dáil Éireann debate -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Written Answers. - Exchequer Funds.

Frances Fitzgerald

Question:

170 Ms Fitzgerald asked the Minister for Social, Community and Family Affairs the amount that is expected to be returned to the Exchequer in 2000 arising from the lower than unexpected number claiming unemployment benefit and unemployment assistance; the expected changes in the number signing on in 2001; and the way in which such changes are reflected in the provision for unemployment payments in 2001. [30017/00]

The 2000 estimates for unemployment benefit and unemployment assistance were framed on the basis that an average of 142,780 persons would be receiving payments throughout the year. This figure provided for a projected average live register of 165,000, an estimated 6,080 short-time workers, persons aged 65 and over, persons from the self-employed sector and smallholders and also took account of an estimated 28,300 persons who, at any time, would not be receiving payments because their claims were pending, suspended or they were signing for credits. It is now expected, based on latest returns, that the number of persons receiving payments during the year will outturn at an average of around 133,380. This represents a reduction of 9,400 on the estimates provision and will give rise to savings of £30 million approximately on the estimate for unemployment assistance and £13 million approximately on the estimate for unemployment benefit. Unemployment assistance is financed by the Exchequer and, therefore, the savings that arise on this scheme will be returned to the Exchequer. Unemployment benefit, on the other hand, is financed by PRSI contributions through the social insurance fund and the savings that arise on this scheme will be retained by the fund.

The 2001 estimates for unemployment benefit and unemployment assistance, as they currently stand, have been framed on the basis that an average of 116,800 persons will be receiving payments throughout the year. This figure provides for a projected average live register of 136,000, an estimated 4,800 short-time workers, persons aged 65 and over and persons from the self-employed sector and also takes account of an estimated 24,000 persons who, at any time, will not be receiving payments. The overall estimates provision of 116,800 persons represents a decrease of 16,580 on the corresponding projected outturn figure of 133,380 for the current year. When taken in isolation from other factors, such as the additional cost in 2001 of the substantial 2000 and 2001 Budget improvements, this decrease gives rise to a reduction of £49 million approximately on the 2001 estimate for unemployment assistance and £27 million approximately on the 2001 estimate for unemployment benefit.

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