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Jobseeker's Allowance

Dáil Éireann Debate, Wednesday - 7 November 2018

Wednesday, 7 November 2018

Questions (165, 166)

Willie O'Dea

Question:

165. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the equality and poverty proofing measurements in place to protect jobseekers under 26 years of age, particularly those who are experiencing homelessness, those with international protection who are moving out of direct provision and those who have support needs such as mental health and confidence building who cannot access or participate in activation schemes (details supplied); and if she will make a statement on the matter. [45994/18]

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Willie O'Dea

Question:

166. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the way in which the policy on age-related jobseeker's allowance can continue to be justified as a preventative measure for welfare dependency in view of the fact that there is no basis in evidence (details supplied) [45999/18]

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Written answers

I propose to take Questions Nos. 165 and 166 together.

In line with other EU and OECD jurisdictions where such measures feature in their social welfare systems age related reduced jobseeker’s allowance (JA) payments for young unemployed people were introduced on a phased basis to tackle high youth unemployment.  Receiving the maximum rate of JA without a strong financial incentive to engage in education or training can lead to long-term welfare dependency from a young age.

A key feature of the introduction of the rate adjustments was that subsequent participation in full-time education and training would lead to an increased rate in payment.  As a result, if a young jobseeker on a reduced JA payment participates on an education or training programme they receive the maximum weekly personal payment of €198.

Recipients of JA under 26 years of age who have dependent children, those transferring directly to JA from disability allowance, or individuals aged 18-24 years who were in the care of the Child and Family Agency (TUSLA) during the period of 12 months before they reached the age of 18 are not  subject to the reduced rate. Similarly, unaccompanied minors who entered the State and were in the care of TUSLA prior to entering the direct provision system are exempt from the reduced rates of JA. My Department actively engages with Tusla and non-Government organisations in providing the necessary support to vulnerable young people leaving care who are experiencing homelessness or are in insecure situations.

Supports are also available to vulnerable young people under the Supplementary Welfare Allowance scheme, notably through the exceptional needs payment (ENP) which helps meet essential expenditure which a person could not reasonably be expected to meet out of their weekly income. For example, to end September 2018, the Department made some 360 rent deposit support payments to young people under 26, with expenditure of some €250,000. This form of assistance is very important to those on low incomes and who are at risk of, or who are homeless, or who rely on the private rented market to meet their housing needs.

The Deputy will be aware that in 2013 the EU adopted a Council Recommendation to member states on a Youth Guarantee. The aim of the EU-wide Youth Guarantee, supported by central EU funding of €6 billion, was to provide young people under the age of 25 with a good quality offer of employment, continued education, an apprenticeship or a traineeship within a short time of becoming unemployed.  Many of the elements of a Youth Guarantee were already in place in Ireland prior to the EU Recommendation, so the implementation of the Irish Youth Guarantee focuses on enhancing processes and policies for assisting young unemployed people to secure sustainable jobs.  Under the Youth Guarantee process case officers engage with unemployed young people, on a monthly basis, to prepare and implement personal progression plans for employment.  Where young people do not find work quickly, additional supports are offered through places on employment and training schemes, which are closely aligned to the needs of the labour market.

To date, these policies have been effective in reducing both youth and long-term unemployment. For example, the most recent data shows that Irish youth unemployment has fallen from a peak of 31.2% in 2012 to 12.0% in October 2018.  Irish youth unemployment has thus fallen from well above the EU average in 2012 (23%) to well below the current EU figure of 14.9%.

The National University of Ireland, Maynooth was given access to the data from the Jobseeker’s Longitudinal Database to examine the effectiveness of the reduced rates in encouraging young jobseekers to avail of education, training, employment programmes and opportunities. They examined the data for 18 and 19 year olds as the reduced rates were first introduced for this cohort. Their findings found positive results noting an overall reduction in unemployment durations.

The Youth Employment Support Scheme (YESS) which I launched on 24 September 2018 is a new work experience scheme targeted exclusively at young jobseekers, aged 18 to 24, who are either long-term unemployed or face significant barriers to employment.  All participants will receive a payment of €229.20 per week from my Department. Participants whose underlying entitlement is in excess of that amount will continue to receive their weekly payment with an additional top-up allowance of €22.50 per week.

I trust this clarifies the matter for the Deputy.

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