Róisín Shortall (Dublin North West, Independent)
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207. To ask the Minister for Social Protection if she deems it acceptable that a 23 year old, living with their parents, may be limited to a payment of €100 per week, under the age-related jobseeker's allowance scheme, and on top of this, have their payment more than halved, arising from an assessment of the income of their parents; and if she will make a statement on the matter. [8118/15]

Joan Burton (Dublin West, Labour)
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The jobseeker's benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2015 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €3.01 billion.

In the case of persons aged under 25 years of age, the means test for jobseeker’s allowance takes account of the value of any benefit and privilege enjoyed by a claimant as a result of residing with a parent or step-parent. The calculation of such value is based on the level of parental net income. Parental income is calculated as gross income less tax, PRSI, Universal Social Charge, superannuation and union dues. Rent or mortgage repayments are disregarded, where appropriate and a parental allowance of €600 per week per couple plus €50 per week in respect of other dependent children applies. The balance is assessed at 34% and this constitutes the weekly value of benefit and privilege. Once the person concerned reaches 25 years of age, the value of any benefit and privilege will no longer be regarded as means.

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 he or she 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.

The Government’s primary strategy to tackle youth unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people. This strategy has been succeeding, with an increase of over 80,000 in employment over the last two years.

Reflecting the improvement in the labour market, youth unemployment continues to fall. For example the youth unemployment rate in Ireland as estimated by Eurostat was 21.6% in December 2014 as compared to 30.8% in December 2011. However, the Government recognises that as the recovery takes hold, there is a need for additional measures to ensure that as many as possible of the jobs created are taken up by jobseekers and young jobseekers in particular. This is the rationale behind the Government’s Pathways to Work strategy and the Youth Guarantee Implementation Plan.