Working for Work : Chapter 2 : Coping with Poverty

Redundancy

Under the Redundancy Payments Act of 1967-1991 employers must, by law, pay compensation to employees dismissed for reasons of redundancy. The amount of the statutory payment is related to the employee's length of service, normal weekly or monthly earnings (including basic salary, regular overtime, payment-in-kind) up to a weekly maximum of €600 per week.

Redundancy Applies when;

• An employer ceases to carry on business.
• An employer's requirements for employees has ceased or diminished.
• An employer has decided to carry on the business with fewer or no staff. In this case, close members of the employer's family are not taken into account.
• An employer has decided the work is to be done in a different manner in future and the employee is not sufficiently qualified or trained to do the work in the required manner.

Qualifying for a Redundancy Payment

Not all employees are entitled to the statutory redundancy payment, even where a redundancy situation exists. To be eligible for a payment under the Redundancy Acts, the employee must satisfy the following requirements:

• Be aged over 16 years of age. -
• Be in employment that is insurable for all benefits under the social welfare system (PRSI Class "A"). -
• Have worked continuously for the employer for at least 104 weeks. -
• Have been in continuous employment for more than two years if a Part-time worker. -
• The same rules apply to apprentices. Apprentices qualify for redundancy unless let go within one month of completing an apprenticeship.

Employers must give proper written notice of redundancy of at least two weeks, the minimum period, to both the employee and to the Department of Enterprise, Trade and Innovation. During this period, an employee should be given reasonable time-off to look for other work. T

he amount paid in redundancy relates to the employee's length of continuous service and weekly earnings up to a maximum of €600 per week.

How are Redundancy payments calculated?

Under the Redundancy Payments Bill 2003, employees are entitled to: -

• Two weeks pay for each year of employment. -
• A bonus week's pay. -
• The payment is normally calculated on earnings at the time of the redundancy*

 

Example:

You are aged 45 and are being made redundant. You have worked for your employer for ten complete years. Your statutory redundancy payment will be calculated as follows: -- Two week's pay x 10 20 weeks -- Plus one week's bonus pay + 1 week Total Statutory Entitlement 21 weeks pay

 

* If you were made redundant within a year of being put on reduced hours or pay, your redundancy payment would be based on your earnings for a full week. If you are made redundant after working reduced hours for more than a year, how your payment will be calculated depends on whether you accepted being on reduced hours or not. If you fully accepted the reduced working hours as your normal week and never asked to return to full-time work, then your redundancy payment will be based on your gross pay for the reduced working hours. If, on the other hand, you never accepted the reduced working hours as your normal hours and continually asked to be put back on full-time working, your payment would be based on your normal weekly earnings.

The employer must pay the lump-sum directly to the employee. Any lump-sum payable does not depend on the redundancy payment rebate that the employer is expecting to receive from the Department of Enterprise, Trade and Innovation.

Redundancy Payments and Tax

The basic statutory redundancy payment is not subject to tax. Any amount over the basic statutory redundancy payment may be subject to tax (subject to the following exemptions)

Basic Exemption

There is a basic exemption of €10,160, plus €765 for each complete year of service.

 

Example:

Joe is 45 and is being made redundant. He has worked for the employer for 12 years. His redundancy payment is €27,000: Total Redundancy Payment: €27,000 Statutory Entitlement -- Two week's pay X 12 years 24 weeks -- Plus one week's bonus pay + 1 week Total Statutory Entitlement 25 weeks pay Total Statutory Amount (25 weeks x €600) Tax Free €15,000 Additional Payment Ex-gratia/extra payment €22,000 -- Basic Exemption €10,160 -- Basic Exemption (at €765 for each years service x 12) +€9,180 Total Basic Exemption €19,340 *Amount liable for tax (€22,000 - €19,340) €2,660

*As Joe has been working for 12 years, he will probably also qualify for the Increased Exemption - as explained below. So more than likely Joe will not pay any tax on his total Redundancy payment.

