Dáil debates

Thursday, 24 November 2016

Social Welfare Bill 2016: Report Stage

 

11:10 am

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

While I do not propose to accept the amendment as a legislative obligation, I will ask my officials to examine the issue of jobseeker’s benefit and the treatment of part-time and seasonal workers, including those categorised as having subsidiary employment. We believe this work could be done in approximately four months. The matter has been raised several times, particularly in the context of the position in County Donegal but also in other counties, by the Minister of State, Deputy Joe McHugh, as well as by Deputies Thomas Pringle, Willie O’Dea and Pat The Cope Gallagher.

It is important, in the interests of equity and fairness, that the conditions for receipt of jobseeker’s benefit apply to all recipients, including those who could be categorised as seasonal and part-time workers. To qualify for jobseeker’s benefit, a person must be unemployed, be available for and genuinely seeking work, have had a substantial loss of employment and as a result be unemployed for at least four days out of seven. The jobseeker’s benefit scheme provides significant support for individuals who can work up to three days a week and receive a jobseeker’s payment.

Jobseeker’s benefit is paid in respect of a day’s unemployment. Where a claimant has fewer than 260 PRSI contributions paid, he or she is entitled to six months or 156 days of jobseeker’s benefit. If he or she works three days a week, he or she is paid jobseeker’s benefit for three days a week. This means that he or she can be paid jobseeker’s benefit for three days a week for up to 52 weeks. Where a claimant has more than 260 PRSI contributions paid, he or she is entitled to nine months or 234 days jobseeker’s benefit. If the claimant works three days a week, he or she is paid jobseeker’s benefit for three days a week. This means that he or she can be paid jobseeker’s benefit for three days a week for up to 18 months.

Changes to extend the duration of the jobseeker’s benefit scheme would have to be considered in an overall policy and budgetary context, but they would have to apply to all recipients of jobseeker’s benefit. Where a person exhausts his or her entitlement to jobseeker’s benefit, he or she must pay 13 additional PRSI contributions to requalify. This requirement is in place to ensure the person has a reasonable connection with the labour market before he or she can requalify. Where a person does not qualify for jobseeker’s benefit or has used up his or her entitlement to jobseeker's benefit, he or she can apply for jobseeker’s allowance, which is a means-based payment and paid at the same weekly rate as jobseeker’s benefit.

For an occupation to be considered “subsidiary”, it must be employment that could ordinarily have been followed by the persons concerned in addition to his or her usual employment and outside the ordinary working hours of that employment. It must also be the case that the earnings from that occupation do not exceed €12.70 and-or that the person has at least 117 employment contributions in the past three years. Where a person satisfies the 117 contributions rule, he or she can earn more than €12.70 a day in subsidiary employment and continue to receive jobseeker’s benefit, subject to there being no change to his or her subsidiary employment. If a person does not satisfy the 117 contributions rule, the level of eligible earnings or profit from the occupation cannot exceed €12.70 per day. However, where the level of eligible earnings or profit is in respect of a longer period, it can be averaged in order that the daily average does not exceed €12.70 per day or, over the course of a seven day week, a maximum of €88.90. Seasonal and part-time workers who have paid or credited contributions in either of the last two complete income tax years are awarded credits. Credits protect social insurance entitlements by bridging gaps in an employee’s social insurance record, where the person is not in a position to pay PRSI. In combination with paid PRSI contributions, credits can assist employees in qualifying for short-term schemes such as jobseeker’s benefit and enhance the level of benefit for long-term schemes.

For the reasons I have detailed, I do not propose to accept the amendment. The rules are extremely complicated and I am struggling to understand them as I read the reply. It does merit some work and a study by the officials to sketch what changes might be made. We have discussed this issue and think we can certainly have it done in approximately four months and come back to the committee with it.

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