Higher dole payments based on previous income to be considered by Government

A new tiered approach to dole payments may be brought to Government before the end of the year, Minister for Social Protection Heather Humphreys has indicated.

The Cavan-Monaghan TD received Government approval before Christmas to scope out the proposal, which would see larger jobseekers payments made to people who lose their jobs based on their previous income and level of social welfare contributions.

Launching a stakeholder consultation on the scheme in Dublin today, Ms Humphreys said the scheme would “soften the cliff edge drop” in income often felt by people who are left with the same household bills and expenses despite losing their jobs.

“Basically, if you are unemployed and you have been working for the previous five years or more, we’re looking at giving you a payment of €450 maximum or 60% of your salary,” she said.

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“Then if you’re working between two and five years, we’re looking at giving you 50% of your salary and up to a maximum of €300.”

A public consultation on the proposals is due to run until the end of the month and she will then work with officials before bringing proposals to Government on the policy. “I have to do some work on it yet. Hopefully by the end of the year I will bring proposals to Government,” she said.

Feedback form the consultation will also inform potential changes to other short-term income supports for workers who temporarily cease work, such as maternity benefit, parental leave benefit and illness benefit.

“We’re an outlier in the EU in terms of the fact that we’re the only country that doesn’t have pay-related benefit. We’re looking at practices across Europe as well and we learn from those. Then we formulate a policy,” Ms Humpreys told reporters on Friday.

Asked if the scheme could disadvantage people versus traditional jobseekers benefit, she said that recipients would be able to choose whichever scheme paid them more.

“We would keep the basic jobseekers allowance payment in line with all the other payments that we are trying to do,” she said.

“If it’s better to take the jobseekers allowance you’ll be allowed to take up that option instead of the pay-related benefit.”