Under the conditions of the recently introduced one parent family payment, a lone parent can earn £6,000 a year and retain title to the maximum rate of payment. Thus, a lone parent with one child dependant and earnings from self-employment of £6,000 a year is currently entitled to a weekly rate of £79.70. This will rise to £82.70 in June following the implementation of the increases in social welfare payments announced in the budget.
Where a couple is concerned, the maximum weekly rate of unemployment assistance payable with no means for the claimant, spouse/partner and one child is £116.20 a week (to be increased to £120.70 in June). The weekly amount of unemployment assistance payable is the maximum weekly rate less the weekly value of the means. The means would be calculated as the £6,000 earnings from self-employment with expenses (all work-related expenses, travel, PRSI, tax and medical insurance) being excluded. As the expenses to be excluded from means assessment will obviously vary from case to case, it is not possible to determine the exact amount of unemployment assistance payable without this information. However, as an example, assuming the client's expenses to be disregarded were £4,000 a year, which would not be unusual, the means assessed would be £2,000, giving a weekly unemployment assistance rate of £78.20.
I should point out that as part of the social welfare improvements announced in this year's budget, when a claimant's spouse is working, the adult dependant allowance will remain in payment, at a reducing rate, until the spouse's earnings exceed £90 a week, instead of being totally withdraw when earnings exceed £60 a week. This improvement will come into effect from October next.