Seán Haughey (Dublin North Central, Fianna Fail)
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Question 296: To ask the Minister for Social and Family Affairs the reason a person applying for unemployment assistance, who lives with his or her parents, must have parents' income taken into account in determining eligibility; if he will introduce individualisation in cases like this; and if he will make a statement on the matter. [38872/05]

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. In 1986, the commission on social welfare 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 the past three budgets, the assessment of benefit and privilege for unemployment assistance purposes was progressively abolished for persons in excess of certain ages. In this year's budget, announced last week, I was pleased to abolish the assessment of benefit and privilege in all cases where the unemployment assistance claimant is aged 25 or over, thereby bringing the commission's recommendation into full effect. This measure comes into effect in February next and will cost approximately €0.63 million in a full year. In the case of unemployment assistance claimants aged under 25, the maximum assessment is restricted to 17% of parental income. A minimum of €40 is payable where the claimant qualifies for any amount of unemployment assistance.