Written Answers. - Summary Note
The Department of Social and Family Affairs employment support services consist mainly of three schemes: the back to work allowance scheme, the back to work enterprise allowance scheme and the back to education allowance scheme.
The back to work allowance scheme was established in September 1993. The objective of the scheme is to encourage long-term unemployed, lone parents and people with a disability to return to the active labour force in either paid employment or self-employment.
Participants in the scheme receive 75% of their weekly social welfare payment for the first year, 50% for the second year and 25% for the third year. Subject to some income limits, participants also continue to receive all secondary benefits while working under the scheme. There are currently 11,692 participating in the employee strand of the scheme.
The back to work enterprise allowance scheme was introduced as the area allowance in 1992 in partnership areas to encourage long-term unemployed people to become self-employed. Participants in this strand of the scheme retain 100% of their social welfare payment for the first year, 75% for the second year, 50% for the third year and 25% for the fourth year. From 1 January 1998, the area allowance was extended nation-wide and re-named the back to work enterprise allowance scheme. At present there are 13,530 participants.
The back to education allowance is a separate stand-alone scheme established in January 1998 – replacing the third level allowance – and comprises two strands, the second level option and the third level option. Participants receive a weekly payment equivalent to the maximum standard rate of their social welfare payment for the full duration of the course of study, together with an annual cost of education allowance of €254.
The allowance is payable for the full duration of the course of study, including holiday periods. It is not a means-tested scheme and, consequently, participants may work without affecting their payments. Similarly, any payments under the higher education grants scheme or in respect of ESF funded courses do not affect their weekly allowance. The numbers participating in the scheme have grown since the scheme was first introduced in September 1990, from 67 to 5,300 in the 2001-02 academic year.