Oireachtas Joint and Select Committees
Wednesday, 19 April 2023
Joint Oireachtas Committee on Social Protection
Pay-related Jobseeker's Benefit Scheme: Discussion
Mr. R?n?n Hession:
I note the Deputy's points on the duration. The reduction from nine to six months is one of the important changes in what the strawman sets out compared with the current system. We are also mindful of the point the likes of the ESRI and the Commission on Taxation and Welfare made about any change in duration needing to factor in the change in work incentive when a payment is increased from €220 to €450, so we were trying to take on board some of those points.
The Deputy asked about the floor. At the moment, the floor for jobseeker's benefit is €98.70, whereas in the strawman it is €100.
On the 60% of income figure, the standard varies around Europe but 60% is in the sort of mid-range. It will give a result whereby the €450 figure, under the figures set out at the time of the creation of the strawman, comes in at about 50% of the gross industrial wage. At the lower rate, €300, it is about 33%.
As for illness benefit, the programme for Government commitment refers to increasing PRSI in all classes to provide additional benefits, so whatever lessons we get from pay-related benefit and experience will inform the Government in looking at other pay-related systems. The same sorts of rules and principles apply, whether it is maternity benefit or illness benefit, where somebody suffers a short-term income shock, having been in work and leaving it suddenly. We will draw on the lessons there. To return to the point Deputy Ó Cuív made earlier, we have not at this stage gone through all the finer points of the interplay with the wider system, but we will not look to discount time on illness benefit or maternity benefit whereby it would prevent the person from qualifying. That certainly would not be our intention.
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