Paul Murphy (Dublin South West, RISE)
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103. To ask the Minister for Employment Affairs and Social Protection if she will provide any evidence-based policy or research data which informed the decision to increase of the penalty sanction rate from €44 to €90 in the Social Protection Bill 2024, including advice from civil servants, specialists or discussions at Cabinet level; and if she will make a statement on the matter. [45347/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department is committed, under Pathways to Work, to encourage the uptake of employment support opportunities, including implementing reduced rates for non-engagement with the Intreo Employment Service. It is a well-established principal of economics and, the theory and practice of social policy, that incentives support engagement. Reduced rates were introduced in 2011 as a means of encouraging jobseekers to cooperate with efforts of the Department to assist them in securing employment.

Entitlement to a jobseeker payment is dependent on the recipient being available for, capable of and genuinely seeking work. This reflects the concept of ‘rights and responsibilities’ whereby people who are unemployed have the right to an income support from the State and a right to be supported in their efforts to secure employment, but also have a responsibility to seek employment and to engage with the employment services offered by the State.

Intreo supports jobseekers to find work and there are a wide range of supports on offer in terms of further education, training, upskilling, work placements as well as programmes such as Community Employment and TUS.

A reduced rate is a final step in a process to encourage a jobseeker to avail of the employment supports on offer and once a jobseeker resumes engagement the reduced rate is lifted immediately. Whether a reduced rate applies, and the duration of its application is totally within the control of the claimant.

Over the recent period, the labour market has been performing at historic levels, at full employment, with a number of records achieved over successive quarters. In light of these conditions and the labour market outlook, it is important to ensure that incentives are aligned so that individuals seek employment.

The decision to increase the reduced rates is timely and is a viable means to support my Department with its efforts to reintegrate unemployed people back into the work force and address ongoing labour market shortages. Discussions on the matter were conducted in line with all other Budget measures.

I am pleased following debate in both Houses of the Oireachtas that the Social Welfare Bill has now passed all stages and has been signed into law by the President.