Dáil debates

Thursday, 30 May 2013

Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013: Second Stage (Resumed)

 

3:15 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I welcome the Bill and thank the Minister for attending the debate. This legislation should be placed in the context of employment statistics published by the Central Statistics Office today. The figures are important and deserve comment because they show employment grew for the third quarter in a row and unemployment dipped below 14% for the first time since the crisis began. While we would all like unemployment to be much lower, it is noteworthy that the rate has fallen below 14%. Apart from the top-line figures, another statistic is worthy of comment. It is encouraging that employment levels among people aged 35 years and older are now returning to the levels that existed when the economy was enjoying high growth rates. However, the flipside of this is the position of those aged below 35 years. A recent report by the Economic and Social Research Institute noted that the youngest have borne the brunt of the crisis from which we are emerging. In that context, I welcome the Bill and urge the Minister to continue to focus on certain areas.

Some of the recent figures from the Department on the periods people spend on jobseeker's allowance and jobseeker's benefit show that we must redouble our efforts in the area of activation, in other words, helping people return to the employment market by ensuring appropriate incentives are in place. Deputies will be familiar, from their clinics and constituency work, with the despair felt by people who cannot find a job. This feeling is even greater among our constituents who find a job but cannot afford to take it because of the negative impact it would have on their benefits. Typically, the jobs available are either part-time or on the lower end of the wage spectrum. This is particularly relevant given that much of the employment being generated is in the area of part-time work, as is the case in the early stages of recovery in most labour markets.

I urge the Minister to focus on three areas, the first of which is the activation measures to which I referred. Through the Pathways to Work scheme, the Minister is seeking to ensure that everyone in receipt of a jobseeker's payment will be contacted regularly by someone providing assistance in finding a job. The purpose of this approach is not to harass people but to help them by ensuring they receive appropriate training and are given good advice. The second area on which I urge the Minister to continue her work is rent allowance. In some cases, people find they lose more in rent allowance than they gain from taking up employment. The third issue I ask the Minister to address is to ascertain the impact of taking up employment on the social welfare benefits of the household as opposed to the individual entering the workforce. We want to ensure that taking a job pays and that, as the recovery accelerates, it delivers jobs for those who need them most.

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