Written Answers Nos. 33-39
33. Deputy Bernard J. Durkan asked the Minister for Social Protection the number of initiatives she has in mind to address the issue of long-term and youth unemployment; the number of short, medium and long-term places likely to be available in respect of both categories in 2014; and if she will make a statement on the matter. [10441/14]
Amharc ar fhreagraIn the first instance, the Government’s primary strategy to tackle unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. However, the Government also recognises the need for additional measures in the interim while the economy recovers. This is the rationale behind the Government’s Pathway to Work Strategy. Pathways to Work 2013 prioritises the allocation of available resources to the long-term unemployed and to the young unemployed. The goal in Strand 2 of Pathways to Work 2013 is: “To provide unemployed people, in particular people who are long-term unemployed and young unemployed people, with opportunities to enhance their job prospects through value-adding work experience, education and training activities.” The Pathways to Work Strategy set a target of moving 20,000 of the 180,800 people who were on the Live Register for over a year (long-term unemployed) at the beginning of 2012, into employment by the end of 2013. By the end of 2013, 26,611 of this group were known to have moved into employment. Of these, 19,695 had entered full-time employment and left the Live Register, and 6,916 had entered part-time employment. As there can be some time lag in the reporting of new entries to employment by the relevant employers, it is likely that these figures will increase retrospectively as further records become available.
In terms of enhancing job prospects the Department has a number of supports available for jobseekers (including long term and young unemployed). These provide short medium and long term places and are outlined below. With specific reference to youth unemployment, during last year’s EU Presidency, Ireland prioritised the provision of the EU recommendation on the provision of a Youth Guarantee under which every young person should be guaranteed an offer of employment, training or further education within a target period of four months of becoming unemployed. Ireland also took the lead in discussions which led to the provision of a €6bn EU spending provision which is to be frontloaded to cover programmes undertaken in the first two years of the multi-year financial framework (i.e. 2014 and 2015). We have developed a national implementation plan for a Youth Guarantee in Ireland and this plan was forwarded to the European Commission at the beginning of this year and published in late January.
- JobBridge (the National Internship Scheme) provides work experience placements for interns for a 6 month or a 9 month period. The aim of JobBridge is to assist in breaking the cycle where jobseekers are unable to get a job without experience, either as new entrants to the labour market after education or training or as unemployed workers wishing to learn new skills. Some 6,400 people are currently participating on this scheme. Over 13,000 new participants are expected to benefit from JobBridge in 2014. Take-up of people under 25 is expected to exceed 3,000 this year (not including the new “development” JobBridge programme which is expected to increase this figure to 5,000).
- The JobsPlus incentive scheme encourages employers to recruit long-term unemployed people. The incentive is payable monthly in arrears, over a 2-year period. There are 2 levels of incentive: €7,500 for recruits unemployed for more than 12 but less than 24 months and €10,000 for recruits unemployed for more than 24 months. It is anticipated that approximately 4,000 jobs will be subsidised by JobsPlus in 2014 including an inflow of 2,000 new participants. It is proposed to amend the eligibility requirements to allow young people to access the scheme at lower unemployment duration and as a result, young people are expected to account for approximately 1,500 of new participants on the JobsPlus scheme in 2014.
- The Department also manages a number of schemes providing temporary employment for the long-term unemployed on works and services of value to the community. There were almost 31,000 people participating on Community Employment and Tús in December 2013. Similar figures are expected for 2014, with average participation expected to be in the order of 33,000. In 2014, there will also be 3,000 places available on Gateway, a local authority labour activation scheme that provides short-term work and training opportunities for long-term unemployed people who have been on the Live Register for over 2 years.
- In terms of up-skilling, the Back to Education Allowance scheme run by the Department provides income maintenance, along with a contribution to education costs, for unemployed people returning to further or higher education. In 2014, average participation is expected to be in the order of 18,500 of which circa 3,300 are expected to be accounted for by under 25s.
- MOMENTUM, a scheme for education and training interventions, which is part of the Government’s Action Plan for Jobs initiative, was rolled out by the Department of Education in 2013. MOMENTUM supports the provision of free education and training projects to allow up to 6,500 long term jobseekers to gain skills and to access work opportunities in identified growing sectors. Over 1,600 of these places have been taken up by young people in 2013 up to mid-November. It is intended to provide a minimum of 2,000 MOMENTUM places for young people in 2014.
