Christopher O'Sullivan (Cork South West, Fianna Fail)
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74. To ask the Minister for Employment Affairs and Social Protection to consider increasing the weekly earnings disregard for disability allowance recipients as when using the benefit of work estimator (details supplied) recipients seem to have less take home now post budget than before; and if she will make a statement on the matter. [7804/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The earnings disregard for recipients of Disability Allowance has increased by almost 38% over the last four budgets from €120 to €165 currently. This enables those on the scheme to earn more without having a negative impact on their means tested payment. For people in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. A person can now earn a maximum of €505.10 per week and still keep a portion of their Disability Allowance payment.

Based on the figures provided by the Deputy, for a person working 35 hours per week in 2023 at the minimum wage level of €12 per hour, they would have expected to receive €472.81 per week. This was made up of a net salary of €380.31 plus a Disability Allowance payment of €92.50. If the customer works the same number of hours in 2024 at the new minimum wage rate of €12.70 per hour, they could expect to receive €479.78 per week. This is made up of a net salary of €397.78 and a Disability Allowance payment of €82. Overall, this is an increase of €6.97 per week.

Regarding the Benefit of Work Estimator, please note that the figures displayed are an estimate and the actual payment may differ. This will depend on a persons personal circumstances and the information which they have provided.

In order to get an accurate entitlement figure I suggest the person contacts Disability Allowance directly at: Department of Social Protection, Social Welfare Services Office, Government Buildings, Ballinalee Road, Co. Longford. Or by phone at 043 3340000 or 0818 927770.

I trust this clarifies the matter for the Deputy.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I secured Government approval last November for the design proposals for a new Jobseeker's Pay Related Benefit scheme and approval for the draft Heads of Bill on 9th January this year. The draft legislation is currently undergoing pre-legislative scrutiny.

The Department is working on the necessary arrangements to facilitate the introduction of the scheme in Q4 2024.

People entering unemployment often do so with established financial and other commitments, so it is appropriate to provide a stronger short term ‘cushion’ against income shock while a person seeks new employment and adjusts their outgoings following a job loss.

The benefit will be available to newly unemployed employees who have a strong and recent attachment to the labour market. The weekly rate of payment for people who have at least 5 years paid PRSI contributions will be 60% of previous earnings, subject to a maximum of €450, for the first 3 months. The rate will change to 55% of earnings subject to a maximum of €375 for the following 3 months. A further 3 months will be paid at the rate of 50% up to a maximum €300.

For persons who have between 2 and 5 years paid contributions, the rate will be 50% of previous earnings, subject to a weekly maximum of €300 and 6 month’s duration.

I trust this clarifies the situation for the Deputy.