Sandra McLellan (Cork East, Sinn Fein)
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Question 396: To ask the Minister for Social Protection if he will consider taking mortgage payments into consideration when assessing means for jobseeker's' allowance in view of the difficulties persons are facing with repayments; and if she will make a statement on the matter. [29776/12]

Joan Burton (Dublin West, Labour)
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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. Where a spouse/partner has earnings from employment, earnings less PRSI contributions, pension contributions and trade union subscriptions are assessed as means. Mortgage payments are not deducted from earnings for means assessment purposes. However, a person who is claiming Jobseeker's Allowance may also apply for mortgage interest supplement. That scheme is designed to help those who have difficulty meeting their mortgage repayment schedule where their means are insufficient to meet their needs. The scheme provides a short-term "safety net" to ensure that people with mortgage interest commitments do not suffer hardship due to loss of employment.

The mortgage interest supplement scheme is being modernised this month in order to ensure that the Mortgage Arrears Resolution Process operated by the lenders functions alongside State supports, such as the mortgage interest supplement scheme, and that the forbearance arrangements implicit in the Mortgage Arrears Resolution Process are reflected in the eligibility criteria for the mortgage interest supplement scheme. There are two categories of individuals who will be affected by this change:

- New claims whose difficulty is resolved within the first 12 months e.g. if they return to work. These individuals will no longer qualify for mortgage interest supplement, and

- Customers who will no longer qualify for a payment until they have availed of 12 months of an alternative payment arrangement from their lender.

Any further changes to the arrangements outlined above would have to be considered in the context of the on-going review of all Government expenditure.