 

Basic Exemption plus Increased Exemption

An additional €10,000, called the Increased Exemption, is also available in the following certain circumstances: -

• If you have not received a tax-free lump sum in the last 10 years -
• If you have never received a tax-free lump sum and you are not getting a lump sum pension payment

For further information in relation to taxation of Redundancy Payments please contact the Central Telephone Information Office of the Revenue Commissioners at 1890 60 50 90 or the INOU on (01) 856 0088.

Voluntary Redundancy

Voluntary Redundancy occurs when an employer, faced with a situation where s/he requires a smaller workforce, asks for volunteers for redundancy. The people who then volunteer for redundancy are, if they fulfil the normal conditions, eligible for statutory redundancy. There must be a genuine redundancy situation in the first place. Persons who take a voluntary redundancy are entitled to claim Jobseeker's Benefit, and cannot be disqualified from seeking to claim Jobseeker's Benefit because they volunteered for redundancy.

Redundancy Forms

RP50 Form (Download Form HERE)

In a redundancy situation the employer should give the employee a Redundancy RP50 Form on the date of payment. This form should show the basis on which the sum was calculated. A copy of the form containing an original signature of both employee and employer in blue ink, should also be sent to the Department of Enterprise, Trade and Innovation.

When calculating any entitlement to a redundancy payment your continuity of employment is an important consideration. As previously stated, an employee must have worked continuously for an employer for at least 104 weeks to be considered in continuous employment.

If you have been absent from employment under the following conditions it will not be considered a break in the continuity of your employment; -

• Sick leave for 26 weeks or less, occupational injury for 52 weeks or less, maternity leave for 26 weeks or less and career breaks of 13 weeks or less. -
• The following situations will not break the continuity of service: -
• Absent from work through illness for not more than 78 weeks. However, if absent through sickness for more than 78 weeks, the continuity of service will not automatically be broken. There is a presumption that the continuity of service remains and it will be for the employer to prove otherwise. -
• Maternity/adoptive/parental or carer's leave. -
• Dismissed due to redundancy before reaching 104 weeks service then taken back by employer within 26 weeks of that dismissal. -
• Re-employed within four weeks of dismissal by an associate company of previous employer. -
• Voluntarily transferred to another employer and it is agreed that the continuity of service will not be broken. -
• Placed back in employment under the Unfair Dismissal legislation. -
• Lay-offs, strikes or lock out of your employment. -
• A transfer of the business to a new owner.

When the actual dismissal takes place the employee must be given the RP50 form. In the event that an employer refuses or fails to pay an entitled employee the statutory redundancy payment and all reasonable courses of action have been exhausted, he/she can apply to the Department of Enterprise, Trade and Innovation for payment. The Department pays the full amount direct to the employee from the Social Insurance Fund (S.I.F.).

RP9 Form (Download Form HERE)

The RP9 Form is used where a short-time or lay-off situation has arisen. The Employer fills out section A of the form to notify an employee of a temporary short-time or lay-off. Part B is filled out by the Employee notifying the Employer of their intention to claim redundancy based on their short-time or lay-off situation.

Department of Enterprise, Trade and Innovation

For further information on Employment Rights or Redundancy Payments contact the National Employment Rights Authority (NERA) on 1890 80 80 90 or visit their website on www.employmentrights.ie.

Employment Appeals Tribunal

Disputes concerning redundancy payments can be submitted to the Employment Appeals Tribunal (lo-call 1890 220 222), which has the advantage of providing a speedy, fair, inexpensive and informal means for individuals to seek remedies for alleged infringements of their statutory redundancy rights. The Tribunal also deals with disputes under such other labour law areas as the Minimum Notice and Terms of Employment Acts, 1973 to 1991.

These cover the right of workers to a minimum period of notice before dismissal, provided they are in continuous service with the same employer for at least 13 weeks and are normally expected to work at least 8 hours per week. The Tribunal also deals with the Unfair Dismissals Acts, 1977 to 1993 and the Protection of Employees (Employers' Insolvency) Acts, 1984 to 1991 (dealing with such areas, amongst others, as arrears of pay due to an employee, holiday and sick pay etc.) where the employer is insolvent.

Last Updated: 05/10/2011 ^ back to top

Medical Cards

Medical Cards entitle people on low incomes to free medical care and a range of medical services. They are issued by local HSE and are subject to passing a means test.

