Dáil Éireann díospóireacht -
Wednesday, 4 Dec 2002

Vol. 558 No. 5

Written Answers. - Employment Support Services.

Thomas P. Broughan

Ceist:

86 Mr. Broughan asked the Minister for Social and Family Affairs the reason the employment support services budget under the auspices of her Department is to be cut by 31% in 2003; and if she will make a statement on the matter. [24705/02]

Minister for Social and Family Affairs (Mary Coughlan)

The range of employment support services administered by my Department has been under review in the light of the major economic and labour market changes which have occurred in recent years. The transformation in labour market conditions is illustrated by the drop in unemployment levels since the introduction of the back to work allowance in 1993. When the allowance was introduced the overall unemployment level was 15.7% and long-term unemployment stood at 8.9%. By 2001 overall unemployment had fallen to 3.7% and long-term unemployment was down to 1.2%.

An independent evaluation of the scheme, conducted by Indecon International consultants, found that high levels of dead weight – over 50% – are attached to the scheme. It recommended that participation levels be reduced and the scheme re-focused on the very long-term unemployed.

It is important that my Department's employment support services retain their relevance to current labour market conditions and retain their focus on the more vulnerable groups in our community. It has been decided therefore to restructure these services and in going forward the scheme will now target those in most need in accessing the labour market and provision has been made to allow for this.

Due to the continued decline in demand for the back to work allowance scheme and in the light of the recommendations of a review of labour market programmes by independent consultants, the qualification conditions for the scheme are being re-focused on the most disadvantaged groups. This will mean that from January 2003, the scheme will be open to those who are very long-term unemployed, that is, on the live register for five years or more. Those in receipt of DB for three years or more may also be eligible, as will those in receipt of one of the following for one year or more: disability allowance, invalidity pension, one parent family payment, carer's allowance, blind person's pension, ex-prisoners, PRETA and unemployability supplement. The PRSI exemption scheme is being similarly re-focused to target these disadvantaged groups. Current participants on these schemes will not be affected.