Written answers
Tuesday, 20 November 2007
Department of Social and Family Affairs
Employment Support Services
8:00 pm
Arthur Morgan (Louth, Sinn Fein)
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Question 343: To ask the Minister for Social and Family Affairs the cost per year of increasing the back to work allowance to five years with a phased reduction of 20% per year, as proposed by Combat Poverty. [29752/07]
Martin Cullen (Waterford, Fianna Fail)
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There are two strands of the scheme — back to work enterprise allowance (BTWEA) for self employed and back to work allowance (BTWA) for employees. The allowance is payable at a tapered rate of the qualifying payment. The self employed strand is payable at 100% of the qualifying payment in year one, 75% in year two, 50% in year three, and 25% in year four. Participants on the employee strand receive 75% of the qualifying payment in year one, 50% in year two, and 25% in year three. Participants also retain entitlement to certain other secondary benefits.
In 2006 the total expenditure on the scheme was €56,486m and there were 8,567 participants on the scheme at the year end.
It is estimated that the proposal by Combat Poverty to extend the back to work allowance to five years with a phased reduction of 20% per year would result in a 20% increase in the overall cost of the back to work enterprise allowance strand and an increase of 100% in the overall cost of the back to work (employee) strand of the scheme.
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