Written answers

Tuesday, 24 January 2017

Department of Social Protection

Departmental Contracts

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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67. To ask the Minister for Social Protection the measures his Department has in place to ensure that the contracting out of public employment services to private companies, Turas Nua and Seetec, will not push claimants into low paid, low quality and temporary employment; if he has read the report The Impact of Sanctions (details supplied); his views on the reported negative impact of financial sanctions on unemployed persons if they do not enter into employment or take up an internship quickly; and if he will make a statement on the matter. [2776/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Department was careful in designing the JobPath service to ensure that payments to contractors are conditional on people not just finding a job but staying in the job and that the job is a full-time job. Contractors are paid quarterly in arrears for each 13 week period of sustained employment of at least 30 hours per week and will only get full payments if the jobseeker stays in employment for 12 months. Suitability of employment is a key factor in ensuring that jobs are sustainable. If people are placed into unsuitable jobs they are less likely to remain in employment and as a consequence the providers fees will be reduced.

The JobPath providers work closely with employers to provide them with the best possible candidates for available jobs. It is not in the interests of the JobPath companies to place unsuitable candidates into inappropriate jobs as this will have adverse effects on the companies’ ability to secure jobs for its other clients.

The report which the Deputy has referred to is limited to very small sample (55 interviews over a three year period). The findings are at variance with findings from a recently completed large-scale survey of Intreo centre clients carried out by an independent external agency in 2016. In summary, this survey which will be published shortly, found that jobseekers rated the service highly and on the key aspects of premises, staff, services and processes, the view of jobseekers was almost uniformly positive. These results echo the results of a similar survey completed in 2015.

With regard to the issue of penalty rates of payment, jobseeker payments are conditional on jobseekers being genuinely available for work. The activation and employment support services provided by the Department, at significant expense, are designed to help jobseekers secure employment. In line with the principle of rights and responsibilities jobseekers are entitled to be provided with these services but are also required to engage with the services when they are made available. This obligation applies irrespective of whether the service is provided by my Department’s own case officers, those employed by the Local Employment Service or by JobPath. Failure, without good cause, to engage with the services can result in a reduction in the payment to the jobseeker. However reductions are only applied after the jobseeker has been given due notice on two occasions and an opportunity to provide an explanation for their non-engagement and to re-engage with the services. All decisions on the application of a reduced rate of payment are made by staff of the Department. This process is very different to the process in the UK which seemed to inform much of the commentary in the report referenced in the question.

Currently across the country less than 1% of jobseekers are on a reduced rate of payment relating to their non-engagement with the Department’s activation services. Again this contrasts with the UK rate of 16% rate quoted in the report referenced in the question.

With regard to the quality of service delivered by the JobPath providers, an independent survey of a representative sample of over 2,000 participants shows that the majority of jobseekers feel that:

- They are receiving a good service under JobPath (76 – 81% satisfaction vs 5 – 8% dissatisfaction).

- JobPath staff make them feel valued (90%+) and they have a good relationship with their JobPath advisor (90%+).

- The JobPath service has improved their chances of getting a job (68% - 77%).

- The service is as good as or better than the service provided in Intreo centres (80%+).

A separate analysis of employment outcomes for JobPath participants show that they have a higher chance of securing and remaining in a job than participants of a similar duration of unemployment. Given that only a small number of people have completed their full engagement with the JobPath service these results can only be treated as indicative, nevertheless they are encouraging. The results together with a copy of the survey findings together are available at

I hope this clarifies the matter for the Deputy.

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