This is a new section and is to be welcomed as far as people on unemployment assistance are concerned. Perhaps we could hear how a couple with two children would fare under this section if the wage earner is on a three day week.
SECTION 22.
Question proposed: "That section 22 stand part of the Bill."
Section 22 is a major reform of how we deal with the assessment of unemployment assistance for part-time workers. Under the present arrangements, a person who is unemployed for at least three days in a period of six consecutive days may qualify for unemployment assistance. They are paid in respect of the days in that week on which they are unemployed, less one sixth of their weekly means for each day of unemployment. However, at present they are not entitled to assistance in respect of the days of the week on which they work.
Under the proposed arrangements in section 22, a person who is unemployed for at least three days in any period of six consecutive days will, subject to his or her means, be entitled to unemployment assistance for the full week, that is, for days in that week on which they work as well as days on which they are unemployed. The entitlement will be based on the weekly rate of unemployment assistance less part of their earnings from the days worked. The manner in which earnings will be assessed will be specified in regulations. It is proposed that the amount of earnings assessed in the case of a person without dependent children will be 60 per cent of the net earnings less £10 for each day worked. In any other case the amount of the earnings assessed will be 60 per cent of the net earnings. The £10 disregard to be applied in the case of people without dependent children is necessary so as to protect such people from losses which they would otherwise suffer.
Section 22 (1) substitutes subsection (1) to (3) to section 120 of the Social Welfare (Consolidation) Act, 1993 which provide for the proposed new arrangements. This subsection also deletes existing provisions relating to daily rates of unemployment assistance. Section 120 (1) inserted by section 22 (1) provides that a person would be entitled to unemployment assistance for a week of unemployment, subject to the existing conditions, that is, that a person is aged 18 years or over and under 66 years, satisfies the conditions relating to means and proves unemployment in the prescribed manner.
Section 120 (2) provides that unemployment assistance will not be paid for the first three days of unemployment in any continuous period of unemployment and where a spouse of a claimant to unemployment assistance is not an adult dependant the means of the claimant will be halved. Section 120 (3) defines a week of unemployment as meaning any three days of unemployment, whether consecutive or not, within a period of six consecutive days. A week of unemployment will also be treated as a continuous period of unemployment and any two such periods not separated by more than 52 weeks will be treated as one continuous period of unemployment. A week of unemployment will also be treated as a continuous period of unemployment and any two such periods not separated by more than 52 weeks will be treated as one continuous period of unemployment. Section 120 (3A) specifies the circumstances in which a day would be treated as a day of unemployment for the purpose of the new definition of a week of unemployment. that is, a day in respect of which the person is unemployed, capable of, available for and genuinely seeking work.
Section 22 (1) (b) deletes provisions for payment of unemployment assistance on a daily basis and section 22 (2) provides for a consequential amendment arising from the provisions of section 22 (1) to existing provisions relating to payment of unemployment assistance at the long-term rate. This section also provides that unemployment assistance will be payable at the long-term rate to applicants who, having been in receipt of carer's allowance, cease to be eligible for that allowance — for example, on the death of the person being cared for.
Section 22 (3) provides for regulatory powers under which unemployment assistance may be payable for days of unemployment. These powers will be used to provide for payment in respect of days of unemployment in the first and final weeks of a claim for unemployment assistance. Section 22 (4) (5) and (6) provide for certain consequential amendments to the Social Welfare (Consolidation) Act, 1993, arising from the provisions of section 22 (1).
Section 22 (7) provides that in order to qualify for pre-retirement allowance a persons' means must not exceed the weekly rate of the allowance appropriate to his or her family size — that is, the personal rate of a payment plus increases for any adult or child dependants. This is a technical amendment which does not affect a person's entitlement to pre-retirement allowance.
Section 22 (8) (9) and (10) provide for certain consequential amendments arising from the provisions of section 22 (7). Section 22 (11) provides for regulatory powers to specify the manner in which earnings from employment are to be assessed. Section 22 (12) provides that the provisions of section 22 of the Bill will not have the effect of reducing the entitlements of existing recipients. Subsection (13) provides that section 22 will be brought into effect by way of a commencement order.
The Deputy asked if I could give an example of what a person receives on unemployment assistance. If a person is married with one adult dependant and two children, has a daily earning rate of £20 and one day's work, he receives £105.35 gross income under the existing-system. Under the new system he will get £114.40. If he gets two days' work, he receives £84.28, but under the new asessment will get £102.40. If he gets three days' work, which is the maximum permissible in any week, he receives £63.21, but under the new system he will get £90.40. That is for daily earnings of £20 per day, but this will vary as the earnings increase. I can give the Deputy further examples of £25 or £30 per day if he so wishes.
That is a substantial improvement in the system. The Minister said three days' work is the maximum permissible in any week. Does this mean that if a person get four days' work he will not qualify?
My understanding is that four days is regarded as a week of work. Part-time is defined in the Act as three days or less and this Bill does not change that definition. This Bill proposes to change the manner in which the earnings from part-time work will be assessed. The current position is that if a person works even four hours in a day, he will lose his unemployment assistance for the full day, whereas under this system he will retain his unemployment assistance for the week. Some 60 per cent of the earnings received will then be assesed as means.
A person will know that 60 per cent will be deducted from what he earns and if for a single person, £10 will also be disregarded. The only people who could complain about this are those who get four days' work.
My understanding is that at present people who have four days' work are not paid. People could complain at present if they have four days' work because they are not treated as part-time employees. The opportunity for complaint is not new.
Question put and agreed to.
Section 23 agreed to.