Dáil Éireann Debate, Tuesday - 22 November 2016
56. Deputy Paul Murphy asked the Minister for Social Protection if his Department has assessed the impact on youth poverty of the lower rates of unemployment allowance; if so, the findings of such an assessment; and if he will make a statement on the matter. [36028/16]
Amharc ar fhreagraLower weekly rates for younger jobseekers were first introduced in the Supplementary Budget in 2009, and further extended in subsequent Budgets up to 2014. The rationale for these rates is to prevent young unemployed people from entering longer term welfare dependency by providing a strong financial incentive to take up a job, or a training or education programme.
The CSO publishes consistent poverty figures for all young people aged 15 to 24 inclusive. The CSO does not separately report poverty rates for young people in receipt of jobseeker’s allowance.
The consistent poverty rate for all young people aged 15 to 24 was 4.2% in 2008 and peaked at 14% in 2013. The most current data available relates to 2014 when the consistent poverty rate for young people decreased to 13.1%. The CSO will release the 2015 SILC data in the coming months.
Poverty is strongly linked to unemployment. The number of young people under the age of 26 on the Live Register has fallen from 51,200 to 32,260 over the two years from October 2014 to October 2016, a reduction of 37%. Similarly, the monthly unemployment rate for 15 to 24 year olds fell from 21.9% to 15.1% over the same period, a reduction of 31%. It is positive that unemployment among young people is falling at a faster rate than among the general population.
These trends are very positive. Of course, more remains to be done and I am determined that we help more young people in the most effective way possible, by supporting them into the workforce, education or training.
For that reason, on Budget Day I announced additional incentives for young people to participate in education. From next September, when a young jobseeker participates on the Back to Education scheme, he or she will be entitled to receive the full maximum rate of jobseeker’s payment, which will then be €193 per week, as against the €160 which they are currently on. This is the largest single increase in the social welfare package and demonstrates our commitment to young jobseekers who seek to enhance their skills.
