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Social Protection Minister Heather Humphreys said the new charter will help those who 'face real challenges to finding work' Alamy Stock Photo

Changes announced to scheme that pays companies up to €10,000 for recruiting long-term unemployed

It was also revealed today that 3,000 people this year have had a reduced rate applied to their social welfare payments for failing to engage with Intreo.

LAST UPDATE | 28 May

CHANGES HAVE BEEN made to several measures included in the Government’s Pathways to Work strategy following a mid-term review.

The Pathways to Work strategy was launched in 2021 and runs until the end of 2025, and an updated version was published today after the review carried out by the Labour Market Advisory Council.

The strategy includes over 80 commitments to reduce long-term unemployment and youth unemployment, including paying employers a subsidy of between €7,500 and €10,000 when they recruit an unemployed jobseeker.

Previously, this financial incentive was paid monthly over a 24 month period, but will now be paid over an 18-month period following the update published today.

A spokesperson from the Department of Social Protection said this “recognises that 18-month employment commitment is a significant period for an employer”. 

Other changes to the strategy following the mid-term review includes expanding the Work Placement Experience Programme so young people unemployed for four months can avail of the work experience.

Previously, only those out of work for at least six months could apply for the programme.

It was also revealed today that 3,000 people so far this year have had a reduced rate applied to their social welfare payments for failing to engage with the public employment service Intreo service.

Over 50,000 long-term unemployed people on the Live Register are engaging with the Intreo Service, which sees Personal Progression Plans are developed and jobseekers meeting with an Employment Advisor either weekly, fortnightly or monthly depending on their circumstances.

Jobseekers who do not engage with this are then subject to the sanction of reduced payment.

Youth Engagement Charter

The changes to the Pathways to Work strategy were outlined at today’s launch of a new charter to support young people and people from disadvantaged backgrounds in gaining work.

The Employment and Youth Engagement Charter is described as a “key measure” to engage with companies in supporting people looking to enter, or re-enter, the workplace.

Around 300 employers have signed up to the new charter so far and others are being encouraged to sign up too.

Companies that join the charter have to sign up to some or all of the six commitments included in the scheme.

This includes taking advantage of employer incentives which help give jobseekers work experience and pathways to employment, availing of an Intreo briefing to find out how companies can support the hiring of Intreo candidates, and hosting an event to offer advice on how to search for a job.

Other commitments include offering motivational talks to young jobseekers on how to “get job ready or start a business”, developing a mentoring programme to offer guidance to jobseekers, and helping reduce youth unemployment by recruiting young people with the support of public employment service Intreo.

The charter has come about via consultation with stakeholders including IBEC, the Labour Market Advisory Council Employer Sub-Group, the National Youth Council of Ireland and the Irish National Organisation of the Unemployed.

A spokesperson for the Department of Social Protection said the charter will also aim to cater for groups “who may find it hard to get an interview, gain work experience or move into work”.

The spokesperson said these “priority groups” include people with disabilities, older workers who lost their job later in their career, people who have spent time out of the workplace because of caring or childcare responsibilities, and minority groups such as members of the Traveller or Roma communities.

The spokesperson also noted that the charter is “one of a number of measures included in the updated Pathways to Work strategy” published today.

Speaking today, Social Protection Minister Heather Humphreys said the new charter will help those who “face real challenges to finding work” and will be a “valuable new tool for employers to make their commitment to social cohesion and inclusion”.

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Diarmuid Pepper
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