Dáil Éireann Debate, Wednesday - 25 March 2026
190. Deputy John Paul O'Shea asked the Minister for Social Protection the estimated cost of reducing the minimum hours requirement under the wage subsidy scheme from 15 hours to 10 hours; and if he will make a statement on the matter. [22936/26]
Amharc ar fhreagraThe Wage Subsidy Scheme is a key disability employment support. It aims to encourage employers to offer substantial and sustainable employment to disabled people through a subsidy. In February 2026, 1,552 employers were availing of the Wage Subsidy Scheme and 2,611 employees were supported through the scheme. The expenditure on the scheme in 2025 is estimated to have been €22.1 million.
In 2024, my Department published a review of the Wage Subsidy Scheme. Based on the findings in the review, the minimum required hours for the scheme were reduced from 21 hours per week to 15 hours per week. This change was intended to make the scheme more accessible and flexible for disabled people.
In April 2024, when the minimum hours were reduced, there were 1,477 employers with 2,398 employees availing of the Wage Subsidy Scheme. This shows there has been an increase of 75 employers and 213 employees on the scheme since all recommendations from the review have been implemented.
Currently, there are 394 of the 2,611 employees on the scheme working fewer than 21 hours a week, with 213 of them working the minimum of 15 hours, and the vast majority working in excess of 15 hours without difficulty.
It is not possible to know how many additional employees might be eligible for the scheme if the minimum hours requirement was reduced from 15 to 10 hours. Therefore, it is not possible to provide an accurate estimate of the cost of making such a change.
The Wage Subsidy Scheme is a demand led scheme. It is important to note that cost is not the key factor in retaining the current minimum hours. We want to ensure the scheme retains its key aim of encouraging employers to provide substantial and meaningful work to disabled people.
Under the Programme for Government and the new National Human Rights Strategy for Disabled People 2025-2030, the Government has committed to reviewing the minimum hours requirement under the Wage Subsidy Scheme.
However, 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 on the scheme. As this reduced requirement has been in place for a relatively short time, more time is needed to analyse the effect of the recent reduction in hours.
I am committed to ensuring that the Wage Subsidy Scheme is accessible to as many employers as possible and am keeping it under close review.
