I refer the Deputy to my previous replies to Questions No. 28 on 15 October 1997 and No. 31 on 26 November, 1997.
Unemployment assistance is a means-tested payment paid to unemployed people between the ages of 18 and 66 not entitled to insurance-based unemployment benefit. Payments are means-tested to ensure that the limited resources available are directed at those most in need. In assessing a person's means for unemployment assistance purposes, account is taken of any cash income the person may have together with the value of any capital or property. In addition, the value of any benefit or privilege enjoyed by an applicant, such as that of free board and lodging in the family home, is assessed.
It is sometimes alleged that the benefit and privilege rule for young unemployed people, encourages them to leave the family home in order to qualify for higher unemployment assistance payments and rent supplements. However, the limited evidence which is available does not suggest that this is happening to any significant degree. I have mentioned the main findings of this research in recent replies on this topic.
While the available evidence does not support the notion that the benefit and privilege rule is a highly significant factor in the movement of young people out of the family home, my Department will, nevertheless, continue to review this provision in the light of any new evidence which becomes available.
The abolition of the assessment of benefit and privilege as means would have significant cost implications.