Joan Burton (Dublin West, Labour) | Oireachtas source

Jobseeker’s allowance is a means-tested social assistance scheme operated by my Department. My Department will spend almost €3.1 billion on the scheme in 2013, which is just over 15% of its programme spend this year. For means-testing purposes, account is taken of the income and assets of both the claimant and his or her spouse or partner, including the earnings of the spouse. Where a claimant or a spouse or partner has earnings from insurable employment, earnings less PRSI contributions, pension contributions and trade union subscriptions are assessed as means. A disregard of €20 per day is applied to the earnings for each day worked, subject to a maximum of €60 per week. The balance is then assessed at a figure of 60%. This provides for a means assessment system, whereby the two adults associated with a given claim are assessed in a similar manner with common disregards and assessment applying to both. This replaced an overly complex system which contained disincentives and poverty traps. The current system of assessment has been in place since 2007 and there have been no changes to the scheme since that date. The earnings are assessed by reference to the earnings earned in the 13 weeks preceding the date of the claim or during a period which the deciding officer considers appropriate, having regard to the circumstances of the case.

Where a person or spouse is self-employed, the claimant can apply for jobseeker’s allowance if his or her business ceases or if he or she has a low income as a result of a downturn in demand for the services. In general, a person's means will take account of the level of earnings in the past 12 months and all expenses necessarily incurred in determining the expected income for the following year. In the current climate account is taken of the downward trend in the economy.

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