Naoise Ó Muirí (Dublin Bay North, Fine Gael)
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95. To ask the Minister for Employment Affairs and Social Protection the cost of reducing the minimum required hours under the wage subsidy scheme from 21 hours to 15 hours in April 2024; and if he will make a statement on the matter. [50438/25]

Naoise Ó Muirí (Dublin Bay North, Fine Gael)
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My question concerns supporting people with a disability to find substantial, sustainable and meaningful employment and implementing the recommendations of the review of the wage subsidy scheme. I would like to know the cost of reducing the minimum required hours under the wage subsidy scheme from 21 to 15 hours in April 2024 and if the Minister will make a statement on the matter.

Dara Calleary (Mayo, Fianna Fail)
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The wage subsidy scheme is a key disability employment support provided by my Department. It aims to encourage employers to offer substantial and sustainable employment to disabled people through a subsidy. As the Deputy knows, the employee must work at least 15 hours per week for the employer to qualify for the scheme. The subsidy is payable for a maximum of 39 hours per week. The base subsidy rate is €6.30 per hour, which increases to €9.45 per hour for employers with 23 or more disabled employees. An employer who employs 25 or more employees on the wage subsidy scheme may receive a grant of €30,000 towards the cost of employing an employment assistance officer.

Last year, my Department published a review of the wage subsidy scheme. In April 2024, based on the findings of that review, the minimum required hours for the scheme were reduced from 21 hours per week to 15 hours per week. This change sought to make the scheme more accessible and flexible to disabled people. However, it is also intended to ensure that the wage subsidy scheme maintains a key aim of encouraging employers to provide substantial and meaningful work to disabled people. The cost of the reduction in the hours requirement is estimated at approximately €889,000. This represents the cost of paying the subsidy in respect of employees whose weekly contracted hours are from 15 to 20 hours, inclusive. Prior to the change, employers would not have been eligible for the subsidy in respect of those employees.

Naoise Ó Muirí (Dublin Bay North, Fine Gael)
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The programme for Government recognised that people with a disability face significant additional costs in their daily lives and seeks to improve supports and ensure the welfare system is progressive and empowers people to live full and independent lives. It is welcome to see that the stakeholder review was taken on board by the Department. As the Minister mentioned, the cost of €889,000 associated with this change is relatively minor but it has a major impact. It means that 257 people with a disability or health condition who were not covered previously have benefited from the many social, economic and health benefits that come with sustainable and meaningful employment. We really need to continue to support them. They have valuable skills and strengths to contribute to the workplace and they may want the opportunity to do so. It should be a priority for the Government to remove any barriers that still stand in their way. Are there any plans to implement the other recommendations in the review or how does the Minister see them being progressed?

Dara Calleary (Mayo, Fianna Fail)
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We are working through all the recommendations and the review with a view to implementing them. One of the key recommendations was to ensure we can keep the minimum required hours and the subsidy under more regular review than was done previously. This is something we are absolutely going to make sure happens. We are also working with our colleagues in Intreo to ensure services and employment opportunities are available to people with disabilities. EmployAbility provides a professional job-matching service and ongoing support, advice and information on employment supports for people with a disability. It also acts as a recruitment advice service for employers and provides the business community with access to a pool of potential employees. In 2023, we also established the WorkAbility programme. This is cofinanced with the EU employment, inclusion, skills and training, EIST, programme to support people with disabilities into employment through 57 local, regional and national organisations. In 2024, more than 1,400 people with disabilities engaged with these projects.

Naoise Ó Muirí (Dublin Bay North, Fine Gael)
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I thank the Minister. I think we still have a way to go here in terms of making progress. I welcome the ongoing review of the subsidy itself and the entry points and levels. According to the Disability Federation of Ireland, just over 30% of people with disabilities here are in employment. The EU average is around 50%, so we need to focus on building skills. I also suggest we need to promote the scheme. I think one element of the feedback from a year or two ago was that employers were basically unaware of the scheme and what it could do for them. Promotion of the scheme, therefore, is very important. Nationwide, we can use the local authorities and the various groups to promote the scheme and to get more people participating in the scheme.

Dara Calleary (Mayo, Fianna Fail)
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Aontaím leis an Teachta go gcaithfimid an obair ag chur dínn agus an focal a chur amach. We did that this year through the summer after we relaunched the wage subsidy. We promoted it considerably and used targeted promotion to employers to encourage them to take on persons with disabilities and look at the opportunities that would bring to their businesses. In relation to the partial capacity scheme and the wage subsidy scheme, we have allocated an additional €3.7 million. We have also expanded the wage subsidy scheme to the community and voluntary sector and to the commercial State-sponsored sector to open up opportunities possibly on a more local basis than is currently the case.

In July 2024, we launched the new work and access scheme, which offers seven supports to improve access in workplaces for those with a disability. Funding is available for communications support, work equipment, workplace adaptation and training. Jobseekers, employees, self-employed people and employers may apply for those supports. We are very conscious of the need to continue to promote the schemes and this is something I want to focus on through next year.