Dáil Éireann debate -
Wednesday, 17 Nov 1993

Vol. 435 No. 10

Written Answers. - Effects of Social Welfare (Consolidation) Act, 1993.

Willie Penrose

Question:

109 Mr. Penrose asked the Minister for Social Welfare if he will amend the Social Welfare (Consolidation) Act, 1993, to allow all people who live with a parent or other relative and who apply for unemployment assistance to be assessed in their own right without reference to their parent's or relative's income in view of the fact that the effect of the current system of assessment is to cause families to separate as young people leave home in order to qualify for their full unemployment assistance entitlement, and also qualify for rent allowances; if he will introduce an amendment which will allow these young people to qualify for their full entitlement of unemployment assistance; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

In assessing the means of a young person who is claiming unemployment assistance and living at home, account is taken of the value of free board and lodgings. The means assessment is made by reference to the parental income, disregarding a standard amount and dividing the remaining income between the non-earning members of the household. There is also an overall limit on the value of board and lodgings in many cases. The assessment aims to achieve a degree of equity as between applicants and different household circumstances.

The means test, including the assessment of board and lodgings provides a mechanism for targeting limited resources to those who are most in need. While the assessment procedure is kept under review, any measure to remove the assessment would be expensive. In 1991, it was estimated that it would cost over £50 million to abolish the board and lodgings provision.

In order to provide a measure of financial independence to young people living at home and claiming unemployment assistance, a minimum payment of £5 was introduced in the 1991 budget for single people whose only means comprise board and lodgings. This was in line with the general recommendation of the report of the Commission on Social Welfare.