Dáil Éireann Debate, Wednesday - 26 July 2017
1572. Deputy Martin Heydon asked the Minister for Social Protection if she will review the application of social welfare payments for persons that work part time over a seven day period due to the nature of their industry (details supplied); and if she will make a statement on the matter. [36458/17]
Amharc ar fhreagraThe jobseeker's benefit (JB) and jobseeker’s allowance (JA) schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2017 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €2.5 billion.
Both the jobseeker’s benefit and the jobseeker’s allowance schemes provide significant support to individuals so that they can work up to 3 days a week and still retain access to a reduced jobseeker’s payment. The current days based system can provide significant income supports to jobseekers who are casually employed. For instance an individual can earn a little over €19,760 per year and still retain a small jobseeker's allowance payment, while the equivalent threshold for an individual with a qualified adult is almost €33,975 if they are both working.
It is recognised that a changing labour market has resulted in a move away from more traditional work patterns, resulting in an increase in the number of persons employed for less than a full week. However, it is important that the structure of jobseeker’s payments does not inadvertently subsidise unsustainably low earnings or encourage employers to offer minimal hours of employment.
In addition to the two jobseeker’s schemes my Department’s main in-work support is the family income supplement (FIS), which targets families with children on low incomes and who work at least 19 hrs per week.
The back to work family dividend (BTWFD) scheme allows JA or JB recipients who have been jobseekers for 12 months or recipients of the one-parent family payment to retain their full increase for qualified children (IQC) for the first year in employment, tapering to 50% in the second year.
Where a long term unemployed jobseeker is offered employment of more than 3 days but less than 24 hours a week, they may be eligible for the part-time job incentive scheme. Under this scheme they can receive a weekly payment of €119 per week if they are single or €193.90 if they have an adult dependent.
My Department is currently analysing incentives to work in the social welfare system for jobseekers with children with a view to developing the Working Family Payment.
Based on an analysis of current incomes, benefits, and taxes, ESRI research shows that people are better off in work than on welfare. In particular, it demonstrates that more than eight out of ten unemployed jobseekers would see their income increase by at least 40% upon taking up employment. Fewer than 3% would, in the short-term, be financially better off not in work.
The risk of facing weak financial incentives to work is higher for unemployed persons with a spouse and children, as the income support goal of the welfare system means that they tend to have higher welfare payments. However, even among that group, less than one in fifteen would be financially better off not working and with the introduction of the BTWFD scheme, that figure drops to one in twenty.
The combination of schemes available provides considerable income support for individuals who have part time employment by allowing them retain access to a social welfare payment.
Reflecting the impact of government policy, and the overall improvement in the labour market, long term unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15% in 2012 to 6.3% in June 2017.
Any decision to change the jobseekers benefit or jobseeker’s allowance schemes would be a matter for Government to consider in a budgetary context.
