Dáil Éireann Debate, Tuesday - 26 April 2022
971. Deputy Claire Kerrane asked the Minister for Social Protection the total number of jobseeker’s transitional payment recipients; the number of recipients who are self-employed; and if she will make a statement on the matter. [19282/22]
View answer972. Deputy Claire Kerrane asked the Minister for Social Protection the amount it would cost the State to maintain the €165 income disregard for self-employed persons moving from one parent family payment to jobseeker’s transitional payment putting them on equal footing with recipients who are employees. [19283/22]
View answerI propose to take Questions Nos. 971 and 972 together.
The Jobseeker’s Transitional Payment is a provision under the Jobseeker’s Allowance scheme that is available to lone parents, both former OFP recipients and new lone parents, who are not co-habiting and have a youngest child aged 7 or over but under age 14. As such, the means rules of the Jobseekers Allowance scheme that apply to self-employed Jobseekers Allowance recipients also apply to self-employed people in receipt of Jobseeker’s Transitional Payment.
Under these rules, where individuals have income from self-employment the earnings disregard of €60 per week does not apply. Rather the means assessed is income from self-employment less allowable business expenses with the balance assessed at a rate of a euro for euro.
I am advised that as of the end of February 2022, there were 16,481 recipients of Jobseeker’s Transition Payment, of whom 70 were categorised as self-employed. There are also approximately 4,000 Jobseekers Allowance recipients who are self-employed. Any changes to the treatment of self-employed income in the means test could have significant cost implications and could only be considered in a Budgetary context.
It is important to note that when One-Parent Family Payment recipients who are self-employed transfer from One-Parent Family Payment to Jobseeker’s Transitional Payment, they may qualify for the Back to Work Enterprise Allowance (BTWEA), which allows them to retain their full social welfare payment for the first year and 75% in the second year. Usually access to the BTWEA is only for new businesses and individuals with pre-existing businesses are not eligible for the BTWEA payment. However, a special provision was introduced to support self-employed lone parents who transition from OFP so that they may qualify for the BTWEA even where they had a pre-existing business.
I trust this clarifies the matter for the Deputy.
