2026-02-26

3. Deputy Louise O'Reilly asked the Minister for Social Protection his plans to equalise the youth jobseeker’s rates; and if he will make a statement on the matter. [15403/26]

This question relates to the youth rates of jobseeker's payments and whether the Minister has any plans to equalise them. Coming from a trade union background, we always said there should be equal pay for work of equal value. However, for those dependent on a social welfare payment, it would be wrong to assume it is pin money or is somehow not relevant to the young person and his or her family.

Age-related rates apply to persons aged between 18 and 24 in receipt of a jobseeker's payment. However, young jobseekers can receive the full adult payment if they participate in training and employment programmes. This is the correct approach, which will help to minimise the scarring effects that extended periods of activity can sometimes have on the long-term prospects and well-being of young people. Age-related rates are not applied to all young adults. Exemptions apply to those with dependent children, those previously in the care of Tusla or living independently and those in receipt of State housing supports such as the housing assistance payment, HAP. At the end of January 2026, 11,850 people were on reduced rates of €163.70. My priority, rather than adjusting payment rates, is to give young people the best possible chance to participate in the labour market, as we have just discussed. Supporting young people to take up employment, education and training opportunities can enhance their employment prospects over time, as well as their ability to earn an adequate income to support themselves and their families into the future. If young jobseekers participate in education or training, they receive up to the maximum personal rate of jobseeker's allowance of €254. If they participate in a work placement experience programme, that weekly rate can increase to €369. As I said previously, we are currently finalising our work on the successor to the previous Pathways to Work strategy. As part of that strategy, I am determined to ensure that young people continue to be prioritised through education, training and employment supports. Accordingly, and in line with the reinforced youth guarantee, my Department continues to work to ensure young jobseekers receive a good-quality offer of employment, education or training within four months of becoming unemployed or leaving education. The current approach strikes the right balance in supporting young people into employment. I have no plans to change the rates for young jobseekers at this time.

My constituency has the youngest population in the State. Youth unemployment is rising at three times the rate for the general population, as we have discussed, and constituencies like mine will feel that the hardest. A total of 18% of 25-year-olds went back to their parents' house after attempting to live on their own and 43% have never left. This means 60%-plus of young adults remain in their family home. The Minister referenced the need for bespoke strategies. I hope to hear more from him about that in the coming weeks and months. As we have discussed, the labour market is changing. It is not simply the case that young workers need to be incentivised; they need to be trained and equipped to be able to participate in the workplace. The Minister mentioned extended periods of inactivity. There was a bit of a bang of Norman Tebbit off that comment. I do not think anybody enjoys a period of extended inactivity. Young people want to be in work but there must be recognition that some of them will need help with that.

I assure the Deputy I do not want to give off any suggestion of the person she mentioned. We want young people to remain connected to the labour market, to avail of the employment and training opportunities and, more importantly, to avail of opportunities that are suited to their skills and interests as opposed to going through generic schemes. We went through the options earlier, including Springboard and the new changes to the Tús scheme. We want to ensure young jobseekers can receive a higher payment if they participate in training and employment programmes. I know that 99% of them want to do so but there can be challenges in terms of transport and accessing appropriate courses. We are trying to address those challenges as well. As outlined, a young jobseeker participating in education or training can receive up to the maximum personal rate. For participants in the workplace experience scheme, the weekly rate increases to up to €369. We certainly will be focusing on Pathways to Work, which I will have a chance to talk about in my reply to a later question.

The purpose of jobseeker's payments and other social welfare benefits should be to help people to get back on their feet and back into the labour market. However, having subminimum reduced rates for younger people cuts them off and leaves them further adrift. The two-tier element is not a good thing. I appreciate that the full rates are available for those participating in training and employment opportunities but the Minister needs to take a long, hard look at the reasons for non-participation. Very often, it is not from an unwillingness, as he acknowledged. Young people do not want to be disconnected from the labour market. What is happening is that they find themselves cut off because of a lack of transport and, as a consequence of the low rates, because they cannot get themselves out of where they are. I am very conscious that there is a poverty trap for younger people. It is not good to have a two-tier system with different rates. I come from the perspective of believing our young people want to be in work and to be productive. They just sometimes need a hand to get there.

I agree. We want to avoid people, particularly at a young age, falling into that poverty trap. We want to keep them connected to the labour market, which we all agree is changing rapidly. That is why extra payments are given to those in training and on work experience. As I said, we are working on a new Pathways to Work strategy. We have had over 430 submissions. We had five stakeholder forum events across the country. We have also met our colleagues in government and in other agencies of Government. We are developing the draft document. I am certainly very much keeping an eye on the changing pattern of labour and the challenges of labour. As a former Minister of State at the Department of enterprise with a particular interest in the digital space, I am very much looking at where those trends are going. Going back to the reports from the Department of Finance and the future skills group I mentioned earlier, I want to ensure we have appropriate training and appropriate opportunities in place for people regardless of where they live in the country.