Under standard supplementary welfare allowance assessment rules, rent supplements are calculated to ensure that an eligible person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance appropriate to his or her family circumstances, less a minimum contribution of €13 which recipients are required to pay from their own resources. Up to €50 in respect of additional income from part-time employment or approved training courses is disregarded in the means test thus ensuring that a person is better off as a result of taking up such an opportunity. The standard means test was further eased in January 2004 whereby any amount of family income supplement in payment is also disregarded.
Under the legislation, supplementary welfare allowance is not normally payable to people in full time employment. However, special arrangements are in place which allow people on approved employment schemes such as back to work allowance, or anyone who has been unemployed for 12 months or more and who moves from a welfare payment to a full-time job to retain part of their rent supplement for up to four years subject to a weekly household income limit of 75% in year 1, 50% in year 2 and 25% in years 3 and 4. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit. PRSI contributions and reasonable travelling expenses are also disregarded in the means test.
The arrangements outlined above encourage and assist people in the transition from reliance on welfare payments to full-time employment. These arrangements will be reviewed in the course of the programme evaluation of the social welfare allowance scheme, which is under way.