I propose to take Questions Nos. 12 and 19 together.
Entitlement to a social insurance payment is based, among other things, on fulfilling the social insurance contribution conditions for the particular benefit being claimed. A person claiming jobseeker's benefit is required to have paid a minimum number of contributions since they first started working and also to demonstrate a recent attachment to the workforce by having a minimum number of contributions in a recent tax year.
These contribution rules aim to preserve a balance between the level of contributions paid and the amount of benefits received in terms of the rate of payment and the duration for which the payment will be made. This approach is informed by the contributory principle of the social insurance system, whereby contributors build an entitlement to benefits by having themselves made significant contributions. The principle protects both the entitlements of contributors and the rationale for the social insurance fund. The fund, having recorded a surplus of income over expenditure since 1995, recorded a deficit in 2008. A further shortfall is expected this year and although these current deficits can be met from the accumulated surplus, it looks likely that the Exchequer may yet again have to subsidise expenditure from the Social Insurance Fund within a few years.
The number of people claiming short-term benefits, such as Illness and Jobseeker's Benefit has increased significantly in recent years. In this context, the Government considered it appropriate to look at some of the instances where people with very limited or distant contribution record have been able to qualify for very significant benefits, regardless of their household income. It had been the case that a person who had paid just 52 PRSI contributions in total could qualify for jobseeker's benefit.
This meant that migrants or young workers who had only worked for a total of one year were entitled to claim jobseeker's payments for 12 months, without having to satisfy a means test.
From January 2009, the number of paid contributions required to qualify for the benefit was raised to 104 for new claimants to bring greater balance between the contributions made and the benefits received.
In addition, it had been the case that people who had paid 260 or more PRSI contributions could receive jobseeker's benefit for up to 15 months. From 15 October, 2008, this has been limited to 12 months for existing claimants with less than six months duration on the scheme as well as for all new claimants. Where the claimant has paid less than 260 PRSI contributions, the maximum duration of jobseeker's benefit is 9 months (instead of 12 months) for existing claimants who have been in receipt of benefit for less than three months and for all new claimants.
People who are affected by these changes will be able to claim jobseeker's allowance or supplementary welfare allowance subject to satisfying a means test. The maximum rate of these two schemes is paid at the same rate as jobseeker's benefit.