Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 336: To ask the Minister for Social and Family Affairs if and when social welfare inspectors at local level will be advised to use present income for self-employed rather than historical income as is the case to date; her views on the fact that many self-employed and farmers are at present experiencing an economic crisis; and if she will make a statement on the matter. [40205/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Jobseekers Allowance and Farm Assist are both means tested payments. The manner in which means are to be assessed are set out in the Third Schedule of the Social Welfare Consolidation Act 2005. In most such cases, a Social Welfare Inspector will interview the claimant and make such enquiries as are necessary to ascertain the means of the applicant.

The Department produces administrative guidelines to assist Inspectors in this task. These guidelines are supplemented from time to time to take account of changing legislation or circumstances.

Legislation provides that a person's income in the coming 12 months is the basis of his/her means. The means assessment guidelines state that where the income in the coming 12 months is not otherwise ascertainable and this is usually the case, the income for the last 12 months should be taken as a guide, allowing for any factors which it is known will vary.

Historically self-employed persons tended to be assessed with their income in the 12 months prior to claiming, and a decision was given on that basis. This was in the context of the relatively stable economic conditions. However, it was always the case that where an applicant had ceased self employment and could demonstrate this or where an applicant could justifiably maintain that their income in the coming 12 months was likely to be greatly reduced in light of circumstances which could include personal or economic circumstances, then Inspectors and Deciding Officers would always take account of this, and exercise their best judgement as to the likely income a person would receive in the 12 months following their claim.

In light of the changed economic climate, and recognising that the system of using past-year earnings as a basis for assessing means was no longer as suitable in all cases, the Department issued a circular in May 2008 advising Inspectors of this and pointing out that in light of changed economic circumstances, it would generally be the case that less work was going to be available to a claimant in the foreseeable future. Inspectors were advised that they should thoroughly question any applicant in this regard and apply their knowledge of local conditions to arrive at a fair assessment of their income from self-employment in the coming 12 months.

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

In the meantime it is important to remember that people who have urgent income support needs can apply for the means tested Supplementary Welfare Allowance (SWA) and more than 95% of basic SWA applications are decided on, and paid, within the week.

I appreciate the need to ensure that claimants who have been self employed, and whose income is significantly affected by the economic downturn, receive their full and fair entitlements in a timely manner, and I assure the House that we are doing our best to achieve this.