Written answers

Tuesday, 29 March 2022

Department of Employment Affairs and Social Protection

Social Welfare Eligibility

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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493. To ask the Minister for Employment Affairs and Social Protection if she will consider reviewing the eligibility for social welfare on the binary basis of days worked and consider a cumulative hours worked basis which could encourage many workers in the home care sector to accept additional hours without being penalised. [16672/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The main social welfare schemes for people who are unable to find full time employment are the social insurance contribution based Jobseeker's Benefit and Jobseeker's Benefit Self-Employed and the means tested Jobseeker's Allowance. The schemes require that a person must be available for and genuinely seeking work as well as satisfy the other qualifying statutory conditions. The current annual estimated expenditure on the jobseeker schemes is approximately €2.17 billion.

The jobseeker schemes allow a person to work up to 3 days per week, but they must be fully unemployed for at least four in any seven consecutive days to be eligible for a payment.

The current days based system can provide significant support to jobseekers who are casually employed or working part time; for instance, an individual can earn just over €21,000 per year and still retain a small Jobseeker's Allowance payment, while the equivalent threshold for an individual with a qualified adult is just over €36,100 if they are both working. These figures are based on the current maximum weekly personal rate of €208 and qualified adult rate of €138.

It is recognised that a changing labour market has resulted in a move away from the more traditional work patterns, resulting in an increase in the number of people 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 the substantial corresponding costs for the Exchequer.

The Deputy should also be aware that the Programme for Government includes a commitment to consider increasing all classes of PRSI over time to replenish the Social Insurance Fund to help pay for a range of measures including a pay related benefit scheme. Furthermore, the Government’s national employment strategy 2021-2025 commits to using the experience from the Pandemic Unemployment Payment to inform the design of a pay-related payment that may be developed, by Q3 2023.

In addition to the Jobseeker schemes, the Working Family Payment (WFP) is a tax free in-work support available from my Department which provides an income top-up for low-earning employees with children. Once awarded, WFP is generally payable for a minimum period of 52 weeks as long as the recipient continues to be engaged in paid employment as an employee for not less than 38 hours per fortnight with the same employer.

The Back To Work Family Dividend (BTWFD) scheme 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 person has been in receipt of Jobseeker's Allowance for at least 390 days and is offered employment of more than 3 days but less than 24 hours a week, they may be eligible to apply for the Part Time Job Incentive Scheme (PTJI). Those who qualify receive a payment of either €131.80 or €214.90 if they are receiving an increase for a qualified adult. Participants on the scheme are expected to continue to seek full time employment and there is no limit on the employment income that they can earn under the scheme.

The combination of the Jobseekers schemes, WFP, BTWFD and the PTJI schemes provide considerable income support for individuals who have part time employment by allowing them retain access to a social welfare payment.

The means tested Supplementary Welfare Allowance Scheme is also available through the Community Welfare Service at the local Intreo Centre for any person who is experiencing financial hardship. Supports provided under the scheme include Supplements and Urgent and Exceptional Needs Payments.

Any changes to the Jobseeker schemes would have to be considered in a policy and budgetary context.

I trust that this clarifies the position at this time.

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