Róisín Shortall (Dublin North West, Labour)
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Question 322: To ask the Minister for Social and Family Affairs the way income tax, tax levies and so on are treated in the means test for jobseeker's allowance; if a different set of rules applies to a person's application when their spouse is working and the spouse's earnings form part of the means test than when a person living with family is assessed on the basis of their parents' income; the rationale for same; if she is satisfied that the different sets of rules treat applicants equally; and if she will undertake to review and change the rules relating to the assessment of a spouse in order that it is based on actual household income. [6437/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The cash income (excluding all social welfare payments) of a claimant and his or her spouse or partner is assessable as means for the purposes of jobseeker's allowance. A range of disregards apply depending on the source of the cash income. Where the spouse or partner of a claimant has earnings from employment, social insurance contributions, the health contribution, superannuation/PRSA contributions and trade union subscriptions are disregarded. €20 per day worked is then disregarded (up to a maximum of €60 per week) and 60% of the balance is assessed. The same arrangements apply when the claimant is in employment. Where a claimant or his or her spouse or partner is in receipt of cash income from another source, social insurance contributions, the health contribution and PRSA contributions are disregarded as well as any expenses incurred in relation to any form of self-employment.

The current arrangements for jobseeker's allowance are designed to incentivise claimants to enter, re-enter or, in the case of a spouse or partner, to remain in the workforce. Income tax and the income levy contributions are not disregarded as to do so would mean that part of such deductions would be repaid vi a the jobseeker's allowance scheme. In the case of income tax assessable under Schedule E, a one-earner married couple with no children are not liable for income tax where earnings are below €27,450 per annum (€31,950 in the case of a one-earner married couple with children and €36,600 in the case of a two earner married couple). The income levy only applies where individual annual income is in excess of €18,304 per annum.

Where a claimant for jobseeker's allowance is aged under 25 years of age, the yearly value of any benefit or privilege enjoyed by that person by virtue of residing with a parent or step-parent is assessed as means. This is calculated as a percentage of the net disposable income (including social welfare payments other than child benefit, fuel allowances and guardian's payments) available to the household after a range of deductions. Deductions are allowed for income tax, the income levy, PRSI, superannuation/ PRSA contributions, private health insurance contribution, trade union subscriptions as well as rent or mortgage payments.

When the net income is calculated, a disregard of €600 per week for a two parent family and €470 per week for a one parent family is applied. An additional disregard of €30 applies for all children up to 18 years of age who are not getting a welfare or HSE payment in their own right and for all children over 18 years in full time education irrespective of their age. 34% of the balance is assessed as the weekly value of the benefit and privilege enjoyed by the claimant. The means testing arrangements relating to the assessment of benefit and privilege are therefore fundamentally different then those applying in the case of jobseeker's allowance. This reflects the fact that the purpose of the assessments differs. Any changes to the current arrangements for jobseeker's allowance would have to be considered in a Budgetary context including the availability of resources.