Mary Hanafin (Dún Laoghaire, Fianna Fail)

Jobseekers allowance and farm assist are both means tested payments. In such cases, a social welfare inspector interviews the claimant and makes such inquiries as are necessary to ascertain the means of the applicant. Historically self-employed persons were assessed on the basis of their income in the 12 months prior to claiming and a decision was given on that basis. In the context of relatively stable economic conditions this proved an effective measure of means. However, it was always open to an applicant to make a case showing that his or her income in the coming 12 months was likely to be greatly reduced in light of personal or economic circumstances. The Department's inspectors and deciding officers would take account of this and in assessing means would exercise their best judgment as to the likely income a person would receive in the 12 months following the claim

In light of the changed economic environment and recognising that the system of using past year earnings as a basis for assessing means was no longer as equitable as heretofore, the Department issued a circular in May 2008 advising inspectors of the changed economic circumstances and the need to recognise that less would be available to claimants in the foreseeable future. Inspectors were advised that each case should be examined on its merits and they should apply their knowledge of local conditions to arrive at a fair assessment of the income from self-employment in the coming 12 months. Where a self-employed person's circumstances change after he or she has made an initial claim for jobseeker's allowance or farm assist, he or she can apply to have his or her means reviewed. In addition, it is open to the individual, if he or she is dissatisfied with the means assessed, to make an appeal to the social welfare appeals office. In the meantime, it is important to remember that people who have urgent income support needs can apply for the means tested supplementary welfare allowance, SWA, and more than 95% of basic SWA applications are decided on and paid within one week.

I appreciate the need to ensure claimants who have been self-employed and whose income is significantly affected by the economic downturn receive their full and fair entitlements in a timely manner. I assure the House that the Department is doing its best to ensure this objective is achieved.

See this speech in context