Anger at Changes in Back to Work Allowance Schemes

13 Dec 2002

The INOU calls on the Minister for Social and Family Affairs, Mary Coughlan TD to overturn her decision to restructure the Back to Work (BTWA) Allowance and the Back to Work Enterprise (BTWEA) Allowance. The changes, to take effect from January 2003, effectively restricts access to these schemes to those who are unemployed for five or more years, instead of 15 months as at present (or 12 months for the BTWE option). These schemes provide a financial cushion by allowing recipients to keep a declining percentage of their social welfare payments for the first three years of employment. The changes like many recent Budgetary and Government decisions target only those in receipt of Unemployment payments.

‘We are seeking a meeting with the Minister to discuss the rationale for this decision, which will exclude the overwhelming majority of unemployed and effectively marks the abolition of the Scheme.’ says Eric Conroy, General Secretary of the Irish National Organisation of the Unemployed. ‘This is another example of unemployed people bearing the brunt of the budgetary cuts, on top of the lowest social welfare increases of only €6 for people in receipt of UA, UB, and SWA and for Qualified Adults (€4), 5,000 cuts in CE, no new Social Economy projects next year and over 40% reduction in the FÁS training budget’, he added.

The Government has committed itself to eliminate long-term unemployment by 2007. ‘So how can cutting these successful schemes that are effective in retaining unemployed people in employment contribute towards achieving this goal?’ asks Mr Conroy.