Government considers social welfare change with reform of Jobseeker's Allowance

Department of Social Protection document proposes to change the 'four in seven' rule which assumes a five-day working week of 9am to 5pm

An Intreo job Centre in Dublin.

The Government is considering a major reform to the Jobseeker's Allowance, with consultation underway on whether to change rules restricting people to three days work per week.

A consultation document on the establishment of a new working age payment for unemployed and low-income workers has been published by social protection minister Dara Calleary, suggesting reforms to the current Jobseeker's Allowance.

Currently, the allowance is a means-tested payment for anyone over the age of 18 and under 66. The person must be either unemployed or only work three days a week or less.

However, the consultation document states that qualifying criteria for Jobseeker's Allowance “no longer reflect modern working and can discourage people from taking on additional work”.

'Four in seven' rule

It states that part-time work is assessed on a days worked basis. This means one hour of work in a day is treated the same as working for eight hours in a day.

The document states that the existing 'four in seven' rule — where an individual must be unemployed for at least four days out of each week to qualify — is based on old-style work patterns and the assumption of a standard five-day working week of 9am to 5pm. 

"In reality, these days many households combine part-time jobs,” the document states.

The 'four in seven' rule can lead to unintended outcomes, as it may discourage people working part-time from taking on extra work. 

"It may also influence employers to adopt schedules based around employees working three days a week.”

The Government’s proposal is that payments would be based on a percentage of the difference between an individual’s weekly income and a threshold set by the State.

Payments would be calculated by subtracting a person’s weekly income from the threshold, with the difference multiplied by an “agreed percentage” to determine the final payout.

“Instead of fixed rules on the number of hours or days worked, this approach would see people able to take up as much work as they can within income limits set for their household, and to combine different income sources.

“As a person’s income approaches or exceeds this threshold, their payment would gradually reduce. This avoids a “cliff edge” where support ends all at once.”

Jobseeker's Allowance rates

At present, Jobseeker's Allowance is paid at a rate of €254 per week for single people. 

It is paid differently for families, with the €254 rate paid, but supplemented by €168.60 per qualified adult alongside a €58 payment for each child under 12 or €78 for children over 12.

• Tadgh McNally, Political Reporter

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