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Employment Schemes

Dáil Éireann Debate, Tuesday - 22 March 2022

Tuesday, 22 March 2022

Questions (50)

Michael Moynihan

Question:

50. Deputy Michael Moynihan asked the Minister for Social Protection the progress regarding implementation of Budget 2022 measures to support employment opportunities for people with disabilities; and if she will make a statement on the matter. [14830/22]

View answer

Written answers

This Department provides a wide range of income and employment supports to assist jobseekers and existing employees with disabilities, and their employers.  

Budget 2022 introduced several measures to encourage the employment of people with disabilities in respect of the Disability Allowance, the Blind Pension, the Wage Subsidy Scheme and the Reasonable Accommodation Fund grants.

Regarding the Disability Allowance and the Blind Pension, Budget 2022 introduced an increase of €25 per week in the earnings threshold from €350 to €375.  

Currently, when an individual commences employment, they can avail of an income disregard of €140 per week.  In addition, 50% of earnings between €140 and €350 are also disregarded for the purpose of the means test.  Earnings above €350 are assessed at 100% - this means that for every euro earned above €350 a euro reduction is applied.  

The increase in the earnings threshold means that from June 2022, only earnings above €375 are assessed at 100%.  As a result, people on Disability Allowance and Blind Pension will be able to earn more and keep more of their disability payment.  

Budget 2022 also increased the general weekly means disregard entry point for Disability Allowance from €2.50 to €7.60.  The effect of this measure will be to increase the weekly rate of payment by up to €5.10 per week for Disability Allowance recipients who have means.  This measure also brings the general weekly disregard for the Disability Allowance in line with that of the Blind Pension.  This measure will take effect from June 2022.

Budget 2022 provided for three of the Reasonable Accommodation Fund grants to be made available to people with disabilities and their employers through EmployAbility contractors in 2022.  These grants were previously only accessible through the department’s Intreo offices.  The three grants are the Workplace Equipment/ Adaptation Grant, the Job Interview Interpreter Grant and the Personal Reader Grant.  

Work is ongoing to put the necessary processes in place to make the grants available through individual contractors.  In the interim, the grants continue to be available through the network of Intreo centres.

Budget 2022 also provided for an increase in the Wage Subsidy Scheme’s basic hourly rate (Strand I subsidy) from €5.30 to €6.30 in January 2022.

The Wage Subsidy Scheme is an active labour market programme that targets private sector employers and is aimed at encouraging the employment of people with disabilities through the provision of financial incentives (a wage subsidy).

The increase in the Strand I subsidy will have an impact on the amount of Strand II subsidy as well.  In situations where an employer employs between 3 and 6 employees, a Strand II 10% top-up is applied to the hourly rate, increasing the payment rate to €6.93 for each employee.  In the case of an employer who has more than 23 qualifying employees, the payment rate is €9.45 per hour for each employee.

Currently there are 1,506 employers availing of the subsidy in respect of some 2,376 employees.

My Department continues to keep the range of income and employment supports under review.  Any changes to the current system would need to be considered in an overall policy and budgetary context.

I trust this clarifies the matter for the Deputy.

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