Clare Daly (Dublin North, United Left)
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32. To ask the Minister for Social Protection if she will justify the way those who are required to take up a Gateway position end up financially worse off, through paying pay related social insurance and incurring costs in attending work, ensuring a substantial reduction in their family income; and her plans regarding same. [9211/15]

Joan Burton (Dublin West, Labour)
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Gateway is a Government initiative in the Local Authorities which aims to provide short-term quality and suitable work opportunities to improve the employability and maintain the work readiness of those who have been unemployed for 24 months or more. To date there are some 1,800 participants.

Employees on Gateway with income over €352 per week are liable for Class A PRSI contribution at a rate of 4% on the total earnings. These employees are also subject to normal income tax and payroll deductions if their level of earnings brings them into the tax net. As the Deputy is aware, this also applies to employees in the private and public sector and those engaged in other work placements initiatives such as Tús, Community Employment and the Rural Social Scheme.

Participants on employment schemes, who pay Class A, can establish entitlement to the full range of short-term benefits, including jobseeker’s benefit, illness benefit, and maternity benefit and to long term benefits including state pension (contributory).

I should also mention the additional benefits that must be considered such as the provision of paid annual leave, the opportunity to engage in paid work outside of their working hours and the experience gained on work placements which can significantly enhance a person’s ability to identify other work and development opportunities to access the jobs market.

While the majority of people who are referred to Gateway are selected on a random basis by the Department, the opportunity for voluntary or self-selection is also available.

Overall, I want to make it very clear that if a placement is putting a negative financial impact on a participant, then it is open to them to inform their Intreo Office and to seek to be excused from participation on financial grounds. In such cases, the Department will work with the person to identify other activation and/or educational opportunities, which may be more appropriate to their circumstances.