Section 146 (1) (a) of the Social Welfare Act, 1981, as amended, provides for the assessment in the prescribed manner of the yearly value of all property belonging to an applicant or his spouse (other than property which is personally used by either of them) which is invested or otherwise put to profitable use or is capable of being, but is not, invested or put to profitable use.
In accordance with this provision, where an applicant to unemployment assistance owns a second residence, it is the capital value of the property which is taken into account in assessing his or her means therefrom and not whatever rent may be paid. In assessing its capital value, allowance is made in respect of any outstanding mortgage on the second residence.
The manner of assessment of the capital value of property is set out in Statutory Rules and Orders 34 of 1934 which prescribes that the value should be taken as 5 per cent of the first £400 of capital, and 10 per cent of any balance.
Under the provisions of the Supplementary Welfare Allowances Scheme a supplement in respect of rent or mortgage interest is payable to persons whose means are insufficient to meet their needs. The amount of supplement payable, if any, is at the discretion of the health board. Regulations provide that the rate of supplement shall be the amount by which the rent-mortgage interest exceeds £3.20 per week or such part of that amount as the health board considers reasonable in the circumstances. In general, the amount of weekly supplement paid is such that the claimant is left with a disposable income, after payment of rent-mortgage interest, which is equal to the appropriate basic supplementary welfare allowance rate less £3.20.
There is nothing in the legislation governing the supplementary welfare allowances scheme which specifically disqualifies a person who owns two residences from receiving a mortgage supplement. Each application for such supplementation is decided on its individual merits having regard to all the relevant circumstances.
If the Deputy is aware of any specific case where he feels that a second penalty has been imposed I will be happy to look into it on receipt of details.
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