Dáil Éireann Debate, Tuesday - 14 November 2006
111 Mr. Callely asked the Minister for Social and Family Affairs the level of take-up of the back to work scheme over the past five years; if he is satisfied in relation to the scheme; and if he will make a statement on the matter. [37098/06]
View answer406 Mr. Durkan asked the Minister for Social and Family Affairs his proposals to improve the back to work allowance scheme with particular reference to easing or improving the qualification requirements; and if he will make a statement on the matter. [37960/06]
View answerI propose to take Questions Nos. 111 and 406 together.
The back to work allowance scheme assists the long term unemployed to return to the active labour force. There are two strands to the scheme, the back to work enterprise allowance for self employed and the back to work allowance for employees.
Numbers availing of the back to work allowance scheme have fallen steadily in recent years due to the continued buoyancy of the labour market and the low levels of long term unemployment. Currently, there are some 8,580 participants in the scheme compared to 39,340 in 2002 when it reached its peak.
The number of new entrants on the back to work scheme from 2002 are as follows:
|
Self-employed |
Employee |
Total |
|
|
2002 |
4,370 |
5,561 |
9,931 |
|
2003 |
2,389 |
3,239 |
5,628 |
|
2004 |
1,815 |
2,498 |
4,313 |
|
2005 |
1,739 |
1,991 |
3,730 |
|
2006 (to date) |
1,774 |
2,064 |
3,838 |
In recognition of the difficulties being experienced by some people returning to the labour force after 3 or 5 years of attachment to the live register, the qualifying period for access to both the employment and self-employment strands of back to work was reduced to 2 years, with effect from March 2006. Furthermore, periods spent in receipt of supplementary welfare allowance or direct provision for persons awaiting refugee status now count towards the qualifying period for access to the back to work allowance scheme. This new condition will apply in circumstances where the person establishes an entitlement to a relevant social welfare payment prior to commencing employment.
Following the changes to eligibility criteria provided for in the Budget which came into effect on 1st March 2006, the numbers of the Back to Work Allowance new applications have been increasing steadily each month.
I will continue to monitor the scheme to ensure its relevance to current labour market conditions and to ensure that it continues to assist those furthest from the labour market to gain a foothold into sustainable employment or self-employment.