As of Friday October 1st 2010 all medical card holders have to pay a charge of 50c per item dispensed by pharmacists. There are no exceptions to this charge.

If you are solely dependant on social welfare payments you will usually pass the means test for the medical card. Medical Cards can be issued on hardship grounds even if a person's income exceeds the income guidelines. Each application is considered on its own merits, so if your income is more than the guidelines and you have specific hardship circumstances, you should still apply giving as much detail and evidence of your circumstances as possible.

The means test guidelines, still under review, based on gross income less PRSI, are as follows:

 

Medical Card Income Guidelines:

Single person under 66 living alone €184.00 Single person under 66 living with family €164.00 Couple under 66 (+ Lone Parent) €266.50 Couple 66 - 69* €298.00 + each child under 16 €38.00 (1st and 2nd) €41.00 (3rd +) + each dependant child over 16 €39.00 (1st and 2nd) €42.50 (3rd +) + over 16 in full-time third level (not grant aided) €78.00 Reasonable expenses incurred in respect of childcare costs and rent / mortgage payments will also be allowed. Weekly travel to work costs are also allowed. *All persons over 70 are entitled to a medical card subject to a means test. This does not cover their dependants.

 

If you are unemployed for 12 months or more you may keep your Medical Card for up to 3 years, in certain circumstances, when you get a job (see Chapter 4).

Income from Family Income Supplement (FIS) is not counted when working out if you are within the income guidelines.

If you live in the Republic of Ireland and work in Northern Ireland, you are entitled to a medical card regardless of your income.

If you are under 25 and living at home with your parents, you will normally not receive a medical card unless your parents have one.

GP Visit Medical Cards

In extending the provision of the medical card scheme a 'Doctor Visit only' medical card was introduced. This card entitles you to free visits to your doctor, but you may still have to pay for medication.

 

GP Visit Cards Income guidelines:

Single person under 66 living alone €276.00 Single person under 66 living with family €246.00 Couple under 66 (+ Lone Parent) €400.00 Couple 66-69 (+ Lone Parent) €447.00 + each child under 16 €57.00 (1st & 2nd) €61.50 (3rd +) + each dependant child over 16 €58.50 (1st & 2nd) €64.00 (3rd +) + over 16 in full time third level (not grant aided) €117.00

Reasonable expenses incurred in respect of childcare costs and rent/mortgage payments will also be allowed.

Last Updated: 31/08/2011 ^ back to top

Supplementary Welfare Allowance Scheme (SWA)

The SWA scheme provides short-term payments to tide people over emergencies and times of difficulty or when on-going needs cannot be met by main social welfare payments.

Payments under this scheme are legally under the control of the Department of Social Protection, and the scheme is administered by Community Welfare Officers. A CWO makes a decision based on the circumstances of each individual case, using guidelines that interpret the legislation.

Who is eligible for Supplementary Welfare Allowance (SWA)?

Any person resident in the state whose means do not meet her/his needs, and the needs of any child dependant or qualified adult, is entitled to apply for Supplementary Welfare Allowance. But, the following groups are not normally entitled to a basic weekly payment: -

• Full-time students (but students aged 21 or over studying under an approved educational scheme can apply) see Chapter 6.
• Full-time workers, unless employment is under 30 hours per week.
• People involved in trade disputes.
• People who do not satisfy conditions of residency of the state.
• People in prison.

In the case of the above exclusions, individuals may apply for Exceptional Needs Payments and in some instances may apply for Urgent Needs Payments.

In order to get a payment you must:

• Satisfy a means test
• Satisfy the Habitual Residence condition.
• Have applied for all possible benefits or assistance from both the Department of Social Protection or the local HSE.
• Satisfy the CWO that you need the particular payment.

The method of assessing capital for entitlement to Supplementary Welfare Allowance payments is as follows:

 

Capital Weekly Means Assessed First €5,000 Nil Next €10,000 €1.00 per €1,000 Next €25,000 €2.00 per €1,000 Balance €4.00 per €1,000

 

If you did not qualify for a Social Welfare or HSE payment because you have failed to provide information or material they requested, you may be refused an SWA payment. If you are refused an SWA payment then you are entitled to appeal the decision of the CWO. If you have received a refusal letter then it should state your options for appealing.

