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Less than €2 extra per week for unemployed parents on Gateway scheme

The application of PRSI means that a parent with two children will take home less than €5 extra if they participate in the Gateway scheme, not the €20 that has been widely flagged.

Updated 13 March, 8.25am

MANY PARENTS ON the government’s controversial Gateway scheme stand to make significantly less than the €20 extra on top of their dole payment that has been stated publicly by ministers.

The Gateway scheme involves the long-term unemployed being put on some 3,000 placements in local authorities where they will work on average 19.5 hours a week for €20 extra on top of their dole payment, subject to a minimum payment of €208 per week.

However, an adult who is married or cohabiting and has two children will take home only €4.30 extra when PRSI at 4 per cent on all income is applied to their jobseekers’ allowance combined with their Gateway top-up. While an adult in the same situation with four children will take home less than €2 extra when PRSI is applied.

In cases where a cohabiting parent on the scheme has six children they will actually take home just under 50 cent less than they would if they were not on the scheme. This is according to figures from the Department of Social Protection provided to the Sinn Féin TD Aengus Ó Snodaigh.

Sinn Féin has tabled a private members’ motion in the Dáil this week calling for Gateway to be scrapped. Jobs Minister Richard Bruton said that likening councils to “slave sweat shops is a total insult to the reality of local authorities”.

This table, provided to Sinn Féin by the Department of Social Protection, shows how Gateway participants who are married or cohabiting and have children stand to make €5.50 or less on top of their jobseekers’ payment, and not €20:

image

(Note: Column one denotes household size i.e. a man with a wife/cohabiting partner and one child. Column two is the Jobseekers Allowance payment rate, including increases for qualified adults and children that person receives before Gateway)

Department of Social Protection response

The types of projects to be worked on under Gateway include: village enhancement schemes, landscaping, working in libraries and the control of animals. Those that refuse to take part may have their social welfare cut or cut-off.

The Department of Social Protection has said that the scheme is intended to assist the personal and social development of participants by providing short-term work opportunities with the objective of “bridging the gap between unemployment and re-entering the workforce”.

In a statement this evening, the Department said that the income under the Gateway scheme “is treated in the same manner as earnings from employment for PRSI purposes and accordingly is subject to Class A PRSI”.

“Therefore participants on these schemes, similar to other private sector employees who pay Class A, can establish entitlement to the full range of short term benefits including jobseeker’s benefit, illness benefit, and maternity benefit and to long term benefits including State Pension.

“In Budget 2013 the weekly PRSI-free allowance of €127 was abolished for all Class A contributors. This measure had no impact on Class A contributors who do not pay PRSI where their earnings are less than €352 per week. For those earning in excess of €352 per week and paying PRSI at 4%, this increased the weekly PRSI charge by €5.08.

“This affected all Class A contributors who were paying 4% PRSI on their earnings. It also affected participants on the Gateway scheme whose income is treated as earnings for PRSI, in the same manner as it impacted the earnings of employees.

“Any proposal to re-introduce the PRSI-free allowance to address this issue would reduce income to the Social Insurance Fund and could only be considered in a Budgetary context.”

First published 19.57pm on 12 March

Bruton on Gateway: ‘Calling councils slave sweat shops is a total insult’

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171 Comments
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    Mute Richarddoherty
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    Jul 12th 2021, 5:54 PM

    Hopefully he won’t and leo won’t be taoiseach again
    Wishful thinking maby
    We can dare to dream

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    Mute Frank Cauldhame
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    Jul 12th 2021, 6:40 PM

    @Richarddoherty: He says he is committed to the continuation of the unprecedented coalition. Lol, of course he is, it’s the only thing he hasn’t spoofed about.

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    Mute Willie Bill Bryan
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    Jul 12th 2021, 5:59 PM

    Sorry what support , like we didn’t bail out the banks either , clinging to power at all costs

    307
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    Mute Frank Cauldhame
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    Jul 12th 2021, 7:15 PM

    @Willie Bill Bryan: Remember his spoof attack on Fine Gael policies just before the last election, he somehow thought we had forgotten that his party had propped up Fine Gael in the “confidence & supply” deal for the previous five years whereby they supported every motion FG put before the Dail.

