Joan Burton (Dublin West, Labour) | Oireachtas source

Currently, there are 38,000 jobseekers under 25 years of age in receipt of a reduced jobseeker’s allowance payment on foot of the changes that were first introduced in 2009. Receiving the full adult rate of a jobseeker’s payment at a young age can lead to welfare dependency from an early age. If young people do not improve their skills, they are at risk of becoming long-term unemployed, which I am anxious to avoid. Therefore, it is considered necessary to provide young jobseekers with a strong financial incentive to engage in education, training or take up employment.

The changes made to jobseeker’s allowance rates in 2009 are being extended from January, 2014 so that young jobseekers who are 25 years of age or under will have a financial incentive to engage in education, training or employment. This decision was made on foot of ongoing consideration of unemployment and incentives policy by Government. It is estimated that the measure will affect 13,767 persons in 2014 and will result in savings of €32 million in 2014. An additional €46 million will be spent on initiatives aimed at young people. I am happy to inform members that from 1 January next an employer who employs a young person who has been unemployed for more than six months will receive a cash wage subsidy of €300 per month. I appeal to Deputies to make employers in their constituencies aware that not alone can they assist a young person get back into employment but they will also get a significant wage subsidy in this regard.

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