Dáil Éireann Debate, Tuesday - 23 May 2023
87. Deputy Pádraig O'Sullivan asked the Minister for Social Protection if she will provide an update on the research conducted within her Department for linking jobseeker's benefit to previous earnings; if she is seriously considering such a reform; the likely implementation date for same; and if she will make a statement on the matter. [24158/23]
View answerThe Programme for Government and the Economic Recovery Plan include commitments to consider a pay-related jobseeker's benefit scheme. This would bring Ireland in line with the majority of other EU Member States.The core rationale for the introduction of a pay-related benefit is twofold.First, to recognise and cushion people against the ‘income shock’ that arises on loss of employment.Second, to provide a tangible return to people who make social insurance contributions.I published a Strawman document in December 2022, which sets out the broad parameters of a possible approach to a pay-related jobseeker's benefit scheme. The key features of the proposal set out in the Strawman include that:The Benefit would be paid to employees who:
• are under State pension age, who are fully unemployed;
• have a demonstrated strong, recent attachment to the labour force, and
• are available for and genuinely seeking paid employment.
The Rate of Benefit would be set as follows:
• for people who have at least five years paid PRSI contributions, the rate would be set at 60% of the person’s prior gross income subject to a cap of €450 per week;
• for people who have fewer than five years paid PRSI contributions but at least two years, the rate would be set at 50% of the person’s prior gross income subject to a cap of €300 per week; and
• payment would be payable for up to a maximum six months.
This strawman proposal is not a final design. The objective of the objective Strawman is to elicit feedback through a national consultation process to develop a preferred policy design. Written submissions have been received from over 80 individuals and from 32 stakeholder groups.Officials in my Department are currently analysing all feedback received through the consultation process. This will inform the design of a proposal that I intend to bring Government for consideration in the coming months.
