Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I am taking this Topical Issue matter on behalf of the Tánaiste and Minister for Social Protection, Deputy Joan Burton. Support for job creation is central to Government policy. The Taoiseach and Tánaiste have re-emphasised this commitment in their statement of Government priorities for the remaining lifetime of this Administration.

Pathways to Work and the action plan for jobs set out the key frameworks within which activation and job creation policies are developed and delivered. Pathways to Work aims to move at least 22,500 long-term unemployed people into employment this year and a total of at least 75,000 by end of 2015. Therefore, the focus of the Tánaiste is to concentrate resources on the long-term unemployed via the various schemes under her Department. JobsPlus replaces two previous schemes that were seen as complicated and difficult to access for employers. This new simplified incentive scheme is working, as shown by feedback from employers and the fact that the initial target of 2,500 jobs has been exceeded earlier than expected.

JobsPlus provides a direct monthly financial incentive to employers who recruit employees from those who are long-term unemployed and the JobsPlus incentive is biased in favour of those who are long-term unemployed. It provides employers with two levels of payment, €7,500 and €10,000, and is paid in monthly instalments over a two year period, provided the employment is maintained. To qualify for the €7,500 incentive a jobseeker must be at least 12 months on the live register in the previous 18 months. For the higher incentive of €10,000 over two years, a jobseeker must be at least 24 months on the live register in the previous 30 months. These are direct grants paid to the employer if they maintain the employment for the full two years.

From its launch in July 2013 to the end of June 2014, JobsPlus has supported 2,634 jobseekers in full-time employment with over 2,000 employers nationally. Approximately 60% of jobseekers thus supported had been on the live register for over 24 months at the time of recruitment, proving the success for the scheme. A provision of €13.5 million has been included in the Vote for the Department for the scheme in 2014. On the basis of the current pace of applications and expenditure, this provision is considered to be adequate to meet the projected costs of the scheme in 2014.

Special arrangements have been have been introduced to ease the effects of the changes in one-parent family payments, including the introduction of the jobseeker transitional payment. The Minister for Social Protection hopes to be in a position to extend eligibility for JobsPlus to those who qualify for the jobseeker transitional payment in the coming months. The Department is currently completing a review of the initial phase of implementation of JobsPlus. The outcome of this work will inform any proposals for the development and expansion of the scheme. Employer feedback has been positive and the key objective of putting an easy-to-access system in place has been achieved.

While the review will consider a range of matters, including uptake, costs and benefits, altering eligibility requirements and whether changes are needed to improve access and administration, the Tánaiste has informed me that she has asked that the review also consider whether further extension of the eligibility requirements is warranted. However, this, of course, will be subject to budgetary considerations.

See this speech in context