Written Answers. - Employment Support Services.
Cecilia Keaveney
Question:
217
Cecilia Keaveney
asked the
Minister for Social, Community and Family Affairs
his views on the recent Indecon International Economic Consultants' report which looked into the back to work scheme; and if he will make a statement on the matter.
[3984/01]
My Department recently published the findings of an independent evaluation of the back to work allowance scheme which was carried out by Indecon International Economic Consultants. The back to work allowance scheme supports long-term unemployed people, lone parents and certain persons with disabilities in going back to work by allowing them to retain part of their social welfare payment when they take up employment or self-employment. Since it commenced in late 1993, almost 80,000 people have availed of the scheme. At present there are approximately 39,000 participants with almost half of these engaged in a wide variety of self employment projects.
The report follows extensive research, including a survey of people who have participated in the scheme. A postal survey of employers was also carried out and consultations took place with interested organisations such as the Irish Congress of Trade Unions, the Irish Business and Employers Confederation and the Irish National Organisation for the Unemployed.
The evaluation was focused primarily on persons who had ceased to receive payments under the scheme because their three or four year cycle of support had ended or because they had left the scheme prematurely. In summary, it found that the scheme was largely achieving its objectives of providing an incentive by way of financial support to the long-term unemployed to encourage them to return to work.
The consultants found that the scheme was affected by problems of dead-weight in that many of those benefiting under the scheme would have re-entered the labour market even in the absence of the scheme. The report accordingly recommends, in the light of the current tight labour market situation, that the scheme be refocused on the longer-term unemployed, that the non-financial supports be enhanced and that the overall numbers on the scheme be reduced.
The scheme has been highly successful since its implementation and has provided a route out of unemployment for significant numbers of long-term unemployed persons. I am happy that the scheme still has a significant role to play in assisting people who are still on the live register and other groups of welfare recipients such as people with disabilities, lone parents and carers to re-enter the world of work.
I fully agree with the recommendations in the report concerning an increased level of training, advice, support and mentoring for those participating in the scheme. In this context I will shortly be introducing a code of practice aimed at employers, participants and the Department as recommended in the report. I have also set aside £250,000 to help persons entering self employment under the scheme with the cost of public liability insurance and last year I provided an extra £250,000 to the First Step organisation to help that organisation expand its programme of interest free loans to self employed participants in the scheme.
The report will form the basis for future developments of the scheme and will help my Department ensure that it reflects the needs of the labour market and also the needs of the client groups at whom it is targeted. It is my intention to consult the social partners about the report and its findings and recommendations with a view to agreeing a consensus approach to the future development of the scheme.
