Dáil debates

Wednesday, 9 December 2020

Social Welfare Bill 2020: Committee and Remaining Stages

 

7:05 pm

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

Before I joined this Department, I had the same concerns some of the Deputies have raised. However, I have gone into this matter in great detail. JobPath is providing a service. It is only one part of the jigsaw. I have been in touch with local employment service providers and want to increase the local employment service's capacity by 50% from 20,000 people to 30,000. I also want to increase the number of officials in Intreo offices by a further 100 case officers so that they can deal with the workload. This is all part of the jigsaw to try to help people, prepare them with their CVs and give them advice and all the assistance they need to identify jobs that suit them and return to the workforce.

I will make the general point that legislation is not the appropriate vehicle for seeking reports. My officials have explained to me that it is a stubborn creature and, after the report has issued, the relevant section is required to be repealed. We can carry out reports without putting that requirement in legislation.

Last year, my Department, in partnership with the OECD, published a comprehensive and detailed review that measured the effectiveness of JobPath service provision. I have recently provided this report to the select committee. My Department intends to continue reviewing the operation of the JobPath programme and will update the findings of last year's review in due course. The OECD report indicated that the weekly earnings of people who secured employment following JobPath engagement were 17% higher than the weekly employment earnings of people who secured employment without the support of JobPath.

JobPath is a mechanism through which support is provided. It provides long-term unemployed jobseekers with access to an employment assistance and advice service for a period of 12 months. It is a payment-by-results model with the day-to-day operational costs and risks borne by the contractors. They are paid on the basis of performance. With the exception of the initial registration fee, payments are only made when a client achieves sustained full-time employment. Job sustainment fees are payable for each 13-week period of sustained employment up to a maximum of 52 weeks. The total cost since 2015 has been €247 million. Given the number of engagements with almost 284,000 people, the average cost per client is €873. To answer Deputy Kerrane's question, while the JobPath companies get paid for a second referral, there will be no more third referral fees. There will be two and two only.

JobPath is not an obstacle to filling places on CE schemes or other programmes. Since June 2018, persons availing of the JobPath service may also participate in CE or Tús schemes. It is not the case that everyone is being sent to JobPath. When my departmental officials examine the figures, they see that so many people go to JobPath, so many go to CE schemes and so many go to the local employment service.

Now would be the wrong time to withdraw this service, given that there is 21% unemployment. We need to keep it as part of the overall service. In January, the main focus will be on trying to help people find jobs and get them back to work.

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