Kathleen Lynch (Cork North Central, Labour)
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Question 322: To ask the Minister for Social and Family Affairs if she will send out a new UP2 letter to persons in receipt of jobseeker's benefit who have been affected by the recent retrospective budget 2009 changes advising them of the change in the duration of their entitlement to jobseeker benefit; the number affected by the changes; and if she will make a statement on the matter. [43440/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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All jobseeker's benefit claimants are notified 3 months in advance of exhausting their benefit. This is to allow sufficient time to undertake a means test where a person wishes to apply for jobseeker's allowance. This arrangement will apply to those claimants affected by the changes announced in the budget. The earliest date on which the new conditions as to duration can have an effect is mid April 2009. Consequently, the Department will begin contacting persons affected in January.

The change announced in the Budget that will affect existing jobseeker's claimants is a reduction in the duration of benefit. Jobseeker's Benefit will now be paid for 12 months (previously 15 months) where 260 or more PRSI contributions are paid. This will apply to new claimants and those with an existing duration of less than 6 months on Jobseeker's Benefit on 15th October. Jobseeker's Benefit will be paid for up to 9 months (previously 12 months) where less than 260 contributions are paid. This will apply to new claimants and those with an existing duration of less than 3 months on Jobseeker's Benefit on 15th October. It is estimated that the maximum number affected will be some 48,000 and 20,000 approximately.

On the 17th October, the nearest date to the Budget change for which figures are available, 115,441 people had a claim for jobseeker's benefit. 39,606 were in receipt of benefit for less than 3 months. Of this number 20,090 have less than 260 contributions recorded up to the end of the 2007 tax year, the latest year for which the department has contribution details. 75,835 were in receipt of benefit for less than 6 months and of this number 47,996 appear to have less than 260 contributions.

I should point out to the Deputy that some of these people will have stopped claiming jobseeker's benefit before their entitlement ceases and others will have commenced claiming. Some will also be affected by the changes announced in Budget 2009 in relation to the length of time for which jobseeker's benefit will be paid.

It is envisaged that in 2009 a weekly average of 2,400 people will be affected by the reduction in duration from 312 days to 234 days and 3,860 people in a full year. A weekly average of 6,750 people will be affected by the reduction in duration from 390 days to 312 days and 9,200 people in a full year.

Some claimants who have less than 260 PRSI contributions may have additional contributions paid in 2008 which would not yet be recorded in the Department. These contributions could bring their total to 260 or more and this would extend their entitlement from 234 days (9 months) to 312 days (12 months). Similarly, others could have insurance in another EU member state which could also bring their total contributions to 260 or more.