Unemployed now being referred to Fás after three months on dole

Unemployed people who spend more than three months on the dole will be automatically provided with training, education or jobs…

Unemployed people who spend more than three months on the dole will be automatically provided with training, education or jobs guidance under a new Government initiative.

Minister for Social Affairs Séamus Brennan will announce shortly that the move is being taken on the basis of research which shows earlier intervention gets more people back into the workforce and helps them avoid long-term unemployment.

These automatic referrals to Fás, the national training and employment authority, came into force on October 16th following a recent Cabinet decision. The change will affect at least 40,000 people a year.

While unemployment has fallen from 10.3 per cent in 1997 to about 4.4 per cent, officials are anxious to tackle long-term unemployment - those out of work for more than a year.

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As a result of the changes, those unemployed for more than three months will have to co-operate with Fás if they want to continue claiming a "jobseeker's" allowance, which combines existing unemployment benefits and assistance schemes. In practice, however, figures show that significant numbers leave the live register after being called for a Fás interview.

Of the 20,000 people referred to Fás between January and June of this year, almost 9,000, or 46 per cent, left the live register.

Since 1999, the Department of Social Affairs has operated a National Employment Action Plan to encourage and help unemployed people back into work.

As a result of the recent Cabinet decision, the intervention period for referring people to Fás is being halved from six to three months.

It is one of a number of changes to the National Employment Action Plan.

They include extending mandatory Fás interviews to unemployed people aged between 55 and 64, who were previously excluded from such intervention measures.

Mr Brennan said: "The age cut-off meant we were effectively giving up on older people. We were taking the view that they would never re-enter the workforce.

"However, life expectancy has increased dramatically and people's expectations have changed."

An independent evaluation of the National Employment Action Plan undertaken by consultants, meanwhile, has recommended that similar measures be extended to groups such as lone parents and people with disabilities.

Other recent changes to "activation measures" affect the Back to Work Allowance Scheme, under which the long-term unemployed can return to work and retain part of their social welfare payment and certain benefits. The qualifying period for access to the allowance was five years, but this has been reduced to two years since March 2006.

This change has already resulted in a 30 per cent increase in the numbers availing of the allowance, with 8,369 using the Back to Work scheme at the end of August this year.

Changes have also been made to incentives to encourage people with illnesses or disabilities to return to employment or undertake education or training.

They allow people to retain half of their Disability Allowance and Blind Pension payments for earnings between €120 and €350 a week.

Up until recently, a person lost their allowance or pension on a "euro-for-euro" basis for earnings above €120 a week.