Willie O'Dea (Limerick City, Fianna Fail)
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279. To ask the Minister for Social Protection if his Department has conducted any recent analysis of traps, such as poverty traps and unemployment traps, within the social welfare system; and if he will make a statement on the matter. [6763/17]

Leo Varadkar (Dublin West, Fine Gael)
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My Department is currently analysing incentives to work in the social welfare system for jobseekers with children with a view to developing the Working Family Payment. The two main principles guiding the development of the Working Family Payment are to make work pay and to reduce child poverty.

This analysis is supplemented by research from the ESRI, which shows that people are better off in work than on welfare. The ESRI research, based on an analysis of current incomes, benefits and taxes, demonstrates that more than eight out of ten unemployed jobseekers would see their income increase by at least 40 per cent upon taking up employment. Fewer than 3 per cent would, in the short-term, be financially better off not in work.

The risk of facing weak financial incentives to work is higher for unemployed persons with a spouse and children, as the income support goal of the welfare system means that they tend to have higher welfare payments. However, even among that group, less than 1 in 15 would be financially better off not working. With the addition of the Back to Work Family Dividend, that figure drops to one in twenty.

Regarding people with disabilities, the Make Work Pay interDepartmental group was established to address strategic priority 3 of the Government's Comprehensive Employment Strategy for people with disabilities. The Group is considering the complex interaction of the benefit system, including the Medical Card, the additional costs of work associated with disability, and the net income gains in employment, and is examining recommendations to address issues identified.