Written answers

Thursday, 13 July 2017

Department of Social Protection

Jobseeker's Benefit

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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1244. To ask the Minister for Social Protection if, in view of the increasingly precarious nature of part time work, she will review the regulations regarding the number of days in which a recipient of jobseeker's benefit who works part time must be available for work for a full day; and if she will make a statement on the matter. [34819/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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The main social welfare schemes for unemployed persons are the jobseeker’s allowance and benefit schemes. Both 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 or working part-time. For instance an individual can earn a little over €19,760 per year and still retain a small jobseeker's allowance payment, while the equivalent threshold for an individual with a qualified adult is almost €33,975 if they are both working.

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.

In addition, to the two jobseeker’s schemes my Department’s main in-work support is the family income supplement (FIS), which targets families with children on low incomes and who work at least 19 hrs per week.

The back to work family dividend (BTWFD) scheme allows JA or JB recipients who have been jobseekers for 12 months or recipients of the one-parent family payment to retain their full increase for qualified children (IQC) for the first year in employment, tapering to 50% 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.

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.

Based on an analysis of current incomes, benefits, and taxes, ESRI research shows that people are better off in work than on welfare. In particular, it demonstrates that more than eight out of ten unemployed jobseekers would see their income increase by at least forty per cent upon taking up employment. Fewer than three 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 one in fifteen would be financially better off not working. With the introduction of the Back to Work Family Dividend (BTWFD) scheme, that figure drops to one in twenty.

The combination of schemes available provides considerable income support for individuals who have part time employment by allowing them retain access to a social welfare payment.

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% in 2012 to 6.3% in June 2017.

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