Dáil Éireann Debate, Tuesday - 14 June 2016
316. Deputy Willie O'Dea asked the Minister for Social Protection when he will publish the report on the impact of reduced payment rates to persons from 18 to 25 years of age under the jobseeker's scheme; and if he will make a statement on the matter. [15875/16]
View answerReduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. Budget 2014 further extended the reduced rates to recipients under 26 years of age. This is a targeted measure aimed at protecting young people from welfare dependency. To guard against the development of welfare dependency I believe that it is necessary to provide young jobseekers with a strong financial incentive to engage in education or training or to take up employment. If a young jobseeker in receipt of the reduced jobseeker’s allowance rate participates on an education or training programme they will receive a higher weekly payment of €160.
The Youth Guarantee sets a medium-term objective of ensuring that all young people receive an offer of employment within four months of becoming unemployed. There is now monthly engagement with all young jobseekers. Youth unemployment rose rapidly in the recession to over 30% in 2012. According to the Quarterly National Household Survey for Quarter 1 2016, youth unemployment continues to fall in line with the overall recovery and now stands at 16.9%.
The review of jobseeker’s allowance rates for young persons under 26 years of age will examine the effectiveness of the reduced rates in encouraging young jobseekers to avail of education, training, employment programmes and opportunities. I hope that this review will be completed later this year, subject to the necessary data being available and the required level of analysis involved being completed. I am committed to ensuring my Department identifies effective measures to incentivise and support young people in finding and securing sustainable jobs. The best way to do this is through engagement processes and by incentivising them to avail of educational and training opportunities, thereby enhancing their employment prospects.
