Dáil debates

Wednesday, 12 October 2011

Oibreacha Athchóirithe Scoileanna

Adult Education

4:00 pm

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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I thank the Minister for attending the House to debate this issue. I wish to put it in context. A lot of debate on social welfare in recent weeks has centred on eliminating fraud and fraudulent claims. I support the Minister's actions and ambitions in this area. I want to discuss the other side of the coin.

The Minister said she wants to eliminate fraud in order that people who deserve payments would receive them. I refer to the back to education allowance. When the unemployment crisis hit a number of years ago people were encouraged to upskill and go back to education. In many cases because of criteria that were suitable five years ago but not now people are not allowed to return to education. I could provide the Minister with many examples but I do not have time.

A young graduate who is qualified in heritage studies had a job for a few years in a county council. She has young children and lost her job. She has been in receipt of the jobseeker's allowance for the past few years. She now wants to do a simple PLC course to get a job in health care and work in a nursing home. She showed me letters which guaranteed her employment by next June if she was able to complete a course. She was five weeks into the course when her back to education allowance payments were suspended. She is now in receipt of the jobseeker's allowance again. By next June she will have no chance of leaving the live register and no job.

Removing the option will impact on people in such situations. People have served apprenticeships in building and construction and are on level 6 of a course, many of whom are in receipt of the jobseeker's allowance. They will no longer be in a position to receive the back to education allowance or avail of FETAC level 5 or PLC courses. Many were hoping to do so in order to upskill. As the rules currently stand, such people are expected to progress to third level education, which they have been out of for many years. It does not fit with what they need at this point in time.

In the past social welfare facilitators made recommendations but that system seems to be gone, something of which I am aware from speaking to such people in the past few weeks. I ask the Minister to examine the criteria. I am not trying to accommodate people who want to be eternal students and continue to do courses at the same level. I am referring to people who want to do courses that will help them to get employment, yet because they are currently outside the criteria they cannot be accommodated and will cost the State thousands of euro. Such people have no qualifications or employment as a result.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The back to education allowance, BTEA, scheme is a second chance education opportunities scheme designed to remove the barriers to participation in second and third level education by enabling eligible people on certain social welfare payments to continue to receive a payment while pursuing an approved full-time education course that leads to a higher qualification than that already held.

The number of participants engaged with the BTEA has grown steadily in recent years. In the 2010-11 academic year there were 25,032 participants costing just under €200 million, which represented an increase of 20.3% on the previous year and which comprised 20,808 participants. The 2009-10 academic year saw a dramatic increase of 79% on the previous year. As of 30 September 2011, there were 18,440 participants availing of the scheme. Final figures for the current academic year are not yet available as claims are still being processed. However, it is expected that the participation level will increase this year. The budget for BTEA in 2011 is €198.8 million, which represents an increase of over 10% on 2010 expenditure which was €179.85 million.

A person who wants to pursue BTEA will have to satisfy a number of conditions. These include being a certain age; being in receipt of a prescribed social welfare payment for a specified time period; pursuing a full-time course of study leading to a recognised qualification in a recognised college; and progressing in the level of education held by the client with reference to the national framework of qualifications, among others.

In general, to qualify an applicant must be in receipt of a relevant social welfare payment and be at least 21 years of age, or 24 years in the case of post graduate courses, prior to commencing an approved course of study. However, lone parents and persons in receipt of jobseekers payments can qualify at 18 years of age provided they are out of formal education for at least two years.

The qualifying period for the second level option of the scheme has remained at three months, in recognition of the need for more urgent intervention in the case of people who have not completed formal second level education. With effect from 19 July 2010, the period for which a person is required to be on a qualifying social welfare payment before accessing third level education under the BTEA was reduced from 12 months to nine. A two year qualifying period continues to apply to participants claiming illness benefit. Since 2007, people who are awarded statutory redundancy may access the BTEA immediately, provided an entitlement to a relevant social welfare payment is established prior to commencing an approved course of study.

A waiting period is considered essential given that the BTEA confers an entitlement to income support for an extended period and avoids establishing a pull factor to the live register. It is also considered necessary as it reduces unnecessary provision for those who will leave the live register in any event, in the context of targeting scarce resources at those who need it most.

State support for education purposes is grounded on the principle of a student progressing from one qualification level to a higher one. This is necessary to ensure displacement does not occur, in that courses could be offered to students who are not progressing at the cost of students progressing from a lower education level. It should be noted that in the 2010-11 academic year, of the 25,032 participants supported through the BTEA, 43% pursued second level courses. Furthermore, the scheme was never intended to be an alternative form of funding for people entering or re-entering the third level education system.

However, there are options for those who wish to pursue part-time education courses. I do not know if this might be of assistance to Deputy O'Mahony's constituent but he might be able to do so while retaining his jobseeker's payment. He must apply at his local social welfare office and verify that participation in the course does not reduce his availability for work.

In the case of jobseeker's benefit, participation on a course does not grant any extension to the normal period for which jobseeker's benefit is paid. It should also be noticed that the Springboard initiative, administered by the Department of Education and Skills, which was announced as part of the Government's jobs initiative, is aimed at unemployed people with a previous history of employment who already hold a higher level qualification at NFQ levels 6 to 9 who may also require additional upskilling or re-skilling to enter employment. By way of the part-time education option, unemployed people on jobseeker's payments will be facilitated in retaining their payment subject to continuing entitlement within the broader back to education framework. The BTEA, in conjunction with other employment support schemes, will be monitored on an ongoing basis to ensure it continues to meet its objectives.

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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The key point in this example is that the present criteria discriminate against those with a university degree who cannot get employment who are trying to reskill to find employment. The Minister made the good point recently that she does not want to facilitate those who see social welfare as a lifestyle choice. The example I have mentioned is forcing this person to stay on social welfare. The discretion with the social welfare facilitator has gone. In the long-term for this small group, there must be a way to facilitate them in a way that makes savings for the Department because it will take people off the live register.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I appreciate Deputy O'Mahony's remarks. All the schemes operated by the Department are under review in the context of the comprehensive expenditure review. We are currently spending around €200 million on 25,000 people who are pursuing back to education schemes. There is a general educational principle that if people have reached third level and if there are others who have not completed second level, when it comes to the allocation of scarce resources, account must be taken of the latter. In the next few months, however, the labour services side of FÁS will be transferred into the Department of Social Protection. We will set up this new national service for social welfare entitlements and advice for those who wish to take up opportunities. In that context, I would be happy to look at this. I stress, however, that people who already have a third level education can look at the part-time option, particularly in VECs.

The Deputy appreciates that the back to education allowance is primarily for those who did not have the opportunity to complete second level or attend third level; it is for their progression. I understand the context in which the Deputy raises the issue and I will look at it when we are developing the national service.

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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These people are trapped at the moment and cannot get out of the trap.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I heard the Deputy's remarks about the facilitators and they are an important source of information so I will talk to some of them.