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Social Welfare Payments

Dáil Éireann Debate, Tuesday - 19 October 2021

Tuesday, 19 October 2021

Questions (634)

Claire Kerrane

Question:

634. Deputy Claire Kerrane asked the Minister for Social Protection when the poverty impact of reduced rates of jobseeker's allowance for young persons will be published given that the report is now over 18 months overdue; and if she will make a statement on the matter. [51178/21]

View answer

Written answers

The Department completed the Poverty Impact Assessment of age related rates of jobseekers for young people aged 18-24 years and it was published in July 2021 on the Governments website. A copy of the report was provided to the Joint Oireachtas Committee on Social Protection, Community and Rural Development, and the Islands at that time.

In September 2021, the rate of unemployment for young persons under 25 was 17% using the traditional measure or almost 20% when we use the CSO’s COVID-19 adjusted measure. The latter rate, which includes those on the PUP, has fallen sharply from its 2021 peak of 56% in January. Furthermore, this rate fell 6 percentage points from 26% in August as students, no longer eligible for the pandemic unemployment payment since last month, will no longer be included in the estimate. Full-time students are not traditionally included in unemployment estimates as they are not considered part of the labour force.

In addition, as the reopening of our economy and society has continued, the number of people under 25 in receipt of PUP has declined significantly, falling by 92% since the 2021 peak in February to just under 9,500 last week. I expect this trend to continue as the restrictions are eased further. In May of this year one in four people  out of work as a result of Covid-19 were aged under 25. The number has now fallen to one in ten.

These trends show that young people are among the most resilient groups in society and, once the opportunities are available, youth employment recovers very quickly.

The current approach to rates of payment for young Jobseekers allowance recipients was introduced in 2009 to encourage young unemployed people to participate in employment, education and training programmes. Although the basic rate is €112.70 per week for young people up to and including 24 year olds, it increases to the standard rate of €203 if a young jobseeker participates on an education or training programme. Where they participate on the new Work Placement Experience Programme, their weekly rate is increased to €306. I have announced as part of Budget 2022 that the core weekly rates of payment will increase by €5 per week from January 2022, including that for young jobseekers which will increase the rate to €117.70.

There are many opportunities for young unemployed people - the Department has introduced a series of targeted measures under the Pathways to Work strategy targeted at young people including ring-fencing 4,000 places on the Work Placement Experience Programme and providing 50,000 additional further education and training places.

I trust that this clarifies the position.

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