James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context

87. To ask the Minister for Employment Affairs and Social Protection if he will remove inconsistencies and anomalies in the current jobseeker's allowance scheme which discourage people from taking up employment; and if he will make a statement on the matter. [21699/25]

James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context

Will the Department of Social Protection remove the inconsistencies and anomalies in the current jobseeker's allowance scheme that discourage people from taking up employment. Will he give some further information on that? It is an important issue. It is something we have previously discussed. I would appreciate it if the Minister could advise the House on whether his Department plans any moves on this.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy for his question. The programme for Government contains a commitment to introduce a new working-age payment to simplify and address those inconsistencies in payment arrangements, which face people who return to work from a jobseeker's payment. An outline of the proposed approach was published as part of the consultation process on the introduction of a new pay-related benefit. I am particularly pleased to say that was introduced at the start of April. I acknowledge the considerable work of the Department of Social Protection in getting that over the line.

We are proceeding to develop a more detailed consultation process on the working-age payment model. I will launch this consultation later this year. In the meantime, a number of arrangements are in place to incentivise and encourage people in receipt of the jobseeker's allowance scheme to take up work or to engage in training and development programmes to prepare for work. First, a person in receipt of jobseeker's allowance is allowed to work for up to three days per week and continue to receive a partial payment. The first €20 of earnings per day is disregarded with the balance of income assessed at 60%. A person can also retain secondary benefits, such as fuel allowance, subject to meeting the relevant means test. Second, under the back to work family dividend scheme, people taking up full-time employment retain the child support element of their payment for two years. The first year is paid at the full rate and the second year is paid at 50%, which means that they receive an in-work welfare payment to supplement employment earnings. Third, people in receipt of jobseeker's allowance can opt to return to education and training, or to move into self-employment, and continue to receive a welfare payment. For the full duration of their training or education course, they receive the full rate of payment. If they take up self-employment, they receive a full payment rate for the first year and 75% for the second year.

Jobseekers who take up a work placement programme, community employment or Tús placements, also receive an increase in their payment rate and can continue to receive any secondary benefits. In addition, the Department supports employment transitions through the part-time job incentive scheme, which facilitates part-time employment for up to 24 hours per week, and through the working family payment.

James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context

I appreciate the response. This is an important issue that has been raised by the Citizens Information Board. It was highlighted that the working-age payments scheme should be based on the working family payment model, whereby a person receives a payment based on a percentage of the difference between his or her income and the specified threshold for his or her family type. However, the board also pointed out how crucial and important the administration of the working-age payment is, given the difficulties regularly reported by CIS clients. I appreciate the information the Minister brought before the House. It is important that clarification is brought. It is a matter we discussed previously. This comes up in conversations in my constituency office, as it does for other Deputies. I look forward to working with the Minister on issues around this and other employment matters that may come up before the relevant Oireachtas committees, including the employment committee. If he can give further information in his supplementary response, I would appreciate it.

Louise O'Reilly (Dublin Fingal West, Sinn Fein)
Link to this: Individually | In context

Certain groups of people, including seasonal workers and school caretakers, in particular, are excluded from pay-related jobseeker's benefits and allowances. Seasonal workers are every bit as unemployed when they are not working; it is just that they are unemployed for a specific period. Will the Minister give some consideration to including those people, who we rely on and lean on in the seasons when they work? It is not their fault they do not have work. The Minister knows that well. They are available for work but it is very tough to find work. School principals and teachers will tell you these workers are very much necessary and needed. They like that continuity of service but these workers feel very aggrieved, and rightly so, that they have been excluded from the programme.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

If Deputy O'Reilly would like to drop me a line on that, I will follow up on it. I know more than most the value of school caretakers, particularly to the teachers.

I congratulate Deputy O'Connor on his appointment as Chairman of the employment and enterprise committee. I look forward to working with him. In that context, we need to ensure that the social protection system can be worker friendly. Welfare traps which are inhibiting people from taking up work need to be removed. For instance, if a person on jobseeker's allowance receives an offer of part-time work, they can end up worse off financially if their hours are spread over the entire week rather than concentrated over three days or less. That is an anomaly I want to address.

As stated, we will be introducing a working-age payment to remove inconsistencies and anomalies in the current jobseeker's payments that are discouraging people from taking up employment. One of the proposed models is to change the basis of the current payment structure in order that a person's payment will be based on a percentage of the difference between their income and a specified threshold for the family type. The purpose of that change would be to take advantage of real-time PAYE information and to move from the days-of-work approach to an income-based approach. That would mean that a person should always be better off by taking up employment. However, I will be publishing draft proposals for full consultation with stakeholders and Oireachtas committees before we agree any final design of what a working-age payment might look like.

James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context

The programme for Government states that we must ensure the social protection system is work friendly and that welfare traps which inhibit people from taking up work are removed. At present, a person on jobseeker's allowance who receives an offer of part-time work may actually end up worse off financially if their hours are spread across the whole working week rather than being concentrated over three days or less. This could easily be addressed with some focus, and I appreciate the comments the Minister has made. I hope we can work on it together. I just wanted to raise the issue because I thought it was important. I appreciate the Department's response that this will be worked on in the coming weeks and months.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

We will absolutely engage across the House on proposals in this space. People are being disincentivised from moving from the welfare system into work because of anomalies that should no longer exist. With everybody's input, we can do that, hopefully by the end of this year.