- Two further up-skilling options available are the Part-time Education Option (PTEO) and Education Training and Development Option (ET&D). Both PTEO and ET&D are designed to facilitate jobseekers who wish to engage in part time day, evening or weekend courses or more intensive short duration courses of education and training while retaining their jobseeker’s payments. The PTEO allows participants to attend part-time day/evening or weekend courses of education or training and retain their jobseeker’s payment while an entitlement exists provided that they continue to satisfy the conditions of being available for and genuinely seeking employment on an ongoing basis. Payment is made at the same rate as the primary payment and no maximisation of payments occurs. The ET&D allows participants to attend certain courses of education, training or development of short duration and retain their jobseeker’s payment while an entitlement exists. Participants are exempt from engaging in job search but must be available for employment should an opportunity arise.
- Courses delivered through Youthreach/CTCs are directed at unemployed young early school leavers aged 15-21. They offer participants the opportunity to identify and pursue viable options within adult life, and provide them with opportunities for personal and social development education and training while pursuing nationally accredited qualifications. Participation can last between one and two years. Some 6,000 places will be provided in 2014, with an intake of about 3,300. This will continue to be the main programme offer for school-leavers aged under 18 in the context of the Guarantee.
- The former FAS training provision is being progressively transferred to the new regional Education and Training Boards (ETBs) up to mid-2014. The main FAS/Solas programmes of relevance to the young unemployed are Specific Skills Training, Traineeships, Local Training Initiatives, and training for people with disabilities through Specialist Training Providers. About 25,000 new participants are expected on these courses in 2014, of which 9,500 are expected to be young people.
A breakdown of likely available places for 2014 is presented in the table below. The programmes where being long-term unemployed is an eligibility requirement are indicated, as are the latest estimates for uptake by young people.
Expected participation, activation programmes, 2014
|
Programme |
Average participation |
Inflow of new participants |
Expected inflow of young people |
Aimed at Long Term Unemployed? |
|
Youthreach/CTC |
6,000 |
3,300 |
3,300 |
|
|
JobBridge (including planned reserve) |
7,700 |
13,300 |
5,000 |
|
|
Tus |
7,500 |
7,500 |
1,000 |
Yes |
|
JobsPlus |
4,000 |
2,000 |
1,500 |
Yes |
|
Momentum |
6,500 |
6,500 |
2,000 |
Yes |
|
BTEA (excl Momentum) |
18,500 |
9,300 |
3,300 |
|
|
BTWEA |
11,000 |
5,500 |
200 |
Yes |
|
VTOS |
5,600 |
2,800 |
500 |
|
|
FAS/Solas |
10,300 |
25,000 |
9,500 |
40% target |
|
CEB youth Entrepreneurship Training and Mentoring supports |
700 |
700 |
||
|
CEB/MFI micro-loans for young people |
150 |
150 |
||
|
International Work Experience and Training |
250 |
250 |
250 |
|
|
Gateway |
3,000 |
3,000 |
450 |
Yes |
|
Community Employment |
25,300 |
12,700 |
500 |
Yes |
|
Total |
105,650 |
92,000 |
28,350 |
|
|
PLCs Apprenticeship |
35,000 8,000 |
32,000 2,500 |
22,000 2,000 |
|
|
Vocational Third Level |
It is estimated that at least 50% of the 41,000 entrants to third level each year are entering courses leading towards defined occupations |
34. Deputy Richard Boyd Barrett asked the Minister for Social Protection if she will remove the restriction whereby new jobseekers are disqualified from various labour activation schemes such as JobBridge on the grounds that they have not been unemployed long enough; and if she will make a statement on the matter. [10473/14]
Amharc ar fhreagraMany of the newly-unemployed find work relatively quickly and do not require substantial assistance in doing so. In 2013, for example, 36% of those joining the Live Register exited within the first three months. Eligibility periods for labour market programmes are designed to allocate scarce resources and focus assistance on those who need it most – people who have not, after some time, managed to re-enter employment by their own endeavours.
35. Deputy Clare Daly asked the Minister for Social Protection if she will review the low level of rent supplement being awarded, against the backdrop of rising rents, which is contributing to increased homelessness and tenants having to subsidise the rent by amounts in excess of guidelines. [10437/14]
Amharc ar fhreagraThere are currently approximately 78,000 rent supplement recipients for which the Department has provided over €344 million for 2014. Recipient numbers have been in decline following a peak of over 97,000 in 2010. Following an extensive review of the private rental market revised maximum rent limits were introduced from Monday 17 June 2013 until 31 December 2014. Despite the overall pressures on the social protection budget, there have been increases in the rent limits in Dublin, Galway, North Kildare and Bray areas. Rent supplement is calculated to ensure that an eligible person, after the payment of rent, has a minimum income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances, less a minimum weekly contribution of €30 for a single person or €40 for a couple. Where a person has an additional income above the rate of SWA they are, in certain circumstances, required to top up their rent.
