Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the committee for facilitating the hearing of Committee Stage of the Bill. I thank members for attending.

The Bill provides the legislative basis for a new jobseeker’s pay-related benefit scheme and a range of PRSI increases agreed by the Government, along with a number of miscellaneous amendments. The enactment of this Bill before the summer recess is a priority for me. There has been very constructive engagement with the committee on the Bill over the past year or so, including pre-legislative scrutiny. The committee's feedback on the design of the new jobseeker’s pay-related benefit scheme is reflected in the scheme set out in this Bill. In particular, the extension of the payment to nine months, the increase in the minimum payment, and the tapering of the payment all arose from discussions at the committee.

The Bill sets out the legislative framework for the new scheme. It also contains regulation-making powers that will allow the full details of aspects of the scheme to be developed in regulations. I was pleased to hear on Second Stage that there is broad agreement that the introduction of a jobseeker’s pay-related benefit will be a very positive step for Ireland. It will be a major reform of our social welfare support that is about supporting workers who lose their employment and ensuring they do not suffer a cliff-edge drop in income. Through my own experiences, I have seen the distress this sudden withdrawal of income can cause.

Under this scheme, the weekly rate of payment for people who have at least five years' paid PRSI contributions will be set at 60% of previous gross earnings, subject to a maximum of €450, for the first three months. This is almost double the current standard jobseeker’s rate. After that, the rate will reduce to 55% of earnings, subject to a maximum of €375, for the following three months.

A further three months will be paid at the rate of 50% up to a maximum of €300. For persons who have between two and five years' paid contributions, the rate will be set at 50% of previous gross earnings, subject to a maximum of €300 per week for up to six months. This is a major reform and will bring us in line with our European neighbours where pay-related benefits are the norm. The Department is working on the necessary arrangements to introduce the scheme towards the end of this year.

The Bill also provides for modest increases in PRSI over the next five years. A range of options were put forward in the actuarial review of the Social Insurance Fund. The Government has decided it is better to address this issue early by way of a small change rather than deferring the problem until more drastic action would be required. These increases will support the retention of the State pension age at 66 years, help address the long-term sustainability challenges facing the Social Insurance Fund and provide for the new jobseeker’s pay-related benefit. The amendment I am bringing forward is to increase the employer PRSI threshold from €441 to €496 per week in line with the changes in the national minimum wage. This will take effect from 1 October 2024. This change will support small- to medium-sized employers with employees working full time on the national minimum wage by making the employer liable at the lower rate of PRSI in respect of those employees.

I look forward to the debate.