Ruth Coppinger (Dublin West, Socialist Party)
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217. To ask the Tánaiste and Minister for Social Protection her plans to remove the maximum levels for jobseeker's allowance for those under 26 years of age; and if she will make a statement on the matter. [31329/15]

Joan Burton (Dublin West, Labour)
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Reduced rates for young jobseeker’s allowance (JA) recipients were first introduced in 2009. These measures were further extended in 2014. Reduced JA rates for jobseeker’s who are under 26 years of age 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.

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 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 20.7% in August 2015 as compared to 30.8% in December 2011. However, the Government recognises that 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.

Any change to the reduced rates of JA for people under 26 is a matter for Government to consider in a Budgetary context.