Arthur Morgan (Louth, Sinn Fein)
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Question 12: To ask the Minister for Social and Family Affairs her views on whether the new PRSI requirements for jobseeker's benefit unfairly penalise young people who may have lost their first jobs as a result of the economic downturn. [9242/09]

Arthur Morgan (Louth, Sinn Fein)
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Question 19: To ask the Minister for Social and Family Affairs the rationale behind changing the PRSI qualification for jobseeker's benefit from the standard 52 weeks to the new 104 weeks. [9241/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 12 and 19 together.

Entitlement to a social insurance payment is based, among other things, on fulfilling the social insurance contribution conditions for the particular benefit being claimed. A person claiming jobseeker's benefit is required to have paid a minimum number of contributions since they first started working and also to demonstrate a recent attachment to the workforce by having a minimum number of contributions in a recent tax year.

These contribution rules aim to preserve a balance between the level of contributions paid and the amount of benefits received in terms of the rate of payment and the duration for which the payment will be made. This approach is informed by the contributory principle of the social insurance system, whereby contributors build an entitlement to benefits by having themselves made significant contributions. The principle protects both the entitlements of contributors and the rationale for the social insurance fund. The fund, having recorded a surplus of income over expenditure since 1995, recorded a deficit in 2008. A further shortfall is expected this year and although these current deficits can be met from the accumulated surplus, it looks likely that the Exchequer may yet again have to subsidise expenditure from the Social Insurance Fund within a few years.

The number of people claiming short-term benefits, such as Illness and Jobseeker's Benefit has increased significantly in recent years. In this context, the Government considered it appropriate to look at some of the instances where people with very limited or distant contribution record have been able to qualify for very significant benefits, regardless of their household income. It had been the case that a person who had paid just 52 PRSI contributions in total could qualify for jobseeker's benefit.

This meant that migrants or young workers who had only worked for a total of one year were entitled to claim jobseeker's payments for 12 months, without having to satisfy a means test.

From January 2009, the number of paid contributions required to qualify for the benefit was raised to 104 for new claimants to bring greater balance between the contributions made and the benefits received.

In addition, it had been the case that people who had paid 260 or more PRSI contributions could receive jobseeker's benefit for up to 15 months. From 15 October, 2008, this has been limited to 12 months for existing claimants with less than six months duration on the scheme as well as for all new claimants. Where the claimant has paid less than 260 PRSI contributions, the maximum duration of jobseeker's benefit is 9 months (instead of 12 months) for existing claimants who have been in receipt of benefit for less than three months and for all new claimants.

People who are affected by these changes will be able to claim jobseeker's allowance or supplementary welfare allowance subject to satisfying a means test. The maximum rate of these two schemes is paid at the same rate as jobseeker's benefit.

Róisín Shortall (Dublin North West, Labour)
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Question 13: To ask the Minister for Social and Family Affairs the action she has taken to ensure that all deciding officers are aware that a self-employed claimant's previous years earnings should not be taken as their current means; if guidelines or additional memos have been issued in the past month to deciding officers; and if she will make a statement on the matter. [9264/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Self-employed people may apply for jobseeker's allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. Means of a self-employed person are assessed having regard to previous earnings, the persons current earnings and the prevailing business environment, and likely level of income of the person in the coming 12 months.

Given the variety of self-employment situations, the means assessment procedures in these cases are applied in a flexible manner and they ensure that any circumstances that would be likely to lead to a significant variation, either upward or downward, in the level of a person's income from one year to the next are taken into consideration. Issues taken into account include the loss of a contract or the likelihood of finding a replacement contract.

Legislation provides for the assessment of all income in cash and any non-cash benefits which the person or his or her spouse may reasonably expect to receive during the succeeding year.

The means assessment guidelines state that where the income in the coming 12 months is not ascertainable otherwise, the income for the last 12 months should be taken as a guide, allowing for any factors which it is known will vary the estimated earnings. Means would be taken as any net profit that they will earn in the coming 12 months.

If a self-employed person lost a contract and was unlikely to find a substitute contract in the coming year, this would be factored into the assessment of future income. It is recognised that the present downturn in the economy is having a significant impact on many self-employed persons and the consequent reduction in their income and activity levels would be reflected in any assessment of their means from self-employment for jobseeker's allowance purposes.

If a self-employed person's situation changes after they have made an initial claim for Jobseeker's Allowance, they can apply to have their means reviewed in the light of their changed circumstances. In addition it is open to the individual if he or she is dissatisfied with the means assessed to appeal to the Social Welfare Appeals office.