Dáil debates

Tuesday, 19 January 2010

3:00 pm

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)

The primary objective of the back to education allowance, BTEA, is to give welfare recipients who left school early and those without third level qualifications a second chance to attain educational qualifications so as to reduce their risk of long-term unemployment.

In order to qualify for participation, an applicant must generally be in receipt of a relevant social welfare payment for three months if pursuing a second level course or 12 months if pursuing a third level course. In May 2009, the qualifying period for access to third level courses was reduced to nine months for people engaging with the Department's facilitator programme, thereby aligning with the existing similar threshold for people within the national employment action plan. 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.

Acceptance into the back to education allowance scheme can result in a person receiving income support for three years or more if pursuing a degree course. It is, therefore, considered appropriate, in the context of limited resources, to ensure that such long-term support is only given to those who actually need it. The waiting periods for the scheme act as a disincentive for people to leave education early with a view to getting paid the BTEA to complete it soon after.

It is worth noting that the maximum rate of the back to education allowance is more than double the maximum rate of the maintenance grant available to third level students from the lowest income families. It could, therefore, be considered unfair if a young person could finish school, work for a couple of years and then secure three years worth of BTEA support after being unemployed for only a very short time, while another young person who went straight from school into third level would get far less financial support.

The BTEA is currently limited to full-time courses from second level to higher diploma level in any discipline and to a graduate diploma in education. Qualifications above this level would not generally be considered necessary to secure employment. Payment under the scheme covers the relevant academic year and the scheme caters for approved courses where the starting date is not aligned to the standard academic year. Under separate arrangements, job seekers can participate in a part-time course and maintain their welfare entitlements, provided they obtain approval in advance and continue to satisfy all relevant conditions, such as being available for work.

In 2009, €87.8 million was provided for the BTEA scheme. The number of people on the scheme at the end of November 2009 was 20,418, which is 88% higher than the 10,854 recorded at the end of November 2008. The scheme is being monitored on an ongoing basis in the light of the changed economic circumstances, in order to ensure that it continues to meet its objectives.

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