Over three thousand people have had their social welfare payments cut after failing to engage with state employment service, Intreo.
In order to tackle longer term dependency on social welfare payments the Department of Social Protection will sign those in receipt of payments up to a “personal progression plans” which requires them to meet with Intreo every two weeks in order to encourage them towards taking up work.
The government hopes to assist people to take up or return to work by providing them with access to courses to enhance education, work placements, and training.
Government figures show that there are currently around 50,000 people in receipt of Jobseeker’s Allowance and Jobseeker’s Benefit, Social Protection.
Minister for Social Protection Heather Humphrys also announced plans to be brought to cabinet this week in order to bring social welfare payments for those with adequate employment history more in line with the salary the person was receiving while employed.
Speaking of the new “Pay related Benefit” scheme Humphrys said, “It is a system used in many other European countries and it means that people who have worked for long periods are protected against a major income shock if they become unemployed,”.
“The new Jobseeker’s Pay-Related Benefit will be available to people who lose their jobs and who are genuinely seeking employment.” she said.
Commenting on how the current system means those who would have been in receipt of a competitive salary while in employment may find it difficult to meet financial commitments on the current rate of job seekers’ benefit, Humphrys said, “I know that when a person loses their job, their financial commitments don’t change. This can cause difficulties and add to the stress of unemployment,” she said.
“Having a pay-related system will help to cushion this shock during the time when people are looking for new employment.” she added.
In draft proposals the government outlined how for people who have been in insurable employment for at least five years, of which six months must have been in the previous 12 months, the benefit would be set at 60% of prior gross income up to a maximum payment of €450 per week.
For those who have been in insurable employment for between two and less than five years, of which six months must have been in the previous 12 months, the benefit would be set at 50% of prior gross income subject to a maximum payment of €300 per week, with the above benefits available for six months.
Humprhys said this new system was needed to assist those “who have worked hard all their lives and paid their PRSI.”
“The idea behind it is very simple – it is about softening the blow that workers, who have paid into the system, face when they suddenly lose their job.” she said.