Dáil Éireann Debate, Tuesday - 20 January 2026
689. Deputy Barry Ward asked the Minister for Social Protection the position regarding a review of the wage subsidy scheme that will allow for greater flexibility in the way in which it is applied by charitable organisations; and if he will make a statement on the matter. [3605/26]
Amharc ar fhreagraThe Wage Subsidy Scheme is a key disability employment support provided by my Department. It aims to encourage employers to offer substantial and sustainable employment to disabled people through a subsidy. In December 2025, 1,551 employers were availing of the Wage Subsidy Scheme and 2,626 employees were supported through the scheme with an expenditure of approximately €22.1 million.
In Budget 2026, I provided for an expansion of the scheme to people who acquire a disability while in employment, those who have a progressive or degenerative condition that worsens and to those who transfer from Invalidity Pension to Partial Capacity Benefit. I also provided for the rate structure to be simplified by reducing the number of subsidy bands from six to three, from April, and importantly all of the subsidy rates will also be increased at that time. These measures build on other improvements to the scheme which have been made since my Department completed a review of the scheme, which included a a public consultation, and examined ways to make the scheme more flexible and effective.
The review, which was published in 2024, made six recommendations, one of which was to expand the scheme to employers outside of the private sector. As a result, the scheme is now open to community and voluntary sector, not-for-profit sector and commercial semi-state organisations. This change expands the pool of potential jobs and opportunities for disabled people. Employees in this sector must meet the other eligibility criteria to avail of the scheme.
Another recommendation was to reduce the minimum required hours requirement for the scheme from 21 hours per week to 15 hours per week. This change was implemented from April 2024. The intention of this changes is to make the scheme more accessible and flexible for disabled people while also ensuring that the scheme maintains its key aim of encouraging employers to provide substantial and meaningful work to disabled people.
The scheme needs to operate with the new 15-hour minimum requirement for a period before my Department can assess the impact this change has had. As there is already a commitment in the Programme for Government and the National Human Rights Strategy for Disabled People 2025-2030 to further reviewing the minimum hours of the Wage Subsidy Scheme, this will be advanced over the lifetime of the Government in light of the prevailing policy and budgetary context.
I trust this clarifies the matter for the Deputy.
