Sinn Féin introduced Private Members’ business this week in relation to the lack of a cost-of-disability payment. There were many organisations in Leinster House on the day, including Rehab, the Irish Wheelchair Association and the Disability Federation of Ireland and a number of its constituent organisations. There is a point that needs to be repeated. Everyone accepts what was in the Indecon report commissioned by the Government back in 2021. It found that the cost of disability is, on average, between €9,482 and €11,734 per annum. Given the removal of the one-off payments that were included last year, there has been a huge cut of anywhere between €1,200 and €1,600 for those with a disability. Another issue that was brought up, particularly by Rehab on the day and by others since, is the wage subsidy scheme. I thank the Minister of State for being present to deal with this matter. I spoke earlier with Deputy Dara Calleary, who is the Minister responsible for the scheme. It is fair to say that the wage subsidy scheme is not fit for purpose. The scheme is the means by which companies get a certain payment for employing those with disabilities. They would get an increased payment for employing a number of people due to added costs of, for example, administration and so on. The problem with this State is that we have a disability employment rate of approximately 32.6%, which is almost 20% below the EU average of 51.3%. Moreover, the disability employment gap is 38.6%, which is higher than the EU average of 24.4%. This problem has to be addressed. There were complaints regarding strand 3 funding, which has remained static over 20 years despite an estimated inflation rate of over 50% in the intervening period. We can see how this would impact employers. I thank Rehab for its correspondence in this regard, which I will put on the record: We were somewhat encouraged with the announcement of an increase of €1.20, in the WSS base rate, although it was far short of what we had hoped, which was an increase of €3.40, to attempt to start to address ... [wage] increases [which, obviously, nobody is against but there is an impact in relation to these companies]. Strand Two of WSS, allowed for a top-up, depending on the number of disabled people employed from 10% to 50%. As one of the larger employers of people with a disability, if we were awarded the full top-up rate of 50%, this would provide a rate of €1.80 per hour. However, that did not happen. I will go through a number of the points raised in the letter. If a company had three to six employees, whereas previously it would have been paid €6.93 - I am talking about fixed rates - that has gone to €7.50. However, it is not a €1.20 increase for them; it is a 57 cent increase. For those at the higher end, for example at 23% where they would previously have got a 50% wage subsidy, it only jumped from €9.45 to €10. It is an increase, but of just 55 cent. We all know the inflationary difficulties that exist at the minute. I will go through some of the figures from the last while. In 2022, the subsidy was €6.30, or 60% of the minimum wage. By 2025, this was down to 46.6%. If we look at the number of employers, in 2019 there were 1,979 and but that had down to 1,504 by last year. The number of employees was 2,881 in 2019, and it is now 2,466. Those numbers are all going in the wrong direction.
Sentiment score: 0.02
That the programme for Government "commits to further review the minimum hours requirement under the wage subsidy scheme" is an absolute necessity. It goes without saying that we need "to examine an increase to the payment rate". One of the fears is with the three-year review mechanism. There will be other factors that will impact the costs faced by the Rehab Group and some of these other organisations, as well as on their ability to operate. We need to make sure there are not more employers who remove themselves from this scheme, which would mean there is less available employment for those with a disability. We are not in a good place in that regard. Beyond that, we need to streamline the entire system. The work and access programme, which allows for reasonable accommodation funding, is not fit for purpose. The wage subsidy scheme at the minute needs to be reviewed. I ask the Minister of State to go back to the Minister from the point of view that this needs to be looked at. I will pass on the correspondence from a number of organisations that are in difficulty. The following statement is from Reach Ability: We are a small social enterprise based in Wexford supporting and employing people with intellectual disabilities. We rely on the WSS to support a number of our employers and the widening gap over recent years between the WSS and the minimum wage has put us under increasing financial pressure. Having heard that the WSS is to increase by €1.20 per hour this year, but to then discover that our rate will only increase by 57 cent per hour while the minimum wage is going up by 65 cent, is dispiriting to everyone who is working so hard to maintain our jobs. They have requested any support that can be offered. I received the following correspondence from Mr. Price: For employers like us with 23 or more people with a disability on the pay roll, the rate paid increases from €9.45 to €10, an uplift of 55 cent. While this is welcome, it falls far short of offsetting the ongoing impact of successive wage increases. At the minute, it is not fit for purpose. It needs to be looked at. We need to look after those with disabilities and we are failing at the minute.
Sentiment score: 0.09