Noel Rock (Dublin North West, Fine Gael)
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501. To ask the Minister for Social Protection his plans regarding the youth guarantee; if there are plans for targeted initiatives; if he will be drawing down further funding for the scheme; and if he will make a statement on the matter. [13150/17]

Leo Varadkar (Dublin West, Fine Gael)
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Government policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs; and second, through Pathways to Work to ensure that as many of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, including young people.

This strategy has been succeeding; by the fourth quarter of 2016 the number of people in employment was up by almost 212,000 from the lowest level reached in 2012.

The youth unemployment rate has fallen from 31.1% in July 2012 to 14.5% in February 2017. The actual number of young unemployed has fallen from close to 80,000 on average in 2009 to 35,000 on average in 2016. The most recent figures show youth unemployment down by 4,000 year-on-year to 30,000 in Q4 2016. Having being far above typical EU levels, Irish youth unemployment is now significantly below the EU average.

Policies to reduce youth unemployment, framed in the context of the EU Recommendation on a Youth Guarantee, concentrate assistance to young people in finding and securing sustainable jobs. To this end there is monthly engagement by case officers with all young unemployed to facilitate their return to employment. The Youth Guarantee Implementation Plan sets out the additional initiatives that are provided for those who do not find employment. This includes reserved places for the young unemployed on existing schemes as well as youth-specific programmes. Pathways to Work 2016-2020 continues these initiatives and additionally commits to: increasing the share of workplace-based interventions for youth unemployed; ensuring that monthly engagement, at a minimum, is consistently applied and maintained; restructuring the First Steps programme; and implementing the Defence Forces Skills for Life programme.

Some elements of the programmes that contribute to Ireland’s response to the Youth guarantee are part-funded by the EU’s Youth employment Initiative (YEI). The YEI allocation for the relevant Irish programmes is €68m. This amount matched by equal amounts from our ESF allocation and from the Exchequer, giving an overall allocation of €204m. The YEI is integrated into ESF programming as a dedicated priority axis within the ESF Programme for Employability, Inclusion and Learning (PEIL) 2014-2020. Seven actions were originally selected for YEI funding, namely the Back to Work Enterprise Allowance; JobBridge (now closed to new participants from October 2016); JobsPlus Incentive Scheme; Tús; Youthreach, Social Inclusion and Community Activation Programme and Momentum. These actions are underway and are being fully funded up-front by the Exchequer.

This funding is available for drawdown before the end of 2018 and while a claim for funding has not been made to date it is expected that the funding will be fully drawn down. The ESF Managing Authority and the Operational Programme Monitoring Committee (PMC) maintain an ongoing overview of the funding allocations under the PEIL and will re-allocate the available funding as required, in accordance with the EU Regulatory provisions. The PMC has agreed in principle to the inclusion of the Community Training Centres, which are funded by the ETBs in consultation with SOLAS, as an approved activity under the YEI with effect from 1 January 2017.

The ESF co-financed Programme for Employability, Inclusion and Learning (PEIL) for the period 2014-2020, contains a total budget of €1.153 billion, comprising ESF and Exchequer contributions of €542.43m each and an EU Youth Employment Initiative (YEI) budget contribution of €68.145m. The overall YEI allocation is €204m. The PEIL includes proposed allocations for over 20 activities, including the YEI, being implemented across a range of bodies.

While no claim for funding has been made to date, it is expected that the funding allocated will be drawn down during the programming period. Furthermore, as the activities concerned are fully funded up-front by the Exchequer there is no resulting reduction or delay in the funding available to those activities.

The ESF Managing Authority, within the Department of Education Science and the Operational Programme Monitoring Committee (PMC) maintain an ongoing overview of the funding allocations under the PEIL and will re-allocate the available funding as required, in accordance with the EU Regulatory provisions, over the lifetime of the PEIL.

Under the ESF Regulations, initial and annual pre-financing is provided by the Commission, resulting in receipts of €51.8m for the PEIL to date. Of this €51.8m, €28.3m relates to ESF advances and €23.5m relates to YEI advances. €20.4m (€18m ESF and €2.4m YEI) of these receipts have been distributed, while the remaining €31.4m (€10.3m ESF and €21.1m YEI) has or will be reimbursed to the Commission in the absence of a claim being made. Work on the designation of the relevant ESF authorities, including the provision of a national computerised accounting and information system for EU funds to meet the 2014-2020 functionality requirements is continuing.

I understand that the Department of Education and Science expects that this designation work will be completed in the coming months and that it is proposed to commence the preparation of a first interim claim for payment from the Commission once the process of designation has concluded. This claim will be made within the EU Regulatory deadlines to ensure no loss of ESF receipts.

I am confident that the measures taken under the Youth Guarantee, together with the continuing economic recovery, will support further reductions in youth unemployment.

If you require any further information or assistance please do not hesitate to contact Philip in my office.