I thank Deputy McGuinness for raising this matter. Supporting disabled people and reducing the disability employment gap are key priorities for me. The wage subsidy scheme is the 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 2024, the Department published a review of the wage subsidy scheme following a public consultation. We aimed to make the scheme more accessible and more flexible. As a result, the minimum hours were reduced from 21 hours per week to 15 and the scheme was expanded to the community and voluntary sector and the non-commercial semi-State sector. In addition, we changed the language of the scheme to align with the social model of disability.
One of the recommendations made was to regularly review the subsidy rate. The national human rights strategy for disabled people also includes a commitment to examine an increase in the subsidy rate. The rate was reviewed in the context of budget 2026. As a result, the number of bands was reduced and the subsidy rates were increased. The base wage subsidy paid to employers who employ disabled people is now €7.50 per hour, an increase from €6.30. Employers who employ 25 or more employees on the wage subsidy scheme can still avail of a grant of €30,000 towards the cost of employing an employment assistance officer. Budget 2026 also provided for the expansion of the scheme to those who acquire a disability while in employment, those who have a progressive or degenerative condition that worsens, and those who transfer from invalidity pension to partial capacity benefit.
We hope these changes encourage more employers to hire more disabled people to increase uptake of the scheme and I am engaging with employer organisations to this end. Later this morning, I will attend the Light the Way event hosted by MrPRICE, one of our leading providers of employment for disabled people that work with the wage subsidy scheme. I have also made administrative changes to the wage subsidy scheme to centralise processing to ensure a more consistent and quicker service for those employers that are in receipt of a subsidy under the scheme.