Dáil Éireann díospóireacht -
Wednesday, 15 Dec 1993

Vol. 437 No. 3

Adjournment Debate. - Social Welfare Christmas Bonus.

Mr. Deenihan

A number of people in County Kerry and throughout the country who were in receipt of long term unemployment benefit before joining social employment schemes will not qualify for the social welfare Christmas bonus. I am sure the Minister is aware of the anomaly in the system. It is inequitable that participants in similar schemes — for example, the community employment development programmes in depressed areas — qualify for the bonus. Participants on those schemes in one part of Kerry qualify for the bonus but participants on those schemes in non-depressed areas do not qualify for the bonus. That position is unfair.

The Christmas bonus should extend to all social employment scheme participants provided that, prior to participating in the scheme, they were in receipt of long term unemployment benefit. Participants in social employment schemes should retain secondary benefits including the Christmas bonus, fuel allowance, medical care and in the case of participants repaying loans, supplementary welfare benefit.

People lose their secondary benefits when they participate in social employment schemes. Those schemes are designed to give people an opportunity to work. Because of the unfairness in the system, people are discouraged from participating in social employment schemes. I would like the Minister to clarify a statement made by the Minister of State at the Department of Enterprise and Employment, Deputy O'Rourke, at a Fianna Fáil Ard Fheis, that all participants in social employment schemes would receive the Christmas bonus.

Social employment schemes have provided work opportunities. Those schemes were welcomed by many people and valuable work has been carried out through them throughout the country. However, those schemes have a demotivating influence because participants do not qualify for the Christmas bonus. Many of the participants find themselves in unsuitable employment. In many cases they do not possess the skills for the work they are required to do as many of them were employed in different jobs previously. For example, people employed previously in clerical jobs are now required to do manual jobs. Many participants find it difficult to cope with the change in jobs and the fact that they do not qualify for the Christmas bonus is the demotivating factor. I appeal to the Minister to remove what I consider an anomaly in the system and to address the inequitable treatment of participants in those schemes. It may not be possible to address this matter at this stage but I ask the Minister to give a commitment to address it for next year.

Minister for Enterprise and Employment (Mr. Quinn)

My colleague, the Minister for Social Welfare, announced on 9 September 1993 that the social welfare Christmas bonus was being paid again this year. The bonus is payable to persons in receipt of long term social welfare payments, including persons who are long term unemployed and in receipt of unemployment compensation payments, and also to persons who are in receipt of payments which are directly linked to the rates of unemployment payments. Participants on the social employment scheme, SES, are in receipt of payments which are not directly linked to the unemployment payments they were receiving while they were on the live register.

The level of payment to participants on the scheme is pitched above that which such persons would be entitled to had they remained on social welfare. Accordingly, participants on the SES are compensated for the loss of extra benefits such as the Christmas bonus which they might be entitled to had they remained on the live register.

The current basic rate paid to a participant on the social employment scheme is £77 per week, in respect of a part-time week, which compares with the basic rate of unemployment assistance of £59.20. In other words there is a differential throughout the year of £17.80 between the SES payment and the payment made while on the live register. This differential is intended to compensate participants for the loss of secondary social benefits such as the Christmas bonus.

In addition to the basic rate of £77 an added dependant allowance of £33.70 a week is paid, together with £12.80 per week per child. The availability of the child dependant allowance since 1990 has made the scheme attractive for long term unemployed people with dependants who currently represent about 54 per cent of those participating, compared with 30 per cent prior to the introduction of the child allowance scheme.

I would like to be in a position to increase the basic payment — £77 — to persons participating in manpower programmes. However, I must act responsibly, having regard to the capacity of the Exchequer which fully funds this scheme, unlike when it was originally introduced by me in the mid-eighties and we were able to draw down European Social Fund money for this purpose. I am using the funds made available to me for the social employment scheme to provide opportunities for as many long term unemployed as possible on the basis of normal weekly payments.

Deputies will be aware that the Government announced this year that the intake into the social employment scheme and the Community Employment Development Programme would be increased so as to provide for 20,500 participants by the end of the year, and that target has been achieved. Exchequer expenditure on the combined social employment scheme and the Community Employment Development Programme will amount to £103 million this year compared with £74 million in 1992. I am sure all Deputies are aware from experience in their constituencies that the projects undertaken are of significant benefit to local communities. It is generally accepted that participation in the scheme is worthwhile and helps the long term unemployed to improve their prospects of obtaining employment when opportunities arise.