Mary Hanafin (Dún Laoghaire, Fianna Fail)

Jobseeker's allowance and farm assist are means tested payments. In each case, social welfare inspectors interview claimants and make the inquiries necessary to ascertain their means. Historically, self-employed people were assessed on their income in the 12 months prior to claiming, and decisions were made on that basis. This has proved an effective measure of means during periods of relatively stable economic conditions. However, it has always been open to each applicant to make a case showing that his or her income in the coming 12 months was likely to be reduced in light of personal or economic circumstances. The Department's inspectors and deciding officers take account of such arguments and, in assessing means, exercise their best judgment as to the likely income such a person would receive in the 12 months following their 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 it had been, the Department issued a circular in May 2008 advising inspectors of the need to recognise that, in general, less work would be available in the current economic environment and, as a consequence, the income of a self-employed person may be reduced. A further circular, on self-employment process improvements, was issued in December 2009. It advised inspectors to deal efficiently and effectively with means tested cases that contain an element of self-employment. Inspectors were advised that each case should be examined on its merits and that they should apply their knowledge of local conditions to arrive at a fair assessment of the income from self-employment for the coming 12 months.

Some 88% of farm assist claims and 93% of self-employed claims that were decided on in the period between January and December 2009, inclusive, were awarded. If a self-employed person's situation changes 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, if the individual is dissatisfied with the means assessed, it is open to him or her to make an appeal to the social welfare appeals office. I appreciate the need to ensure that claimants who have been self-employed, and whose income is significantly affected by the economic downturn, receive their full entitlements in a timely manner. I assure the House that we are doing our best to ensure that this is achieved.

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