Social welfare legislation provides that where a person under 25 years of age is claiming a social welfare payment and is living with a parent or step-parent in the family home, an assessment is made of the yearly value of any benefit and privilege enjoyed by that person by virtue of residing there. The value of the benefit and privilege assessed is based on the level of the parents' assessable income.
Assessable parental income is calculated as gross income less tax, PRSI, Universal Social Charge, superannuation and union dues. Rent or mortgage repayments are then disregarded, where appropriate, and, finally, a parental allowance of €600 per week per couple plus €30 per week in respect of each additional dependent child is also disregarded. The balance is assessed at 34% and this constitutes the weekly value of benefit and privilege to the claimant. This weekly value is deducted from the maximum personal rate applicable to determine the level of weekly entitlement. Where the level of entitlement as calculated is at least €1 per week and less than €40 per week, a minimum rate of €40 per week is payable.
All social welfare payments are included as assessable income with the exception of the following: Fuel Allowance, Child Benefit, Carer's Support Grant, Guardian's payments, and Domiciliary Care Allowance.
However where a social welfare payment such as Carer's Allowance is the only source of parental assessable income, there would be no means assessed from benefit and privilege against the claimant, as the level of disregards would be higher than the level of weekly payment. If the Deputy has a particular case in mind he should bring it to the attention of the Department.
It should be noted that there are some exceptions to assessing benefit and privilege. No assessment is made where a son or daughter and his or her spouse/civil partner/partner is living with his/her parents. No assessment is made where a son or daughter has a child dependant and is living with his/her parents. In addition, where a person returns to the parental home having had an independent life elsewhere in Ireland or abroad for an appreciable length of time, e.g. at least three years, the assessment in this case is €7 per week.
Furthermore, once a person reaches 25 years of age, the value of any benefit and privilege is no longer regarded as means.
