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Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Ceisteanna – Questions. Priority Questions. - Social Welfare Benefits.

Michael Ring

Question:

4 Mr. Ring asked the Minister for Social and Family Affairs the number of people who have been taken off the back to education allowance since the introduction of the changes in the scheme, giving details on a county basis; the amount her Department has saved on this to date; and if she will make a statement on the matter. [18127/03]

In framing proposals to change elements of the BTEA scheme I was conscious of the need to ensure that payments were focused on those who most need training or qualifications in order to gain a foothold in the labour market. As a result of changes introduced this year, payments under the back to education allowance scheme for the summer period have been discontinued for BTEA participants who were previously in receipt of an unemployment payment. Many students find seasonal work at home or abroad during the summer months. Participants in the scheme who fail to find employment during the summer may be entitled to unemployment assistance or benefit, subject to satisfying the usual qualifying conditions.

With regard to the number of BTEA participants who have left the scheme, it is not possible to distinguish between persons who have completed their courses and those who intend to resume in the autumn. Some 4,700 participants have concluded this year's programme so far. The most recent statistics show that 2,075 former BTEA participants have claimed for unemployment payments since May 2003. A total of 1,951 of these claims have been awarded. It was estimated that gross savings of €12.5 million would accrue from discontinuation of the BTEA during the summer period if there were no unemployment claims from those affected. Actual net savings will be less in that some of the people concerned qualify for unemployment assistance or unemployment benefit and a definitive savings figure will not be available until the summer period is over.

The scheme was also revised in respect of people who wish to pursue certain full-time postgraduate courses. These now no longer qualify for BTEA purposes. All the people concerned are already in possession of a third level qualification. They have already achieved a good level of academic attainment which should impact positively on their employment prospects. In a time of financial constraint, I am anxious to ensure that supports are directed at those with the most pressing needs. Those wishing to take up a higher diploma in all disciplines or a graduate diploma in primary school teaching are not affected by these changes. It was anticipated that savings of up to €1 million would arise from this change in the scheme.

Details of BTEA participants who have had their allowance discontinued since May 2003 are set out in the following tabular statement on a county by county basis. These figures include persons who have completed their courses and will not resume studies in the autumn as well as those who have had their back to education allowance discontinued for the summer period only. The fundamental aim of the back to education allowance scheme is to assist people who are unable to get work because of a lack of qualifications. I am satisfied that this scheme continues to fulfil this important role.

Carlow

28

Cavan

7

Clare

40

Cork

283

Donegal

111

Dublin

456

Galway

281

Kerry

69

Kildare

53

Kilkenny

19

Laois

18

Leitrim

6

Limerick

110

Longford

30

Louth

65

Mayo

86

Meath

14

Monaghan

16

Offaly

17

Roscommon

12

Sligo

33

Tipperary

99

Waterford

81

Westmeath

33

Wexford

61

Wicklow

47

Total

2,075

The Department has already entered into an agreement with people in the existing scheme. When changing the rules this year, why did the Minister not change them so that they applied to people who are starting in the scheme from September this year rather than have them apply to the people who have previously entered into this contract? Does she accept that the Department entered into a contract with these people? They were told when starting the back to education scheme that they would be paid the allowance until their education was finished.

Given the changes in the back to education scheme, the back to work scheme and the summer jobs scheme, does the Minister not accept that she is trying to save money on the backs of the most vulnerable in society? These people are trying to get back into the education system and to better themselves so they will not in future have to depend on social welfare. Is it not wrong, after entering into an agreement with these people, to break that agreement? If a person took this matter to the courts, he or she would win the case. I have been advised that this might happen. People are upset that the Department has broken the agreement it made. If the Department entered into an agreement with a social welfare recipient and the latter broke the agreement, the Department would be quick to pursue him or her.

It is wrong to break this agreement. The Minister is only saving €12 million. Those savings could be made elsewhere. A sum of €19,000 could have been saved last weekend, as we mentioned earlier.

That was not my budget.

The Minister says that but I will not discuss it further. It gives me indigestion to speak about these people and all the money that is spent. The contract has been broken. That is wrong. It is a major attack on people who need the Department's support and help.

An independent review was carried out on all Departments and a number of recommendations were made. One of them related to the BTEA. I had to make some difficult and unpalatable decisions. However, on the basis of the fact that the people in receipt of the BTEA will have an income support in the summer months, I was satisfied that this decision could be taken.

This is not a means tested scheme so the participants were working as well as receiving their allowance. That is a difficult situation to sustain at a time of economic constraints. I had to create a situation where people would have an income support and I have done that. People work and they can travel abroad. I have agreed that if some people have to do a certain type of work as part of their study course and if that is confirmed by the relevant college, they will continue to receive the allowance on the basis that they are continuing their studies. I was not in a position to change the scheme in any other way.

The summer jobs scheme is not my responsibility but that of my colleague, Deputy Ó Cuív. It will be based, I assume, on the same criteria of access to work.

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