Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

295. To ask the Minister for Social Protection if he will review the average weekly earnings thresholds under the jobseeker's benefit scheme; and if he will make a statement on the matter. [18426/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The jobseeker's benefit scheme provides income support for people who lose work and who have the required number of social insurance contributions. The 2016 Estimates for the Department provide for expenditure on jobseeker’s benefit of €369 million.

Since the extension of full social insurance cover to part-time workers from April 1991, a range of measures were introduced to the short-term illness and jobseeker’s benefit schemes in order to ensure that disincentives to employment were not created. In the absence of these measures, a situation would exist whereby many workers on low incomes would have access to weekly social welfare payments greatly in excess of their income from employment. For instance, while someone earning €31.17 a week or more would have been liable for PRSI Class A contributions, the maximum personal rate of illness and jobseeker’s benefit from January 1993 was €70.60 a week, i.e. the social welfare benefits available could have been more than twice the level of income from employment for some people.

To overcome the potential disincentives involved, new arrangements were introduced from January 1993 to relate the rate of benefit payable to the level of the claimant’s earnings. These measures were regularly updated to keep pace with changes in benefit levels. Adjustments in Budget 2009 sought to bring the income threshold and banding structure back into line with the level of benefits payable.

Jobseeker's Benefit rates are graduated according to an applicant’s earnings in the relevant tax year and reduced rates of jobseeker’s benefit are payable where the average reckonable weekly earnings are less than the prescribed amount. Under the current arrangements jobseeker’s benefit recipients with earnings of less than €300 per week in the relevant tax year - for claims in 2016, the relevant tax year is 2014 - get a personal rate ranging from €84.50 to €147.30, and reduced rates for qualified adults may also apply. Jobseeker’s benefit recipients with average earnings over €300 per week in the relevant tax year will receive a personal rate of €188 per week. Recipients of jobseeker’s benefit may also opt to transfer to jobseeker’s allowance.

Any changes to the average weekly earnings thresholds under the jobseeker’s benefit scheme would have to be considered in an overall policy and budgetary context.