Written answers

Wednesday, 11 November 2009

Department of Social and Family Affairs

Social Welfare Code

9:00 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 223: To ask the Minister for Social and Family Affairs the range of back to work incentives available through her Department at the present time; the extent to which she proposes to improve the existing or introduce new schemes in this context; and if she will make a statement on the matter. [41032/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 224: To ask the Minister for Social and Family Affairs her views on the introduction of an accelerated schemes of back to work incentives for persons in both the PAYE and self employed sectors; and if she will make a statement on the matter. [41033/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 223 and 224 together.

One of the goals of the social welfare system is to be responsive to the needs of people of working age and to facilitate them taking up relevant employment or self-employment opportunities. In order to respond effectively to the growing numbers on the Live Register and the current employment situation, it was decided in the context of the recent supplementary budget to refocus resources on the back to work enterprise allowance which supports people into self employment. These changes significantly strengthen the supports for jobseekers wishing to move to self employment. The main back to work incentives available from this Department to new applicants for jobseekers payments are the short-term enterprise allowance and the back to work enterprise allowance schemes. Since 1 May 2009, claimants who qualify for jobseeker's benefit are afforded immediate access to a new short term enterprise allowance, provided they have 104 contributions paid or have established entitlement to statutory redundancy from their latest period of employment. It is payable at the same rate and for the same duration as jobseeker's benefit.

For jobseekers on the live register, the qualifying period required for access to the back to work enterprise allowance scheme has been reduced from 2 years to 12 months provided an entitlement to jobseeker's allowance is established. Those who do not have an underlying entitlement to jobseeker's allowance can access the scheme, as before, subject to a 2 year qualifying period. These changes to improve access to the scheme were made in conjunction with a reduction in the period for which the allowance is payable from 4 years to 2 years at 100% of existing social welfare entitlement in the first year and 75% in the second year. Furthermore, people who previously participated in the back to work enterprise allowance scheme may apply a second time after a period of at least 5 years has elapsed. The back to work allowance employee strand has been closed to new applications since 1 May 2009 but persons who qualified before that date continued to receive their entitlements. The Family Income Supplement (FIS) is a non taxable payment, introduced to provide income support for employees on low earnings with families and thereby preserve the incentive to remain in employment in circumstances where they might otherwise only be marginally better off than if they were fully reliant on social welfare payments.

The Government is determined to ensure that everything practicable is done to help people to stay in work or get back to work or self-employment as quickly as possible. The operation of the back to work scheme has been reviewed and modified over the years to ensure it continues to remain relevant to those needing support. The qualifying conditions will continue to be monitored in the context of the objectives of the scheme and changing economic circumstances. All social welfare schemes are being examined as part of the deliberative process in advance of the annual budget.

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