Oireachtas Joint and Select Committees
Wednesday, 31 January 2024
Joint Oireachtas Committee on Social Protection
General Scheme of the Social Welfare (Pay-Related Social Insurance and Jobseeker’s Pay-Related Benefit Provisions) Bill 2024: Department of Social Protection
Ms Jackie Harrington:
I thank the Deputy for his comments. On his first question about the cost of the scheme over the longer term, he is absolutely right that we are currently in a very low period of unemployment and the €130 million refers to costs in the current period. The Department did stress-test. We looked back at patterns over the last 23-odd years in terms of the ups and downs in the economy and there has been a lot more buoyancy in the economy then there were shocks. To work out the appropriate costs and the appropriate impacts for the PRSI increase, we analysed that period. The €130 million covers the costs as they are at the moment but in terms of the 0.7% increase in PRSI provided for, 0.2% of that is in respect of the pay-related jobseeker's benefit. That is an average payment that provides headroom to cover recessionary periods and periods of buoyancy. That is there to provide a buffer as such, to cover when we move into more difficult positions.
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