EU workers may be able to claim a basic SWA payment, and access Rent Supplement and other SWA payments, if they

- Have been genuinely employed in Ireland, and have lost their job, and

- Meet the other relevant qualifying conditions for SWA

- For more information see HRC and EEA/EU workers on www.welfare.ie

Types of Payments

Basic Weekly Payment

You can claim this payment if you can prove that your income is less than the SWA rate appropriate for your family size, and can satisfy the means test. The SWA rate of payment is €186.00 for the claimant, €124.80 for the Qualified Adult and €29.80 for each Qualified Child (formerly Child Dependant).

Persons aged 18 - 19 years, and without children receive €100 for the claimant, and €100 for Qualified Adult (this applies to new and existing claimants); new claimants aged 20-21, and without children, receive €100 as the personal rate and €100 for the Qualified Adult; and the rate for those aged 22-24 is €144.00 for the claimant, €124.80 for the Qualified Adult.

You will only be paid the difference between your income and the appropriate rate of SWA for your family size.

If you are under 25 years, and living with your parents, their income may be assessed as means against you when processing your application (evidence of parents' income may be required).

Weekly Supplements

The guidelines provide for payment of ongoing weekly supplements in different situations. The HSE may pay a weekly supplement to a person who does not have enough money to meet her/his needs. If you require assistance in making an application, contact the INOU on (01) 856 0088.

Rent Supplement

People receiving Social Welfare payments and living in private rented accommodation may be eligible to receive financial assistance towards the cost of their rent under the SWA Rent Supplement scheme.

Rent Supplement is normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of SWA appropriate to their family circumstances less a minimum contribution, currently ?24, which recipients are required to pay from their own resources.

 

NB: Because the personal rate of SWA is €186 and Jobseeker's Benefit and Allowance, OPFP etc is €188, recipients of these payments will have their rent supplements reduced by a further €2.

 

Many recipients pay more than ?24 because they are required, subject to income disregards, to contribute any assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs. -

• The minimum contribution that individuals and families make towards their rent is €24
• Rent Supplement is restricted to individuals who have been an existing or in homeless accommodation for 6 months or who already had a local authority assessment that they are eligible for and in need of social housing.

In general, all other applicants for rent supplement must have a housing needs assessment carried out by the local authority in the area where they live, and be regarded as in need of and eligible for social housing. These measures have applied to all applicants since July 2009.

• Rent Supplement will not be paid where, after end of July 2009, an applicant has refused a second offer of local authority housing, or has left such housing without reasonable cause.

Landlord Registered for Tax

Under recent changes all landlords offering private rented accommodation must be registered for tax with the Revenue Commissioners in order for their tenants to qualify to receive a Rent Supplement.

• New Applications for Rent Supplement. The landlord must be registered for tax in order to apply for/qualify for rent supplement for private rented accommodation. If the landlord is not registered the application may be refused -
• Existing Recipients. Those currently in receipt of Rent Supplement will have up to mid-2013 to obtain tax registration documents from the landlord confirming they are registered for tax.

Rent / Mortgage Interest Supplement Scheme

Taking up part-time employment can effect your Rent/Mortgage supplement. Income is assessed in the following way:

• The first €75 of 'additional household income' is disregarded.
• Additional household income over ?75 is disregarded at 25% of its value -
• There is no upper limit on the amount that can be disregarded

Additional Household Income

When calculating entitlement to a Rent Supplement and Mortgage Interest Supplement 'Additional household income' is money that comes from:

• Part-time employment or part-time self-employment (under 30 hours per week)
• Full-time employment or full-time self-employment (30 hours or over per week). This rule ONLY APPLIES where a Local Authority accepts a person as in need of accommodation under the Rental Accommodation Scheme. This applies to Rent Supplement claims only.

 

(PLEASE NOTE: Different rules apply where a person is officially on the Rental Accommodation Scheme with a Local Authority and paying differential rent.)

 

Any employment or scheme i.e. CE, BTWA, BTWEA or FÁS course -

Family Income Supplement (previously not assessed as means is now to be assessed as means) -

Maintenance Payments of over €95.23 Payments in excess of €170.23 (€95.23 max maintenance limit + €75 'additional household income') are assessed as 'additional household income', with the amount over €170.23 disregarded at 25% of its value.

