Dáil debates

Tuesday, 13 November 2018

Ceisteanna Eile - Other Questions

Jobseeker's Allowance Payments

6:05 am

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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95. To ask the Minister for Employment Affairs and Social Protection if she will re-examine the issue of the reduced rates of jobseeker's allowance for those under 26 years of age with an aim to restoring them to the standard rate; and if she will make a statement on the matter. [46888/18]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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108. To ask the Minister for Employment Affairs and Social Protection her plans to equalise the rates of jobseeker's payments for those under 26 years of age; and if she will make a statement on the matter. [46810/18]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Has the Minister plans to equalise the rate of jobseeker's payments for those aged under 26?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 95 and 108 together. I do not think we have ever reached this number of questions.

In line with EU and OECD jurisdictions, reduced rates for young jobseekers were introduced from 2009 on a phased basis to tackle high youth unemployment. These measures guard against the development of long-term welfare dependency by providing 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 receives the maximum rate of jobseeker's allowance of €198.

Age-related reduced rates do not apply to jobseekers with a qualified child, those transferring directly to jobseekers allowance from disability allowance and 18 to 24 year olds who were in the care of the Child and Family Agency during the 12 months before they reached 18 years of age.

The youth employment support scheme, which I launched in September, is a work experience scheme for long-term unemployed jobseekers aged 18 to 24 or who face significant and particular employment barriers. Participants will receive a minimum of €229.20 per week or a weekly top-up of €22.50 if they have dependants.

To date, these policies have been effective in reducing both youth and long-term unemployment numbers on our live register, which is exceptionally welcome. For example, the most recent data show that Irish youth unemployment has fallen from a peak of 31.2% in 2012 to just under 12% in October 2018. There has been a significant drop in the number of Irish youths who are unemployed.

Irish youth unemployment, which was at 23% in 2012, has fallen well below the EU average of 14.9%.

6:15 am

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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While the drop in youth unemployment is welcome, it is not solely due to this measure. There was a time before 2009 when, on turning 18, claimants were paid a rate of social welfare, namely, jobseeker's allowance, that was equivalent to what everybody else got. That was changed, initially in 2009 by a Government which was led by Fianna Fáil and of which I remember being a member. I remember well the arguments to and fro and the rationale that was advanced, but it did not achieve what was forecast. While in other countries, such as the UK, there was a differential between people of different ages, I do not think that the objectives were achieved, insofar as I can recall them being outlined during the debate around the Cabinet table. Circumstances have since changed dramatically. What is the rationale for maintaining this distinction?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Dare I say that the Deputy is questioning his own decision from 2009, for which the rationale remains exactly the same today. We do not want our young people aged between 18 and 24 to be sitting at home watching "Judge Judy". Rather, we want them in education, training or employment opportunities, which is exactly what this measure has achieved. Anybody who is at home on a reduced rate, aside from the people I described who have dependent children, have every opportunity to earn either €198 per week by entertaining employment, training or education opportunities, or by going on the recently launched youth employment support scheme, which will, I hope, give them long-term attachment to a workforce and a long-term job.

Written Answers are published on the Oireachtas website.