Dáil debates

Wednesday, 25 May 2016

2:30 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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36. To ask the Minister for Social Protection if he will restore the jobseeker's allowance for persons under 26 years of age to pre-2014 levels, given calls from a number of groups such as the Free Legal Advice Centres, which has stated that this cut in particular is pushing people into homelessness; and if he will make a statement on the matter. [11649/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. Budget 2014 further extended the reduced rates to recipients under 26 years of age.

This is a targeted measure aimed at preventing young people from drifting into welfare dependency. To guard against the development of welfare dependency, it is necessary to provide young jobseekers with a strong financial incentive to engage in education or training or to take up employment. If a young jobseeker in receipt of the reduced jobseeker’s allowance rate participates on an education or training programme, he or she will receive a higher weekly payment of €160. Young jobseekers who lose work and have an insurance record of paying PRSI receive jobseeker's benefit at the same rate as others.

Youth unemployment rose rapidly in the recession to over 30% in 2012. According to the Quarterly National Household Survey for quarter 1 of 2016, which was published yesterday, youth unemployment has fallen by almost half since then and now stands at 16.9%.

The Youth Guarantee sets a medium-term objective of ensuring that all young people receive an offer of employment within four months of becoming unemployed. The main plank of the guarantee is assistance to young people in finding and securing sustainable jobs through earlier and enhanced engagement processes. My Department also offers a range of supports and services aimed at assisting individuals who are exiting homelessness or are at risk of homelessness. Last year my Department made available 2,500 rent deposits and rent in advance payments at a cost of almost €1.5 million, of which almost 590 payments, equating to €315,000, were made to persons aged under 26 years. That was to ensure they could get accommodation. At the end of 2015 there were approximately 4,900 rent supplement recipients under 26, representing approximately 8% of total recipients receiving support under the scheme.

Additional information not given on the floor of the House.

These payments, including exceptional needs payments, can be made at the discretion of the officers administering the supplementary welfare allowance scheme on a case-by-case basis and subject to the individual’s specific needs. This range of supplementary supports is available to all individuals, including those who are under 26 years of age, with the aim of assisting these individuals in securing and retaining their own accommodation.

2:40 pm

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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The Minister mentioned the unemployment figure. The national figure is approximately 17% for those under 25, while the national figure for general workers is at the 8% mark. Sadly, in Wexford, the rate is over 20% for the general workforce and over 30% for those under 25, which is absolutely frightening. I do not want to go on a parish pump rant, but I must say this. People were talking about targeting the deprivation in Dublin's inner city on Leaders' Questions, and that should be done. I am not one to blame the Taoiseach, the Government or the Garda for people being shot lately in the inner city, but the levels of deprivation in places such as Dublin's inner city and, sadly, Wexford deserve direct targeting for action. There are some areas that are particularly problematic and probably need very direct action from the Government.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The rate of youth unemployment has halved in the past five years, so somebody must be doing something right. The Deputy is correct that it is still roughly double the unemployment rate for the entire population. It is fairly typical, based on comparisons with other countries, for youth unemployment to be roughly double the rate for the entire adult workforce. That is very much related to the fact that large numbers of young people are in education. Going back to statistics, when we look at them in a different way, there is a very different figure. The fact that youth unemployment is double the average adult rate is very much related to the fact that so many young people are in education or doing other things. Any young person taking up education or training receives a higher payment. It is important that an incentive exists.

The Deputy is correct in speaking about the north inner city, as targeted action is required in the area similar to the action taken in Limerick in the past, which may well also be needed in Wexford and parts of my own constituency. It will be about much more than just increasing welfare payments; there must be a more holistic approach.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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The core point is that the maximum rate for those aged between 18 and 24 with no dependant children is currently €100. Those who are 25 are getting €144, down from €188. The poverty line is around the €200 mark per adult per week, and expecting people to survive on half of that is not a runner. As we are discussing youth unemployment, I will add that I met a couple of young people in the past few weeks, aged around 22 or 23, who are leaving the country. They are not even on the live register, although they have no work. They are not allowed any assistance because their parents have been deemed well off enough to look after them. Even for those people who qualify, the rules have moved a bit in the past few years and figures have been massaged in that respect. The core point remains that nobody can survive in Ireland on €100 per week. The cost of living in this country is too expensive for that.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The maximum rate is €100 if the person does not take part in education or training or take up a work placement. If a person takes up one of those options, it is much higher. We should not have people coming out of school being given €188 per week without any requirement or expectation to take up education, training or work. The €100 is paid to people who do not take up education, training or a work placement. These things are readily available, and any person should be offered such an option within four months. I am not sure where the people the Deputy met were going, but it would be worth taking a look at the rates in Northern Ireland or Britain, for example. It is a feature of welfare systems across Europe that there are lower rates of social welfare for people under 25, for very good reasons. Generally speaking, the rate is lower than in Ireland, or there are more stringent conditions. Unless the people to whom the Deputy referred are going overseas to take up employment-----

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Exactly. They are not going to get welfare payments.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I would prefer it if they got employment here.

Written Answers follow Adjournment.