Social Welfare Benefits

Dáil Éireann Debate, Tuesday - 13 July 2021

Tuesday, 13 July 2021

Questions (451)

Claire Kerrane

Question:

451. Deputy Claire Kerrane asked the Minister for Social Protection further to Parliamentary Question No. 427 of 22 June 2021, if her Department has reviewed the recent ESRI report Covid-19 and the Irish Welfare System, particularly with regard to its estimated cost of increasing jobseeker’s rates from €112.70 to €203, an amount of €159 million to €169 million in comparison with the estimated figure of €64.8 million; the way her Department arrived at the calculation for the estimated figures provided; and if she will make a statement on the matter. [37525/21]

Written answers

Minister for Social Protection

While my Department and I have reviewed the Budget Perspectives 2022 paper with interest, I am not in a position to comment in detail on the specific methodology or assumptions which were used to cost measures by the ESRI. The analysis in this paper is mainly based on the fact that young people who remain unemployed will either not qualify for an unemployment payment, or if they do will get a reduced rate.

It is not the case that all jobseekers aged under 25 are on a reduced rate of Jobseeker’s Allowance.  The age-related reduced rate of €112.70 generally applies to young jobseekers aged between 18-24, with no child dependants.  Where a young jobseeker participates in education or training, they can receive the maximum weekly personal rate of up to €203.  

As stated in the Parliamentary Question referenced by the Deputy, the costing to increase the €112.70 weekly personal rate of Jobseeker’s Allowance to €203 was based on the estimated number of recipients in 2021. The number of recipients of Jobseeker’s Allowance is estimated based on scheme trends, any expected future changes which could impact the scheme, and macroeconomic forecasts provided by the Department of Finance.