Tony McCormack (Offaly, Fianna Fail)
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8. To ask the Minister for Employment Affairs and Social Protection if he will report on the introduction of pay-related benefit in March 2025 linking unemployment payments to previous earnings; the number of persons who have availed of it to date; and if he will make a statement on the matter. [31132/26]

Dara Calleary (Mayo, Fianna Fail)
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I thank Deputy McCormack for his question. Jobseeker's pay-related benefit is a new social insurance income support that replaced the jobseeker's benefit scheme for people who became fully unemployed since 31 March 2025. This is a significant reform that brought Ireland in line with many other European countries. Jobseeker's pay-related benefit means that the income support is directly linked to a person's previous earnings.

People with five years' PRSI contributions receive 60% of previous earnings, subject to a maximum of €450, for the first 13 weeks. After that, the rate reduces to 55% of earnings, subject to a maximum of €375, for the following 13 weeks. A further 13 weeks sees a payment at a rate of 50%, up to a maximum payment of €300. People with between two' and five years' paid contributions receive 50% of previous earnings, subject to a maximum of €300 per week, for up to 26 weeks.

The scheme is demand-led and cost €297 million in 2025. We have provided over €560 million for the scheme in 2026. It is important to emphasise that jobseeker's pay-related benefit costs are funded by the increases in PRSI that have been legislated for. Over 97,000 people have been awarded jobseeker's pay-related benefit within its first year. There are currently almost 34,500 claimants. Of these, the majority, 84%, qualify for the higher rates payable to those with at least five years' PRSI contributions. Over half of those who qualify for the higher rates are being paid the maximum weekly rate of €450 for the first three months of the payment.

The jobseeker's pay-related scheme is in its early days. We are closely monitoring its impact and the pay-related approach to a benefit payment. It is still too early to make assumptions about trends or patterns. However, the data so far show that those on the scheme are returning to employment and generally close their claims before decreasing to the second tier of payment after 13 weeks.

Tony McCormack (Offaly, Fianna Fail)
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I welcome the introduction of the pay-related benefit and believe it is an important step forward in how we support people who find themselves unemployed, especially the 97,000 who have received the benefit in the past 12 months and the 34,000 on it at the moment. For many families, losing a job is not just a financial shock; it is also an emotional one. It creates uncertainty and pressure at a time when people are trying to get back on their feet and secure new employment.

As I am hearing directly from people, the scheme provides stability during the period of transition. It allows people to focus on finding the right job rather than immediately falling into financial distress. From my interaction with individuals who have availed of the support, I believe there is a strong sense that it preserves dignity. People feel they are being treated fairly and that their contribution over many years of work and paying taxes has been recognised. That is an important principle. When people have contributed to the system, they should feel supported when in need.

Can the Minister outline how the Department is assessing the early impact of the scheme, particularly in terms of supporting people in returning to employment while maintaining the sense of stability and dignity?

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputy. His overview of people's feelings about the scheme is absolutely correct. There are 34,500 claimants of the benefit in the first year, 84% of whom qualified for the higher rates payable. Over half of those who qualified for the higher rates were paid the maximum rate, €450.

We have begun an analysis of the first full year of operation, which ended at the end of March. It is too early to identify a trend or pattern from that, but most people are closing their claims before moving to the second tier of payment after 13 weeks. That is welcome and it explains the link to earnings. We will share the full analysis when we have it later in the year.

It is important to emphasise that this scheme is funded through the Social Insurance Fund, through people's own PRSI contributions. In this regard, people are basically getting back what they are putting in through PRSI. We will be learning from the jobseeker's pay-related benefit scheme for the lifetime of the Government and considering how a similar pay-related approach might be applied to other schemes.

Tony McCormack (Offaly, Fianna Fail)
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It is great news that the majority of those who receive the benefit do not proceed to the second stage, which means the job market in Ireland is buoyant and people are able to find alternative employment. Building on that, I believe this approach should form a cornerstone of how we think about social welfare supports more broadly. It is about recognising contributions, supporting people through difficult periods and helping them to return to work in a sustainable way.

Can the Minister outline whether there are plans to further develop or extend pay-related supports and how the Government intends to ensure the principle of recognising and rewarding contributions remains central to our social protection system?

Dara Calleary (Mayo, Fianna Fail)
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Absolutely. As the Deputy knows, the programme for Government commits to introducing a pay-related parent's benefit and also to exploring other payments where a similar model could be applied. Parental leave and benefit were introduced in 2019. As the Deputy knows, parents can take up to nine weeks of leave in blocks of a minimum of one week in the first two years following the birth of their child.

We are now going to examine the experiences from the first year of operation of jobseeker's pay-related benefit to inform thinking on extending pay-related benefits to parental and other benefits. We will be launching a public consultation to capture the views of the wider public on that process at some stage during this year.

This is the first scheme of this type introduced in the country and I want to ensure we have a very good understanding of its benefits, but also any challenges that may have arisen, inadvertently or otherwise. Once again, it is important to emphasise that any pay-related scheme is funded through increases in PRSI contributions that have already been legislated for.