Jim O'Keeffe (Cork South West, Fine Gael)
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Question 400: To ask the Minister for Social and Family Affairs his views on whether it is fair that adult family members who happen to reside at home have their application for the unemployment assistance affected and often rejected due to the fact that the income of their parents is taken into account in assessment of means; and the steps he will take to alter the situation. [35194/05]

Séamus Brennan (Dublin South, Fianna Fail)
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For unemployment assistance purposes, the assessment of means for non-householders resident in the parental home has always taken into account the yearly value of any benefit and privilege enjoyed by him or her by virtue of residing with a parent or step-parent. In practice, this is taken to mean the value of free board and lodging to a claimant and such value is ascribed having regard to the level of parental income.

The Commission on Social Welfare, 1986, examined the then operation of the benefit and privilege arrangements. The Commission recommended the abolition of the concept of benefit and privilege for those aged 25 years and over. In reaching this conclusion the Commission stated:

The reason for this cut-off point (25) is that by that age young adults would normally have become financially independent of the parental home. The minority, however, unable to obtain employment by that age or those who become unemployed at a later age should also be entitled to financial independence and it can be argued that such persons should, therefore, be entitled to a payment in their own right, irrespective of parental means. Payment at the full basic rate is appropriate in such cases.

In budget 2003, the assessment of benefit and privilege for UA claimants aged 29 years and over was abolished. Budget 2004 abolished the assessment for those aged 27 and 28 years of age. In budget 2005, I further reduced the age above which the assessment of benefit and privilege does not apply to 26 years of age.

Any further change in these arrangements would fall to be considered in a budgetary context.