Pearse Doherty
Ceist:1525. Deputy Pearse Doherty asked the Minister for Social Protection the net saving if the Gateway scheme were abolished on 1 January 2018. [35828/17]
Amharc ar fhreagraWednesday, 26 July 2017
Ceisteanna (1525, 1546, 1547)
Thomas P. Broughan
Ceist:1546. Deputy Thomas P. Broughan asked the Minister for Social Protection the projected underspend in the Gateway scheme in 2017; and if she will make a statement on the matter. [36062/17]
Amharc ar fhreagraThomas P. Broughan
Ceist:1547. Deputy Thomas P. Broughan asked the Minister for Social Protection if the underspend in programmes to support persons that are unemployed such as Gateway will be reinvested in other schemes or measures to reduce unemployment; and if she will make a statement on the matter. [36063/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 1525, 1546 and 1547 together.
The Gateway Initiative was introduced in 2013 at a time of high unemployment in Ireland. It is administered through the local authorities and is one of a number of work programmes that my Department operates. Given the capacity in the system at present through the other employment schemes such as Community Employment (CE), Tús and the Rural Social Scheme (RSS) and the continuing reduction in the numbers who are unemployed, the recruitment of participants under the Gateway scheme is currently on hold.
The 2017 budget for the Gateway scheme is €7.2 million. The expenditure in the current year to the end of June 2017 is €2.75 million. The estimated outturn in 2017 will be in the region of €4.0 million.
Based on current trends it is expected that the direct savings from abolishing the Gateway scheme in 2018 would be in the order of €350,000. In the event that Gateway was to cease and all current employees were to return to the live register at their former rates of payment, the estimated annual cost of jobseeker's allowance payments in 2018 would be €260,000. The full year net savings to the Department of Social Protection from the abolition of Gateway in 2018 is estimated at €90,000.
The figures above do not take account of the additional income the Exchequer receives in the form of income tax, PRSI and USC from those participating on the scheme.
I hope this clarifies the position for the Deputy.