Joan Burton (Dublin West, Labour)

The changes in the farm assist scheme referred to by the Deputy will result in estimated savings of €5 million in a full year and will affect approximately 10,000 recipients. Farm assist is a means-tested payment which is broadly similar to jobseeker's allowance. There are currently approximately 11,310 recipients on the scheme. It is expected to cost €115 million this year, slightly up from approximately €114 million in 2011.

The farm assist means assessment takes into account expenses incurred in relation to farming activities and also includes two sets of disregards that are unique to the farm assist scheme. In arriving at net income, gross income is first established and all expenses necessarily incurred in carrying out self-employment are deducted and then the two sets of disregards are applied. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the current year. However, account can be taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.

Budget 2012 contained two measures relating to farm assist, both of which affect the special disregards. The first measure increases the assessment of means from self-employment, including farming and any other self-employment, from 70% to 85% of net income. The second measure halves the deductions from net income in respect of children to €127 per year for each of the first two dependent children and €190.50 per year for each subsequent child. These measures align the farm assist scheme more closely with the jobseeker's allowance scheme on which it is based, but the means assessment for farm assist is still the more favourable of the two.

Additional information not provided on the floor of the House

Assessment of means from self-employment for jobseeker's allowance is currently 100% and there are no disregards for child dependants.

The measures apply to new claimants from 1 January 2012. For existing claimants, review forms together with an explanatory letter are currently issuing to all farm assist claimants. Claimants will be given two weeks to return the forms. Where this review results in entitlement to a lower rate of payment, each recipient will receive a letter detailing their revised payment levels. A revised decision will issue if the review results in a cessation of entitlement. If a farm assist customer's position changes after their payment rate has been revised, he or she can apply to have his or her means reviewed in light of his or her changed circumstances. In addition, it is open to the individual, if he or she is dissatisfied with the means assessed, to appeal the decision to the social welfare appeals office.

These measures increase equity in the social welfare system by bringing the conditions of the scheme closer to those of jobseeker's allowance and are fair and equitable in our current economic circumstances.

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