Written answers

Tuesday, 11 May 2010

Department of Social and Family Affairs

Social Welfare Benefits

8:00 am

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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Question 280: To ask the Minister for Social Protection if he will support the case of a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [18871/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 281: To ask the Minister for Social Protection if he will explain the difference between the means test for a spouse claiming jobseeker's allowance and for a child and in particular the exclusion of a mortgage allowance from the spouse's means test and the application of a 60% assessment rate on residual income compared to 34% for a child; and if he will indicate the payment made under these means tests to a child and to a spouse where the earner has the average industrial wage and where the earner has twice the average industrial wage. [18885/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Jobseeker's Allowance is a means tested social assistance scheme operated by my Department. For means test purposes, account is taken of the income and assets of both the claimant and his or her spouse/partner including the earnings of the spouse. In the case of a single claimant aged under 25 years of age, account is also taken of the value of any benefit and privilege enjoyed by that person by virtue of residing with a parent or step-parent.

Where a spouse/partner has earnings from employment, earnings less PRSI contributions, pension contributions and trade union subscriptions are assessed as means. In addition, the first €20 per day is also disregarded, subject to a maximum of €60 per week and 60% of the balance is assessed where a claimant or a spouse/partner has income from employment.

The Central Statistics Office (CSO) ceased to publish data on average industrial earnings a number of years ago. In the most recent report by the CSO on Earnings and Labour Costs, average weekly earnings per employee generally was €691.27 in Quarter 3 of 2009 (preliminary estimate). Where the spouse or partner of a jobseeker's allowance claimant was earning this amount (average weekly earnings in the workforce generally) or twice this amount, there would be no entitlement to jobseeker's allowance as the means assessed would exceed the maximum level of entitlement under the scheme. This is based on a couple with no dependent children.

No account is taken of mortgage repayments in calculating means for social assistance schemes generally, including jobseeker's allowance. This would be inappropriate given that there is a specific social assistance scheme, the mortgage interest supplement scheme, which provides, subject to certain conditions, support for people who have difficulty meeting their mortgage repayments and whose means are insufficient to meet their needs. The mortgage interest scheme takes into account all of the person's income, including social welfare income when calculating levels of entitlement. Accordingly, the net effect of disregarding mortgage interest repayments in calculating means for jobseeker's allowance purposes would be to reduce the level of entitlement to mortgage interest supplement as the income of the person would be higher due to a higher level of jobseeker's allowance being in payment. Mortgage Interest Supplement is not payable to people in full time employment.

Where a single claimant aged under 25 years of age is living with a parent or step-parent in the family home, an assessment is made of the yearly value of any benefit and privilege enjoyed by that person by virtue of residing with a parent or step parent. The value of the benefit and privilege assessed is based on the level of the parents' income.

Parental income includes income from all sources including most social welfare payments. Deductions are allowed for income tax, pension levy, income levy, PRSI, superannuation/PRSA contributions, private health insurance contribution, union dues and rent/mortgage payments. An additional €600 per week is disregarded in the case of a two parent family and 34% of the balance is assessed as the weekly value of the benefit and privilege enjoyed. This means test differs substantially from the means test for jobseeker's allowance (and other social assistance schemes) where a claimant and/or his or her spouse is in employment. The purpose of the benefit and privilege arrangements is to assess a value of the benefit derived by claimants under the age of 25 from residing in the parental home having allowed for reasonable parental personal outgoings including rent or mortgage repayments.

Where parental income was equivalent to average weekly earnings (€691.27), no means would be assessed as net family income after tax and PRSI would be less than €600 per week. Assuming no other means, jobseeker's allowance at the maximum rate applicable to the claimant's age would be payable. If parental income was equivalent to twice average weekly earnings, means of €126 per week would be assessed. This calculation is based on the (parental) couple having no dependent children, no rent or mortgage repayments and being a single earner PAYE household.

In this instance, jobseeker's allowance would not be payable in the case of an 18 to 22 year old as means would exceed the maximum rate of jobseeker's allowance payable while jobseeker's allowance of €40 per week would be payable in the case of a 22 to 24 year old inclusive. In this regard, it should be noted that a minimum payment of €40 per week is payable where a person assessed with the value of benefit and privilege has an underlying entitlement to a rate of jobseeker's allowance of less than €40 per week.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 282: To ask the Minister for Social Protection if a person (details supplied) is entitled to rent relief. [18895/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.

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