Where assessable' additional household income' is over €75 the amount over the €75 will be disregarded at 25% of its value:

 

Example: Additional Household Income = €125

Step 1: First €75 disregarded = balance €50 (€125 minus €75 = €50)

Step 2: Amount over €75 disregarded at 25% of its value (€50 x 25%) = €12.50. Total disregard: €87.50

Rent Supplement reduced by €37.50

Note: Remember that certain types of 'additional income' can affect your basic Social Welfare payment.

 

Example 1: Single person on Jobseeker's Allowance (E186.00) with no other income

Single Rate Jobseeker's Allowance €188.00

Basic SWA rate for a single person - €186.00

Additional income above Basic SWA rate €2.00

Private Rented Accommodation per week €115.00

Minus minimum personal contribution (person pays) - €24.00

Maximum Rent Supplement payable per week (HSE) €91.00

Minus additional income above Basic SWA rate - €2.00

Rent Allowance payable (HSE) €89.00

 

Example 2: Single person on Jobseeker's Allowance working part-time (under 30 hours) with €150 additional household income

Private Rented Accommodation per week €115.00

Minus minimum personal contribution (person pays) - €24.00

Maximum Rent Supplement payable per week (HSE) €91.00

Standard Jobseeker's Payment €186.00

Earnings from Employment over 3 days €150.00

Revised Jobseeker's payment based on assessment of earnings €132.00

*(see Chapter 4 for Jobseeker's Allowance and assessment of additional income) New Total Income (Jobseeker's Allowance and income from work) €282.00 Additional Household Income above SWA rate (SWA rate ?€86.00) €96.00

Automatic €75 disregard on additional income - €75.00

Disregard of 25% the remaining amount (€21 - 25%) - €5.25

Total Disregard (€75 + €5.25) €80.25

Amount Assessed against Rent Supplement (€96.00 - €80.25) €15.75

Rent Supplement payable (€91.00 - €15.75) €75.25

 

Allowed Expenses

When calculating a person's additional household income, PRSI and reasonable travelling expenses can be disregarded. In addition, any lunch, travel allowances or childcare allowances paid to participants on certain training courses may also be disregarded. Income Tax will not be disregarded.

Non-dependent household members

Rent Supplement and Mortgage Interest Supplement

Since January 2011, non-dependent household members, i.e. children or other family members, receiving a social welfare payment in their own right, must contribute €24 towards the rent or mortgage interest supplement (Unless they have already been subjected to the Benefit and Privilege assessment).

Where non-dependent household members are working, their assessable income (i.e. gross, less PRSI and travel to work expenses) is divided by the appropriate rate of SWA (€186 for a single person) which is then multiplied by €24 to establish their liability.

 

Example:

John is living in the family home and his parents receive a Rent Supplement/Mortgage Interest Supplement. John earns €600 a week. He has a monthly bus pass, costing €100.

Step 1: €600

Deductions: Travel = €25 PRSI = €19

Assessable Income: €556

Assessable Income Valuation: €556 divided by €186 = €2.99

€2.99 divided by €24 = €71.76

 

Maintenance Payments

If your only additional income is a maintenance payment, the first €95.23 per week of that maintenance payment is counted in full as means when calculating entitlement to Rent Supplement. Any maintenance payments in excess of €170.23 (€95.23 max maintenance limit + €75 'additional household income') will be assessed as 'additional household income', with the amount over €170.23 disregarded at 25% of its value.

Rehabilitative Earnings Disregards

If you are on Disability Allowance, Illness Benefit or Invalidity Pension and have permission to engage in rehabilitative employment, up to €120 of earnings from rehabilitative employment can be disregarded. However, this disregard cannot be applied with 'the additional income disregard'. Only one such disregard can be applied, whichever is most beneficial.

Returning to Full-Time employment

Persons accepted as being in need of accommodation under the Rental Accommodation Scheme may continue to receive a Rent Supplement and return to full-time employment subject to satisfying a means test. To qualify the person must not have been in full-time employment (i.e. 30 hours or more per week) in the previous 12-month period immediately before seeking to retain their Rent Supplement.

