Written answers

Tuesday, 3 May 2011

Department of Social Protection

Social Welfare Benefits

9:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 300: To ask the Minister for Social Protection if she will provide a revised assessment for jobseeker's allowance for a person currently on the back to work enterprise allowance for the self-employed (details supplied). [9166/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Department operates a range of employment support measures designed to encourage and support social welfare recipients of working age to reduce their dependency on welfare payments. The back to work enterprise allowance (BTWEA) is designed to provide a monetary incentive for people who are long term dependent on social welfare payments to make self employment financially attractive and viable. Participants are allowed retain a reducing proportion of their qualifying social welfare payment (100% in year 1 and 75% in year 2) and may retain secondary benefits over two years.

Payment under the scheme is at the same rate as the primary social welfare payment that qualified the person for the BTWEA at the date of commencement of self employment. Means are not reviewed during the duration of the claim.

It may be the case, though they continue to be self-employed, the earnings from the business has reduced to a point where it no longer provides a person with a sufficient income and they may be financially better off to claim jobseeker's allowance. A person does not need to close their business or stop working as self-employed to receive jobseeker's allowance as it is payable if the customer satisfies all the conditions including the means test.

The earnings from the business will be assessed in the means test for jobseeker's allowance. The assessment must reflect the income a person may reasonably be expected to get from the business over the next 12 months. Income for the last 12 months will be taken as a guide but allowing for any factors which it is known may vary.

The BTWEA conditions will continue to be monitored in the context of the objectives of the scheme and changing economic circumstances.

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