asked the Minister for Social Welfare the reason he has made the means test for assessing eligibility for unemployment assistance by single persons living alone more strict from the middle of this year, in that the maximum proportion of the parents disposable income that can be assessed against an applicant has been increased from 12.5 per cent to 17 per cent.
Written Answers. - Social Welfare Benefits.
107.
Section 146 (1) (e) of the Social Welfare (Consolidation) Act, 1981, as amended by section 13 of the Social Welfare (No. 2) Act, 1985, provides that the means of a person for unemployment assistance purposes must take account of the yearly value of any benefit and privilege enjoyed by him or her. In practice this is generally taken to mean the value of board and lodgings to an applicant residing in the home of his or her parents. The purpose of the assessment is to achieve a degree of equity as between applicants in different family circumstances.
There are no statutory criteria for the assessment of benefit and privilege and each case is decided on its own merits. Over the years, the deciding authorities have operated from administrative criteria which relate the value of free board and lodgings to net parental income and to the number of dependants in the household. In general the assessments resulting from these criteria have been fair and reasonable. However, in 1980 in order mainly to ensure that applicants from small families with incomes below the average industrial wage were treated more equitably, an upper limit of 12.5 per cent of net parental income was introduced. This percentage figure was recently reviewed in the light of the relative increases in rates of unemployment assistance and increases in earnings since 1980 and the upper limit was increased to 17 per cent. This represents a maximum assessment of means to be assessed against a claimant and only operates where the means assessment would otherwise exceed 17 per cent of the net parental income. Many cases are assessed at levels below this maximum figure and are not affected by it. Where the parental income is derived solely from social welfare payments, there is normally no assessment made in respect of board and lodgings.
108.
asked the Minister for Social Welfare if he has any plans to change the regulations whereby a person on unemployment assistance is means tested and granted a reduced rate of unemployment assistance where both parents are in receipt of allowances from his Department; and if he will make a statement on the matter.
There are no statutory criteria for the assessment of board and lodgings. It is assessed on the basis of administrative arrangements which relate the value of free board and lodgings to net parental income and to the number of dependants in the household. In instances in which the net parental income is derived solely from social welfare payments there is normally no assessment made in respect of board and lodgings.
Should the Deputy have a particular case in mind, it will be reviewed if he forwards the relevant details to this Department.