Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

87. To ask the Minister for Social Protection if she will consider reversing the cut to jobseeker's allowance for those aged under 25 when considering the negative disproportional impact it has on young persons and that it is effectively a cut to a core social welfare payment; and if she will make a statement on the matter. [30927/14]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

The jobseeker’s benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative employment. The revised estimates for the Department of Social Protection provide for expenditure of €3.3bn in 2014 in respect of the jobseeker’s schemes. 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 is a targeted measure aimed at protecting young people from welfare dependency. It 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. To guard against the development of welfare dependency 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.

In this context it may be noted that starting in 2014, processes and programmes will be rolled out to ensure that all of those young unemployed people who need most support (i.e. are assessed as having a low probability of securing employment in the absence of any support) will receive a Youth Guarantee offer within four months. Any change in relation to the reduced rates would be a matter for Government to consider in a budgetary context.