Dáil debates

Wednesday, 20 September 2017

Other Questions

Jobseeker's Benefit

5:35 pm

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael) | Oireachtas source

The jobseeker's benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2017 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €2.5 billion.

Both schemes provide significant support to individuals so that they can work up to three days a week and still retain access to a reduced jobseeker’s payment. At the end of July 2017, approximately 54,000 people were in the category described by the Deputy as casually employed or in part-time employment. The current days-based system can provide significant income supports to jobseekers who are casually employed. For instance, an individual can earn a little over €19,760 per year and still retain jobseeker's allowance payment for the two days not worked, while the equivalent threshold for an individual with a qualified adult is almost €34,000 if they are both working. There is a significant difference.

The Department does not collect data on the number of hours a jobseeker works, as this information is not necessary to make a decision on the application for the payment. The cost associated with moving the jobseeker's benefit scheme to an hours-based system cannot therefore be ascertained.

It is recognised that a changing labour market has resulted in a move away from more traditional work patterns. However, any changes to the current criteria, such as moving to an hours-based system, could result in significant numbers of additional individuals becoming eligible for a jobseeker’s payment with the substantial corresponding costs for the Exchequer.

In addition, if there were a change from a days-based to an hours-based system, existing casual jobseekers could lose out if their current hours worked over three days exceeded the new hours threshold, creating a disincentive to work longer.

There are other schemes to support families with low incomes such as family income supplement and the back to work family dividend. The part-time job incentive scheme can provide assistance to long-term unemployed who can only find part-time employment for less than 24 hours per week. I hear what the Deputy is saying, but doing what she would like us to do would have enormous financial ramifications and IT ramifications with regard to providing a platform to work in the system.

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