Tough welfare measures have EU/IMF ‘blessing’

TOUGH measures to clamp down on social welfare claimants who pass up job or training opportunities were agreed as part of the EU/IMF financial rescue loans.

Ministers have previously hinted at attempting the move but rowed back on plans in the face of opposition and an inability to implement harsh measures.

Social Protection Minister Joan Burton is justifying the cut in dole pay as a move to make sure school-leavers make every effort to get employment and do not begin their working life relying on handouts.

Only a small number, 55 to date, of social welfare recipients have so far had their dole cut since she rolled out the new rules in April. But with pressure to save €750 million from the social welfare bill by the year’s end, more cuts are inevitable.

Ms Burton yesterday sidestepped questions on whether she was planning in general to reduce social welfare rates in the budget at the end of the year.

This would be a more worrying scenario, undoubtedly affecting many more people in society who are already on the edge of poverty.

Under the tougher rules, the rate of payment to jobseekers is reduced if they do not engage with the national employment action plan, or if they refuse a training offer from jobs agency Fás or from the Department of Social Protection.

Unemployed people are traditionally referred to Fás after three months of claiming dole payments to get jobseeking advice, training or guidance.

The new rules specify that rates can now be cut if the jobseeker refuses an appropriate offer of training by the department or Fás, declines an intervention under the employment plan, does not attend employment meetings with a Fás officer or completely drops out of the job-searching process.

Cuts under the new measures include changes to jobseekers’ benefit (PRSI-related payments). Those with the lowest level of tax credit on a weekly €84.50 will have their pay cut to €65 while those collecting the highest amount of €188 will have it reduced to €144.

In the case of jobseekers’ allowances, the general personal rate will be reduced by €44.

Those aged 18 to 21 will have rates cut from €100 to €75 while 22-24 year-olds will have rates cut from €144 to €111.

The legislation specifies that cuts apply to personal payments rates only. Extra payments for adult and child dependents are not affected.

The department says the objective of the rules, passed in legislation in January, is to encourage people to attend Fás interviews, undertake training and take up employment opportunities. There is a right to a payment but also a matching responsibility on the unemployed person to engage with the system, it adds.

The actual decision to refuse a course or job offer is monitored by officials in a local social welfare office.

Consideration is given to the location, hours of the course or work and access to public transport as well as individual circumstances are also taken into account when a claimant refuses an offer.

The move to cut the dole if claimants are uncooperative is not new in Europe.

European Commission mission director to Ireland, Istvan Szekely said: “What’s so special about the Irish unemployment support system is that it is one of least generous when you enter, but after one year it becomes, relative to other schemes in other countries, very generous because it stays unchanged. In other countries it’s gradually phased out.”