Séamus Brennan (Dublin South, Fianna Fail)

The back to education allowance is a second chance education opportunities programme designed to encourage and facilitate people on certain social welfare payments to improve their skills and qualifications. The objective is to increase their prospects of returning to the active workforce and reduce the risk of them becoming dependent on social welfare on a long-term basis.

The allowance supports eligible people pursuing second level and third level qualifications. The qualifying period for the back to education allowance scheme for people pursuing second level qualifications has always been six months. The qualifying period for entitlement to the third level option was increased from six months to 15 months for new applicants intending to commence third level courses of study on or after 1 September 2004. This measure is estimated to have realised gross savings of €2.2 million in the last quarter of 2004. If implemented as originally intended, it would have realised savings of €5.5 million in 2005.

As Deputies are aware, however, I reduced the qualifying period for access to the third level option of the scheme to 12 months in the last budget. I also increased the annual cost of education allowance paid to people on back to education allowance from €254 to €400. These changes will take effect from 1 September 2005 at a cost of €1.42 million in 2005 and €2.4 million in 2006.

Since its introduction, the intention of the scheme has been to benefit people who have difficulty finding employment. The scheme provides an opportunity to improve their qualifications and thus their prospects of obtaining work. It was never intended to be an alternative form of support for people entering the third level education system.

One of the factors that influenced the increase in the qualification conditions is the fact that some people go on the live register for short periods specifically to qualify for the back to education allowance. For example, an examination carried out by my Department found that in the 2003-04 academic year, 51% of new participants in the third level option of the scheme were in receipt of an unemployment payment for 12 months or less when they accessed the scheme. In addition, research carried out by independent consultants has shown that in the case of a control group surveyed for research purposes, 54% were 12 months or less in receipt of a qualifying payment when they accessed the scheme.

The scheme is intended to assist people with a history of long-term dependence on social welfare. Many of these people have not completed second level education and are held back in their efforts to obtain employment as a result. With this in mind, the qualifying period for people who wish to pursue second level education remains at six months. The numbers taking second level education with the support of the back to education allowance are increasing.

Additional information not given on the floor of the House.

I am satisfied that the current arrangements ensure that the scheme supports those people who are most distant from the labour market and whose need is greatest. In line with my undertaking to the Dáil and the Committee on Social and Family Affairs, however, I am keeping the qualifying period for this scheme under review.

The back to education allowance scheme is being reviewed at present as part of Government's programme evaluation process. The report of the working group, including recommendations for the future of the scheme, will be available later this year, at which time I will give the matter further careful consideration.

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