The potential disincentive effects of the loss of secondary benefits, such as the medical card, fuel allowances, rent and mortgage supplements etc. for those who wish to move from social welfare dependency back into employment has been a cause of concern for a number of years. These benefits are administered by a number of Departments and agencies, including mine, and a range of measures has been introduced to mitigate the problems, including the retention of some secondary benefits in full or on a sliding scale for a number of years following the commencement of employment.
My Department provides a range of supports aimed at encouraging and assisting people on disability and illness payments to identify and take up available employment, training and other self-development opportunities, where appropriate. For instance, under the back to work scheme, people with disabilities and long-term illnesses can retain their social welfare payments on a sliding scale for three years if they take up full-time employment or four years if they take up self-employment.
Where people avail of these employment supports, the associated secondary benefits can be retained for the duration of the payment. It is estimated that there are in the region of 13,600 people in receipt of the various illness and disability payments who are availing of these employment supports.
Despite the improvements, which have been made in this area, I recognise there are still some problems in the operation of these supports, such as the fact that the existing arrangements may not be fully suitable for people with a partial incapacity. In this regard, my Department is undertaking a review of the various income maintenance payments for people who are ill and people with disabilities, as part of its programme of expenditure reviews. One of the key elements of this study is to examine the extent to which the illness and disability payment schemes support self-sufficiency and incentives to move into work, training or rehabilitation. The review, which is nearing completion, will be important in informing future policy development in this area. This is a complex area but I am confident that measures can be put in place to improve the situa tion for people with disabilities who want to participate in the active workforce.