The farm assist scheme, which introduced the special arrangements for farmers on low incomes, was provided for in the Social Welfare Act, 1999, and came into operation with effect from 7 April 1999.
The number of claimants in receipt of smallholder's unemployment assistance on 31 March 1999 was 6,494. The average payment on that date is not available, but on 31 December 1998 it was £74.60 per week. This figure is unlikely to have changed significantly in the period January to March 1999.
On 31 March 2000 there were 7,568 farm assist claims in payment, receiving on average £75.85 per week. The average payment to 431 claimants still in receipt of smallholder's unemployment assistance is £75.43. Former smallholders, who are now in receipt of farm assist, are receiving on average £83.82 per week, an increase of £9 per week compared with smallholder's unemployment assistance at the end of 1998. New applicants for farm assist are receiving an average payment of £59 per week.
The Social Welfare Act, 2000, makes a number of important changes to the means test for the farm assist scheme. The child related disregards are being increased from £100 for the first two children and £200 for each subsequent qualified child to £200 and £300 respectively. Furthermore, instead of 80%, only 70% of self-employment income, including off-farm self-employment, will be taken into account. There will also be changes in the way capital is assessed, with the first £10,000 held by a claimant disregarded, and the balance treated more favourably than heretofore. These changes will be effective from October 2000.