Seanad debates

Wednesday, 16 December 2009

Social Welfare and Pensions (No. 2) Bill 2009: Committee Stage (Resumed)

 

9:00 pm

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)

If a person moves from jobseeker's benefit to jobseeker's allowance, he or she holds on to the full rate because it is a recognition that he or she has worked.

The Senator also inquired about how we can treat a 25 year old and a 26 year old differently. Of course we will not, because the measure applies to those aged up to 24 years of age. Two different age groups are involved.

It is important to consider the categories of person who will not be affected. Existing claimants will not be affected. Young people with dependent children will not be affected. Those aged 18 years and 19 years who qualify for jobseeker's benefit, once they move on, will continue to get the higher rate. People who qualify for jobseeker's benefit who are moving on to jobseeker's allowance will not be affected. In other words, people who have a work contribution and a proven record who qualify for jobseeker's benefit will be able to continue on the higher rate. Where an existing jobseeker's assistance claimant under the age of 25 gets a job, leaves the social welfare system and then comes back to claim jobseeker's assistance, we do not wish to disincentivise such a person from taking a job so he or she will go back onto the higher rate. A significant number of protections have been built into the system. Special consideration has been made for 18 year olds and 19 year olds who have come out of care because they have to be protected as well.

Other countries have completely different schemes. If one looks carefully, one will find that income related payments for unemployment are made for a specified length of time. Very few systems allow a person to remain on jobseeker's allowance for many years in the way we do. We have evidence that what we are seeking to do with 18 year olds and 19 year olds works. We also sought legal advice on the matter. What we are trying to do with young people is to encourage them into education and training. If one has never worked and one is applying for jobseeker's assistance, the chances are that one has no formal education or skills certification that would help one to get a job. That is a real incentive to support young people to achieve that end.

I recognise that the older group, 22 year olds to 25 year olds, might be well qualified graduates, which is why we have included participation by them in the work placement scheme and the graduate placement scheme as sufficient qualification to allow them to get the higher rate. We have not included that parameter for the younger group because we want them to get training. However, if one is a graduate of law or a teacher - approximately 600 posts will be available in primary teaching this year because of demographics, so there should be no difficulty for them in getting jobs -----

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