Vol. 492 No. 5
116 Mr. Finucane asked the Minister for Social, Community and Family Affairs the criteria applying to eligibility for the area allowance scheme; the way in which it is funded; the person responsible for authorising this funding; the measures, if any, in place to monitor applicants who receive this funding in order to ensure the scheme is not abused; and if he will make a statement on the matter. [14653/98]
117 Mr. Finucane asked the Minister for Social, Community and Family Affairs when the back to work scheme was introduced; the annual cost of the scheme since it was introduced; the total number of applicants annually who were successful; and the average payments under the scheme. [14654/98]
It is proposed to take Questions Nos. 116 and 117 together.
The area (enterprise) allowance scheme was established in 1991 to provide an incentive for long-term unemployed people residing in designated areas of high unemployment to set up their own business with the support of the local partnership company. Under the scheme, eligible applicants retain 100 per cent of their unemployment payment for 12 months plus secondary benefits. The allowance has now been extended nationwide.
The back to work allowance scheme was introduced in 1993 and provides a three year cycle of support to long-term unemployed people who take up employment or self-employment. The allowance is at a declining rate of 75 per cent, 50 per cent and 25 per cent of their unemployment payment over the three year period. In practice eligible people taking up self-employment may qualify for a four year cycle of support under the two schemes.
In order to qualify for the area (enterprise) allowance scheme, applicants residing in designated partnership areas have their applications determined by the local partnership company while applicants from non-partnership areas have their applications determined by my Department's jobs facilitators. In both cases payment is made by my Department. The allowance is funded by the Exchequer and is monitored by my Department and the partnership companies. There are currently 6,950 people in receipt of the allowance nationwide. The scope for abusing the scheme once the allowance is in payment is limited and I am satisfied it operates in a satisfactory way. The back to work allowance scheme has been successful in encouraging over 36,000 people to take up employment or self-employment opportunities. To date, over 4,500 people have completed the three year cycle of the allowance and initial surveys show that 85 per cent of these have successfully remained in employment after the allowance has ceased. The average weekly payment is £48.90.
Statistics in relation to costs and numbers participating in the back to work allowance scheme since 1993 are as follows:
|
Year |
Cost |
Number of Participants(at 31 December) |
|
£m |
||
|
1993 |
0.2 |
250 |
|
1994 |
9.2 |
4,816 |
|
1995 |
25.2 |
10,120 |
|
1996 |
39.4 |
16,146 |
|
1997 |
57.0 |
21,089 |
