Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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14. To ask the Minister for Social Protection if she will reverse the cuts to young persons' jobseeker's allowance in view of the EU-wide research report social situation of young people in Europe compiled by Eurofound and in view of the fact that overall social protection spending for the first three months of this year was significantly less than that for which it what had been allocated. [17650/14]

Joan Burton (Dublin West, Labour)
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Reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. Budget 2014 further extended the reduced rates of jobseeker’s allowance to recipients under 26 years of age. This measure aims to incentivise young jobseeker’s allowance recipients to avail of education and training opportunities. If a jobseeker in receipt of the reduced jobseeker’s allowance rate participates on an education or training programme they will receive a higher weekly payment of €160.

Receiving the full adult rate of a jobseeker’s payment at a young age can lead to welfare dependency from an early age. That is why I believe that it is necessary to provide young jobseekers with a strong financial incentive to engage in education or training or to take up employment. If they do not improve their skills, it will be much more difficult for them to avail of job opportunities as the economy recovers and they are at risk of becoming long term unemployed from a young age.

The report “Social situation of young people in Europe” by Eurofound recognises the importance of enhancing the social inclusion of young people who are not in employment, education or training (NEETs). The report found that individuals in a NEET situation are more at risk of isolation and having mental and physical health issues. The changes introduced in Budget 2014 provide an additional incentive for young jobseekers to engage in a wide range of education, training or employment programmes. This approach with the continued roll-out of the Intreo activation model in conjunction with the implementation of the Youth Guarantee will further assist young people make the transition to the labour market.

It is too early to determine what the Department’s spending will be for 2014. However, the entire allocation for jobseeker’s allowance as provided for in the revised 2014 Estimate is expected to be fully utilised this year. There are therefore no plans to change the current reduced rates for younger jobseeker’s allowance recipients.