Dáil Éireann Debate, Wednesday - 23 October 2019
47. Deputy Martin Heydon asked the Minister for Employment Affairs and Social Protection the uptake of the back to work enterprise allowance in County Kildare in 2017, 2018 and to date in 2019; the supports available to those persons; and if she will make a statement on the matter. [43630/19]
Amharc ar fhreagraQuestion No. 47, in the name of Deputy Martin Heydon, will be taken by Deputy Bernard Durkan.
This question seeks to ascertain the participation rates in the back to work enterprise allowance scheme in County Kildare in 2017, 2018 and to date in 2019, in order to establish a trend.
The back to work enterprise allowance scheme provides an incentive and support for people who are in receipt of certain social welfare payments, such as jobseekers and one parent families, to develop a business, while allowing them to retain a reducing proportion of their welfare payment over two years. Participants maintain 100% of their payment in year one and 75% in year two. This financial support allows a person the opportunity to grow their business with the security of maintaining their welfare payment. This acknowledges the vital role entrepreneurs and new businesses play in economic development and job growth. This is something of which I am very supportive and I am introducing jobseekers benefit for the self-employed next month.
Local development companies and local enterprise offices also play a key role in supporting local communities and entrepreneurs to develop their new business ideas where they also provide a range of complementary supports.
Through these services working together, the viability of a supported enterprise is enhanced by the scheme. Currently, 4,800 people receive the back-to-work enterprise supports. The numbers supported in County Kildare at the end of 2017 and 2018 were 337 and 212, respectively. There are currently 139 participants in Kildare. The numbers have reduced in recent years, which is in line with the overall trend on the scheme and reflects the improved economy and available job opportunities.
Individuals in receipt of the back-to-work enterprise allowance may also receive the enterprise support grant. This grant offers up to €2,500 over the first two years of a new business and assists with the early business start-up costs. Approximately 6,300 businesses were supported with this sizeable grant in 2018.
How many people in County Kildare drew down the support grant in the period in question? What has been the drop-out rate, if any, from inception to date in each year?
The Deputy might have me on both questions. I will come back to him later, if that is acceptable.
I am sure I can conjure up another question. Has any research been carried out on the satisfaction rate among participants? Has it been possible to ascertain the degree to which those participating have found the scheme to be an excellent one allowing them to progress and obtain a new lease on life with time they would not otherwise have had in a productive situation? Has the scheme been hugely therapeutic in moving people from unemployment to employment situations?
We undertook a review in 2016 that focused on assessing the extent to which the allowance was meeting its objectives and on the identification of best practice for future change. The review found that the scheme offered effective supports for long-term unemployed people with a genuine interest in self-employment as a route to entering or re-entering the labour market. The review suggested the project should continue. The review outcomes were encouraging. The review compared those who remained on the scheme for the full two years with those who did not participate. It found that those who completed the scheme were twice as likely to be off the live register six months later than those who did not take part. The trend was also evident after more than 18 months. As such, there is consistency. The review found that follow-up engagement with participants who commenced on the scheme in the first few months of their new business ventures was important to the ongoing support and morale those people needed. The follow-up is critical to identify where referrals to future supports and mentoring may be required from other State agencies and to establish progress with our new enterprises.
