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.