Written answers

Wednesday, 8 March 2023

Department of Employment Affairs and Social Protection

Employment Support Services

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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150. To ask the Minister for Employment Affairs and Social Protection if consideration has been given to reducing the current minimum duration of six months required pertaining to a contract of employment offered under the wage subsidy scheme administered by her Department, which makes financial support available to employers who employ people with disabilities; and if she will make a statement on the matter. [11683/23]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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151. To ask the Minister for Employment Affairs and Social Protection if consideration has been given to reducing the current minimum required threshold of 21 hours per week under the wage subsidy scheme that makes financial support available to employers who employ people with disabilities; and if she will make a statement on the matter. [11684/23]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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153. To ask the Minister for Employment Affairs and Social Protection the number of persons with disabilities currently employed under the wage subsidy scheme and whose employers are receiving financial support; and if she will make a statement on the matter. [11687/23]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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154. To ask the Minister for Employment Affairs and Social Protection the cost of the wage subsidy scheme operated by her Department in 2020, 2021 and in 2022, respectively; the current hourly rate paid under the scheme; when this rate was last increased and by how much; and if she will make a statement on the matter. [11692/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 150, 151, 153 and 154 together.

The Wage Subsidy Scheme is an employment support to private sector employers, the objective of which is to encourage employers to employ people with disabilities and thereby increase the numbers of people with disabilities obtaining and sustaining employment in the open labour market.

To claim a wage subsidy, the private sector employer must offer employment to a person with a disability for at least 21 hours per week. An employer can offer more than 39 hours each week, but they can only claim a subsidy for up to 39 hours. The contract of employment must be for a minimum of 6 months and the employee should be subject to and have the same conditions of employment as any of the employer's other employees.

The Wage Subsidy Scheme is not designed as a subsidy for part-time work or work placements. The rationale in relation to the Wage Subsidy Scheme having a requirement for the provision of a contract of at least 6 months and an offer of employment of at least 21 hours per week, is to increase the likelihood of people with disabilities obtaining substantial and sustainable employment.

A reduction in the hours worked or minimum contract conditions for the Wage Subsidy Scheme would not be consistent with the overall objectives of the scheme. In addition, the proposal as outlined by the Deputy, would effectively mean that any private sector employer could potentially be eligible for the subsidy on the basis of offering minimal hours of employment for short periods of time. Such a proposal would make the scheme unworkable and not sustainable in the long-term.

As part of Budget 2022 the rate of the Wage Subsidy Scheme paid to employers, increased from €5.30 to €6.30 per hour. This gives a total annual subsidy available of €12,776 based on a 39-hour week.

The Wage Subsidy Scheme is a demand-led scheme and there are currently 1,518 private sector employers availing of the subsidy in respect of 2,417 participant employees. Estimated expenditure in 2023 is €24million. Expenditure for other years requested is set out in tabular form below.

Year
2020 €18.2 million
2021 €15.9 million
2022 €20.4 million

Note - the 2022 figure is subject to the final appropriation accounts to be finalised in September 2023.

The Programme for Government commits to fine-tuning and expanding targeted employment schemes, such as the Wage Subsidy Scheme, to help more people with disabilities stay in the workforce. As part of my Department’s commitment under the Comprehensive Employment Strategy to review the Wage Subsidy Scheme, we aim to undertake a public consultation later this year. This consultation will invite people with disabilities, employers and the general public to share their views on the Scheme.

I trust that this clarifies the issue for the Deputy.

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