Sorca Clarke (Longford-Westmeath, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

903. To ask the Minister for Employment Affairs and Social Protection the amendments that have been made to the calculation of assessable income for self-employed persons or the spouses of self-employed persons in terms of application for the disability allowance given the ongoing financial impact Covid-19 is having on all service industries particularly in relation to the use of 2019 financial statements to project future earnings. [63593/21]

Sorca Clarke (Longford-Westmeath, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

904. To ask the Minister for Employment Affairs and Social Protection if 2021 financial statements can be the sole basis of calculating the assessable income of self-employed persons or the spouses of self-employed persons for disability applications made in 2022 or applications currently under appeal given the ongoing financial impact Covid-19. [63594/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 903 and 904 together.

The system of social assistance supports provides payments based on an income need.  The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring.  This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most. 

In assessing means from self-employment for social assistance schemes such as Disability Allowance, the income is taken to be the gross profit less allowable work related expenses.

All expenses directly related to the self-employment can be offset against income.  However, there is no exhaustive list of all expenses allowed since expenses vary with the nature and extent of the self-employment.  Examples may include materials, motor running costs, advertising, labour costs, etc.

In assessing the means of a self-employed person, a deciding officer of my Department may refer the case to a social welfare inspector, in order to ascertain a fair and reasonable assessment of the average annual income that the claimant would expect to achieve over the next number of years.

It is important to emphasise that if there is a reduction in earnings at any point in time (for example as a result of Covid-19 related restrictions), the customer may contact my Department to review their entitlement and account will be taken of their current circumstances. 

In Budget 2022, I announced significant improvements to the means test for Disability Allowance, which will benefit all recipients with means, including self-employed people.

From June 2022, the first €7.60 of weekly means from any source will be disregarded.  This will equate to a €5 increase for recipients with means.

In addition, the limit at which earnings from employment or self-employment become fully assessible will be increased from €350 to €375.

Recipients of Disability Allowance will also benefit from the €5 increase in their weekly rate of payment, and may also benefit from other measures depending on their personal circumstances, such as increases to the rates of payment in respect of qualified children, and the increase to the Living Alone Allowance.

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

905. To ask the Minister for Employment Affairs and Social Protection her plans to extend child benefit to over-18s who are still in full-time secondary education; the reason for not doing so; and the estimated cost of such a measure in a full year. [63604/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years.  The payment continues to be paid in respect of children until their 18th birthday who are in full-time education, or who have a disability.  Child Benefit is currently paid to over 625,000 families in respect of almost 1.2 million children with an estimated expenditure of more than €2 billion in 2022.

Families on low incomes may be able to avail of a number of social welfare schemes that support children in full-time education until the age of 22, including: 

- Increase for a Qualified Child (IQCs) with primary social welfare payments; 

- the Working Family Payment for low-paid employees with children; and

- the Back to School Clothing and Footwear Allowance.

These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with older children participating in full-time education.

As part of Budget 2022, I increased the rates for a qualified child aged under 12 by €2 to €40 per week, and for a qualified child aged 12 or older by €3 to €48 per week.  These increases came into effect this month.

Extending Child Benefit in respect of full time students in second level education who are over 18 years of age would have significant cost implications and would have to be considered in an overall budgetary context.  The information required to accurately estimate the cost such of an extension is not available.  However, each additional 1,000 single child benefit claims would cost approximately €1.68 million per year.

I trust this clarifies the matter for the Deputy.