JobBridge to close to new applicants from Friday

A new scheme to replace the controversial Jobbridge programme, which will see those out of work take up work experience and receive the minimum wage, is to be introduced next year.

Minister for Social Protection Leo Varadkar on Tuesday announced that Jobbridge will be closed to new entrants from Friday, following an earlier commitment that he would shut it down.

Jobbridge was introduced by the last Fine Gael-Labour government and saw those who took up work placements receive an extra €52.50 on top of their existing welfare entitlement, such as the dole.

It was criticised for the low level of additional payment given to those who took part, and also led to claims that some employers were exploiting the scheme for cheap labour.

Mr Varadkar launched an independent study into the scheme at an event in Dublin’s Royal Irish Academy and, although he said it was “far from perfect”, he said it had achieved its goals.

The independent study of the scheme, by consultants Indecon, carried out a survey of 10,500 people who took part in Jobbridge. It was reviewed by the Labour Market Council and recommended that Jobbridge be shut down.

‘Satisfied’

The Minister defended Jobbridge as a measure introduced at the height of the economic crash and said it helped 38,000 unemployed people back into work.

While it will be closed to new applications from this Friday, those currently in the scheme will see out their existing internships, which last for either a six or nine month period.

“Some two thirds of the employers were SMEs (small and medium enterprises), and most of the organisations were very satisfied with the programme,” a statement from the Department of Social Protection said. “However, most participants were dissatisfied with the level of payment and a sizeable minority rated the programme negatively on some aspects, such as the quality of training.”

Mr Varadkar said the new programme will not be a revised or recast version of Jobbridge. Groups such as unions and employers will be asked to make submissions in the months ahead on how it should be structured.

Mr Varadkar said that, in line with recommendations of the Indecon report, the new scheme will focus on the medium to long term unemployed and will pay at least the minimum wage, which was increased by 10 cent per hour to €9.25 in the budget.

This will operate by topping up existing welfare payments to the minimum wage levels. Indecon has also proposed that the taxpayer contribution could be limited to three months, with employers taking up the cost thereafter. The total duration of the scheme would be six months instead of the maximum nine months for Jobbridge and would also “place a greater emphasis on skills development through workplace learning”.

However these, and other details, have yet to be decided upon by Mr Varadkar.

Mr Varadkar also said he wants the new scheme to have more of a focus on the private sector, and that the hours worked could be limited to 30 to 32 hours per week. It is estimated that the full year cost of the scheme will be €30 million.