Dáil debates

Tuesday, 11 April 2017

Other Questions

Jobseeker's Allowance Payments

6:05 pm

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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63. To ask the Minister for Social Protection the reason for the delay in the report on the impact of reduced jobseeker's payments for those aged under 26; his plans to end this discrimination; and if he will make a statement on the matter. [17954/17]

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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We are aware of the ongoing discrimination against our young people aged under 26 who are unemployed. This has been borne out by evidence, through constituents, by people coming forward and by a number of organisations. The budget just gone has continued that discrimination. What is the Minister going to do to bring an end to the ongoing discrimination?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Central Statistics Office latest monthly figures report that the seasonally adjusted unemployment rate for persons aged between 15 and 24 was 13.9% in March 2017. This is a significant decrease of more than five percentage points, from 19% in March 2016.

Lower weekly rates for younger jobseekers were first introduced in 2009 and further extended in subsequent budgets. The rationale for these rates is to prevent young unemployed people from entering longer-term welfare dependency by providing a strong financial incentive to take up a job, training or education programme. Should a young jobseeker on a reduced jobseeker’s allowance payment participate on an education or training programme, he or she will receive a higher weekly payment of €160. This rate will be further increased to €193 per week from September 2017.

The National University of Ireland, Maynooth, NUIM is undertaking a piece of research at the moment which is examining the effectiveness of the reduced rates in encouraging young jobseekers to avail of education, training, employment programmes and opportunities. My Department has not commissioned the NUIM to undertake this research. Rather, as part of an effort to encourage and promote research, my Department has facilitated the NUIM with access to the data from the jobseeker’s longitudinal database to undertake this research. The findings of the NUIM research are likely to form the key element of the review which my Department is undertaking in line with the Pathways to Work 2016-2020 strategy. It is hoped that the research and report will be completed shortly.

With effect from last month, rates of jobseeker’s payments were increased for claimants of all ages as a result of measures introduced in budget 2017. I have no plans for any further increases in rates at present. Any such changes could only be considered the context of the next budget.

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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I urge the Minister to look at it in the next budget. It is certainly having a huge impact on our young unemployed. We know the figures. Young people are twice as likely to be unemployed as older people. The Minister did commit to a report, which I believe was due to be brought forward in the second quarter of 2016. This was in the Pathways to Work 2016-2020 strategy but we still have not seen that report. I am not sure if this is the report to which the Minister has just referred in his reply. He said there were increases to the jobseeker's payment for the young who are unemployed. This was a measly €2.70 for people under the age of 24 and €3.80 for those aged 25 and upwards. This continues the discrimination for young people who are unemployed and it needs to come to an end. I ask that the Minister brings forward the report. Let us have a debate on the matter and put in place measures to end the discrimination for our young people.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I do not have the report so I cannot bring it forward at this stage. Once I have it I will certainly read it and bring it forward then. Changes I am making at the moment which the Deputy may be aware of include the opening up of the community employment, CE, scheme to younger people by reducing the minimum age from 25 to 21 for all schemes. It is already the case for child care and one or two other schemes. Any person who is between the age of 21 and 24 who cannot find employment, training or education and who is unemployed for more than a few months now has the option of going onto a CE scheme. In this case he or she will receive more than €200 per week.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Sin deireadh le ceisteanna chun an Aire Coimirce Sóisialaí. Táimid ag dul ar aghaidh anois go dtí Ábhair Reatha.

Written Answers follow Adjournment.