Tony McLoughlin (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

229. To ask the Minister for Social Protection the extent to which he has examined issues preventing or discouraging unemployed persons from obtaining employment and particularly in counties Sligo and Leitrim; if he has examined various schemes available with a view to ensuring adequate incentivisation; and if he will make a statement on the matter. [14974/17]

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

The main social welfare schemes offered by my Department for unemployed people in the State are jobseeker’s allowance and benefit. Both schemes provide significant support to unemployed people such that they can work up to 3 days a week and still retain access to a reduced payment, subject to continuing to satisfy all of the qualifying conditions.

The goal of Government’s Pathways to Work Strategy is to ensure that as many jobs as possible go to people on the Live Register. Ensuring that work always pays and preventing long-term dependency on welfare are important aspects of this strategy. In-work supports such as family income supplement (FIS) and the back to work family dividend (BTWFD) are key because they are stepping stones to ensure that recipients are better off in employment and can work towards financial independence over time.

FIS targets families with children on low incomes where the parent works at least 19 hours per week. The payment effectively preserves the incentive to take up or remain in employment in circumstances where the employee might otherwise be only marginally better off than if s/he were claiming other social welfare payments.

The BTWFD allows those who had been in receipt of a jobseeker’s payment (including jobseeker’s transition payment) and recipients of the one-parent family payment, to retain their full increase for a qualified child payment for the first year of employment, tapering to 50 per cent in the second year.

Where a long term unemployed jobseeker is offered employment of more than 3 days but less than 24 hours a week, they may be eligible for the part-time job incentive scheme. Under this scheme they can receive a weekly payment of €119 per week if they are single or €193.90 if they have an adult dependent.

ESRI research, based on an analysis of current incomes, benefits and taxes, has found that people are better off in work than on welfare. It demonstrates that more than 8 out of 10 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. Although the risk of facing weak financial incentives to work is higher for unemployed persons with a spouse and children, less than 1 in 15 of that group would be financially better off not working. The BTWFD reduces that figure to 1 in 20.

Reflecting the impact of government policy, and the overall improvement in the labour market, long term unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15 per cent in 2012 to 6.6 per cent in January 2017.

I am satisfied that the combination of jobseeker’s payments, FIS, BTWFD and the part-time job incentive scheme provides considerable support for people to take up employment by allowing them retain access to a social welfare payment. However, my Department is currently analysing incentives to work in the social welfare system for jobseekers with children in the context of a working family payment. The main principles guiding this work are to make work pay and to reduce child poverty.