When you apply for a social assistance or means-tested payment your income is assessed to see whether you qualify. If you are 24 years of age or under and are living with a parent or a step-parent in the family home your parents' income will also be taken into account. The Department of Social Protection call this an assessment of the benefit and privilege you get from living with your parents.
This means that though you may have no income, your parents' income can affect your social welfare payment. Some people may still refer to benefit and privilege as 'board and lodgings'.
To be assessed for benefit and privilege you must be:
Step 1, add together your parents' net income from all sources. (Net income is your gross income less income tax, PRSI, Universal Social Charge, private health insurance contribution, superannuation and union dues).
For example, your parents' net income includes income from:
Step 2, deduct the following from your parent’s net income to get their assessable income:
Step 3, after you have calculated your parents' assessable income, get 34% of this income. Only 34% of your parents' assessable income is taken into account and assessed as benefit and privilege. You subtract this amount from the standard rate of SWA for your circumstances to find out how much, if any, you qualify for.
Example 1
A one-parent family with 4 children. Two of the children are still in school, one child in a FÁS apprenticeship and the claimant (that is, the person aged 24 or under who is applying for Supplementary Welfare Allowance).
Parent’s net weekly income €590
Less deductions from net income* €630
Total -€40
*Less weekly mortgage repayments of €100 and weekly disregard for children of €60 (€30 x 2 children) and one-parent standard weekly allowance of €470 (€100 + €60 + €470 = €630).
In this case, parental income of €590 is less than the total amount of deductions, which is €630. Therefore, parental income is assessed as NIL and will not affect the Supplementary Welfare Allowance claim.
Example 2
If we take the same situation of a one-parent family with 4 children. Two of the children are still in school, one child in a FÁS apprenticeship and the fourth is the claimant (that is, the person aged 24 or under who is applying for Supplementary Welfare Allowance). If we increase the parent's income to €800 per week, benefit and privilege is calculated as follows:
Parent’s net weekly income €800
Less deductions from net income* €630
Total €170
*Less weekly mortgage repayments of €100 and weekly disregard for children of €60 (€30 x 2 children) and one-parent standard weekly allowance of €470 (€100 + €60 + €470 = €630).
34% of the above total of €144 = €58 (rounded up from €57.80)
Maximum weekly Supplementary Welfare Allowance payment €144 (2011) less €58 = €86 (see 'Note' below)
Amount of Supplementary Welfare Allowance payable to claimant = €86
Note: People under 25 get an age related rate of Supplementary Welfare Allowance. More information on the SWA rates for people under 25 can be found in our document on Supplementary Welfare Allowance.