John Brady (Wicklow, Sinn Fein)
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181. To ask the Minister for Employment Affairs and Social Protection the social welfare payments through which child maintenance payments are accessed as means towards such entitlements. [19212/18]

John Brady (Wicklow, Sinn Fein)
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182. To ask the Minister for Employment Affairs and Social Protection her views on the punitive effects of multiple assessments on child maintenance; her further views on whether the assessment process is fair to lone parents; her plans to amend the process; and if she will make a statement on the matter. [19213/18]

Regina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 181 and 182 together.

My Department operates a range of means tested social assistance payments. Social welfare legislation provides that the means test for these schemes takes account of the income and assets of the person and a spouse/partner, if applicable. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments.

The means-tested social assistance payments for which maintenance payments are assessed as means are jobseeker’s allowance; disability allowance; farm assist; state pension non-contributory; supplementary welfare allowance; blind pension; one-parent family payment; pre-retirement allowance; and widow’s, widower’s or surviving civil partner’s non-contributory pension.

For these schemes, maintenance payments (including maintenance payments made to or in respect of a qualified child) are assessed by first disregarding any housing costs incurred up to €4,952 per annum (or €95.23 per week), and then assessing the remainder at 50%.

Accordingly, the total value of any maintenance payments is never assessed as means for these weekly income support payments and the total income received by the family (social welfare payment and maintenance payment combined) will be higher than someone not receiving maintenance payments.

Maintenance payments made to qualified adults of social insurance payments, as well as working family payment recipients, are also assessed as means.

Unlike schemes such as jobseeker’s allowance and one parent family payment, the working family payment (formerly FIS) is an income supplement for employees who work 19 hours or more per week. It is an income tested scheme and account is taken, in determining entitlement, of all net income from employment, weekly welfare payments (if payable), income from any self-employment, maintenance payments and income from any other source. A family in receipt of maintenance will always be better off than a family where maintenance is not a factor as the working family payment replaces 60% of the difference between total family income and the relevant income threshold.

A small proportion of lone parents are also in receipt of rent supplement, in addition to a one-parent family payment and the working family payment. The rent supplement assessment provides for a gradual withdrawal of payment as income increases. Income from employment and working family payment (formerly FIS) in excess of the standard Supplementary Welfare Allowance weekly rate of payment attract an additional income disregard and are assessed as follows: the first €75 of such additional income together with 25% of any additional income above €75 can be disregarded for means assessment purposes.

For rent supplement, maintenance payments of up to €95.23 per week are assessed in determining the appropriate rate payable (vouched weekly rent or mortgage costs of up to this amount are disregarded in establishing the rate of one-parent family payment payable). Where a person has weekly maintenance payments of more than €95.23, it is assessed under rent supplement using the formula as outlined.

It should be noted that multiple means assessments can only occur in a situation where the claimant is in receipt of multiple sources of income from the State. The purpose of means testing is to ensure that resources are targeted to those with the most financial need. The current method of means assessment ensures that appropriate levels of support are available to those who need them, across the wide range of income supports available from my Department.

I trust this clarifies the matter for the Deputy.