Social Welfare legislation provides for the assessment of any benefit or privilege enjoyed by an applicant for unemployment assistance. In practice this generally means the value of free board and lodging and most often arises in the case of applicants living in the family home with their parents. The assessment of free board and lodging has been a feature of the unemployment assistance scheme since its inception. Its purpose is to achieve a degree of equity between applicants in different family circumstances.
The value of free board and lodging enjoyed by an applicant is determined by reference to the parental income, for example, after deductions for tax, PRSI, union subscriptions, rent or mortgage payments and a parental allowance. This is then allocated equally among the non-earning members of the household and becomes the assessment applied to any son or daughter who claims assistance. The maximum assessment that can be applied to any applicant is limited to 17 per cent of net parental income. In the absence of any limit many applicants from families on average incomes with a low number of non-earners would not be entitled to any payment.
The only thresholds as such which apply in the assessment of free board and lodging are those relating to parental allowances and the maximum limit on assessments. The operation of the parental allowances was reviewed and revised in 1986 and in 1989, and the maximum limit was revised in 1989.