Joe O'Brien (Dublin Fingal, Green Party)
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The Minister, Deputy Humphreys, recently secured the approval of the Government to proceed with design proposals for a new pay-related benefit for jobseekers. This represents a fundamental reform of the social welfare system and will ensure that people with long work histories will receive enhanced benefits if they lose their employment. The pay-related benefit will be available to newly unemployed employees who have a strong and recent attachment to the labour market, and who are available for and genuinely seeking employment.

The weekly rate of payment for people who have at least five years of paid PRSI contributions will be set at 60% of previous earnings, subject to a maximum of €450, for the first three months. After that, the rate will reduce to 55% of earnings, subject to a maximum of €375, for the following three months. A further three months will be paid at the rate of 50% up to a maximum €300 payment. For persons who have between two and five years of paid contributions, the rate will be set at 50% of previous earnings, subject to a maximum of €300 per week, and will be of six months' duration. The duration of payments is the same as what a person would get under jobseeker’s benefit. A minimum weekly payment of €125 will apply to the scheme.

For those who are already on a jobseeker's benefit payment, the intention is that they would remain on that payment rather than transferring to the pay-related system and, as such, their payment rate would not be affected. In line with current arrangements, under the pay-related scheme, a person will be able to opt for the means-tested jobseeker’s allowance if he or she would be financially better off on that scheme. I trust this clarifies the position for the Deputy.

Joe O'Brien (Dublin Fingal, Green Party)
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I disagree with the Deputy's assertion. I will make two key points regarding the caps and the new benefits. Earnings are subject to a maximum of €450 for the first three months, the rate will reduce to 55%, subject to a maximum of €375, for the following three months, and a further three months will be paid at a rate of 50% to a maximum of €300. Those caps will ensure that the benefit is pushed down to those who are lower paid. As is the case with jobseeker's benefit at present, there will be situations, although a minority, where people will sometimes be financially better off, depending on what the benefits are, taking jobseeker's allowance rather the benefit. That could be the case for people with this new payment, although I expect it will be in a minority of situations.

Joe O'Brien (Dublin Fingal, Green Party)
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That characterisation is inaccurate in terms of the expectation that people will be on €125 a week. The bottom level is €300. There are other aspects to the system as well. The logic of this is to follow European norms where we can avoid a cliff edge as regards the drop in income people face, if they are unlucky enough to lose their jobs. A recent classic example of that is the issue of Tara Mines, whose workers, unfortunately, will not benefit from this, but the scheme will improve situations for workers in general. I go back to the point I made regarding the ceilings we set. It will make sure that the resources being put into this are pushed down to those who are lower paid. Some €5 million has been provided for the scheme's introduction in the second half of next year. Overall, the benefit will be seen clearly by low-paid workers because of those caps we have put on the different levels of payment that will accrue over periods of time.