Written answers

Tuesday, 10 March 2009

Department of Social and Family Affairs

Social Welfare Benefits

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 325: To ask the Minister for Social and Family Affairs when rent allowance payments and arrears will be awarded in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [9599/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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The Health Service Executive has advised that payment of rent supplement for the month of March 2009 and arrears due will issue on 30 March 2009.

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 326: To ask the Minister for Social and Family Affairs the status as regards the means test of a person applying for jobseeker's allowance and living in the family home in view of the situation that these applicants are means tested and appear to be allowed only a portion of the jobseeker's allowance due to the benefit of living at home which is forcing young people out of their home to secure independent accommodation to qualify for the full rate of jobseeker's allowance; and if she will make a statement on the matter. [9632/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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In assessing the means of a person under 25 years who is living with a parent or step-parent in the family home, account is taken of the value of the benefit and privilege enjoyed by that person by virtue of the fact that they have free board and lodgings. Board and lodging are taken into account because a person living at home with parents does not have the same expenses as a person who does not live with parents and who has to provide his/her own accommodation, meals etc.

The value of the free board and lodging is determined by reference to the parental income. Parents' income from all sources is taken into consideration for this purpose and certain Social Welfare and Health Service Executive payments. However, there are very significant disregards applied. Disregards are applied in respect of tax, PRSI, health insurance contributions, superannuation, PRSAs and union dues and rent or mortgage repayments. A further disregard of €600 a week is applied for a two parent family and €470.00 a week for a one parent family. An additional disregard of €30.00 applies for each child under age 18 who is not getting a Social Welfare/Health Service Executive payment in their own right and for any child over age 18 in full-time education. The balance of income is assessed at 34%. This means that, if a person under 25 is living at home with parents and there are no other siblings, the parents can have weekly income of €600 without it affecting the jobseeker's payment. The income may be higher if there are other non-earners in the family. I am satisfied that the current arrangements for assessing parental income in the case of a person under age 25 are fair and do not force young people to leave home.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 327: To ask the Minister for Social and Family Affairs if her attention has been drawn to the experience of job recruitment agencies, where offers of short-term contracts for up to six weeks work are being rejected by genuine people who are registered for unemployment benefit in view of the length of time it would take them to reapply for social welfare payments; her plans to address this matter; and if she will make a statement on the matter. [9669/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I appreciate that there are delays in processing claims in some areas and that this is causing difficulties for some people. However, the average processing time for jobseekers benefit claims processed in February was 3 weeks. This is the national average and there are differences from office to office. The Department is continuously reviewing its processes in order to deal with claims in a shorter period of time. Additional resources have been allocated to offices and we are in the process of setting up central units that will concentrate on clearing backlogs for offices with the highest amount of arrears.

I should also point out that a person who refuses an offer of employment unreasonably, even if it is just a short-term contract, runs the risk of being disqualified for receiving a jobseekers payment on the grounds that he or she is not genuinely seeking work. Where there is delay in dealing with a jobseekers claim, it is open to the claimant to apply for Supplementary Welfare Allowance as an interim measure.

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 328: To ask the Minister for Social and Family Affairs the reason self-employed people must cease trading before they can sign on for jobseeker's allowance in view of the fact that debts due to them would be uncollectable if they cease trading. [9704/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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A self-employed person is not required to cease trading before they can qualify for jobseekers allowance. A self-employed person can apply for this scheme if their business ceases or if their income falls as a result of a downturn in demand for their services. Jobseekers allowance is a means-tested payment and any person who satisfies the means test and the other conditions of entitlement will qualify for a payment.

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 means of a self-employed person are 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, particularly those in the construction industry, and the consequent reduction in their income and activity levels would be reflected in any assessment of their means.

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.

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