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Social Welfare Code

Dáil Éireann Debate, Tuesday - 1 May 2012

Tuesday, 1 May 2012

Ceisteanna (328, 329)

Stephen S. Donnelly

Ceist:

397 Deputy Stephen S. Donnelly asked the Minister for Social Protection the policy rationale behind the amendment to the Social Welfare and Pensions Bill 2012 relating to entitlements to jobseeker's benefit for those in part-time employment; if, as is suggested in the Department of Social Protection briefing note of 23 April (details supplied), this has been introduced on the basis of anecdotal evidence; if there is any analysis to support the anecdotal evidence cited, and if she will release it; and her estimate of the number of persons currently in receipt of jobseeker’s benefit who are also working part-time who will move to full-time work as a result of this measure. [21831/12]

Amharc ar fhreagra

Freagraí scríofa

The amendment to the Social Welfare and Pensions Bill 2012 relating to entitlements of persons on jobseeker's benefit acts to implement a savings measure announced in Budget 2012. It is estimated that saving of the order of €5.9m will be achieved in 2012 as a result of the measure. In line with other Budget measures, this measure will not impact on any person whose sole income is from social welfare.

The detail referenced from briefing on the measure was provided as a point of information reflecting the view of some employers. In that context, the briefing went on to state that the effect of the measure would 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.

The 2006 Review of the Application of the Unemployment Benefit and Assistance Schemes Conditions to Workers who are not Employed on a Full-Time Basis, found that the scheme definition of a period of interruption of employment, whereby a person must be fully unemployed for at least three days in any period of six consecutive days, may have a disincentive effect. This effect may occur where a part-time worker is discouraged from taking up work for more than three days per week. Consistent with this finding it may be noted that some 40% of the casual and part-time jobseeker's benefit customers who avail of a mix of welfare and earned income, claim benefit in respect of three days and work for three days each week.

The measure may act to reduce disincentives to higher levels of employment for this group. However, no estimate of the number who will move to full-time work as a result of this measure has been produced.

Stephen S. Donnelly

Ceist:

398 Deputy Stephen S. Donnelly asked the Minister for Social Protection her estimate of the number of single parents who will no longer be entitled to one parent family allowance subsequent to the Social Welfare and Pensions Bill 2012 that will take up employment as a result of the activation measures being introduced in the Bill; and if she will release any additional analysis conducted by her on the projected impact of these measures. [21832/12]

Amharc ar fhreagra

The Social Welfare and Pensions Bill, 2012, introduces changes to the structure of the one parent family payment (OFP) and the age of the youngest child at which the payment ceases. From 3 May 2012, new customers will receive the one parent family payment until their youngest child reaches the age of 12, from January 2013, age 10 and from January 2014, age 7. For existing customers there will be a tapered phasing out period to 2015 to enable them to access education and training and prepare them for their return to the labour market.

The average weekly recipients, both new and existing, affected by these changes over the period 2012 to 2015 are 170 (2012), 765 (2013), 2,210 (2014) and 4,510 (2015). When the youngest child of a lone parent reaches the age of 7, if the parent is still in need of income support, they can apply for the jobseeker's allowance (JA) which is paid at the same basic rate as OFP, and which has the same increases for each additional qualified child, and receive the activation supports attached to that payment.

They will then be profiled and their individual needs will be assessed. This will facilitate the agreement of a progression plan with those customers, the development of their case management to assist them to either improve on existing skills or learn new ones, and their gradual move towards or entry into the labour force. It is not known how many customers will take up employment as a result of the activation measures introduced in 2012. Other than the impact figures provided above, no additional analysis of the specific age changes to OFP is currently available.

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