Richard Bruton (Dublin North Central, Fine Gael)
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Question 337: To ask the Minister for Social Protection the way the income of a self-employed person is assessed for jobseeker's allowance where a fall in business means the activity is not generating sufficient income to support the applicant and their family; if the business assets are valued as available capital even though their sale would end the business venture; the way debts are treated as an offset; and if he will make a statement on the matter. [3304/11]

Éamon Ó Cuív (Galway West, Fianna Fail)
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Self-employed people can 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. Self-employed customers do not have to de-register as self-employed persons in order to claim jobseeker's allowance. Information on social welfare entitlements, including for self-employed people, is set out on the Department's website – www.welfare.ie.

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 assets of an operating business are not assessed as income. While accounts provide significant information, a means assessment is not based solely on audited accounts. The income from the previous twelve months is used as an indicator of likely future earnings but it is not simply assumed that the previous year's earnings will be received in the following year. 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. Any debts incurred by the customer are not taken into account when assessing means.

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, the person can apply to have his or her means reviewed in the light of these changed circumstances. In addition, it is open to the individual to appeal to the Social Welfare Appeals Office if he or she is dissatisfied with the level of means assessed.

Guidelines are issued to Deciding Officers in order to ensure a consistent and uniform application of the rules governing the deciding of jobseeker's allowance claims.