Dáil Éireann Debate, Wednesday - 17 January 2024
919. Deputy Pauline Tully asked the Minister for Social Protection if, in line with Action 85 of the Autism Committee’s Final Report, she has plans to remove the minimum work hours to access the wage subsidy scheme to allow for people with disabilities to access part-time employment; and the estimated first- and full-year cost, respectively, of implementing this proposal. [57274/23]
View answerThe Wage Subsidy Scheme is an employment support to private sector employers, the objective of which is to encourage employers to employ people with disabilities and thereby increase the numbers of people with disabilities obtaining and sustaining employment in the open labour market.
The scheme provides financial incentives to private sector employers to hire people with a disability for between 21 and 39 subsidised hours per week under a contract of employment.
The Wage Subsidy Scheme is a demand-led scheme and as of December there were 1,515 private sector employers availing of the subsidy in respect of 2,436 participant employees. Estimated expenditure on the Wage Subsidy Scheme in 2024 is €25 million.
The Programme for Government commits to fine-tuning and expanding targeted employment schemes, such as the Wage Subsidy Scheme, to help more people with disabilities stay in the workforce.
My department is currently undertaking a review of the scheme under the Comprehensive Employment Strategy for people with Disabilities. The review included a four-week public consultation held last year that received over 1,000 submissions. I expect to receive the completed report of the review in the coming months.
Under Budget 2024, and with effect from April the minimum required hours will reduce from 21 to 15 hours at an estimated additional cost of €3.7 million. Administrative and IT work is underway to operationalise this change by April.
It is not possible to cost the Deputy's proposal given the difficulty in assessing the behavioural responses from both employers and disabled people entering employment..
My goal is to support persons with disabilities to pursue their employment ambitions and give people with disabilities the opportunity to experience open labour market employment. In terms of the minimum hours threshold under the scheme, there is a balance to be struck in terms of providing flexibility while still offering substantial and sustainable employment to people with disabilities. I believe that a reduction in hours to 15 hours represents that balance and will attract more people with disabilities to take up employment while still maintaining the overall objectives of the scheme.
I trust this clarifies the matter for the Deputy.
