The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest supplement to any person in the State whose means are insufficient to meet their needs. The scheme is administered on behalf of my Department by the health boards and my Department has no function in deciding entitlement in individual cases.
Rent and mortgage interest supplements are normally calculated to ensure that the person, after the payment of rent, has an income equal to the SWA basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.
SWA is subject to a means test and applicants are required to contribute any assessable means in excess of the appropriate basic supplementary welfare allowance rate towards their rentmortgage interest supplement.
SWA is not ordinarily payable to people in fulltime employment. However, special arrangements were introduced some years ago to enable people making the transition from welfare to work to retain rent or mortgage interest supplement, subject to certain conditions.
Under the rules of the community employment – CE – scheme participants are paid a set weekly wage which is generally greater than the equivalent social welfare payment for a person in similar household circumstances. In the case of people who were previously unemployed, this weekly wage is paid instead of unemployment assistance. In the case of lone parents, the weekly wage is paid in addition to the one-parent family payment – OFP – in recognition of the fact that lone parents need additional supports. These arrangements take into account the special needs and requirements of lone parents raising children and maintaining households on their own.
In addition, CE participants may retain entitlement to their existing rent-mortgage interest supplements, subject to certain conditions. Participants must contribute a standard minimum contribution of £7.50 per week towards their accommodation costs, their gross household income must not exceed £250 per week and their rent-mortgage interest supplementation is subject to a maximum payment of £250 per month.
Furthermore, a CE participant who was not in private rented accommodation prior to starting on a CE scheme can apply for a rent supplement and will be assessed under the CE conditions outlined above.