Dáil Éireann Debate, Tuesday - 30 May 2023
450. Deputy Michael Ring asked the Minister for Social Protection if she will consider increasing the back-to-work enterprise allowance to those aged 18 to 24 years and not living independently, to the increased rate of €220 per week in year one and €165 in year two, in view of the increasing costs for businesses; and if she will make a statement on the matter. [25656/23]
Amharc ar fhreagraThe Back to Work Enterprise Allowance scheme offers support for people who have either been out of work for long periods or who are young unemployed people, and who wish to enter the labour market through self-employment. The scheme plays an important role in supporting the development of new enterprises. The Government has provided €34.8m for the scheme in 2023.
The Back to Work Enterprise Allowance scheme provides a monetary incentive for people in receipt of a qualifying social welfare payment to develop a business while allowing them to retain a reducing proportion of their payment over 2 years. A person retains 100% of their payment in year 1 and 75% in year 2. Income generated from self-employment is not assessed and does not impact the value of the payment.
The continued payment of social welfare support for up to 2 years during the start-up period of a new business is a valuable support and assists to provide an element of financial security as the business is developed.
In addition, the Enterprise Support Grant provides financial support to participants on the Back to Work Enterprise Allowance to assist with initial business start-up costs and a participant can avail of up to €2,500 over the 2-year period of the Back to Work Enterprise Allowance claim.
Age-related rates for Jobseeker's Allowance recipients were introduced on a phased basis from 2009 to tackle high youth unemployment and to avoid long-term welfare dependency. In Budget 2023, I announced an increase of all core social welfare payments by €12 per week including the age-related Jobseeker's Allowance rate which has increased by €12 to €129.70 per week for jobseekers aged between 18 and 24 years.
The Pathways to Work strategy contains a range of provisions to support young jobseekers into both further education and training and employment and thereby reduce the risk of long-term welfare dependency. The aim was to use these measures to reduce the youth unemployment rate back to or below the 2019 average of 12.5% by 2023. According to the latest CSO data, the seasonally adjusted youth unemployment rate for April 2023 is already well below this target at 7.9%.
There are no plans to amend the level of payments under the Back to Work Enterprise Allowance scheme.
I trust this clarifies the position.
