Back to work boost for parents
The Back to Work Family Dividend will allow unemployed parents retain the child-related portion of their social welfare payments for the first year of employment, and half the amount in the second year.
Long-term unemployed parents currently receive an extra €29.80 per week for each of their children on top of their basic jobseeker’s payment. By being allowed to retain that portion, they will continue to receive €1,550 per child for the first year and €775 the second year.
The dividend is not dependent on the wage being below a certain level, it applies to people who become self-employed and it will not be subject to tax. It also applies to people on the one-parent family payment.
Joan Burton, the social protection minister, said the initiative would cost €22m next year, but she expected good returns for participants and the wider economy.
“The dividend will help increase the pace of the progress we are making in helping people back to work. It will help boost the recovery, reduce welfare expenditure in the long-run and, most importantly, help the families in question to build a better financial future for themselves.”
Start Strong, a coalition of groups involved in children’s early care and education, welcomed the initiative, but said a chance had been missed to address a key obstacle for parents trying to get back to work — the lack of affordable childcare.
Director Ciairin de Buis said: “It’s really just kicking the can further down the road, as €29.80 a week doesn’t address the real cost of childcare — an average €167 per week for a full-time place — and parents will lose this additional payment after two years.”
Other return-to-work initiatives include a doubling of places under the JobsPlus scheme, which gives employers incentives to hire long-term unemployed people. In 2015, a total of 6,000 places will be made available with grants of up to €10,000 for employers.
The new JobPath scheme will also be activated with a €12m fund to bring in private employers to mentor jobseekers, helping them to receive advice, training and interview skills to boost their chances in the jobs market.
