Dáil Éireann debate -
Thursday, 20 Feb 2003

Vol. 561 No. 6

Written Answers - Employment Support Services.

Brendan Howlin

Question:

29 Mr. Howlin asked the Minister for Social and Family Affairs the recent amendments made to the back to work allowance and the back to work enterprise allowances schemes; if her attention has been drawn to the hardship this has placed on many people trying to re-enter the workforce; and if she will make a statement on the matter. [4833/03]

Trevor Sargent

Question:

35 Mr. Sargent asked the Minister for Social and Family Affairs if she will reconsider announced changes to the back to work allowance scheme in view of increasing unemployment; and if she will make a statement on the matter. [4931/03]

Minister for Social and Family Affairs (Mary Coughlan):

I propose to take Questions Nos. 29 and 35 together.

The range of employment support services administered by this Department was reviewed last year in the light of the major economic and labour market changes that have occurred in recent years. This transformation in labour market conditions is illustrated by the drop in unemployment levels since the introduction of the back to work allowance in 1993. When the allowance was introduced the overall unemployment level was 15.7% and long-term unemployment stood at 8.9%. By 2001 overall unemployment had fallen to 3.7% and long-term unemployment was down to 1.2%.

The review also took cognisance of an independent evaluation of the scheme, which was published in December 2000. In the light of the tight labour market situation, the report recommended 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.

Following on from this review, therefore, the qualifying period for persons on unemployment benefit-assistance has been increased from 12 and 15 months to five years. Other social welfare qualifying payments are not affected by the change nor are current participants.

It is important that my Department's employment support services retain their relevance to current employment and economic conditions and continue to focus on the more vulnerable in our community. I have no immediate plans to change the existing qualifying criteria for participation in the scheme.