Jobseeker's benefit (JB) is a weekly payment to people out of work and covered by social insurance (PRSI). In 2012 my Department spent some €737m on the scheme and at the end of 2012 there were some 85,000 persons in receipt of a JB payment.
Budget 2013 provided that the duration for which JB is paid was, with effect from April 2013, reduced from 12 months to 9 months for recipients with 260 or more contributions paid and from 9 months to 6 months for recipients with less than 260 contributions paid.
The reduction in duration from 12 months to 9 months applied to new claimants from April 2013, and existing recipients who, in April, 2013, had been getting JB for less than 6 months. The reduction in duration from 9 months to 6 months applied to new claimants from April, 2013 and existing recipients who, in April, 2013, have been getting JB for less than 3 months.
Individuals affected by this measure are able to apply for Jobseeker’s Allowance, which is subject to a means test. The rates of Jobseeker’s Allowance are the same as the basic rates of JB.
Legislation provides that, subject to the person having paid 156 or more qualifying contributions and satisfying the general scheme conditions, a person whose JB expires in their 65th year will continue to be paid benefit up until the age of 66. On this basis, workers who suffer a substantial loss of employment at age 65 will not be subject to the reductions in duration provided they have paid at least 156 qualifying contributions.
The reduction in the duration of JB was introduced given the significant pressure on the public finances and the Social Insurance Fund in particular. The significant shortfall in the Social Insurance Fund, which is being met by the Exchequer and the prospect of acceleration of this deficit in the future, represented a daunting challenge, which needed to be addressed. The introduction of this measure will contribute towards placing the Social Insurance Fund on a more sustainable footing in the future.
