Dáil Éireann Debate, Wednesday - 31 May 2017
62. Deputy Joan Collins asked the Minister for Social Protection the reason his Department is encouraging recipients of social welfare payments to become self-employed through the back to work enterprise allowance scheme, in view of the amount of bogus self-employment in the construction sector and the loss to the State related to the wrongful designation of workers (details supplied); and when he plans to cease this practice. [25976/17]
View answerThe Back to Work Enterprise Allowance (BTWEA) scheme enables my Department to work with people who have found themselves dependent on the welfare system for various reasons but who have an idea or have identified an opportunity to start their own business. The participants on the scheme have evolved their enterprises and developed their ideas with the assistance of Departmental Case Officers and Enterprise Officers in a Local Development Company (LDC).
In 2016 a review of the BTWEA scheme was conducted. Overall, the review found that the scheme offers effective support for people who are long-term unemployed and who are interested in self-employment as a route to entering the labour market. The scheme plays a useful role in supporting the development of new enterprises.
My Department plays an important role in encouraging people to consider self-employment. The LDCs also play a key role in supporting local communities and entrepreneurs to develop new business ideas and to enhance existing enterprises. Equally, the LEOs provide a range of complementary supports to people who want to start-up or grow a business. It is through these services working together with new businesses that the legitimacy and viability of a business is examined prior to approval for BTWEA.
Research demonstrated that the numbers returning from self-employment to the Live Register, after participating on the scheme, are low. Based on the comparison of the BTWEA participants to a control group of similar jobseekers who did not choose the scheme as an option, the BTWEA participant was over twice as likely to remain off the Live Register six months after the payments on the scheme had ceased. This trend continues when examined following an 18 month period after the payments ceasing.
The part played by the BTWEA in supporting the long-term unemployed and other welfare recipients to take up self-employment opportunities is significant. As the Deputy will appreciate, new small businesses and entrepreneurs play a vital role in economic development and new job growth.
I hope this clarifies the matter for the Deputy.
