Written answers

Thursday, 7 October 2021

Department of Employment Affairs and Social Protection

Social Welfare Payments

Photo of Violet-Anne WynneViolet-Anne Wynne (Clare, Sinn Fein)
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10. To ask the Minister for Employment Affairs and Social Protection if she will consider reviewing the reduced rate of jobseeker’s allowance for persons under 26 years of age who are residing in their familial home considering the challenges the Covid-19 pandemic and the ongoing housing crisis which have given rise to an increase in the number of young persons living at home; and if she will make a statement on the matter. [48618/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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In August 2021, the rate of unemployment for young people under 25 was just under 26% when using the Central Statistic's Office Covid-19 adjusted measure. Although this rate is high, it includes all those young people on PUP which, in August, included students - many of whom would not be considered unemployed as that term is commonly understood. Even allowing for their inclusion, the Covid adjusted youth unemployment rate has fallen sharply from its 2021 peak of 61% in January. This rate is expected to fall further in the October unemployment estimates as students, previously in receipt of PUP, will no longer be included in the estimate. In addition, following the continued reopening of our society, the number of young persons on PUP has declined significantly, falling to just under 10,400 this week. I expect this trend to continue as the final restrictions are eased.

These trends show that young people are among the most resilient groups in society and, once the opportunities are available, youth employment recovers very quickly.

The current approach to rates of payment for young Jobseekers allowance recipients was introduced in 2009 to encourage young unemployed people to participate in employment, education and training programmes. Although the basic rate is €112.70 per week for young people up to and including 24 year olds, it increases to the standard rate of €203 if a young jobseeker participates on an education or training programme. Where they participate on the new Work Placement Experience Programme, their weekly rate is increased to €306.

There are many opportunities for young unemployed people - the Department has introduced a series of targeted measures under the Pathways to Work strategy targeted at young people including ring-fencing 4,000 places on the Work Placement Experience Programme and providing 50,000 additional further education and training places.

I trust this clarifies my position.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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12. To ask the Minister for Employment Affairs and Social Protection the increase in the State pension and other social welfare rates that will be required in Budget 2022 to match inflation since the last increase in rates. [44885/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Deputy will be aware that I will be considering a range of options for Budget 2022 over the coming week, taking account of available resources.

The Central Statistics Office, in its most recent statistical release on prices, shows that the average level of prices over the 12 months to August 2021, as measured by the Harmonised Index of Consumer Prices, was broadly the same as for the 12 months ending August 2020.

Having said that, I am also mindful that annual, or 12 monthly, data, can lag the lived experience of people and that monthly data indicates that price levels have increased recently. This is obviously a factor to be taken into account in finalising the budget.

It is, I believe, important to emphasise that the Government takes a range of data, not just price data, into account in formulating its budget. For example, the last two Budgets have, in fact, seen a series of evidence based increases in some social welfare payments targeted to improve the situation of the people who are most at risk of poverty and to ensure the most vulnerable were protected.

These included increases in the Living Alone Allowance of €10 per week, the Fuel Allowance being increased by €5.50 per week, and increases to the weekly qualified child rates of €4 for children aged under 12, and €8 for those aged 12 and over.

In addition, the earnings disregards for the One Parent Family Payment, Jobseeker Transition Payment and Disability Allowance have been increased, allowing lone parents and people with disabilities to earn more from employment without their payment being affected.

As a result of these targeted measures, some of the most vulnerable social welfare recipients have already seen increases significantly above the rate of inflation over this period. For example, during the fuel season, a pensioner or person with a disability living alone is up to €15.50 per week better off. In the case of a lone parent or a person with a disability, this could increase further if they are working, as they can benefit from the increased earnings disregards introduced and the improvements made to the Working Family Payment.

In considering options for the forthcoming Social Welfare Budget package, I will once again be guided by evidence-based research produced by organisations such as the CSO, the ERSI and the Vincentian Partnership for Social Justice. Taking an evidence-based approach ensures that available resources are used to deliver maximum impact in terms of reducing poverty and disadvantage.

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