In one of her last acts as Social Protection Minister, Heather Humphreys decided to double the fine imposed on unemployed people in receipt of jobseeker payments who do not engage with her department.
Speaking on his way into cabinet this morning, Taoiseach Simon Harris said it is “common sense” that there are penalties for those on jobseekers allowance who do not engage in employment services.
He added that people needed to “play ball”.
“The Minister for Social Protection will take legislation to the Seanad, the Social Welfare Bill, and included in that is again a common sense measure to make sure that our social welfare system is compassionate but also that people have to play ball,” the Taoiseach said.
“This idea that if you refuse to engage with our activation services in the Department of Social Protection, that that can just continue indefinitely, I don’t think anyone thinks that’s fair,” he added.
The Taoiseach said while there are some people who are unable to work or some who need support getting into work, social welfare payments should be impacted for those who do not engage in services.
“If you are refusing to engage at all, that has to have an impact in terms of the amount of social welfare they receive each week and Minister Humphreys will bring forward those proposals,” he said.
The previous reduction imposed on people who do not engage with social welfare services on two occasions was €44, but Ms Humphreys doubled the penalty to €90 in the Social Welfare Bill which passed through the Dáil unnoticed.
The legislation will be debated in the Seanad today.
Ms Humphreys, who last weekend made the shock decision to pull out of the general election, clashed with Fianna Fáil and the Green Party during budget negotiations over a proposal to increase the state pension by €15 a week while leaving the jobseeker rate unchanged.
Fianna Fáil leader and Tánaiste Micheál Martin, along with Green Party leader Roderic O’Gorman pushed back against the plan and insisted all welfare rates should increase by €12 a week, including Jobseeker’s Allowance.
Ms Humphreys introduced the significant change in welfare policy in the Social Welfare Bill which was voted through the Dáil by coalition TDs.
The bill, along with the Finance Bill, are key pieces of legislation.
This year, around 4,000 people had their payments reduced
Since 2011, people who refused to engage with department officials or return-to-work schemes would see their payments cut €44 a week.
If a person re-engages with welfare services, their full jobseeker payment is restored.
This will still apply under the new legislation, but a person in receipt of a €232-a-week jobseeker’s payment could be left with €142 per week for failing to engage with the Department of Social Protection.
This year, around 4,000 people had their payments reduced for failing to properly engage with state employment services.
It is understood that Ms Humphreys decided that at a time of full employment and a tight labour market with many employers seeking additional staff, it was the right time to increase the penalty.
The jobseeker will receive at least two notifications
The reductions are intended to encourage compliance with the requirements for jobseekers to be available for and genuinely seeking employment, as well as being actively engaged with the department’s Intreo Public Employment Service.
Reduced rates are only applied if a jobseeker does not engage with the State’s employment services.
In addition, prior to application of the reduced rate, the jobseeker will receive at least two notifications inviting them to engage or to offer a reasonable explanation for their inability to engage.
Where a person has a valid reason for failing to engage, such as an illness, or childcare responsibilities, this will be taken into account in determining whether or not the application of a reduced rate is warranted or is likely to be effective.