Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 5: To ask the Minister for Social and Family Affairs whether she agrees that her recent reforms to the back to education allowance do not go far enough and that the requirement for claimants to be in receipt of a welfare support, such as jobseeker's benefit, for a period of 12 months before they are considered eligible is preventing people from accessing the critical upskilling and retraining necessary in this economic environment; and if she will make a statement on the matter. [9374/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Since its introduction, the underlying objective of the back to education allowance scheme has been to equip people on social welfare payments with qualifications that will enable them to obtain employment in the 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 replaces the applicant's 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 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 scheme has been modified in recent times. In order to support activation of unemployed people, the qualifying period for the third level option is reduced to nine months for persons 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 Government has devoted significant resources to the back to education allowance, with €519 million allocated over the lifetime of the National Development Plan 2007-2013. This year, the budget for the scheme is €87.8 million and the number of participants has increased again in the current academic year. The number participating in the scheme at the end of January 2009 was 11,534, an increase of 46% compared with the end of January 2008.

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. The requirement to be in receipt of a social welfare payment for a minimum period has always been a feature of the scheme. A waiting period is considered essential to confer entitlement to income support for an indefinite period and is considered necessary in the context of targeting scarce resources at those who need them most. The scheme will continue to be monitored in the light of the changed economic circumstance in order to ensure that it continues to meet its objectives.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Just because a scheme operated in a particular way in the past does not mean it should continue to operate in the same way in these changed economic times. The Minister said that €519 million is allocated to the scheme during the lifetime of the national development plan. If people are denied access to the back to education allowance, they will continue to be in receipt of other social welfare payments. The Minister seems unable to grasp this point.

The Taoiseach made reference to the back to education allowance in his speech to the Fianna Fáil Ard-Fheis last weekend but provided no context to his comment. Are changes proposed to the scheme and, if so, what specific changes are being examined? As the Minister observed, the regulations are less strict for those in receipt of statutory redundancy. This does not seem equitable. Of the increasing numbers of people who find themselves unemployed when the shop, hotel or restaurant in which they worked closes, many do not receive statutory redundancy. Why should they be penalised further by being denied the back to education allowance which is available immediately to persons who receive a lump sum on redundancy?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The context of the Taoiseach's speech and the speeches I and others made at the Ard-Fheis was to ascertain how, through co-operation between my Department, the Department of Education and Science and the Department of Enterprise, Trade and Employment, we can make best use of the various existing schemes in order to facilitate as many people as possible to avail of training and education. My Department is actively seeking to ensure the schemes we administer are put to best effect in meeting the needs of those who avail of them. This will mean availing of vacancies in the post-leaving certificate sector and any spare capacity in the institutes of technology, as well as correlating our activities with those of FÁS.

As I said, we are actively looking to see what changes are required in the existing schemes to best meet the needs of those who find themselves unemployed. At the same time — and I know the Deputy agrees me with on this because we have discussed it before in the House — we must ensure we do not find ourselves in a situation where people are organising their affairs in order to avail of the back to education allowance, particularly in respect of third level courses. Nevertheless, there is scope to facilitate as many as possible.

Olwyn Enright (Laois-Offaly, Fine Gael)
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It is a legitimate concern that people should not be encouraged to organise their affairs in that manner. However, I do not want people sitting idle for as long as 23 months. For example, if one loses one's job in October, one will be ineligible for the back to education allowance when the new college year starts 11 months later. Therefore, one must wait another entire year, until the following September, to avail of the scheme. This is of no assistance to people.

The Minister said she is examining this entire area. When does she propose to provide a solution to these difficulties? She should begin making changes immediately. We are always saying that emerging technologies will be what helps to bring us out of this recession. This would be somewhere to start. Members meet unemployed people every day who want to use their situation as an opportunity to retrain rather than merely sit at home hoping to find some type of work somewhere.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Many of the courses that are of particular benefit in terms of upskilling and retraining are at post-leaving certificate level, which is considered to be second level. Therefore, the less strict time requirements are applicable in those cases. For participants in the national employment action plan, the time requirement in respect of third level courses is reduced from 12 to nine months.

Olwyn Enright (Laois-Offaly, Fine Gael)
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How many people have been facilitated in this way?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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More and more people have been referred to the national employment action plan. I understand the current figure is some 60,000. The institutes of technology in particular are trying to organise their courses in such a way that applicants will not have to wait until the beginning of the traditional academic year to commence a course.

Olwyn Enright (Laois-Offaly, Fine Gael)
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It is up to the Minister to address the difficulties caused by the 12-month requirement. She is passing the buck.

Brendan Howlin (Wexford, Labour)
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The Minister should be allowed to respond without interruption.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Deputy made a valid point about people sitting at home because they have missed the beginning of the academic year. She made the case that a person laid off in October would have to wait an entire year. These changes by the institutes of technology will address those types of timing difficulties.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister has it in her power to amend the 12-month rule.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The institutes are actively looking to see whether certain courses could begin mid-year in order to facilitate more people.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister could change the rule.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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That is not the issue. It is a question of the availability of courses.

Olwyn Enright (Laois-Offaly, Fine Gael)
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It is up to the Minister to amend the timeframe.