Reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009 and Budget 2014 further extended the reduced rates to recipients under 26 years of age. The reduced €100 rate of jobseeker's allowance applies to persons without children up to age 24 and the reduced €144 rate of jobseeker's allowance applies to persons without children who reach the age of 25. If a young 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.
The 2016 Estimates for my Department provide for expenditure this year on the jobseeker’s allowance scheme of €2.45 billion.
The full year cost of increasing the rate of jobseeker’s allowance paid to recipients under 26 years of age to the maximum rate of €188 per week is estimated at €128.4 million in 2017. This cost includes increasing the rate of Supplementary Welfare allowance for recipients under 26 years of age to the maximum weekly rate of €186 per week and increasing the €160 Back to Education allowance rate to the max rate of €188 per week.
However, this does not include the additional cost that would be incurred of paying the full weekly rate of €188 to under 26s who are on other relevant education and training schemes, that fall under the remit of the Department of Education and Skills and are currently receiving €160 per week.