The proposed Pay-Related Benefit Scheme

Brendan Burgess

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I made a submission on this back in February



So I was invited to meet the civil servants reviewing the submissions.

I had misunderstood one fundamental part of the proposal.

I had thought that they were simply adding PRB to current Jobseekers Benefit.

But, in fact, they are proposing to replace the JB with a completely new system: PRB.

So the level of PRB you get will depend on your recent salary. It will not matter whether you are single or married, whether you have dependents or not.

While I agree with this, I would imagine that after it is introduced, there will be calls for people with dependents to get more than single people.

Brendan
 
An interesting statistic from our discussion today. Only 10% of people claiming Jobseekers claim for dependents.

It seems that there are three main categories:
1) Single people with no dependents
2) Married couples where both are in paid employment - so the spouse is not dependent on the unemployed person
3) Married couples where the spouse is dependent - this is the 10%.

I am still trying to get my head around this.

Brendan
 
Hi Danny

Yes, it used to actually be a Pay Related Social Insurance scheme. It is no longer pay related. And they are trying to go back to that.

I did raise the prospect of the increased incentive to play the system. Working for 3 months and then getting pay related benefit for 9 months and then working again for 3 months etc. But they are building in safeguards against that.

Brendan
 
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