Vol. 562 No. 4
435 Ms Shortall asked the Minister for Social and Family Affairs the details of recent changes to the back to work area allowance scheme; the reason for these changes; if she will review them in view of the negative impact these will have on the number moving from welfare to self-employment; and if she will make a statement on the matter. [6239/03]
Changes in the back to work allowance scheme were made in the light of major economic and labour market changes and, in particular, the drop in unemployment levels since the introduction of the allowance in 1993. The review also took cognisance of an independent evaluation of the scheme which recommended, in the light of the tight labour market situation, that the scheme be refocused on the long-term unemployed, that the non-financial supports be enhanced, and that the overall numbers on the scheme be reduced. It was recognised in the independent evaluation report that a distinction was to be made between the self-employed and employee strands of the scheme. It was also noted that research showed that 54% of self-employed participants felt they would have entered self-employment without the aid of the allowance.
