Book of Estimates –Changes to BTEA and UB have serious implications for unemployed people

14 Nov 2003

The Irish National Organisation of the Unemployed strongly criticises the Government’s decision to slash supports to unemployed people arising from yesterday’s Estimates for 2004. “The combination of reduced budgets and changes in eligibility criteria will have a devastating impact on unemployed people trying to (re)enter the labour market,” said June Tinsley, Policy Officer INOU.

Not only is the Employment Supports Services budget reduced by 31% but the eligibility for supports within this budget such as the Back to Education allowance (BTEA) is greatly altered. The qualifying period for BTEA will be increased from 6 months to 15 months in respect of the Third Level Option.

“This change, in addition to the other changes for the BTEA made in January 2003 and the change in the eligibility criteria for the Back to Work allowance, is a further blow to those seeking to break the unemployment and poverty cycle,” she added.

Also arising from the changes announced yesterday by the Minister for Social and Family Affairs, those claiming an unemployment benefit payment will have to work longer to be eligible. Not only will the number of paid PRSI contributions required increase from 39 weeks to 52 but also the duration of receiving the benefit will decrease from 15 months to 12 months. The principle of PRSI is being further undermined following the removal of the pay-related element some years ago. This can only be described as an attack on unemployed people at time when financial assistance and security is required while they seek alternative employment.

Despite claiming that these changes are necessary to ensure the Department will be in a position to ‘care for those less well off, disadvantaged, ill or unemployed’, it would appear that the priority is on better management of the Departmental budget to the detriment of the claimants.