The 1992 Social Welfare Act provided for the assessment of insurable earnings as means for unemployment assistance purposes for all applicants. The preferential treatment previously accorded to claimants with income from insurable employment had its origins in the establishment of the unemployment assistance scheme. The legislation establishing the scheme provided that persons could have their means assessed while still employed so as to avoid any delay in authorising claims when they suffered a loss of work. By excluding income from current employment, the assessment reflected the situation that would exist when they became unemployed. At the time, that was a very necessary provision in circumstances where entitlement to unemployment benefit was very restricted.
The change in legislation was necessary; firstly, to ensure equity of treatment as between employees and self-employed persons claiming unemployment assistance who have always had their earnings assessed as means; and secondly, in recognition of the extension of insurance cover to part-time employees earning over £25 per week.