Written Answers. - Employment Support Services.
Kathleen Lynch
Question:
76
Ms Lynch
asked the
Minister for Social and Family Affairs
the reason the allocation in her Department's Estimates for 2004 for employment support services has been reduced by over ?40 million or 19%; the way in which it is intended to achieve this reduction; and if she will make a statement on the matter.
[28948/03]
My Department's employment support services are designed to assist the unemployed, lone parents and persons with disabilities to return to work. They include the back to work allowance scheme, back to education allowance scheme and a range of other supports.
As part of the process of managing and developing the social welfare system, my Department continuously reviews the operation of its spending programmes to ensure that resources are best directed at those in need and that the objectives of schemes still continue to be relevant. As part of this process, the back to education scheme was considered in the context of the improved economic situation since the scheme was introduced. It is necessary to ensure that the scheme is targeted at cases of labour market disadvantage. By refocusing the scheme's third level option to those furthest away from labour market, that is, 15 months unemployed, and by maintaining the second level option for those who are six months unemployed, we have sought to keep the scheme relevant to current labour market conditions.
Similarly, the back to work allowance scheme was reviewed last year following on from an independent evaluation of the scheme. It found that a significant proportion of applicants would have progressed regardless of whether an allowance was available. It recommended that participation levels be reduced and the scheme refocused on the very long-term unemployed. Due to the continued decline in demand for the scheme and in light of the above recommendations the qualifying period for participation on the scheme was extended from 15 months to five years for persons in receipt of an unemployment payment from January 2003. Other relevant qualifying social welfare payments were not affected by the change.
The reduction of 29% in the 2004 Abridged, or pre-budget, Estimate for employment support services also reflects the fact that the number of recipients on back to work allowance in 2003 is lower than had been expected. The 2003 Estimate, to which the 2004 Estimate is compared in the Abridged Estimates volume, provided for an average of 24,530 recipients in the year. The number of persons in receipt of back to work allowance currently stands at 17,824. The 2004 Estimate for back to work allowance provides for the number of persons who are expected to participate on the scheme based on current qualifying conditions. The number is 14,000 which is almost 4,000 lower than the number at present. This further reduction reflects the fact that the number of long-term unemployed has fallen significantly. As a consequence, there are fewer people who need the service and the numbers participating on the scheme have been declining over recent years. It also reflects the change made to the scheme in January 2003.
The 2004 Abridged Estimate also reflects the increase in the qualifying period for back to education allowance from six months to 15 months in respect of the third level option. 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 most vulnerable groups. I will continue to monitor the schemes on an ongoing basis.