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    Mute Declan Doherty
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    Jul 12th 2021, 7:20 PM

    “Fine Gael need to come out of government, they’ve been there too long, they haven’t delivered on key issues such as housing, health and the impact of cost of living on many people.”

    “The people want a new government. That means a completely new government”

    Michael Martin January 2020.

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    Mute Frank Cauldhame
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    Jul 12th 2021, 7:34 PM

    @Declan Doherty: That’s it, he also accused FG of behaving in a “Jekyll & Hyde” manner to the electorate!!! The neck of him, he’s the looney Jekyll & Hyde character of Irish politics. He’d sell his granny.

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    Mute Brian Madden
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    Jul 12th 2021, 7:45 PM

    @Declan Doherty: and he said he kept getting the same message on the doorsteps that voters wanted FG out of government. He then goes into government with then as equals.he just wanted the gig as taoiseach. He doesn’t really care about housing and the other issues

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    Mute Declan Doherty
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    Jul 12th 2021, 6:11 PM

    Martin is delusional. And as for Leo, I don’t see how we can accept a leak and a proven lia_r as Taoiseach. A week is a long time in politics and we have a long time to go before these changes happen.

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    Mute Elaine Comerford
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    Jul 12th 2021, 6:35 PM

    Martin and Leo will more than likely retire by next General Election, live off their pension and perks, in the mean time they’ll take what ever they can and not give a fiddlers….

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    Mute Ronaldo Blanc
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    Jul 12th 2021, 6:40 PM

    Dustin the turkey has better leadership skills and would do a better job than Mehole.

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    Mute Twitruser2021
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    Jul 12th 2021, 6:01 PM

    The problem is this current rainbow, is going to hand Sinn Fein, if they do get in a very poisonous chalice. I can see Micheál surviving a heave although Leo might be pushed under a bus as well although he has a few that will take the hit for him. When the dust settles and the covid bill has to be paid then we will see, who can make lemon curd toast not taste bitter.

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    Mute Gerard Heery
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    Jul 12th 2021, 6:10 PM

    @Twitruser2021: that why they’re throwing money around like confetti so the country will be well and truly broke when sinn Fein win the next election the mess will need a big shake to get the repayments in and the middle don’t have it any more

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    Mute Peter McGlynn
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    Jul 12th 2021, 6:47 PM

    @Twitruser2021: Leo could be out after investigation of his leak. Also damaged by Dublin Bay South carry on.

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    Mute David Corrigan
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    Jul 12th 2021, 9:55 PM

    @Peter McGlynn: That’s not going to happen Peter. Those guys are untouchable.

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    Mute Jess Foley
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    Jul 12th 2021, 6:16 PM

    Peaky blinders!

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    Mute Twitruser2021
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    Jul 12th 2021, 6:02 PM

    The problem is this current rainbow, is going to hand Sinn Fein, if they do get in a very poisonus chalice. I can see Micheál surviving a heave although Leo might be pushed under a bus as well although he has a few that will take the hit for him. When the dust settles and the covid bill has to be paid then we will see, who can make lemon curd toast not taste bitter.

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    Mute Niall Sheridan
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    Jul 12th 2021, 9:16 PM

    Michael gets a Taoiseach’s pension before he loses the next election and gets fired out by the rest of his buddies and rent-a-gob Leo “leading the nation” as Taoiseach into another election which might get him personally by the fifth count again!

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    Mute BK
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    Jul 12th 2021, 7:29 PM

    Dead man walking …we got a dead man walking here.

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    Mute Diarmuid O'Braonáin
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    Jul 12th 2021, 7:39 PM

    @BK: looking more than likely its gonna be an inside job that’s gonna take him out. Every press conference it gets worse and worse. Remember the whole “The banks weren’t bailed out”…

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