The Means Test

What is a means test?

A means test is a test carried out by an official (Deciding Officer) from the Department of Social Protection to determine whether:

• You will receive a Jobseeker's Allowance payment and if you do
• How much the Jobseeker's Allowance payment will be

A Deciding Officer carries out the test in your local Social Welfare Office.

How the means test works?

The means test places a value on any earnings, savings, property, land, investments, shares or bonds you or your spouse / partner has and this value will determine whether you will receive a Jobseeker's Allowance payment and how much that payment will be.

You will be asked for details on:

1. Cash income - including any income belonging to your spouse / partner
2. Capital - the value of any savings, investments, shares, bonds or land
3. Property - other than your own home
4. Benefit and Privilege - this applies if you are under 25 and living in your parents' home
5. Maintenance - Any maintenance paid to you by an ex-spouse or partner

1. Cash income

Nearly all income that belongs to you or your spouse / partner is taken into account. This includes income from:

• Employment - you or your spouse / partners
• Private pension
• Short-term letting on land owned

Some income is not assessed. For further information contact the INOU.

2. Property

The Department will assess the value of any property you or your spouse / partner own, including any second home, holiday home, unoccupied apartment, residential or commercial buildings in Ireland or abroad.

• The value of your own home will not be assessed

3. Capital - Investments, savings, shares or land

Any money you or your spouse / partner have in the bank, credit union, stocks, bonds, shares or land will be taken into account in the means test.

• The first €20,000 of any saving, investment, shares, bonds or land is not counted (disregarded).
• The next €10,000 (€20,000 - €30,0000) is assessed at €1 for each €1,000 i.e. if the total value of your savings is €25,000, the first €20,000 is not counted and you will be assesed on €5,000
• The next €10,000 (between €30,000 - €40,000) is assessed at €2 for each €1,000
• Anything after this is assessed at €4 for each €1,000

Example

Mary is 29 and applying for a Jobseeker's Allowance payment, she has savings of €25,000 in the credit union. The value of property, savings or capital is assessed in the following way:

Please note: The Department of Social Protection's official will ask you to provide documentation such as bank statements etc. for the means test. If you do not provide this documentation the Deciding Officer will not be able to make a decision on your claim.

4. Benefit and Privilege

If you are under 25 and living at home then your parents' income minus certain allowances will be taken into account for the means test. This assessment is known as Benefit and Privilege and is assessed because there is a certain benefit from living in the family home.

Parents' income taken into account

There is a wide range of your parent's income taken into account these include income from:

• Insurable employment
• Self-employment
• All pensions
• Rental income from property or land
• Maintenance payments
• Social Welfare payments (few exceptions)
• FÁS training allowance
• Community Employment Scheme

Deductable Allowances

Benefit and Privilege takes into account your parents' gross income minus certain allowances which include:

• €600 disregarded for a two parent family or €470 for a single parent family
• €30 for each child up to 18 years of age
• €30 for each child over 18 years of age in full time education
• Income tax
• PRSI
• Health Insurance Contributions
• Superannuation / PRSA
• Union subscriptions
• Rent / Mortgage
• Pension Levy

Assessing Benefit and Privilege:

• 34% of your parents' income minus deductable allowances is assessed under Benefit and Privilege.

Example

John is 23 and applying for Jobseeker's Allowance payment, which would normally be €144. He lives with his parents and two school going siblings. His mother does not work and his father has net (after tax, etc) earnings of €900 a week. His parents pays a mortgage of €120 per week.

Please note: If John was under 22 his Jobseeker's Allowance payment would only be €100 per week. Under this example the Benefit and Privilege rule would reduce his payment to €59

Benefit and Privilege is not taken into account:

• Where a son/daughter is applying for a Jobseeker's Allowance payment and is living in their parents' home with a spouse or partner
• To people claiming a one-parent family payment who are living in their parents' home

If you have lived elsewhere in Ireland (or abroad) independent of your parents for at least 3 years, benefit and privilege is assessed as €7.

Deductions not allowed

No deductions are allowed for travelling expenses, life assurance premiums, club subscriptions or saving schemes. In cases where parents have property other than the family home and that property provides an income, the net income of that property is assessed e.g. rental income less expenses such as mortgage repayments, insurance costs, repairs etc.

Please note: If a person's only source of income is from their parents and their parents' income is such that their son / daughter's Jobseeker's Allowance payment would be less than €40 but greater than €0 e.g. €3, then they will receive a minimum payment of €40 per week. However if their parent's income is such that their son / daughter's JA payment would be €0, they will not receive any payment.

5. Maintenance

If you are separated from your spouse / partner and receive a maintenance payment from them, this will be assessed in the means test. You can deduct housing costs up to a maximum of €95.23 from the maintenance payment and the balance will be assessed in the means test, e.g. You receive €120 maintenance payment minus €95.23 for housing costs (€120 minus €95.23 = €24.77). The total to be assessed in the means test is €24.77