Dáil Éireann Debate, Wednesday - 29 January 2014
77. Deputy Kevin Humphreys asked the Minister for Social Protection the reason a person (details supplied) in Dublin 2 who is married with one child is worse off on a community employment scheme than if he were just drawing jobseeker's allowance; and if she will make a statement on the matter. [4345/14]
View answerThe person concerned has completed 221 weeks to date on Community Employment (CE) and is currently a participant on Sandymount CE Scheme.
Prior to his commencement on Community Employment he was in receipt of Job Seekers Allowance to the value of €342.60 with additional Fuel allowance of €20.00 which totals to €362.60 per week.
The calculation of his entitlement on CE is as follows:
|
- |
Total |
|
Participant |
€208.00 (= €188 + €20 CE Bonus) |
|
+ Adult Dependant |
€124.80 |
|
+ 1 Child Dependant |
€29.80 |
|
CE Payment |
€362.60 (outside of fuel season) |
|
+ €20.00 for the Fuel Season |
€20.00 |
|
Currently receiving |
€382.60 (during fuel season) |
Therefore, the person concerned is in receipt of the €20.00 CE Participation bonus and is receiving €20 more than the equivalent Jobseeker's Allowance for his family circumstances.
The Department reviewed the changes on Community Employment and other programmes following the passing of the Social Welfare Act 2012. As participants on CE are employees of schemes, CE sponsors are obliged to pay PRSI at the appropriate class (A8/A9).
For the majority of CE participants who are earning €352.00 or less, there will be no change as the 0% Class A8 rate of Employees PRSI applies. However, the change will affect CE participants who earn in excess of €352 per week. These participants are now subject to the revised Class A9 rate of Employees PRSI and will pay 4% on the total income (the €127 disregard has been abolished under Section 6 of the above Act). For those CE participants their income will be amended accordingly.
PRSI bands are applied on this basis to all persons in employment, including those on CE schemes and the payment carries the same benefits and entitlements under PRSI for all.
The potential advantage to the CE participant outside of the financial impact as outlined above in taking up a CE place, is access to funding for education and training and the opportunity to pursue a FETAC Major Award. This combined with the work experience will greatly enhance the opportunity to gain employment and exit the Live Register.
