Dáil Éireann Debate, Tuesday - 7 November 2017
1286. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the extent to which she has examined issues preventing or discouraging persons that are unemployed from obtaining employment; if she has examined various schemes available to her department with a view to ensuring adequate incentivisation; and if she will make a statement on the matter. [47119/17]
View answerThe goal of Government’s Pathways to Work Strategy is to ensure that as many jobs as possible go to people on the Live Register. Ensuring that work always pays and preventing long-term dependency on welfare are important aspects of this strategy.
In Budget 2018, it was decided to re-designate the Family Income Supplement (FIS) scheme under the Working Family Payment, which will bring it more visibility as a payment aimed specifically at working families. It is also my intention to continually review the Working Family Payment so as to enhance it with a view to empowering families to return to work.
In-work supports such as the Family Income Supplement or FIS (which will be replaced by the Working Family Payment) and the back to work family dividend (BTWFD) are key because they are stepping stones to ensure that recipients are better off in employment and can work towards financial independence over time.
FIS targets families with children on low incomes where the parent works at least 19 hours per week. The payment effectively preserves the incentive to take up or remain in employment in circumstances where the employee might otherwise be only marginally better off than if s/he were claiming other social welfare payments.
The BTWFD allows former long-term recipients of a jobseeker’s payment (including jobseeker’s transition payment) and former recipients of the one-parent family payment, to retain their full increase for a qualified child payment for the first year of employment, tapering to 50 per cent in the second year.
Where a long term unemployed jobseeker is offered employment of more than 3 days but less than 24 hours a week, they may be eligible for the part-time job incentive scheme. Under this scheme they can receive a weekly payment of €122.20 per week if they are single or €199.20 if they have an adult dependent.
In addition to the above, the main social welfare schemes offered by my Department for unemployed people – jobseeker’s allowance and benefit – both provide significant support to unemployed people such that they can work up to 3 days a week and still retain access to a reduced payment, subject to continuing to satisfy all of the qualifying conditions.
ESRI research, based on an analysis of current incomes, benefits and taxes, has found that people are better off in work than on welfare. It demonstrates that more than 8 out of 10 unemployed jobseekers would see their income increase by at least 40 per cent upon taking up employment. Fewer than 3 per cent would, in the short-term, be financially better off not in work. Although the risk of facing weak financial incentives to work is higher for unemployed persons with a spouse and children, less than 1 in 15 of that group would be financially better off not working. The BTWFD reduces that figure to 1 in 20.
Reflecting the impact of government policy, and the overall improvement in the labour market, unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15 per cent in 2012 to 6.0 per cent in October 2017.
I am satisfied that the current combination of jobseeker’s payments, the FIS, BTWFD and the part-time job incentive scheme provides considerable support for people to take up employment by allowing them retain access to a social welfare payment.
The Youth Employment Support Scheme (YESS) is a new work experience programme targeted at young jobseekers who are long-term unemployed or who face significant barriers to gaining employment – people who even during the Celtic Tiger years would have found it difficult to get a foothold on the career ladder. The programme aims to provide them with the opportunity to learn basic work and social skills in a supportive environment while on a work placement.
YESS will be open to people aged between 18 and 24 who have been out of work and in receipt of a qualifying payment for at least 12 months or, if unemployed for less than 12 months, are considered by a case worker to face a significant barrier to work.
