Operational Guidelines: Jobseeker's Allowance - Benefit and Privilege: Means Test

Where a person is living with a parent or step-parent in the family home, an assessment is be made of the yearly value of any benefit and privilege enjoyed by that person by virtue of residing with a parent or step parent. The value of the benefit and privilege assessed is based on the level of the parents income.

No assessment is made where the person is living with other relatives e.g. a brother or sister or with non-relatives.

• Where a married/co-habiting son/daughter is living with their parents, or where daughter/son has a child dependant and is living with their parents, no assessment is made.
• Where a person returns to the parental home having had an independent life-style elsewhere in Ireland or abroad for an appreciable length of time e.g. at least 3 years, the assessment in this case is €7.00 per week.

Persons aged under 25

Benefit & privilege applies to persons under 25 years. The assessment of parental income continues to apply to persons aged under 25 who reside with a parent or step-parent. On reaching age 25 the Benefit and Privilege assessment should be revised to "Nil".

Parental Income

Parental income includes:

• Income from employment
• Income from self employment
• Income from occupational, Irish Statutory Pensions and foreign pensions
• Rental Income
• Spousal Maintenance
• Social Welfare payments
• Health Service Executive payments
• Solas/Educational Training Board (ETB) Training Allowances
• Income from Community Employment Schemes

All Social Welfare payments are included as income for Benefit and Privilege purposes with the exception of the following:

• National and Smokeless Fuel Allowance
• Child Benefit
• Early Childcare Supplement
• Carer's Support Grant
• Guardian Payment
• Domiciliary Care

HSE payments that are not included as income for Benefit and Privilege:

• Blind Welfare Allowance
• Mobility Allowance
• Infectious Diseases Maintenance Allowance
• Foster Care Allowance

Deductions

Deductions are allowed for income tax, pension levy income levy, Universal Social Charge, PRSI, superannuation/ PRSA contributions, private health insurance contribution, union dues and rent/mortgage payments. Where parents are in receipt of Rent or Mortgage Interest Supplement, a disregard applies only to the amount of rent or mortgage actually paid by the parents.

No deductions are allowed in respect of travelling expenses, life assurance premiums, sports/social club subscriptions or savings schemes deductions e.g. Instalment Savings, Credit Union lodgements etc.

In cases where parents have property other than the family home and that property is yielding an income, the net income of that property is asessed e.g. rental income less expenses such as mortgage repayments, insurance costs, repairs etc.

Additional disregards are applied with €600.00 for a two parent family and €470.00 for a one parent family. An additional disregard of €30.00 applies for all children up to 18 years of age. The disregard for the children does not apply where that child is getting a Social Welfare or HSE payment in their own right or if that child is over 18 years and in full time education.

Example

A person (under 25) is living with their parents. Their father earns €1,200.00 a week, while their mother is a non earner, they have 2 siblings under 18 years of age. Parents Gross income €1200.00, less tax €100.00, VHI €70.00, Union dues €30.00. Parents net income €1,000.00.

Net Income €1,000.00

Less Parental allowance €600.00

Less disregard for 2 brothers €60.00

Total €340.00 X 34% = €115.60

Means are €115.60, which will be rounded to €116.00.

If the person is participating in a family business or farm, theier means will include an assessment of the beneficial interest in the business/farm. The assessment will depend on the particular circumstances of the case including the value of the work done and of the benefit in kind actually received.

See Means Assessment Guidelines -Income from Farming.

Failure to Supply Details of Parental Income

In cases where the person refuses or fails to take reasonable steps to obtain the relevant information regarding parental earnings, a "failure to establish that means do not exceed the statutory limit" decision will be applied.

When the parent(s) income is derived from seasonal employment, the assessment of benefit and privilege will only be applied during the season. The person's means will be reviewed at the end of the working season and any means accruing from that seasonal work will be deleted at that stage.

The minimum weekly payment of Jobseeker’s Allowance in cases where the person's means are solely derived from benefit of parental income and where those means are less than the personal rate of Jobseeker’s Allowance is €40.00.