Dáil Éireann Debate, Wednesday - 17 January 2018
213. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the number of persons that availed of the back to work enterprise allowance in 2017; the estimated full year cost of extending the period whereby a person can keep a percentage of their social welfare payment from two to three years; and if she will make a statement on the matter. [2246/18]
Amharc ar fhreagraThe Back to Work Enterprise Allowance (BTWEA) is designed to provide a monetary incentive for people who are on social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years; 100% in year 1 and 75% in year 2.
The average number of participants on the BTWEA scheme in 2017 was 10,380.
The BTWEA underwent a review that was published in 2017. The research conducted during this review demonstrated that the numbers returning from self-employment to the Live Register, after participating on the scheme, are low. Based on the comparison of the BTWEA participants to a control group of similar jobseekers who did not choose the scheme as an option, the BTWEA participant was over twice as likely to remain off the Live Register six months after the payments on the scheme had ceased. This trend continues when examined following an 18 month period after the payments ceasing. One of the considerations of the review was the period of payment and it was deemed not necessary to amend the current 2 year period in light of the success of participants exiting the live Register.
The part played by the BTWEA in supporting the long-term unemployed and other welfare recipients to take up self-employment opportunities is significant.
It is estimated that cost of extending the scheme to a third year, assuming that the payment in year 3 would be equivalent to year 2, would be approximately €50m.
There are no plans to amend the scheme at this time.
I hope this clarifies the matter for the Deputy.
