I propose to take Questions Nos. 903 and 904 together.
The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
In assessing means from self-employment for social assistance schemes such as Disability Allowance, the income is taken to be the gross profit less allowable work related expenses.
All expenses directly related to the self-employment can be offset against income. However, there is no exhaustive list of all expenses allowed since expenses vary with the nature and extent of the self-employment. Examples may include materials, motor running costs, advertising, labour costs, etc.
In assessing the means of a self-employed person, a deciding officer of my Department may refer the case to a social welfare inspector, in order to ascertain a fair and reasonable assessment of the average annual income that the claimant would expect to achieve over the next number of years.
It is important to emphasise that if there is a reduction in earnings at any point in time (for example as a result of Covid-19 related restrictions), the customer may contact my Department to review their entitlement and account will be taken of their current circumstances.
In Budget 2022, I announced significant improvements to the means test for Disability Allowance, which will benefit all recipients with means, including self-employed people.
From June 2022, the first €7.60 of weekly means from any source will be disregarded. This will equate to a €5 increase for recipients with means.
In addition, the limit at which earnings from employment or self-employment become fully assessible will be increased from €350 to €375.
Recipients of Disability Allowance will also benefit from the €5 increase in their weekly rate of payment, and may also benefit from other measures depending on their personal circumstances, such as increases to the rates of payment in respect of qualified children, and the increase to the Living Alone Allowance.