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Back to Work Enterprise Allowance Scheme

Dáil Éireann Debate, Tuesday - 6 February 2018

Tuesday, 6 February 2018

Questions (585)

Anne Rabbitte

Question:

585. Deputy Anne Rabbitte asked the Minister for Employment Affairs and Social Protection her plans to reduce the qualifying waiting criteria from nine to six months in the case of a person (details supplied) in view of previous contributions; and if she will make a statement on the matter. [5548/18]

View answer

Written answers

The Back to Work Enterprise Allowance (BTWEA) is designed to provide a monetary incentive for people who are on social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years: 100% in year 1 and 75% in year 2.

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.

Budget 2017 introduced a change to the eligibility conditions for the BTWEA. From January 2017, jobseekers taking up self-employment are able to access the BTWEA after 9 months, down from 12 months previously. This change has enabled those wishing to commence self-employment at an earlier stage of their unemployment to access the supports of the BTWEA.

To qualify for BTWEA a client is required to have 9 months' continuous entitlement to a primary eligible payment. As the person concerned has not been on an eligible payment for 9 months, she does not qualify for BTWEA at this time.

There are no plans to reduce the qualifying waiting criteria for BTWEA from nine to six months.

Question No. 586 withdrawn.

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