Written answers

Tuesday, 19 July 2016

Department of Social Protection

Tax and Social Welfare Codes

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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460. To ask the Minister for Social Protection if he is aware that a person currently on the family rate of jobseeker's payment of €372.40, the rate for a married couple with two qualifying children, who takes up a Tús scheme only receives an additional €5 per week once PRSI is deducted from the €22.50, since the person exceeds the threshold of €350; and, in view of this, whether he will increase the current threshold for those on the family rate of jobseeker's payment; and if he will make a statement on the matter. [22645/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Tús is an activation initiative which provides short-term work opportunities for those who are unemployed for more than a year. It is designed to break the cycle of unemployment and maintain work readiness. In addition, as a community work placement scheme, Tús provides valuable services to local communities.

Participants on Tús are entitled to claim for any dependent child/children who satisfy the eligibility criteria. Tús employees are subject to normal income tax and PRSI deductions if their level of earnings brings them into the tax net. These conditions also apply to employees in the private and public sector and to those engaged in other work placements initiatives such as community employment, gateway and the rural social scheme. Further information about Revenue rules can be obtained from the Revenue Commissioners or local tax office.

Participants on employment schemes such as Tús, who pay PRSI Class A, may establish entitlement to a range of benefits. These include short-term benefits such as jobseeker’s benefit, illness benefit, and maternity benefit, as well as long-term benefits including invalidity and state pensions (contributory).

If a Tús placement has a negative financial impact on a participant, it is open to the person to inform their Intreo Office and seek to be excused from Tús placement 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.

I hope this clarifies the matter for the Deputy.

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