Jack Wall (Kildare South, Labour)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Social Protection where a young person aged 23/24 loses a job, then are entitled to jobseekers benefit for a certain number of months; if he will confirm the criteria on which they are assessed in relation to the income of their parents; if the parents have to declare all their income; is the family home mortgage assessed in the means test; what are the limits for the parental income; and if she will make a statement on the matter. [55355/12]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Jobseeker’s benefit is paid at the full standard rate to qualified claimants regardless of age and without a means test, subject to the normal rules of the Jobseeker’s Benefit scheme. If a claimant is still unemployed when they exhaust their entitlement to Jobseeker’s Benefit, they may claim Jobseeker’s Allowance which is subject to a means test. People transferring to Jobseeker’s Allowance immediately after finishing their entitlement to Jobseeker’s Benefit may receive the maximum weekly payment rate of €188 rather than the reduced rate of €144 or €100 which is paid to jobseeker’s allowance recipients aged between 18 and 21 or 22 to 24 respectively.

Current legislation provides that where a person aged 25 years or under claims Jobseeker’s Allowance and 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 there. The value of the benefit and privilege assessed is based on the level of the parents' assessable income.

There are two exceptions to this rule. No assessment is made where a son or daughter and his or her spouse / civil partner / partner is living with his / her parents or where a person returns to the parental home having had an independent life elsewhere in Ireland or abroad for an appreciable length of time e.g. at least three years. Parental income includes income from employment, self-employment, pensions, rental income, maintenance payments and some social welfare payments and health service executive payments.

All income must be declared. However, deductions are allowed for income tax, universal social charge, PRSI, superannuation/ PRSA contributions, private health insurance contribution, pension levy and union dues. Deductions are also allowed for rent or mortgage payments and a parental allowance of €600 per week per couple plus €30 per week in respect of other dependent children applies. Any balance is assessed at 34% and this constitutes the weekly value of benefit and privilege.

Once the person concerned reaches 25 years of age, the value of any benefit and privilege will no longer be regarded as means.