John Brady (Wicklow, Sinn Fein)
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276. To ask the Minister for Social Protection if the report and review on the impact of the reduced jobseeker payment rates for jobseekers 18 to 25 years of age, as committed to in the Pathways to Work 2016-2020 strategy has commenced; and if not, when it will be undertaken. [16698/16]

Leo Varadkar (Dublin West, Fine Gael)
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Reduced rates for younger jobseeker’s allowance recipients were first introduced in 2009. Budget 2014 further extended the reduced rates to recipients under 26 years of age. This is a targeted measure aimed at protecting young people from welfare dependency. 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 a young 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.

The Youth Guarantee sets a medium-term objective of ensuring that all young people receive an offer of employment within four months of becoming unemployed. There is now monthly engagement with all young jobseekers. Youth unemployment rose rapidly in the recession to over 30% in 2012. According to the Quarterly National Household Survey for Quarter 1 2016, youth unemployment continues to fall in line with the overall recovery and now stands at 16.9%.

The review of jobseeker’s allowance rates for young persons under 26 years of age will examine the effectiveness of the reduced rates in encouraging young jobseekers to avail of education, training, employment programmes and opportunities. Some preliminary analysis has commenced and I hope that this review will be completed later this year, subject to the necessary data being available and the required level of analysis involved being completed.

I am committed to ensuring my Department identifies effective measures to incentivise and support young people in finding and securing sustainable jobs. The best way to do this is through engagement processes and by incentivising them to avail of educational and training opportunities, thereby enhancing their employment prospects.