Written Answers. - Long Term Unemployment.
Desmond J. O'Malley
Ceist:
31
Mr. O'Malley
asked the
Minister for Social Welfare
the plans, if any, he has for a comprehensive programme of measures to assist the long term unemployed back to work with clear targets for reducing the state of long term unemployment; and if he will make a statement on the matter.
Liz McManus
Ceist:
38
Ms McManus
asked the
Minister for Social Welfare
in regard to the back to work allowance scheme announced last year under which people would be able to take up certain work while retaining 75 per cent of their social welfare payments as well as secondary benefits, the number of people who have availed of the scheme to date; and if he will make a statement on the matter.
I propose to take Questions Nos. 31 and 38 together.
I have taken a pro-active and work supportive approach to assisting unemployed people. A wide range of initiatives have already been introduced by my Department to assist the long term unemployed to enter the active labour force. A number of measures have also been introduced to encourage the creation of new job opportunities for the unemployed and to assist employers in hardpressed labour intensive sectors. Unemployed people can also avail of the educational opportunities programme which I introduced to enhance their prospects of obtaining employment.
I introduced the back to work allowance last September as a pilot scheme designed to encourage the creation of new job opportunities for up to 3,000 unemployed people or lone parents. Under the scheme the long term unemployed and lone parents can retain up to three quarters of their weekly entitlements and a range of their secondary benefits for two years. This helps to provide a financial cushion during the early years of employment or self-employment.
Even though the scheme has only been in operation for a little over eight months, to date it has brought forward some 3,400 jobs with almost 50 per cent of these in self-employment. There are some 2,300 people currently in receipt of the allowance at an average weekly payment of £78. I am very pleased with the success of this scheme and in recognition of this success the Government recently increased to 4,000 the upper limit on the number of participants. I have no doubt that, if circumstances justify it, this limit will be further increased. It has undoubtedly encouraged the creation of new job opportunities particularly in the indigenous industries identified in the Culliton report as having potential for expansion.
More importantly it has given a major incentive to the long term unemployed as is evident from the significant number of people who are engaging in self employment as a result of the scheme.
This is a pilot scheme and as such it is being carefully monitored by my Department. I have a team of job facilitators in place in each of my Department's eight regions and they are responsible, as part of their role, for marketing the scheme at local level among employers, the long term unemployed and lone parents. Their close personal contact with all of these groups gives facilitators a valuable insight into their reaction to the scheme. It will also enable me to have a sound basis for assessing what changes and modifications are needed when the scheme is being evaluated in my Department. I am very pleased with the positive response which the scheme has received to date from unemployed customers, employers, and other agencies.
Under the job facilitation programme which I have introduced job facilitators work closely with unemployed people and lone parents. They will help these customers to assess their needs, support them in seeking job opportunities and direct them towards the wide range of initiatives and options provided by various Government Departments, agencies, voluntary bodies and community groups.
A package of measures has also been included in this year's Social Welfare Act which will assist employers in the labour intensive sectors to retain employment and encourage all employers to create new employment. The package includes:
—a new two year employers PRSI exemption scheme for 1994-95 and 1995-96; the previous scheme was very successful in assisting employers with 4,000 new jobs created for unemployed people; it is expected that the new scheme will result in the creation of 2,000 further jobs by 5 April 1996 when the scheme ends;
—a reduction in the employers share of PRSI from 12.2 per cent to 9 per cent in respect of employees earning £173 or less per week.
A programme of educational opportunities is also available to unemployed people. These optional schemes encourage people who have been out of the education system for a long time to take up second chance education and increase their chances of obtaining employment. This year around 7,000 people will participate in the programme, of which over 1,000 will be attending third level courses.
The family income supplement, FIS, is designed to provide a cash boost to families, bringing up children, on low earnings. As a result of the improvements which I made to FIS last year and other initiatives taken by my Department to promote the benefits of the scheme, the number of families receiving FIS payments has increased by over 22 per cent to about 9,800 since mid 1993. Under the FIS scheme, a family with four children with an income of £180 per week would receive FIS payments amounting to £1,700 annually. I announced further improvement of FIS in the 1994 budget and my Department will be mounting a new campaign to increase awareness of its benefits in this year of the family.
I will continue to take a very pro-active and work supportive approach to job creation and to ensure that all relevant programmes administered by my Department are geared towards this objective.
I am confident that the above measures will assist the unemployed in returning to the workforce. My Department will continue to support and encourage unemployed people in this regard.
