Dáil Éireann díospóireacht -
Tuesday, 9 Nov 1999

Vol. 510 No. 3

Written Answers. - Back to Work Allowance Scheme.

Jim O'Keeffe

Ceist:

331 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the number of places on the back to work allowance scheme for those on long-term unemployment payments, one parent family payments and people with disabilities; and if all these allocations have been filled. [22531/99]

Jim O'Keeffe

Ceist:

332 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the procedures for dealing with appeals under the back to work allowance scheme; the number of these appeals; the number disallowed; and the number upheld. [22532/99]

Jim O'Keeffe

Ceist:

333 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the number of beneficiaries of the back to work allowance scheme; and the number of those in employment and self-employment. [22533/99]

Jim O'Keeffe

Ceist:

334 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the age requirement for qualification for the back to work allowance scheme; and the consideration, if any, given to lowering the age requirement, particularly for those who have left school early. [22534/99]

Jim O'Keeffe

Ceist:

335 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the number of people finishing on back to work allowance schemes who continue in full-time or self-employment; and the percentage of those involved who return to the live register within 12 months. [22535/99]

Jim O'Keeffe

Ceist:

336 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs if disincentives to participation in the back to work allowance schemes exist for social welfare claimants with large families; and the proposals, if any, he has in this regard. [22536/99]

Jim O'Keeffe

Ceist:

339 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs his views on the fairness of the system whereby the long-term unemployed, who apply under the back to work allowance scheme, lose all benefits under the scheme if they are late in making application; and his further views on whether this aspect of the scheme should be operated with a greater degree of flexibility. [22612/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 331, 332, 333, 334, 335, 336 and 339 together.

Since its introduction in 1993, the back to work scheme has proved to be a very worthwhile initiative in encouraging the long-term unemployed to take up employment and self-employment opportunities.

There are 30,000 places available on the scheme at present and these places are fully taken up. It is estimated that there are now approximately 31,300 participants in the scheme. In addition there are 5,680 persons in receipt of the back to work (Enterprise) allowance, formerly known as the area allowance enterprise. There is currently no limitation on the number of places available under this strand of the scheme.

I am closely monitoring the level of demand for places under the back to work allowance scheme. Demand for places is still buoyant and I am anxious to ensure that this highly successful scheme continues to be available to provide an incentive to persons who may wish to move out of long-term unemployment and return to the active labour force.

The back to work allowance scheme is non-statutory and, consequently, decisions cannot be appealed to the social welfare appeals office. Decisions under the scheme are made in the Department's local offices and all appeals are determined centrally by an official at higher executive officer level. Since 1 January this year, 172 appeals have been lodged, of which 84 were allowed.

At present, 17,900 employees and 19,080 self-employed are participating on the scheme.

Since the scheme commenced a total of 10,800 people have completed the three or four year cycle of financial support available under the scheme. A small survey of a sample of these carried out recently showed that 85 per cent had not returned to the Live Register six months after the allowance ceased with the remaining 15 per cent returning to receipt of a social welfare payment. A second evaluation of the scheme is currently being undertaken by independent consultants with the focus primarily on persons whose allowance has expired or terminated. It is expected that this will be completed around the middle of next year.

The minimum age limit of 23 years is designed to target the scheme at those who are most likely to need this assistance. It is felt that persons under this age are in a better position to seek out and avail of the job opportunities without the need for the financial incentive which the scheme provides. There are no plans at present to reduce this age limit.

There are no indications that significant financial disincentives exist to participation in the scheme. It should be noted that persons with families can also gain access to family income supplement to further increase their take home pay. Currently some 9 per cent of recipients have four or more children.

The objective of the scheme is to provide a financial incentive to the long-term unemployed, who could not otherwise do so, to return to work. Applications should therefore be made before a person takes up employment. In practice, applicants must apply within four weeks of commencing work. I consider this to be a reasonable approach, as the acceptance of later applications would increase the dead-weight costs of the scheme which are currently at an acceptable level.