Where a person has participated in Community Employment, Back To Work Allowance Scheme or the Area Allowance Enterprise Scheme they will be eligible to retain their Rent Supplement if returning to full-time work - subject to qualifying for the Rental Accommodation Scheme (RAS).

Rent Supplements will not be paid when:

One member of a household is working full-time (i.e. if one of a couple is working 30 hours or more). In such cases both partners will be excluded from receiving rent supplement. This does not apply where the claimant is accepted as 'in need of accommodation' by a local authority under the Rental Accommodation Scheme (RAS) and their spouse is not in fulltime employment.

Rent Supplements levels:

When assessing applications for Rent Supplement, a CWO will use guidelines on what is considered reasonable accommodation for individual or household needs. Rent supplements are subject to a limit on the amount of rent that an applicant for rent supplement may pay. The limits vary according to geographic location and household size.

The rent supplement will only cover rent up to the amount set out in the regulations. If your rent is above the maximum 'cap' or limit for your family size the HSE can refuse to pay any rent supplement.

A CWO can ask you to move to cheaper rented accommodation if they think your accommodation is too expensive. It is essential that you keep the CWO informed of any change in your circumstances. Contact your local HSE office (Chapter 7) for details of maximum rent limits in your area.

Mortgage Interest Supplement

The purpose of Mortgage Interest Supplement is to provide short term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only and is payable if the loan agreement was entered into at a time when, in the opinion of the HSE, the person was in a position to meet the repayments.

The existing mortgage interest supplement assessment provides for a gradual withdrawal of payment as hours of employment or earnings increase. In recent years improvements have been made to the means test to encourage eligible people to engage in employment without losing their entire mortgage interest supplement.

Those availing of part-time employment (less than 30 hours a week) and/or training opportunities can continue to receive mortgage interest supplement subject to their satisfying the standard means assessment rules.

Since June 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.

Heating Needs and Diet Supplements

Both of these types of payments may be paid to people who, due to ill health or a particular medical condition, require a special diet or a well-heated house. Again you will have to show that your income does not allow you to meet these special needs. In the case of the Diet Supplement, you will also need a letter from your dietician and consultant saying that you need a particular diet e.g. gluten free. The CWO's have guidelines to decide how much the extra dietary needs or heating will cost and how much help/assistance you should get.

Changes to the categories of diets which were eligible for the Diet Supplement were made following the implementation of a report undertaken on behalf of the Department by the Irish Nutrition and Dietetic Institute (INDI) which was published in January 2006.

There are now only four main categories for which supplements are paid:

 

Type A: low lactose, milk free diet Type C: high protein, high calorie diet Type B: gluten free diet Type D: altered consistency (liquidised) diet

Exceptional Needs Payments (ENPs)

The Community Welfare Officers have the power to make once-off payments to meet exceptional or out of the ordinary needs. Examples would be assistance towards the cost of funerals, maternity items or buying/repairing essential household items such as a cooker or washing machine. If you have a once-off expense, which you are unable to pay, you should apply for this payment. The decision to award an ENP is at the discretion of the Community Welfare Officer (CWO) and is based on the individual circumstances of each case. Give the CWO as much information as you can in order to see if the payment can be made. If you require assistance in making an application contact the INOU on (01) 856 0088.

Urgent Needs Payments (UNPs)

Anyone may qualify for a special payment to meet an urgent need, for example, arising from a fire or flood. However, there is no automatic entitlement to such payments. UNPs are payable at the discretion of the HSE taking into account the requirements of the legislation and all the relevant circumstances of the case.

Back to School Clothing and Footwear Allowance Scheme

This payment is designed to help meet the costs of school uniforms. Applications can be made from 1st June to 30th September and anyone claiming a social welfare (including Family Income Supplement - FIS), HSE payment or on an approved employment scheme should apply.

