Mary Hanafin (Dún Laoghaire, Fianna Fail)

The objective of the back-to-education allowance scheme is to equip people on social welfare payments with qualifications that will enable them to obtain employment in the modern labour market. It is a second chance educational opportunities scheme for people on welfare payments who wish to participate in full-time education and who would not otherwise be able to do so.

The allowance is paid at a standard weekly rate equivalent to the maximum rate of the relevant social welfare payment that qualifies the applicant for the scheme. It replaces the existing social welfare income and, in addition, an annual €500 cost of education allowance is payable. Also, participants may continue to receive any secondary benefits to which they may have been entitled. In general, an applicant must be in receipt of a relevant social welfare payment for six months if pursuing a second level course or 12 months if pursuing a third level course. The qualifying period for the third level option is reduced to nine months for persons who are participating in the national employment action plan process. People who are awarded statutory redundancy may access the scheme immediately, provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

The scheme has been improved in recent years. The qualifying period for illness benefit recipients was reduced from three to two years and the qualifying period was removed for people who are awarded statutory redundancy. In addition, the cost of education allowance was increased to €500 and the allowance was extended to people signing on the live register for PRSI credits.

The Government has devoted significant resources to the back-to-education allowance. Up to €519 million has been allocated over the lifetime of the national development plan. This year, €70.8 million is available. The number of participants in 2007-08 academic year was 8,883, an increase of 9.8% on the previous academic year. The number of participants has increased again in the current academic year. The number of people on the scheme at the end of September 2008 was, encouragingly, 24% higher than at the end of September 2007.

The back-to-education allowance is an important part of our overall strategy to provide opportunities for unemployed people to upskill in order to enhance their prospects of entering or returning to the labour force. I will continue to monitor the scheme but I believe it continues to meet its objectives and ensures limited resources are directed at those most in need.

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