The back to work allowance was introduced in September 1993 as part of my Department's programme of initiatives designed to assist the long-term unemployed to return to the active labour force. The allowance was introduced at a time when long-term unemployment stood at 8.9%. In its early years the scheme proved very effective in helping people who had been long-term unemployed to return to the labour force.
The transformation in labour market conditions since the mid-90s has reduced the need for a back to work scheme. This is illustrated by the drop in numbers availing of the scheme in recent years.
In 2001, 12,425 people participated in the scheme. By 2002, that number had fallen to 9,931, representing a 20% drop in the overall take up rate over the period.
At present there are 23,297 participants in the scheme compared to 39,343 in October 2000 when the scheme reached its peak.