Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 93: To ask the Minister for Social and Family Affairs the reason she has not used the social welfare Bill as an opportunity to address the eligibility criteria for the back-to-education allowance; and if she will make a statement on the matter. [40023/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The objective of the back-to-education allowance scheme is to equip people on social welfare payments with qualifications that will enable them to obtain employment in the modern labour market. It is a second chance educational opportunities scheme for people on welfare payments who wish to participate in full-time education and who would not otherwise be able to do so.

The allowance is paid at a standard weekly rate equivalent to the maximum rate of the relevant social welfare payment that qualifies the applicant for the scheme. It replaces the existing social welfare income and, in addition, an annual €500 cost of education allowance is payable. Also, participants may continue to receive any secondary benefits to which they may have been entitled. In general, an applicant must be in receipt of a relevant social welfare payment for six months if pursuing a second level course or 12 months if pursuing a third level course. The qualifying period for the third level option is reduced to nine months for persons who are participating in the national employment action plan process. People who are awarded statutory redundancy may access the scheme immediately, provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

The scheme has been improved in recent years. The qualifying period for illness benefit recipients was reduced from three to two years and the qualifying period was removed for people who are awarded statutory redundancy. In addition, the cost of education allowance was increased to €500 and the allowance was extended to people signing on the live register for PRSI credits.

The Government has devoted significant resources to the back-to-education allowance. Up to €519 million has been allocated over the lifetime of the national development plan. This year, €70.8 million is available. The number of participants in 2007-08 academic year was 8,883, an increase of 9.8% on the previous academic year. The number of participants has increased again in the current academic year. The number of people on the scheme at the end of September 2008 was, encouragingly, 24% higher than at the end of September 2007.

The back-to-education allowance is an important part of our overall strategy to provide opportunities for unemployed people to upskill in order to enhance their prospects of entering or returning to the labour force. I will continue to monitor the scheme but I believe it continues to meet its objectives and ensures limited resources are directed at those most in need.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

I do not agree with the Minister that the scheme achieves its objectives in that not enough people can get on to it. Since the Minister was encouraged by the increase in the number of participants over the past two years, is she now discouraged that there will be 500 fewer places on the scheme next year?

I am constantly raising this issue because I believe the scheme gives people a chance to re-train and re-educate themselves. When the Minister was recently on the "Prime Time" programme with Deputy Gilmore she said her main priority was education and training. If it is, then how this scheme works should be changed. The Minister claims people who are made redundant do not need to have been in receipt of a year's relevant social welfare benefit before they can go on to third level. Is she aware that of the 94,502 people who joined the live register in the year to October, only one third was made redundant? This means only one third of those people are eligible to apply for the back-to-education allowance. Has the Minister reviewed or thought about allowing people on the minimum wage to participate in the back-to-education allowance, particularly for those in employment where their prospects are doubtful?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The Deputy is incorrect in saying there has been a cutback in the back-to-education allowance. There has been none and I am particularly encouraged by the numbers applying for the scheme. This summer we focused the scheme on those who want to take it up. The more people we can encourage to join the scheme, the better. The facilitators are doing a good job in highlighting the scheme. It shows by targeting a particular group, especially young workers, that it can be successful.

It is a scheme which supports employability, my main aim, and getting people back to work by supporting and facilitating them with education and training. It is not, therefore, appropriate to shift it to people who are currently in employment, albeit on low incomes.

The Deputy referred to those people who unfortunately lost their jobs in the past year. They might not have been able to access education or training immediately but they would have been able to access it within a few months, such as six months in respect of second level. If they were called for the employment action plan, it would mean nine months for third level.

The six month requirement for second level schooling is about right. Many people would start into academic education in September. Were it to be reduced any further, people would be claiming unemployment benefit for three months which is not what we want.

This is a valuable scheme and one I will keep under review. Up to 8,803 people participated last year and participation rates have increased by 24% already this year. The scheme is working and it is my aim we ensure people know and are given advice about it.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Will the Minister clarify the budget brief on education funding? It states: "This will require a reduction in the provision of 500 places on the back to education initiative — reducing the total number of places to 9,000".

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

That is the back-to-education initiative. The Deputy's question was on the back to education allowance. This is provided to people involved in full-time education. There will be an increase in the amount available for people in that scheme. The back-to-education initiative under education concerns part-time courses and is completely different.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

It is still equally important.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

No, it is not. If I may, Acting Chairman.

Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context

Deputy Enright, we are out of time.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

I am entitled to a supplementary question.

Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I do not think there is time but I will allow the Deputy to continue.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

For example, a person going on the live register on 31 October would be ineligible for a college course which commences in September or early October next year because he or she will not have been in receipt of the relevant social welfare benefits for one year. People are having to wait a month short of two years to fulfil the criteria for eligibility for the course. This needs to be addressed.

The Minister must also address the small number of people eligible under the redundancy rules and the employment action plan. Two thirds of those coming on the live register must wait one year before they can go on to third level education. I accept the six months' criteria for second level but that is little comfort to those who want to go into third level education. Will this be re-examined for the coming year or will it be left as it is for now?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

There is no cutting back on the back-to-education allowance. Its purpose is to facilitate people in full-time courses and I am anxious to ensure as many people as possible benefit from it. A person who lost their job on 31 October this year would be able to enter second level education——

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

I asked specifically about third level.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

If I may, Acting Chairman. A person who is part of the national employment action programme can, within nine months——

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Only if they are participating in that programme.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

——which would expire at the end of July of next year, then start on a third level course. People on the live register are called for the employment action plan every three months to ensure we are targeting the right people. The opportunities are there. To claim someone is left on the live register is not the case. The employment action plan is designed to interview people, support them and give them information.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

It is not available to everyone.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

If they are involved in that, they can get——

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Only if they are involved.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

Yes, if they are involved, they can get to third level education in nine months.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Not everyone is involved.

Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context

We will move on to Question No. 94. I am trying to get through all the questions so that Deputy Enright's will be answered. She knows better than I do that six minutes is allocated to each priority question.

Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

We want to get to the bottom of matters.