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Jobseekers Allowance (Means) - Case 2

Question At Issue:

Whether the appellant’s means were correctly assessed having been based on ‘benefit and privilege’ derived from his parent’s income.

Background:

The appellant was 20 years of age living with his parents whose sole income was a pension from the Department of Social Security in the United Kingdom. He applied for unemployment assistance in August 2006 having previously been at college. He was assessed with ‘benefit and privilege’ of €19 per week derived from his parents’ income. The Appeals Officer determined this case on a summary basis.

Consideration of the Appeals Officer:

The Deciding Officer had submitted that the decision seemed unfair as the appellant’s parents were dependant upon a UK social security pension which converted to €206.36 weekly. This figure was below the maximum Irish social welfare rate (€275.80) which would attract a ‘benefit and privilege’ assessment of nil. The Deciding Officer concluded, however, that she had no option but to assess means in accordance with the Department’s Guidelines and Circulars.

The Appeals Officer considered that the Deciding Officer was correct in her submission as regards the decision given. He considered that the assessment of ‘benefit and privilege’ derived from a pension paid by another country was a reminder of a time when such pensions (and the resultant currency conversion) provided the Irish recipient with a considerable financial advantage over payment rates in this country. He observed, however, that that situation was no longer the case. While the relevant legislation [1] does provide for regulations prescribing the method of assessment of benefit and privilege, no such regulations have been enacted. Regulatory provision has been made only to specify the age at which the assessment of ‘benefit and privilege’ no longer applies. The Appeals Officer considered that it was anomalous to assess ‘benefit and privilege’ derived from parental State benefit income, where such income is less than Irish social welfare rates, simply because the benefit in question is not being paid by this State. He concluded that the appellant, with the support of the Deciding Officer in this case, was correct in objecting to the assessment. As no regulation exists prescribing how benefit and privilege is to be assessed, he concluded that a benefit and privilege assessment could not be sustained where it was derived from parental income which is less than the maximum rate of supplementary welfare allowance.

[1] Social Welfare Consolidation Act 2005 [Third Schedule, Part 2 (10)]

Outcome:

Appeal allowed.

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