The tenant, landlord or landlord’s agent must complete the rent supplement application form declaring that the information provided is accurate. The form clearly states that making a false statement or withholding information may lead to prosecution.
The Department, in June 2012, introduced powers of inquiry for staff to formally request and oblige landlords to provide information in respect of rent supplement tenants, principally to verify the agreed rent and tenancy.
Any instance of false declarations of the amount of rent payable should be reported to the relevant Department representatives who have specific legislative powers to deal with such offences. In such cases the Department’s representative will discuss the circumstances of the case with the tenant before making any decision in relation to ongoing entitlement.
Department officials dealing with rent supplement tenants continue to make every effort to ensure that their accommodation needs are met.
36. Deputy Éamon Ó Cuív asked the Minister for Social Protection the payments rates applicable on the rural social scheme taking income from farming into account; the changes she has made to the method of calculation of these rates since she became Minister; the reasons for these changes; and if she will make a statement on the matter. [10354/14]
Amharc ar fhreagra38. Deputy Éamon Ó Cuív asked the Minister for Social Protection if she will increase the number of participants on the rural social scheme for 2014 to enable the scheme to undertake environmental works to rehabilitate areas damaged in recent storms; and if she will make a statement on the matter. [10353/14]
Amharc ar fhreagraI propose to take Questions Nos. 36 and 38 together.
The rural social scheme (RSS) currently provides work opportunities for around 2,600 participants and 130 supervisory staff. While overall responsibility for the RSS rests with the Department, its day-to-day operations are delivered by 35 local development companies and Údarás na Gaeltachta (known as the Implementing Bodies). The sum of €45m has been allocated for the RSS in 2014, which will allow it to continue along the same lines as in previous years. It does not, however, allow for recruitment above the numbers stated above and I have no plans to increase the current level of placements beyond those numbers.
Primary responsibility for determining works in relation to clean-up operations and remedial tasks resulting from recent storm damage rests with county councils. I am confident that the Implementing Bodies will respond to providing whatever assistance is determined by county councils and/or other statutory agencies on weather-related remedial work. In addition to the RSS, implementing bodies have recourse to additional resources from Tús should such be required to support remedial works.
The Deputy should note that a new work placement initiative has been put in place by the Department with county and city councils. Known as Gateway, it has been introduced to deliver on the policy objectives set out in Pathways to Work and is designed to bridge the gap between unemployment and re-entering the workforce. Responsibility for delivery of this initiative rests with individual county and city councils. Gateway has a target to provide for 3,000 placements focusing on those who have been unemployed for 24 months or more. As responsibility for the majority of environmental works falls within the remit of these city and county councils, Gateway will present the councils with an opportunity to deploy this workforce to remedy storm damage and provide assistance with local clean-up projects.
Rates of payment on the RSS are set with reference to participants’ underlying rates of payment on their qualifying social welfare allowance and are consistent with the level of payments on community employment, Tús and Gateway. Participants are paid the equivalent of their prior social welfare payment plus €20 per week subject to a minimum weekly payment of €208 per week.
37. Deputy Thomas Pringle asked the Minister for Social Protection her views on her Department's commitment to ensuring that An Post can continue to deliver cash payment services on behalf of her Department to customers in receipt of social welfare into the future; and if she will make a statement on the matter. [10476/14]
Amharc ar fhreagra40. Deputy Patrick O'Donovan asked the Minister for Social Protection if her attention has been drawn to instances where correspondence from her Department to persons in receipt of social welfare actively seeks to discourage, or prevent, claimants from receiving their payment over the counter at their local post office and instead provides only the option of EFT to banks; her views that removing that option could damage significantly the viability of the post office; and if she will make a statement on the matter. [10341/14]
Amharc ar fhreagraI propose to take Questions Nos. 37 and 40 together.
The potential risk to An Post business into the future has been the subject of in-depth discussion over the past week. I think this is only right, given the importance of the network to the social fabric of our society.
In this regard, I am very happy to provide my own support for the post office network and the valuable work being delivered by postmasters throughout the country. On the 20th December last year, I was very pleased to be able to sign a new contract with An Post for over-the-counter cash services for welfare clients following an EU-wide procurement competition. The contract, which is for a minimum period of 2 years with the option to extend to a maximum of 6 years, is very substantial in terms of its reach, value and impact. Therefore, I am happy to be able to confirm that these services will continue for large numbers of welfare clients into the future, as provided for under the terms of the contract.
