Dáil Éireann Debate, Wednesday - 15 April 2026
269. Deputy Eoin Hayes asked the Minister for Social Protection the evidential or analytical basis used by his Department in designing and applying penalty rate reductions or sanctions within the jobseeker system; whether these measures are informed by empirical research; if so, to provide details; and if he will make a statement on the matter. [27372/26]
Amharc ar fhreagraMy Department is committed, under Pathways to Work, to encourage the take-up of employment support opportunities, including implementing reduced rates for non-engagement with the Intreo Employment Service. Reduced rates were introduced in 2011 as a means of encouraging jobseekers to cooperate with efforts of the Department to assist them in securing employment.
The weekly reduced rates applied for jobseekers Allowance and Jobseekers Benefit is €90 since January 2025 and €50 for those aged under 25 and in receipt of a reduced age-related Jobseekers Allowance. The reduced rate for customers in receipt of Jobseekers Pay Related Benefit which was introduced at the end of March 2025 is set at 20% of their weekly payment. In 2025, over 11,000 reduced rates were applied.
Entitlement to a jobseeker payment is dependent on the recipient being available for, capable of and genuinely seeking work. This reflects the concept of ‘rights and responsibilities’ whereby people who are unemployed have the right to an income support from the State and a right to be supported in their efforts to secure employment, but also have a responsibility to seek employment and to engage with the employment services offered by the State.
Intreo supports jobseekers to find work and there are a wide range of supports on offer in terms of further education, training, upskilling, work placements as well as programmes such as Community Employment and TUS.
A reduced rate is a final step in a process to encourage a jobseeker to avail of the employment supports on offer and once a jobseeker resumes engagement the reduced rate is lifted immediately. Whether a reduced rate applies, and the duration of its application, is totally within the control of the claimant.
Over the recent period, the labour market has been performing at full employment, with a number of records achieved over successive quarters. In light of these conditions and the labour market outlook, it is important to ensure that incentives are aligned so that individuals seek employment.
A 2024 OECD Report - 'Impact Evaluation of Ireland’s Active Labour Market Policies' - states that the introduction of reduced rates of pay for jobseekers who decline intervention offered to them to assist re-entry to the labour market on a legislative basis provides clearer guidelines on sanctionable offences and penalties for non-compliance. It also stated that overall activation requirements for unemployment insurance in Ireland place it in the bottom quintile of strictness among OECD countries and it has become less strict over time relative to other OECD countries.
I trust that this clarifies the position for the Deputy.
