In line with other EU and OECD jurisdictions where such measures feature in their social welfare systems, reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. These were further extended in subsequent budgets and now apply to jobseeker’s allowance recipients under 26 years of age.
This is a targeted, non-discriminatory, measure 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 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.
Any change to the reduced rates of JA for people under 26 is a matter for Government to consider in a budgetary context.