The continuation of over-the-counter cash payment services supports some nine hundred thousand (900,000) customers currently. These services are provided through a network of over 1,300 post offices and agencies around the country, the larger number of which are run as vibrant commercial retail outlets and operations by individual postmasters and their staff.
Last year approximately €9.5 billion was paid in cash to our clients at post offices. This accounted for 43.7 million transactions and cost the Department just under €75 million (including internal processing costs). By comparison, some 37 million payments were issued directly into accounts in financial institutions by electronic funds transfer (EFT) and this cost the Department under €9 million. In short, cash payments are an inherently more expensive means of paying clients. It costs the Department 6.5 times more to issue a payment to a customer in cash than it does by EFT. The Department must address such a significant variation in costs in the interests of the economy, taxpayers and welfare clients.
Mindful of the scope, scale and impact of these payments, the Department undertook a root and branch examination of its payment processes, methods and approaches. This resulted in the preparation of a payment strategy which was approved by the Government last year. The strategy has the goal of reducing significantly the level at which welfare payments are made in cash and thereby minimising the associated expensive fees. These fees are expensive because they reflect the additional costs incurred for securely packing, processing, transporting, delivering and issuing cash to clients. The same level of fees is not incurred on electronic payment transactions. Furthermore, cash limits the options for customers to make onward transactions. It limits the scope for customers to avail of cheaper prices online and curtails financial inclusion of customers. It is also at odds with trends in consumer behaviour generally as they migrate towards electronic payment channels.
Concerning statements that the Department is actively seeking to prevent clients from receiving their payment in cash, a number of representations have been received alleging that the Department is orchestrating activities to discourage or prevent clients from receiving payments at their post office. These statements are not correct. The Deputy may be referring to recent communications from departmental officials to job-seeking clients aged 62-64 years.
Up until Budget 2014, older jobseekers were required, as part of their entitlement to a Jobseeker’s payment, to be available for full-time employment and genuinely seeking work. In addition, they like other jobseekers were required to comply, when requested to so do, with the Department’s activation measures. Legislation provided that non-compliance with such activation measures, without good cause, would give rise to the imposition of penalties in the form of payment reductions. Revised conditions were announced as part of Budget 2014 to apply to older persons who seek the support of jobseekers schemes in advance of reaching pension age. The measures provide for these clients to continue to avail of departmental supports on a voluntary basis should they wish to return to work, training or education. In addition, provision is made for these clients to receive their payments directly into an account in a financial institution if they so wish. Some communications have been received by some older clients from local offices of the Department advising them of these budgetary changes. Those letters also reference the option of being paid electronically. The letter neither prevents nor discourages these clients from receiving their payments in the post office but rather it simply informs them of the option to change their payment method. If and when An Post can provide an electronic payment channel the Department will happily facilitate clients’ instructions to pay funds directly into such an account.
The move to digital transactions is in line with wider Government policies and objectives on better public services and more effective electronic payments as set out in the public service reform plan and the eGovernment strategy 2012-2015. The goal is also shared by the national payments plan and the roll-out of the standard bank account. These initiatives have made the case quite strongly for a move to electronic payments which will contribute to improved national competitiveness.
Clearly the trend is towards electronic payments as a matter of choice. The Department’s clients are already displaying a clear disposition towards electronic payments as a matter of choice without intervention by the Department. The recent letters to clients alerting them to an easing of conditions during their transitional period from employment reflect these realities and offer wider options to these clients.
39. Deputy Richard Boyd Barrett asked the Minister for Social Protection if she will list the companies that have tendered to be involved in the JobPath scheme; if she sees this scheme as having a negative impact on the local employment services; and if she will make a statement on the matter. [10475/14]
Amharc ar fhreagraJobPath is a new programme of employment activation aimed specifically at the long-term unemployed and those most distant from the labour market. The allocation of additional resources to the activation of long term unemployed people was the focus of an updated “Pathways to Work” policy statement published in July 2013 (PTW 2013). The Department examined various resourcing and contracting options, and taking note of recommendations by the OECD among others, the Department has decided to procure additional capacity from providers with expertise and experience in the provision of employment supports or related services. This additional capacity will augment the Department’s own activation capacity as well as that already contracted through Local Employment Services (LES) providers. It is not intended that it will substitute for or replace any of the services currently offered by the Department. In this regard the Department has maintained the budget for LES services for 2014 at the same level as 2013 and intends to operate the LES services, which are a valued component of its services to jobseekers, in parallel with JobPath. On the 12th of December 2013 a request for tenders (RFT) for the provision of the service was issued with a closing date for receipt of submissions of the 28th February 2014. Given the requirements of EU and National procurement regulations the Department will not disclose any details in relations to the tenders received while the procurement process is ongoing.
