Dáil Éireann Debate, Tuesday - 25 October 2016
291. Deputy Catherine Murphy asked the Minister for Social Protection the estimated cost of applying the €5 increase to persons under 26 years of age for 2017 and in a full year; the reason this category of claimants was included at a lower rate; and if he will make a statement on the matter. [31515/16]
View answer305. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection the savings made to the State by providing the pro rata rate increase in jobseeker's allowance for persons under 26 years of age as opposed to the standard increase of €5 given to persons of 26 years of age and older; his reasoning in deciding to apply a pro rata increase as opposed to a standard increase; and if he will make a statement on the matter. [31538/16]
View answerI propose to take Questions Nos. 291 and 305 together.
On Budget Day, I announced the first general increase in the weekly rates of payment since 2009. A €5 increase in the weekly rates of payment for all social welfare payments will commence from March, with proportionate increases for qualified adults and those on reduced rates of payment (including jobseekers on age-related reduced rates of payment).
Approximately 1.5 million people will benefit from this increase, from pensioners, people with disabilities, carers, lone parents, maternity and paternity benefit recipients and jobseekers.
Jobseeker's allowance (JA) and Supplementary Welfare Allowance claimants under the age of 26 generally receive age-related reduced rates of payment. Age-related reduced rates of payment do not apply in certain circumstances, however, such as when the claimant has a dependent child, or transferred to JA from Disability Allowance, or was in State care during the 12 months prior to applying for JA.
Increasing the €100 and €144 rates by €5 per week, instead of proportionate increases, would cost an additional €3 million in a full year. This includes the cost of increasing the qualified adult rates from €100 to €105 per week in the case of those on the €100 rate, and from €124.80 to €128.10 per week, for those on the €144 rate.
The long-standing practice of my Department is to award proportionate increases for people who are on reduced rates of payment and for qualified adults. If the full increase was awarded to some categories of people on reduced rates, and not to others, this would not be fair to others on reduced rates of payment.
The rationale for having reduced rates of payment for young jobseekers in receipt of a means-tested jobseeker's payment is to prevent young people from entering welfare dependency by providing a strong financial incentive to take up a job, or a training or education programme.
Financial incentives already exist for young people taking up education, training and employment supports. Young people participating in employment programmes such as Community Employment, Tús and Gateway already receive the full adult rate of payment, which is currently €210.50 per week and will rise to €215.50 next year.
From next September, when a young jobseeker participates in my Department's Back to Education scheme, he or she will be entitled to receive the full maximum rate of jobseeker's payment which will then be €193 per week (for people of any age), as against the €160 which they are currently on.
This 21% increase represents an extra €33 a week, and demonstrates the State's support for young jobseekers who seek to enhance their skills. The rate payable to young jobseeker's who participate on Solas training courses is a matter for the Minister for Education and Skills.
The number of young people on the Live Register on jobseekers payments was close to 90,000 in 2010 and is now down to 34,000. There is a continuing strong downward trend this year with the numbers down from 42,000 to 34,000 since the beginning of 2016.
Youth unemployment has fallen by 5 percentage points in the last year alone and it is now below the EU average. Of course more remains to be done and I am determined that we help more young people in the most effective way possible, by helping them into the workforce or education.
