Dáil debates

Tuesday, 19 April 2005

Priority Questions.

Social Welfare Benefits.

3:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 72: To ask the Minister for Social and Family Affairs the amount his Department has saved by increasing the qualifying period from six to 12 months for the back to education allowance; if he plans to reduce the qualifying period to nine months; and if he will make a statement on the matter. [12129/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The back to education allowance is a second chance education opportunities programme designed to encourage and facilitate people on certain social welfare payments to improve their skills and qualifications. The objective is to increase their prospects of returning to the active workforce and reduce the risk of them becoming dependent on social welfare on a long-term basis.

The allowance supports eligible people pursuing second level and third level qualifications. The qualifying period for the back to education allowance scheme for people pursuing second level qualifications has always been six months. The qualifying period for entitlement to the third level option was increased from six months to 15 months for new applicants intending to commence third level courses of study on or after 1 September 2004. This measure is estimated to have realised gross savings of €2.2 million in the last quarter of 2004. If implemented as originally intended, it would have realised savings of €5.5 million in 2005.

As Deputies are aware, however, I reduced the qualifying period for access to the third level option of the scheme to 12 months in the last budget. I also increased the annual cost of education allowance paid to people on back to education allowance from €254 to €400. These changes will take effect from 1 September 2005 at a cost of €1.42 million in 2005 and €2.4 million in 2006.

Since its introduction, the intention of the scheme has been to benefit people who have difficulty finding employment. The scheme provides an opportunity to improve their qualifications and thus their prospects of obtaining work. It was never intended to be an alternative form of support for people entering the third level education system.

One of the factors that influenced the increase in the qualification conditions is the fact that some people go on the live register for short periods specifically to qualify for the back to education allowance. For example, an examination carried out by my Department found that in the 2003-04 academic year, 51% of new participants in the third level option of the scheme were in receipt of an unemployment payment for 12 months or less when they accessed the scheme. In addition, research carried out by independent consultants has shown that in the case of a control group surveyed for research purposes, 54% were 12 months or less in receipt of a qualifying payment when they accessed the scheme.

The scheme is intended to assist people with a history of long-term dependence on social welfare. Many of these people have not completed second level education and are held back in their efforts to obtain employment as a result. With this in mind, the qualifying period for people who wish to pursue second level education remains at six months. The numbers taking second level education with the support of the back to education allowance are increasing.

Additional information not given on the floor of the House.

I am satisfied that the current arrangements ensure that the scheme supports those people who are most distant from the labour market and whose need is greatest. In line with my undertaking to the Dáil and the Committee on Social and Family Affairs, however, I am keeping the qualifying period for this scheme under review.

The back to education allowance scheme is being reviewed at present as part of Government's programme evaluation process. The report of the working group, including recommendations for the future of the scheme, will be available later this year, at which time I will give the matter further careful consideration.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Surely the Minister is not suggesting that people are taking up unemployment benefit or assistance just to qualify for the back to education allowance. That is ridiculous. The Minister and Deputies have participated in this debate from time to time. Can the Minister tell me if he intends to bring back the qualifying period to nine months before next September? I am sure he recalls telling me that he can do that at the stroke of a pen. How much will it cost to bring back the qualifying period to nine months? Will he do that and, if so, when?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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It would cost €6.7 million over three years to do that. I will make that decision well in advance of next September.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Will the Minister agree that time is running out? He tells us his philosophy is to help people go back to education, especially those on long-term unemployment. Will the Minister agree that the measures being taken now are stopping people returning to education? This has been going on for several months. When will the Minister make a commitment? Time is running out. The Minister told me in February he would make this change in the next two months. The two months have passed. People need to plan ahead. Will the Minister tell me if he will do it, and when?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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As the Deputy is aware, the qualifying period was six months and I increased it to 12 months in the budget. I have said consistently since then that it does not come into effect until September and that well in advance of September I will finalise my thinking on that, particularly in terms of sourcing the additional funding. The timescale is fine. It is nothing different from what I have been saying for some months. This is only April and well in advance of September we will be able to close our thinking on whether we can move the qualifying period back to nine months.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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What is stopping the Minister from making the decision now?

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Money.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Money.