Dáil Éireann Debate, Wednesday - 25 April 2012
16 Deputy Richard Boyd Barrett asked the Minister for Social Protection if she will explain her rationale for changing the jobseeker’s payment from six a day a week to over a five day a week in view of the fact that it will act as a disincentive to work; and if she will make a statement on the matter. [20628/12]
Amharc ar fhreagra102 Deputy Anthony Lawlor asked the Minister for Social Protection the reasons, as effective from July 2012, the level of payment for a part-time worker in receipt of jobseeker’s benefit will be based on a five day week rather than the current six day week, but that this new rule will not apply to part-time workers in receipt of jobseeker’s allowance whose payment will remain based on six days; and if she will make a statement on the matter. [20672/12]
Amharc ar fhreagraI propose to take Questions Nos. 16 and 102 together.
In the last four years the numbers in receipt of a jobseeker's payment who are also working on a part-time or casual basis has increased by almost 200%. At the end of March 2012 there were some 84,118 people in this situation on the Live Register and some 41,008 of these were claiming jobseeker's benefit.
In line with other Budget measures the effect of this measure will not impact on any person whose sole income is from social welfare. It will only apply to those who have earned additional income from working some days during the week.
The effect of this measure will be to reduce the contribution from jobseeker's benefit to the weekly amount of total income and help towards a reduction in the reliance on the welfare system among those who currently avail of a mix of welfare and earned income. As a savings measure, the change will reduce costs within the jobseeker's benefit scheme but the scheme will continue to deliver incentives towards additional employment for part-time and casual workers. It is important to note that the measure applies to jobseeker's benefit only and that recipients of jobseeker's benefit may opt for jobseeker's allowance, which is subject to a means test.
Entitlement to jobseeker's benefit is based, inter alia, on the claimant being unemployed for three days in any period of six days with benefit being paid at a flat rate, irrespective of earnings. Jobseeker's allowance is also based on satisfaction of "three in six" criteria but entitlement is thereafter determined by reference to weekly means. Therefore the jobseeker's allowance scheme takes account of the earnings of part-time and casual workers, via means reduction in respect of any day in which they have earnings from employment.
