Bernard Allen (Cork North Central, Fine Gael)
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Question 380: To ask the Minister for Social and Family Affairs the reason a person (details supplied) in County Cork has been told that their rent allowance will be reduced by approximately €5 per week despite the fact that they are no longer working and instead of receiving a weekly wage, are in receipt of disability benefit. [25255/07]

Martin Cullen (Waterford, Fianna Fail)
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The purpose of a rent supplement is to assist eligible people who are unable to provide for their immediate accommodation needs from their own resources. The scheme is administered by the Health Service Executive on behalf of my Department. Payment is subject to a means test, which is designed to encourage people to take up whatever employment opportunities are available to them. The person in question is in receipt of One-Parent Family Payment and had been working part-time until recently when she became ill and claimed Illness Benefit. While she was working, she was entitled to rent supplement of just over €75 per week. The amount payable reflected the favourable treatment of income from employment in the means test. The first €75 of her additional income was disregarded in full and 25% of the rest of her additional income was also disregarded.

In comparison, income from other sources, such as Illness Benefit, is not treated as favourably. When the person in question was not working and claimed Illness Benefit, the amount of rent supplement payable fell to just over €70. When she returns to work her entitlement to rent supplement will be reassessed and she will again become eligible for the income disregard which applies to earnings from employment.