Jobless to keep dole in new back-to-work plan
Tuesday February 24 2009
THOUSANDS of jobless people will be able to go back to work while holding on to their dole money under a new plan being considered by the Government.
The drastic measure is one of several in the pipeline aimed at taking tens of thousands of jobless off the Live Register, the Irish Independent has learned.
It comes as Taoiseach Brian Cowen desperately tries to stem soaring unemployment amid fears some 500,000 will be out of work by the end of the year.
Under the plan, jobless adults who return to work would have their dole 'topped up' by a minimum contribution from employers. Those taking on such workers would have to commit to the deal for a number of months.
At the end of the initial 'top-up' period, employers could benefit from a new employment grant if they keep the new workers on the payroll.
The Government is also considering proposals to:
- Extend a work experience programme for young people and graduates so they get a foot on the jobs' ladder.
- Review training allowances with a view to reducing or possibly abolishing some of them.
Tanaiste and Enterprise Minister Mary Coughlan wants to outline details of the new jobs' initiative at the Fianna Fail Ard Fheis this weekend.
Department officials were still working on the measures late last night in the hope they would be ready for today's Cabinet meeting. The main proposal -- to allow jobless retain their dole while working -- has already been discussed by ministers.
There have also been talks with employers. Some of these are believed to prefer temporary abolition of employer PRSI payments for new employees.
However, one senior political source last night warned the 'top-up' scheme under consideration would allow employers to 'try out' new staff at a low cost and little risk.
Abused
It is widely accepted the scheme would have to be rigorously policed to ensure it is not abused. One source said employers would have to agree to retain their existing staff numbers before availing of state-backed employees.
This would prevent companies letting older staff go so they could take on newer, lower paid workers at a much reduced cost -- a development that would be opposed by the trade unions.
It is expected that matching up specific jobless needs to vacancies will be undertaken by FAS, the state's training and employment authority.
Some political sources would like to confine the scheme to workers who have been jobless for six or nine months so they don't become long term unemployed.
However, employers would generally prefer those made recently redundant who would still have their 'skill sets'.
Allowing the unemployed to return to work while keeping their dole payments is not a new proposal. It is already done with Back To Work allowances for employees and for those setting up their own businesses. Approximately 16,000 avail of these schemes at present at a cost of around €80m a year.
The review of training allowances is in line with proposals from the Paris based OECD which are being looked at in the context of the €1bn budget for FAS.
Abolishing some of them would be highly unpopular, but the idea is said to be gaining support. Details have also to be worked out on extending a work experience programme.
However, it is prompted by growing concerns that huge numbers of school leavers and graduates cannot get a "foot in the door" in the jobs market and that one way to do so would be on such a programme where they are guaranteed relevant experience.
The measures currently being finalised are in addition to the creation of 51,000 short term training places in FAS and the scheme to take on redundant apprentices which has already been announced.
- John Walshe Education Editor
