Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Mark Stedman/Photocall Ireland

Welfare traps preventing people from moving into employment

A report has recommended that the department review eligibility criteria for some payments to “recognise the reality of the labour market”.

THE CITIZENS INFORMATION Board (CIB) has warned that certain ‘welfare traps’ may be impacting on people who want to move from welfare to part-time or full-time employment.

In a report published this week, the board said that social welfare was the area that most people in the first three months of this year sought assistance with.

The report identified a “prevalent theme in social welfare policy feedback” – that of the welfare trap. This includes eligibility restrictions on those seeking to work more than a certain number of hours, even where their income is low, and allowances based on days worked rather than hours.

In one case study, a person working part-time and claiming Jobseeker’s Allowance and Rent Supplement has been offered more hours in work, bringing him to 33 hours a week. He would lose both welfare payments and even with a Family Income Supplement, the extra hours will leave him with €70 a week less than if working fewer hours. The report said:

Given the growing reliance on private rented accommodation coupled with an ongoing lowering of wage rates, ineligibility for any Rent Supplement when in full-time work, regardless of how low the pay is, can make the take up of such work a non-viable option. Thus, people are trapped in part-time work or on the live register.

CIB found that there are disincentives for people to take up part-time work or even stay in it.

“Regarding jobseeker’s payments, two people with comparable needs, working the same number of hours and earning the same income can potentially find themselves in very different positions, depending simply upon the pattern of those hours,” it pointed out.

The issue of processing delays continue to take prominence in feedback from information services, CIB said in the report.

One man in March had been waiting for a decision on review of his Disability Allowance claim since January. “He is terminally ill in a hospice and asks daily about the DA decision,” his local information service said. “He believes he will die before the decision is made.”

In many of the cases reported by information services, “the stress caused by lengthy processing delays” is exacerbated by the fact that people frequently cannot get through to the relevant department sections by telephone to ask about their claims, according to the report.

The report recommended that the department conduct a review of eligibility criteria for certain entitlements “to recognise the reality of the labour market” and that additional resources be made available to eradicate processing delays.

Read: Replacing child benefit with school attendance payment ‘would save €100m’>

Read: Over 263,000 Public Services Cards issued to social welfare claimants>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
105 Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.
    JournalTv
    News in 60 seconds