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Jobseeker's Allowance Payments

Dáil Éireann Debate, Wednesday - 15 April 2015

Wednesday, 15 April 2015

Ceisteanna (93, 107)

Lucinda Creighton

Ceist:

93. Deputy Lucinda Creighton asked the Tánaiste and Minister for Social Protection her plans to increase the rate of jobseeker's allowance payments for young persons who are most at risk of homelessness, in line with those young persons who were in the care of the Child and Family Agency, and are assessed using the jobseeker's allowance rate for persons of 26 years of age or over when they leave care; and if she will make a statement on the matter. [14503/15]

Amharc ar fhreagra

Peadar Tóibín

Ceist:

107. Deputy Peadar Tóibín asked the Tánaiste and Minister for Social Protection her views that a payment of €144 under the jobseeker's scheme is sufficient to meet the basic cost of living needs of a person who lives independently; if she will provide the differing basic cost of living expenses between an average 24 year old and an average 26 year old, who live independently; and if she will provide the data and-or evidence upon which she based her decision to cut payments under the scheme to those under 25 years of age. [14728/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 93 and 107 together.

The jobseeker's benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2015 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €3.01 billion.

In line with other EU and OECD jurisdictions where such measures are common, reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. Budget 2014 further extended the reduced rates of jobseeker’s allowance to recipients under 26 years of age. These measures are targeted measures aimed at protecting young people from welfare dependency by incentivising them to avail of education and training opportunities. If a jobseeker in receipt of the reduced jobseeker’s allowance rate participates on an education or training programme they will receive a higher weekly payment of €160.

To guard against the development of welfare dependency I believe that it is necessary to provide young jobseekers with a strong financial incentive to engage in education or training or to take up employment. If they do not improve their skills, it will be much more difficult for them to avail of job opportunities as the economy recovers and they are at risk of becoming long term unemployed from a young age.

The reduced rates do not apply to a person aged under 25 where such persons were in the care of the Health Service Executive during the year prior to their 18th birthday. There are no plans to extend this condition to any other group.

The Department is actively engaging with Tusla and non-Government organisations in providing the necessary support to vulnerable young people leaving care who are experiencing homelessness or in insecure situations. These cases are managed on a case by case basis and the payment of deposits and rent in advance is considered. This form of assistance is very important to those on low incomes who are at risk of, or who are homeless, or who rely on the private rented market to meet their housing needs.

The Government’s primary strategy to tackle youth unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people. This strategy has been succeeding, with an increase of over 80,000 in employment over the last two years.

Reflecting the improvement in the labour market, youth unemployment continues to fall. For example the youth unemployment rate in Ireland as estimated by Eurostat was 21.6% in December 2014 as compared to 30.8% in December 2011. However, the Government recognises that as the recovery takes hold, there is a need for additional measures to ensure that as many as possible of the jobs created are taken up by jobseekers and young jobseekers in particular. This is the rationale behind the Government’s Pathways to Work strategy and the Youth Guarantee Implementation Plan.

Questions Nos. 94 and 95 withdrawn.
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