Seanad debates

Friday, 23 March 2007

Tax and Social Welfare Codes

 

2:00 pm

Tom Parlon (Laois-Offaly, Progressive Democrats)

I am replying on behalf of my colleague, the Minister for Social and Family Affairs, Deputy Brennan. I thank Senator O'Toole for raising this issue.

The Department of Social and Family Affairs administers a range of back to education programmes under the umbrella of its social and family support services. The programmes encourage and facilitate unemployed people, lone parents and people with disabilities to return to work through the acquisition and improvement of skills and academic qualifications which will enable them to compete more successfully for employment. The programmes, which range from basic literacy courses to certain postgraduate courses of study, include the back to education allowance scheme, the fundamental aim of which is to assist people who are unable to access the labour market because of their lack of qualifications or education. I refer to people who are caught in a cycle of unemployment and disadvantage. The scheme has given many people who left school at a young age a second chance for education. It has improved their prospects of getting employment in our buoyant labour market.

The back to education allowance is a social welfare replacement income. It is paid in place of the relevant social welfare payment that qualifies the applicant for participation in the scheme. Essentially, an individual who is in receipt of the back to education allowance is paid at a standard weekly rate that is equivalent to the maximum payment under that scheme. To qualify for the back to education allowance an applicant must be, inter alia, in receipt of a relevant social welfare payment for at least six months in the case of people wishing to complete a second level course, or 12 months in the case of people wishing to pursue third level qualifications. The 12-month requirement is reduced to a nine-month requirement in the case of people who wish to attend a third level course who are participating in the national employment action plan process.

The back to education allowance scheme was established to help people who have been out of the workforce for some time and whose employment opportunities would be enhanced by their participation in the scheme. The requirement to be in receipt of a relevant social welfare payment for a minimum period has always been a feature of the scheme. It is considered necessary to ensure that the limited resources are directed at those who are most in need. People who are already in employment are not considered to be in the target group for the back to education allowance scheme.

People in employment who pay tuition fees in respect of third level education to an approved college in respect of an approved course may be eligible for tax relief. Tax relief is also available in respect of fees paid by individuals for certain training courses in foreign languages and information technology. Those who want to obtain information about the relief available should contact their regional tax offices. People in low-paid employment who have families may be eligible for the family income supplement scheme from the Department of Social and Family Affairs. Family income supplement is a weekly payment for members of families, including one-parent families, who are working on low pay.

The Minister for Social and Family Affairs is satisfied that the current arrangements relating to the back to education allowance scheme ensure that it continues to support those who are most distant from the labour market. There are no plans to abolish or modify the existing qualifying criteria for participation in the scheme to include people who are not in receipt of a social welfare payment.

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