Dáil Éireann Debate, Tuesday - 20 June 2017
2093. Deputy Willie O'Dea asked the Minister for Social Protection further to Parliamentary Question No. 209 of 1 March 2017, the full-year cost of extending the wage subsidy scheme for those in receipt of partial capacity benefit for existing and new participants; and if she will make a statement on the matter. [28689/17]
Amharc ar fhreagraThe partial capacity benefit (PCB) scheme is designed for people who are on illness benefit for at least six months or on invalidity pension and who have retained some capacity for work and wish to work. If awarded, PCB will allow them to continue to receive, in addition to their earnings from employment, a percentage of their illness benefit or invalidity pension payment while working. €14.5 million has been provided for the PCB scheme in 2017.
The wage subsidy scheme (WSS) is an employment support to private sector employers, the objective of which is to encourage employers to employ people with disabilities and thereby increase the numbers of people with disabilities participating in the open labour market. The scheme provides financial supports to private sector employers to hire people with a disability for between 21 and 39 hours per week under a contract of employment. Just under €26 million has been provided for the WSS scheme in 2017.
As outlined in the reply to parliamentary question number 209 of 1 March 2017, the estimated cost of extending eligibility for the WSS to employers who newly employ people in receipt of PCB is currently €2.5 million in a full year. This estimate is based on recent trends in PCB numbers and other assumptions related to the scheme conditions. As indicated in previous response, this estimated costing specifically relates to new PCB participants only, as under current scheme rules, a WSS payment can only be made where an individual is entering a new job or is in that job for less than 12 months. The 12 month time period is a feature of the scheme designed to avoid job displacement and a common feature of labour market schemes. The WSS is not the primary incentive for the retention of people with disabilities in employment; this is the role of the employee retention grant scheme (ERGS).
In the event of extending the WSS to employers of those currently employing PCB participants, it would be necessary to significantly change the focus of the WSS scheme and it is not possible to provide a reliable estimate without significant additional information on other likely effects of such a change.
As an illustration, on the basis of existing numbers of those in receipt of PCB and a number of other assumptions (namely full take-up by potential recipients, that this extension would still be limited to private sector employers only and that PCB participants would work at least 21 hours per week), it is thought that the cost of extending the WSS in respect of current PCB recipients could be of the order of €15 million a year.
I hope this clarifies the matter for the Deputy.
