In Section 15 of the Social Welfare Bill the Government are proposing doubling the penalty rate for people who do not engage with employment / activation services to €90, which will represent 37% of the maximum rate from January 2025. This is a huge increase on the current penalty of €44 - when it was introduced, it represented 23% of the maximum core payment.
With the new proposal, a single person on the maximum Jobseeker's Allowance rate could be left trying to survive on €154 per week. Penalties should only ever be used as a last resort. Proactively supporting people who are vulnerable in the labour market would be a more constructive way to proceed, seeking to assist people to make meaningful choices.
Ireland may technically be at full employment, but it is important to note that this is an economics’ term applied when Ireland’s unemployment rate falls below 5%. It does not mean that everyone who is seeking employment will find it, as there are many barriers to entering the labour market, including duration of unemployment.
In our Pre-budget submission, the Irish National Organisation of the Unemployed called on the Government to “Ensure that employment services are person centred and work with people in a supportive and pro-active manner, working with people so that they can avail of the most appropriate option for themselves.” This would be a more constructive way to engage with people who remain unemployed.
The Irish National Organisation of the Unemployed’s (INOU) analysis of Budget 2025 is available here