Dáil Éireann Debate, Tuesday - 1 December 2020
518. Deputy Neale Richmond asked the Minister for Social Protection if consideration has been given to relax the jobseeker's allowance means testing process due to the Covid-19 pandemic; and if she will make a statement on the matter. [40493/20]
View answerA person who loses their job as a result of the Covid-19 pandemic can apply for the Pandemic Unemployment Payment (PUP), which is not means tested.
For some people, depending on their family circumstances, it may be more beneficial to claim a jobseeker's payment, if they have an underlying entitlement to that payment. For example, for a person with a spouse or civil partner and children, the rate of Jobseeker's Allowance or Jobseeker's Benefit would be higher than the highest rate of PUP.
Jobseeker's Allowance is one of a range of means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse / partner, if applicable) applying for the relevant scheme.
The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves so that social welfare expenditure can be directed towards those who need it most.
The means test for Jobseeker's Allowance takes into account the income of the claimant and their spouse, civil partner or cohabitant, where applicable. Assessable income is a person or couple's gross earnings less deductions for PRSI, superannuation (including AVCs and PRSAs) and union dues. For Jobseeker's Allowance, a person can earn up to €60 per week (€20 per day for up to three days) from employment without it being assessed as part of the means test. Earnings above this threshold are assessed at 60%.
When calculating the weekly means from capital or property, an assessment formula is used. The first €20,000 of capital is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
Any changes to the means test for Jobseeker's Allowance would have to be considered in an overall budgetary and policy context.
