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Gnáthamharc

Social Welfare Benefits.

Dáil Éireann Debate, Tuesday - 9 November 2004

Tuesday, 9 November 2004

Ceisteanna (183, 184)

Seán Crowe

Ceist:

240 Mr. Crowe asked the Minister for Social and Family Affairs if he will report on the figures of persons benefiting from the back to work allowance over the past three years; and if there is a significant restriction on those now benefiting from this allowance. [28079/04]

Amharc ar fhreagra

Seán Crowe

Ceist:

241 Mr. Crowe asked the Minister for Social and Family Affairs if he will report on the figures of persons benefiting from the back to work enterprise allowance over the past three years; and if there is now a restriction in those benefiting from this allowance. [28080/04]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 240 and 241 together.

The back to work allowance scheme which was introduced in September 1993 is part of my Department's programme of initiatives designed to assist long-term unemployed people, lone parents and other social welfare recipients to return to the active labour force. There are two strands to the scheme, the back to work enterprise allowance for self-employment and the back to work allowance for employees.

The allowance was introduced at a time when long-term unemployment stood at 8.9%. In its early years, the scheme proved very effective in helping people who had been long-term unemployed to return to the labour force. However, changes in labour market conditions since the mid 1990s have reduced the need for the scheme. This is illustrated by the drop in numbers availing of it in recent years. At present, there are 12,097 participants in the scheme, compared to 39,343 in October 2000 when the scheme reached its peak.

The scheme was reviewed in 2002 in the light of economic and labour market changes and, in particular, the drop in unemployment levels since the introduction of the scheme in 1993. This review also took account of an evaluation of the scheme by independent consultants. They recommended that the scheme should be restructured in the light of the changes in the labour market. In particular, the review recommended that the scheme be refocused on the longer-term unemployed, that the non-financial supports be enhanced and that the overall numbers on the scheme be reduced.

In January 2003, the qualifying period for persons on unemployment benefit or assistance was increased to five years. Recipients of other social welfare qualifying payments were not affected by the change. The scheme is continually monitored to ensure its relevance to current labour market and economic conditions. It was recognised that there was some difficulty being experienced by persons wishing to enter self-employment after five years attachment to the live register. Therefore, in the budget of 2004, the qualifying period for access to the self-employed strand of the scheme was reduced to three years for those in receipt of an unemployment payment, effective from March 2004.

The numbers of recipients at the end of each of the years 2001, 2002 and 2003 are shown in the following table.

2001

2002

2003

Self-employed

15,973

13,510

9,873

Employees

16,218

11,566

7,197

Total

32,191

25,076

17,070

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