Willie O'Dea (Limerick City, Fianna Fail)
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2106. To ask the Minister for Social Protection if her Department has examined the feasibility of determining eligibility for jobseeker's allowance on hours worked rather than days worked; the estimated cost of implementing same; and if she will make a statement on the matter. [28871/17]

Regina Doherty (Meath East, Fine Gael)
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The jobseeker's benefit and jobseeker’s allowance schemes provide income support for people who have lost work and are unable to find alternative full-time employment. The 2017 Estimates for the Department provide for expenditure this year on the jobseekers’ schemes of €2.5 billion.

The Department does not collect data on the number of hours a jobseeker works as this information is not necessary to make a decision on an application for a jobseeker’s payment. In this context the cost associated with moving the jobseeker's allowance scheme to an hours-based system, as outlined by the Deputy, cannot be ascertained.

It is recognised that a changing labour market has resulted in a move away from more traditional work patterns, resulting in an increase in the number of persons employed for less than a full week. However, any changes to the current criteria, such as moving to an hours based system, could result in significant numbers of additional individuals becoming eligible for a jobseeker’s payment with substantial corresponding cost implications for the Exchequer.

Both the jobseeker’s benefit and the jobseeker’s allowance schemes provide significant support to individuals so that they can work up to 3 days a week and still retain access to a reduced jobseeker’s payment. The current days based system can provide significant income supports to jobseekers who are casually employed. For instance an individual can earn a little over €19,300 per year and still retain a small jobseeker's allowance payment, while the equivalent threshold for an individual with a qualified adult is almost €33,300 if they are both working.

The ESRI published a paper in June 2015 entitled “Making Work Pay More: Recent Initiatives”. The main findings of the ESRI paper is that the majority of jobseekers have a strong financial incentive to take up employment, with almost 8 out of 10 being at least 40% better off in employment than on welfare.

If there was a change from a days based to an hours based system, the design would have to take account of earnings. Furthermore, if an hour’s based system were introduced, existing casual jobseekers could lose out if their current hours worked over three days, exceeded the new hours threshold, thereby creating a disincentive to work longer.