Teamwork and social employment allowances
Members argued that budget increases in social welfare made Teamwork and social employment schemes less attractive, particularly for people with dependants, and urged higher scheme payments. Ahern said sponsor grants were not linked to welfare rates and would not increase for now, but he would review the matter if participation fell; he cited high demand, budget limits and efforts to secure greater ESF support.
I think the trainees involved would hold their own judgment of that. Regarding the Teamwork and social employment schemes, is it not the case that because of the increases announced in the budget these programmes will be of interest now only to people without dependants? The increases provided for in the budget will bring the rates paid to someone with one adult dependant substantially above the Teamwork and social employment allowance, so effectively those schemes will be confined to young, single people. Does the Minister regard that as satisfactory?
Comment on this
The attraction of the social employment scheme was always for single people and people with no dependants. That is still the position.
Comment on this
Because of the substantial, unexpected — I will not say generous because nothing is generous for long term unemployed — increase, there could be a problem and we will have to monitor that as the year goes forward. If there is not a take-up on social employment and Teamwork schemes, I will have to examine the matter at that stage, but it is contrary at the moment. Demands for the scheme are massive.
Comment on this
Will the Minister not accept that he is starting off the year with an imbalance? He knows that the target group for the social employment and Teamwork schemes will be single people without dependants, yet the vast majority of people on long term unemployment must be those with dependants. At whom is he aiming the social employment scheme? Does he think it suitable for long term unemployed people in reality?
Comment on this
For the past three years and up to now the social employment scheme has attracted single people and people without dependants. I have not got the figure in my brief, but the target number is four or five times higher than the number of places, which is about 9,400 man years. That can still be targeted to a substantial number of people. Another matter that I cannot change is that my estimates and the man years available under the schemes were based last September-October before any changes or budget were discussed so I still have to live within those figures.
Comment on this
When the Minister says in response to Question No. 10 that the increases for the social employment scheme will be in line with the budget increase for social welfare in July, is he referring to the 3 per cent increase or will an element of £4 be included in the increase for the social employment scheme in order to bring them up also?
Comment on this
I thought the Minister said in his reply that it would be increased in July.
Comment on this
No. I said that grants to sponsors in respect of wages paid to participants on Teamwork and the social employment scheme are not linked to social welfare rates, so I have no proposals to increase these grants at present.
Comment on this
Will the Minister accept that when the social employment scheme was first introduced there was an incentive to take part in that scheme to anyone who was first, single: second, married without other dependants and, thirdly, married with one child: that all of those categories stood to gain financially from participation but it has now been whittled down to where only single people find it attractive?
Comment on this
No. There were always very few people. That is why it is £85 for a married person and unfortunately there is still a substantial number of married people whom it might attract. It was never as attractive, and I think that still holds. On the more important question, if it appears that there is a massive falloff in the schemes, then I can review it because I will be dealing with the same financial figures. However, there is no indication of that.
Comment on this
Would the Minister not consider that it would have been more appropriate in the budget to devote more funds to the social employment scheme and make it more attractive to long term unemployed people, instead of increasing unemployment assistance and thereby copperfastening the position of those people outside the labour market? Surely, it would have been more appropriate to do something that would enable them to take part and if you have a given amount of funds to put them into something that allows them to participate rather than keeping them outside.
Comment on this
Increases in social welfare assist all the dependants on social welfare. No matter how good the schemes are they could not have the same——
Comment on this
It affects all of the people on long term unemployment, who number over 100,000. I said in reply to a previous question that the ESF contribution towards the social employment scheme was far less than we received on the training schemes. By trying to achieve an increase on the ESF contribution we will finally help the social employment scheme, but that will be resolved in 1988.
Comment on this
I misunderstood the Minister's earlier reply. If the social employment scheme is not to be increased relative to the social welfare increases, will he consider increasing it relative to the increases provided for in the Programme for National Recovery which was agreed with the trade union movement? It would seem only fair that an increase be provided. I understand that the only thing done in this regard in recent years has been a reduction.
Comment on this
There was an increase in the married person's rate and a decrease in the other rate which also allowed more people to be taken on the scheme. Within the fairly tight guidelines of the financial targets I have to achieve in 1988 I have not the resources to increase it by 3.5 per cent, but it is a matter that can be reviewed based on the take-up during the year.