Stephen Donnelly (Wicklow, Fianna Fail)
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417. To ask the Minister for Social Protection if she will remove the means test on income generated through the rent a room scheme for those in receipt of one parent family payment; and if she will make a statement on the matter. [33288/17]

Regina Doherty (Meath East, Fine Gael)
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Social welfare legislation provides that, for means testing purposes, rental income received by a claimant and his or her spouse/partner where it derived from a property other than the family home is not assessed. However, the yearly value of such a second property is assessed on a notional basis based on the market value of the property less any outstanding mortgage. This reflects the position that the individual possesses a capital asset which can be realised to provide income support.

Where an individual is renting part of their family home, the cash value of the rental income is assessed. Such rental income is reduced by a range of deductions. These include:

i.a proportion of any mortgage interest paid by the claimant on the part of the property rented,

ii. a 15% deduction for voids (i.e. periods when the accommodation is vacant between lettings), and,

iii. if the rooms let are furnished, a 5% deduction for wear and tear..

These arrangements are outlined on the Department’s website at the following link: www.welfare.ie/en/Pages/Means-Assessment.aspx.

In addition, a special provision exists for claimants of the State Pension (Non-Contributory) and Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension, whereby no assessment is made of any money received in respect of rent from a person who lives with the pensioner where, but for that person, the pensioner would be living alone.

Fully disregarding all rental income would run contrary to the policy of ensuring that social welfare expenditure is targeted to those who need it the most. It could also potentially negatively impact on the incentive to work for working age recipients. Any change to my Department’s means policies would have to be considered in the overall policy and budgetary context.