Pearse Doherty
Ceist:1524. Deputy Pearse Doherty asked the Minister for Social Protection the net saving of closing JobBridge to new applicants from 1 January 2018. [35827/17]
Amharc ar fhreagraWednesday, 26 July 2017
Ceisteanna (1524)
Freagraí scríofa
JobBridge was introduced in July 2011 in response to the sharp and dramatic increase in unemployment. Since then more than 49,000 participants commenced a work experience placement provided by over 19,000 host organisations.
Participants are paid an allowance equivalent to their underlying social welfare payment plus an additional 'top-up' of €52.50 per week for the duration of the placement. The cost of the scheme therefore depends on the number of participants. The net cost per 1,000 participants is €2.73 million per annum.
A robust external evaluation of the scheme was conducted by Indecon Economic Consultants in 2016. It included a cost benefit analysis that indicates that even taking account of deadweight effects and using a high estimate of potential job displacement, JobBridge breaks-even (tax gains and welfare savings) and yields a marginal positive return for the Exchequer over a two year period. A cost benefit analysis taking account of wider economic benefits and costs and conducted in accordance with Department of Finance and EU Commission guidelines indicates that the scheme yields a positive benefit to the economy within one year.
The evaluation found that JobBridge is one of the most effective labour market programmes – increasing participants’ employment outcomes by 32%. It also found that while participants rated the scheme positively on 18 out of 20 aspects measured, most were dissatisfied with the level of payment and a sizable minority rated the scheme negatively on some aspects, for example the quality of training offered.
Based on these findings, and taking account of the improvement in labour market conditions, Indecon recommended that JobBridge be discontinued in its current form and replaced with a new scheme. A copy of the full evaluation can be found at: http://www.welfare.ie/en/Pages/JobBridge-Evaluation.aspx.
The Labour Market Council welcomed the report and noted the positive employment impact of the scheme. A majority of the Council similarly recommended that JobBridge be replaced.
Having considered the evidence and the suggestions put forward by Indecon and the Labour Market Council, my predecessor as Minister for Social Protection announced his intention to replace JobBridge with a new work experience programme that would address criticisms of the scheme and would be better suited to the much-improved labour market.
JobBridge was closed to new applications from 27 October 2016 to allow for a period of consultation with key stakeholders on design principles for any proposed new work experience programme and to facilitate an orderly wind down of the current scheme. There are currently 350 participants on JobBridge.
The stakeholder consultation process is completed and I am currently considering options on how best to proceed.