The Job Initiative Scheme which has been closed to new applicants since 2004 cost the state €10.7m last year.
A new report from the Comptroller and Auditor General (C&AG) states that the scheme no longer functions as it was intended.
It was launched back in 1996 to help the long-term unemployed prepare for work by providing participants with work experience, and training and development opportunities.
Since 2012, the number of participants has decreased from 1,180, to just 374 as of December 2023.
Participants are required to work 39 hours under the scheme, but can also work outside of the scheme.
An audit carried out by the C&AG found that of 25 participants examined, one was also working full-time in addition to the scheme.
While there is no formal strategy in place to wind down the scheme, participants have the right to remain on it until they reach statutory retirement age.
Due to the age of the participants, the C&AG said this means the scheme will come to an end in 2046.
It has recommended that the Department review the operating controls and procedures in place for the scheme at least every three years, to ensure they are still fit for purpose.
