Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
Link to this: Individually | In context

665. To ask the Minister for Employment Affairs and Social Protection the research that his Department has undertaken to ensure that it is always more financially advantageous to take up employment rather than jobseeker's allowance; and if he will make a statement on the matter. [55277/25]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

Jobseeker’s Allowance is a means-tested social welfare payment for people who are unemployed. There are arrangements in place to incentivise and encourage people in receipt of the Jobseeker’s Allowance scheme to take up work or to engage in training and development programmes to prepare for work.

A person can work up to three days per week and continue to receive a partial jobseeker’s payment. Under Jobseeker's Allowance, the first €20 of earnings per day is disregarded up to a maximum of €60 for three days worked, with the balance assessed at 60%.

Under the Back to Work Family Dividend scheme, people taking up full-time employment retain the Child Support element of their payment for two-years. The first year is paid at the full rate and the second year is paid at 50%. This means that they receive an 'in-work' welfare payment to supplement employment earnings.

People in receipt of Jobseeker’s Allowance can opt to return to education and training or to move into self-employment and continue to receive a welfare payment. For the full duration of their training or education course they will receive the full rate of payment. If they take up self-employment they receive a full payment rate for the first year and 75% rate for the second year. Jobseekers who take up work placement programme, Community Employment, or Tús placements also receive an increase in their payment rate and can also continue to receive any secondary benefits.

In addition, the Department supports employment transitions through the Part-Time Job Incentive scheme which facilitates part-time employment for up to 24 hours per week, and also provides supports to employees with children under the Working Family Payment.

My Department's Employment Service works with individuals to determine the most appropriate support to their circumstances.

In line with the Programme for Government commitment, my Department is examining a new Working Age Payment which would provide that employees would always see an increase in income when they work or take on additional hours. This would move away from the current days worked system under the Jobseeker's Allowance scheme. Officials in the Department are exploring a range of potential models for a new Working Age Payment. It is intended to publish a Strawman proposal for consultation later in the year or early next year.

I trust that this clarifies the matter for the Deputy.