Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 177: To ask the Minister for Social and Family Affairs if she will restore previously established entitlements to means tested social welfare payments on the basis of a means test for self employed persons who have become employed; and if she will make a statement on the matter. [9466/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

There has been no change to the provisions relating to the entitlement of self-employed persons to a jobseeker's allowance. Self-employed people may apply for the means-tested 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.

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.

Their means would be taken as any net profit that they will earn in the coming 12 months. While their income from the previous twelve months is used as an indication in estimating their likely future earnings, it is not simply assumed that the previous year's earnings will be received in the coming year. Instead, account is taken of the potential for significant upward or downward variations in income from one year to the next.

For example, 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.