Dáil Éireann Debate, Thursday - 26 February 2015
48. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection if she will provide a report outlining the cost of increasing the current assistance rate to an employer to employ a person in the JobsPlus scheme, to a rate which would provide each employer with a subsidy of 70% of the minimum wage, for 37.5 hours per week, for each employee, for a period of 18 months; and if she will make a statement on the matter. [8578/15]
Amharc ar fhreagraJobsPlus provides a direct monthly financial incentive to employers who recruit employees from those who are long term on the live register. JobsPlus is biased in favour of those who are longer term unemployed. It provides employers with two levels of payment: €7,500 over two years where a jobseeker who is 12-24 months on the live register is recruited and €10,000 for each person recruited who has been unemployed for more than 24 months. Since January 2015, eligibility for the lower level of subsidy has been broadened to include young jobseekers (aged 18-24) unemployed for four months or more and persons in a jobseekers allowance transitional arrangement. The subsidy is paid in monthly instalments over a two year period provided the employment is maintained. At the end of January 2015, the Department provided 3,010 employers with cash payments valued at some €1.53 million in respect of 4,047 employees. Sixty-two percent of those employees supported had previously been on the live register for at least 24 months.
The proposal made by the Deputy to provide a subsidy of 70% of the minimum wage for 37.5 hours work per week for a period of 18 months for each employee would cost €983.94 per month compared with the lower level of subsidy of €312.50 per month and €416.67 per month for the upper level of subsidy. The cost of the proposal would be of the order of €17,710 for the 18 month duration against the current costs as stated above. Given the level of take up of the scheme to date and the positive feedback from employers, I do not consider that a rationale exists for increasing the level of payment as proposed, nor do I consider that the proposal would represents good value for money in achieving the objectives for JobsPlus.
