Mr. Oliver Egan:

I will speak about why we decide that eligibility periods are appropriate. In essence, they allow for greater targeting of activation places and opportunities. This is consistent with the policy set out in pathways to work and is part of the reason we are considering these issues.

The live register is constantly changing, with large numbers joining and exiting it in any given period. The average exit rates in 2013 at the three, six, nine and 12 month durations are 25%, 46%, 59% and 69%, respectively. This means that an average of 25% of those who join the live register in any given month will leave within three months, 46% within six months, 59% within nine months and 69% within 12 months. Given that the scheme confers an entitlement to extend certain social welfare payments for a considerable period of time, it is necessary to enforce an appropriate eligibility period.

Persons on the live register for one year or longer, who are known as the long-term unemployed, now account for 45% of all persons on the live register. This rate has increased slowly in recent months. Pathways to work targets these long-term unemployed persons to assist them in gaining access to the labour market and further education.

The numbers availing of the back to education allowance and the associated cost of the scheme have increased dramatically in recent years. As of the end of September 2012, 25,961 individuals were availing of the current 2012-13 academic year, which represents an increase of 192% on the figure for 2007-08. Expenditure on the scheme also increased dramatically, from €64 million in 2007 to more than €200 million in 2012. In addition to these increases, bespoke versions of back to education schemes support new initiatives from the Department of Education and Skills, such as Momentum and ICT. These two initiatives offer a combined 7,000 places, many of which are on full courses which may be supported under the back to education allowance. This creates further pressure on expenditure. At the end of April 2013, 27,830 people were engaged in back to education schemes, 91% of whom originated from unemployment payments.

In regard to future policy development, the report outlines where we think resources should be targeted and how clear entitlement periods could be established to benefit the greater majority of people.