Vol. 573 No. 1
117 Mr. Naughten asked the Minister for Social and Family Affairs if she will reconsider the qualifying criteria for unemployment benefit to allow people, recently unemployed, to qualify for some payment while attempting to set up a business or self employment. [24317/03]
Unemployment benefit provides for periods of involuntary unemployment and is not payable in respect of any day during which a person is engaged in insurable employment or self-employment. To qualify for payment, a person must be available for and genuinely seeking full-time work in respect of each declared day of unemployment. This means being prepared to accept any offers of suitable full-time employment immediately.
In considering entitlement under this condition, account is taken of the person's skills, qualifications and experience, duration of unemployment and the availability of job vacancies in the locality. As there is an onus on the individual to show that this condition is satisfied on an ongoing basis, he or she will not qualify for payment of unemployment benefit while setting up a business or engaging in self-employment.
However, in certain circumstances, a self-employed person may be entitled to claim unemployment benefit for part of a week. For example, if engaged under a contract for service, that is, self-employed, for up to three days per week, unemployment benefit may be payable for the remainder of the week provided that all qualifying conditions are satisfied. Where a person is not eligible for unemployment benefit, arrangements are already in place where a self-employed person, whose overall income falls below the rate of payment appropriate to his or her family size, can qualify for an unemployment assistance payment, which is means-tested.
In assessing means, account is taken of net income which the person may reasonably expect to receive in the next year, after all expenses necessarily incurred in carrying out the business are deducted. In this context, there are currently 1,670 self-employed people receiving an average payment of €130.83 unemployment assistance per week.
The national employment action plan is the Department's principal intervention measure to support and encourage unemployed people to progress towards employment. It is particularly focused on early intervention, with those receiving unemployment payments for six months being referred to FÁS for assessment of the progression path most suited to their needs. This early intervention helps prevent the drift into long-term unemployment.
Also, the back to work enterprise allowance scheme is available to the most disadvantaged social welfare recipients, including those unemployed for five years or more who wish to take up self-employment for at least 20 hours per week. I have no proposals to make changes to the unemployment benefit scheme at this time.
Question No. 118 answered with Question No. 77.
