Jan O'Sullivan (Limerick City, Labour)
Link to this: Individually | In context | Oireachtas source

301. To ask the Minister for Social Protection the amount his Department estimates it will pay to companies engaged under the JobPath programme for the duration of the relevant contracts; the amount which has been expended to date; the number of persons these companies have activated into full-time employment by county, in tabular form; his plans to review these contracts as the State continues to move towards full employment; and if he will make a statement on the matter. [22003/17]

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

As the Deputy will be aware, the State’s Public Employment Service is managed by my Department and delivered directly by its own Intreo service as well as by contracted private companies, such as JobPath, Local Employment Service (LES) and Job Club providers. These services have been designed by the Department to augment and complement one another, to ensure the best outcomes possible for jobseekers.

The JobPath element of the service is being delivered through a payment by results model which means that the companies will not be able to fully recover their cost unless they are successful in supporting sufficient numbers of jobseekers into full time paid sustainable employment. The contract in place for the delivery of the service is split into two phases: during the first phase jobseekers may be referred to the service while phase two allows for a run off period during which referrals cease, but jobseekers who were successfully placed into employment will continue to receive support and advice.

The cost of the JobPath service, over the term of the contract, will therefore be determined by a combination of factors such as a) the number of jobseekers on the live register b) the profile of jobseekers on the live register (higher fees may apply the longer a jobseeker is on the live register), the number of people who are referred to the service by the department and critically the number of Jobseekers who are successfully placed into sustainable full time paid employment.

Payments are made to the companies in respect of an initial registration fee, paid on completion of a personal progression plan, and thereafter fees are only paid for sustained employment (job sustainment fees) outcomes of 13, 26, 39 and 52 weeks duration.

The amount paid in fees, is as follows:

- up to the end of 2016 € 28.5m.

- up to the end of March 2017 €13.5 m.

The outline estimate for the service in 2017 is € 65m - it is not anticipated that this sum will be exceeded in 2018 or 2019. However, it is important to note that these estimates in themselves are gross figures i.e. the associated savings in social welfare payments have not been deducted: job sustainment fee payments are only made were a jobseeker has obtained and sustained paid employment of 13, 26, 39 and 52 weeks duration and were s/he is not in receipt of a jobseekers related payment during that period.

In relation to your inquiry on the number of people activated in to full time employment, it is important to note that jobseekers may be supported through the service for up to 30 months - under the service jobseekers have access to a personal adviser (PA) who works with them over two phases. During the first phase, of 12 months duration, the PA provides practical assistance in searching, preparing for, securing and sustaining employment. The second phase starts if the jobseeker is successful in finding work. During this phase the PA continues to work with the jobseeker for a further period of at least three months, and up to 12 months. In addition to the two phases jobseekers may also undertake training while with the service and this may extend the period the jobseeker is supported through the service for up to a further 6 months

It will therefore take time to accumulate a sufficient number of clients (who have completed their engagement period with the service) for complete and robust outcome data to be available. With this in mind, it is intended that an econometric evaluation of the service will commence at the end of 2017.

The Department has however commenced publishing reports on the performance of the service on a quarterly basis, with the first such report having been published on the Department’s website earlier this year. The report can be accessed on the Department’s website at - "

I can confirm that the next performance report will be available on the Department website in the next week or so.

In managing the State’s public employment service the Department seeks to provide the greatest level of support possible for jobseekers, with the combination of the introduction of JobPath and the welcome significant reduction in the live register in recent years. The Department for example was able to refocus the LES element of the service to provide an enhanced level of service for jobseekers in 2016 and in 2017. I can assure the Deputy that my Department keeps under continual review the level of service provided to its customers both in term of social welfare provision and activation measures.

I trust this information addresses the matters raised by the Deputy.