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National Minimum Wage

Dáil Éireann Debate, Wednesday - 26 July 2017

Wednesday, 26 July 2017

Ceisteanna (1583, 1584)

Willie O'Dea

Ceist:

1583. Deputy Willie O'Dea asked the Minister for Social Protection the cost of increasing funding to the community service programme in line with the recommendation to increase the national minimum wage; and if she will make a statement on the matter. [36592/17]

Amharc ar fhreagra

Willie O'Dea

Ceist:

1584. Deputy Willie O'Dea asked the Minister for Social Protection her plans to increase funding to the community service programme in line with the recommendation increase in the national minimum wage; and if she will make a statement on the matter. [36593/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 1583 and 1584 together.

As the Deputy is aware, the Community Services Programme (CSP) provides financial support to community companies that provide revenue generating services of a socially inclusive nature. Many of these companies are also funded from other sources and generate revenue from the public use of their facilities and services.

The additional programme cost involved in increasing the CSP contribution to match the minimum wage would be approximately €3m over a full year.

The rate of CSP contribution is not aligned to the minimum wage rate of payment. The funding provided to service providers under the CSP is expressed as a fixed annual co-funding contribution towards the costs of employing a manager or a specified number of full-time equivalent positions.

In 2016, my Department put in place a support fund to assist existing funded companies who are not in a position to cover the increase in the minimum wage. Funded companies were invited to apply for this fund which operates on the basis of a reducing allocation over a 3 year period between 2016 and 2018.

I understand that approximately 84% of funded companies paid their staff above the minimum wage in 2016.

I hope this clarifies the matter for the Deputy.

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