asked the Minister for Social Welfare if he will state in relation to means test procedures for unemployment assistance: (a) if the 12.5 per cent maximum deduction for board or lodging shall apply to each individual application in a family or if it should be applied to the aggregate board and lodging deductions where more than one member of the family is being means tested; (b) when the parental allowance of £90 was last increased, the basis for arriving at that figure, and when it is intended to review it; (c) the reason unemployed family members on unemployment benefit are not included as non-earners; (d) the reason a wage earner's unemployed spouse is not included as a non-earner; and (e) whether the procedure which is adopted in practice in determining the cash income of parents includes preceding year basis, income on date of assessment or succeeding year estimate.
Written Answers. - Means Test Procedures.
Section 146 (1) (e) of the Social Welfare (Consolidation) Act, 1981, provides that the means of a person for unemployment assistance purposes must take account of the yearly value of any benefit or privilege enjoyed by him. In practice this is taken to mean the value of board and lodging to an applicant for unemployment assistance residing in the home of his parents or a relative. The purpose of the assessment for board and lodgings of applicants living with relatives is to achieve a degree of equity as between applicants living in relatively better off circumstances and those whose circumstances are poor.
The criteria used are designed to ensure that each case is decided fairly having regard to the standard of living of the household and the circumstances of the applicant. The relevant aspects of the criteria are outlined below, by reference to the five parts (a) — (e) of the Deputy's question, on the assumption that the applicant is residing in the house of his or her parent.
Re (a) — Where the head of the family is a wage earner the method of calculation is to deduct from net parental income, that is the gross income less income tax and PRSI contributions, an amount to cover such outgoings as rent or mortgage repayments. In addition a parental allowance is deducted. The remainder of net parental income is then divided among the non-earning members of the household to arrive at the value of board and lodgings.
In order to alleviate the position of applicants from small households who often fared badly under the method described above, a provision was introduced in April 1980 which provides that the value of an applicant's share of the net household income should not be regarded as more than a maximum of 12½ per cent of that income. The situation is therefore that the applicant benefits from whatever method is the most favourable to him or her. Accordingly, the 12½ per cent limit where it comes into play, applies to each individual applicant in a family.
Re (b) — The parental allowance currently in operation is £90 for a married couple and £80 for a single parent. These allowances which were last increased in September 1983 and are under review at present are intended to cover the personal expenses necessarily incurred by the applicant's parents in a week.
Re (c) — The income of employed family members, other than the applicant's parents, is totally disregarded from the board and lodging calculation. Where such family members are in receipt of unemployment benefit or disability benefit they are regarded at being temporarily out of work, so their unemployment benefit or disability benefit is not taken into account as household income and they are not treated as non-earners for the purpose of dividing the remainder of net parental income among non-earners.
Re (d) — It is assumed that the Deputy is referring to the unemployed spouse of a wage earner who is not a parent of the applicant but who lives in the same house. As mentioned under (c) above the income of the wage earner in that sitution would not be added to parental income. It would be inconsistent to treat the unemployed spouse of such a wage earner as a non-earner for the purpose of calculating the value of board and lodging to the applicant for unemployment assistance. If such an unemployed spouse was in receipt of unemployment payments his or her payments would not, of course, be taken into account in the board and lodging calculation either.
Re (e) — Cash income of parents is determined by reference to their income on date of assessment but account would be taken of any abnormal elements on that date.