Joan Burton claimed returning emigrants are unable to find work, which means there are now thousands more than expected claiming benefits — and her department needs additional funding.

There are almost 7,000 more people claiming jobseeker’s allowance than the Department of Social Protection expected this year, which Ms Burton suggested was due to construction workers coming back from Australia and other countries who have found it hard to secure a job.

This will cost the State more than €60m more than had been anticipated.

Last week, the Irish Examiner revealed Fine Gael plans to lure 70,000 emigrants home in the next four years with tax breaks, measures to help parents register children in schools from abroad, and recognising time abroad as time served in public service jobs.

“Fine Gael want to bring tens of thousands back and the Tánaiste is coming in looking for a supplementary budget and is saying they [people returning home] are swelling the dole queues,” said Fianna Fáil’s Willie O’Dea.

At the Social Protection Select Sub-Committee yesterday Ms Burton confirmed more than €120m in extra funding will be needed to cover spending on job seeker’s allowances.

Mr O’Dea asked if the underestimate was a surprise to the Tánaiste and her department.

Ms Burton said: “The additional that is being sought for the jobseeker’s allowance is €120.11m but this is offset by an expected under-spend of €15.9m on jobseeker’s benefit, so the net figure is €104.2m.”

She said that €32m of this is needed for Christmas bonuses for people on jobseeker’s payments, while €11.6m is for advanced payments to those on jobseeker’s allowance and jobseeker’s benefit who had been due to be paid on January 1, but will now be paid at the end of December.

“The balance of €60.3m is due to higher numbers of jobseekers getting payment and other factors such as higher payment values,” said Ms Burton.

“I think there is nowa palpable instance of people who previously emigrated returning home.

“So people who have been in Australia for two or three years — in many cases they are people involved in construction and I know myself particularly in rural areas they might not get work immediately.

Fine Gael bid to lure 70,000 emigrants back with proposals include tax breaks https://t.co/a7fOb9b69i (GM) pic.twitter.com/DnfDcCzldO — Irish Examiner (@irishexaminer) November 28, 2015

Ms Burton said financial provision had been made for an average live register of 337,000 “but the out-turn, as I said, is expected to be somewhat higher because of returning emigrants, which will be about 6,700 higher than the provisions in the 2015 rev [revenue] estimates”.

“I think there is a positive in that, just from my experience going around the country it involves a fair few people coming home. But on a very positive note this is 40,000 less than the out-turn in 2015,” the Tánaiste said.

The latest CSO figures show 69,300 immigrated into Ireland in the 12 months to April. However, 80,900 left the country in the same time.

Speaking after the committee meeting, Mr O’Dea said Ms Burton’s claims that those returning are pushing up the figures on welfare is based on purely anecdotal evidence. “There is no suggested evidence to support that ,” he said.