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Social Welfare Schemes

Dáil Éireann Debate, Wednesday - 14 July 2021

Wednesday, 14 July 2021

Questions (226, 227, 228)

Claire Kerrane

Question:

226. Deputy Claire Kerrane asked the Minister for Social Protection the estimated cost of removing the requirement to be in receipt of jobseeker’s allowance for at least 15 months in order to qualify for the part-time job incentive scheme; the estimated number of additional recipients that would qualify for such if this change was introduced; and if she will make a statement on the matter. [38219/21]

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Claire Kerrane

Question:

227. Deputy Claire Kerrane asked the Minister for Social Protection if the part-time job incentive scheme is open to jobseekers aged 18 to 25; if she will advise on the decision to set the minimum weekly jobseeker’s allowance rate for the scheme at a rate which locks many young persons out of accessing this scheme in consideration of the scheme requirement for participants to be in receipt of a minimum weekly jobseeker’s allowance rate of €128.60 and the standard rate of €112.70 for young persons on jobseeker’s allowance; and if she will make a statement on the matter. [38224/21]

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Claire Kerrane

Question:

228. Deputy Claire Kerrane asked the Minister for Social Protection the estimated cost of removing the minimum weekly rate requirement for the part-time job incentive scheme to extend eligibility to include all jobseekers aged 18 to 25; the estimated number of additional recipients that would qualify for such if this change was enacted; and if she will make a statement on the matter. [38225/21]

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Written answers

I propose to take Questions Nos. 226 to 228, inclusive, together.

The Part-time Job Incentive Scheme is an administrative scheme under Jobseeker's Allowance, which allows those who are long-term unemployed to take up part-time employment for less than 24 hours per week and receive a special weekly income supplement of €128.60, or €209.70 where a person is receiving an increase for a qualified adult. It is intended as a stepping stone to full time work as a recipient of the payment must be available for and seeking full time employment.

A person must satisfy all of the qualifying conditions of the administrative scheme which include that they must be in receipt of long-term jobseeker’s allowance for at least 390 days (15 months). Their weekly rate of jobseekers allowance payment must also be higher than the weekly rate of part time job incentive payable.

From a labour market perspective, it is important that the supports available do not inadvertently encourage employers to offer minimal hours of employment to young people. The Department's focus is to increase labour market participation of young people who are not in employment, education, or, training (NEETs). The recently-published Pathways to Work 2021-2025 will invest significantly in employment supports for young people, by introducing and ring-fencing places on work placement programmes, by increasing the availability of apprenticeships, traineeships and education places and by offering employers attractive subsidies when they recruit young unemployed people.

This week, the Government also launched a new Work Placement Experience Programme. This new programme will benefit 10,000 jobseekers of all ages, who have been unemployed for more than six months. This initiative will keep jobseekers close to the labour market and provide them with quality work experience to increase their prospects of returning to employment. The payment rate for participants on this programme is set at €306 per week.

While the age-related rate for a young jobseeker aged 18 to 24 is €112.70, a young person can receive the maximum weekly payment of €203 if he or she participates on an education or training programme, increasing to €306 on the new Work Placement Experience Programme.

It is not possible to identify those jobseekers aged 18 to 25 who may wish to avail of the Part Time Job Incentive scheme. However, if the requirement to be in receipt of Jobseeker's Allowance at a higher rate than the part time job incentive weekly rate, along with the current minimum 15 month requirement, were both removed, it is estimated that the total annual cost would be €19.6 million. This is a differential in cost of €1.65 million over that being paid under jobseeker's allowance and assumes that 20% of the 14,670 people aged 18 to 25 inclusive who are in receipt of a personal rate of jobseeker's allowance would claim the part time job incentive.

Similarly, it is not possible to identify those jobseekers who are in receipt of jobseeker's allowance for less than 15 months who may wish to avail of the PTJI. However, there are currently over 11,800 people across all ages who are in receipt of jobseeker's allowance for less than 15 months at a rate lower than the equivalent part time job incentive rate. Should 20% of this group claim part time job incentive, the annual cost is estimated at approximately €17.7 million representing a differential in cost of €4.5 million over that being paid under jobseeker's allowance for this group.

Any changes to existing schemes could only be considered in a budgetary context.

I hope this clarifies the position for the Deputy.

Question No. 227 answered with Question No. 226.
Question No. 228 answered with Question No. 226.
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