The means test is based on gross income, less PRSI and reasonable travel expenses and is as follows:

 

Back to School Clothing and Footwear Allowance Income Limits

Children 1 Child 2 Children 3 Children 4 Children Couple* €563.60 €593.40 €623.20 €653.00* *Each extra child €29.80 Lone Parent** €410.10 €439.90 €469.70 €499.50** **Each extra child €29.80

If your income is below this level, you will receive payments for children aged 2 to 17 and children aged 18 to 22 if in full-time education, for whom a Qualified Child Payment is payable.

 

From June 2011, €200.00 is paid for each eligible child aged between 2-11years before 1st October 2011 and €305.00 is paid for each eligible child aged between 12-22 years on or before 1st October 2010.

In 2010, an additional €215 was paid for children aged 18, if this child was included on your Social Welfare payment or your Family Income Supplement (FIS) payment. This was a once off payment and will not be paid in 2011.

Adminstrative changes for 2011: if you quality you should receive notificaiton from the Department of Social Protection, if you do not you have to make an application.

Last Updated: 31/08/2011 ^ back to top

Losing Your Job

The shock of losing a job, or the prospect of reduced hours/pay, can be acute and traumatic for people. It is very important that they understand options that may be offered and how those options will affect them.

Changes to Working Conditions

If your employer is proposing any change to your terms and conditions of employment, such as Reduced Hours or Pay, Short-time or Lay off, you should ask your employer to give you written details of this proposed change and ask for a review date. If you accept the change, you should reply in writing, confirming that your acceptance is on the basis that this is a temporary situation and that you will be returning to your original hours/pay in the future.

Reduced Hours or Pay

A reduced working hours situation occurs where your employer proposes a reduction to your pay or hours, but that reduction is not less than half the normal weekly amount of your normal pay/hours. This is a change to your terms and conditions of employment and must be agreed with you.

If you do not agree, and say you wish to continue working as before your employer could decide to make you redundant. If this happens you may bring a claim for Unfair Dismissal.

Short-time

A short-time situation occurs when there is a reduction in the amount of work available, and applies where the reduction results in your pay / hours being reduced to less than half the normal weekly amount of your normal pay/hours. Short-time is a change to your terms and conditions of employment and must be agreed with you. This must be a temporary situation and your employer must notify you before the reduction in hours/pay starts. Your employer can seek to put you on short time if it is in your contract of employment or custom and practice in your workplace.

Lay off

A lay-off situation arises where your employer is temporarily unable to provide work for you. Your employer can lay you off if it is in your contract of employment or it is custom and practice in your workplace. Lay off is a change to your terms and conditions of employment and must be agreed with you. This must be a temporary situation and your employer must notify you before the reduction in hours/pay starts.

Both Short-Time and Lay off

If you do not agree to Short-time or Lay off your employer could seek to make you redundant.

If a short-time or lay off situation exists and has continued for 4 weeks or more, or for 6 weeks in the last 13 weeks, and your employer cannot guarantee you at least 13 weeks employment you may be able to claim redundancy. This is considered voluntary redundancy and you are not entitled to notice or pay in lieu of notice.

There is no limit on the number of times an employer may put an employee on short-time or lay off, as long as the employer can guarantee at least 13 weeks employment. However, if it becomes apparent that the short-time or lay off is no longer temporary then the situation could be considered a redundancy. For more information on this subject contact the INOU by telephone on (01) 856 0088

Entitlement to a Jobseeker's payment

If your hours of work are reduced so that you are unemployed for at least 3 out of 6 consecutive days you may be entitled to a Jobseeker's payment from the Department of Social Protection. Sunday is not taken into account in calculating days of employment, for both Jobseeker's Benefit and Jobseeker's Allowance. So working on Sunday will not effect your Jobseeker's payment.

To qualify for Jobseeker's Benefit you must have enough PRSI contributions and must have suffered a substantial loss of employment in any period of 6 consecutive days. This means, you must have lost at least one day's employment and as a result of this loss be unemployed for at least 3 days out of 6 days. Your earnings must also have been reduced because of the loss of employment.

If your employer reduces your days at work to 3 days a week or less and you do not qualify for Jobseeker's Benefit you may get Jobseeker's Allowance for the other days. You must meet the other conditions that apply to Jobseeker's Allowance, for example, you must satisfy a means test.

It may be possible to get Family Income Supplement (FIS) if you have a family and your pay or hours are reduced.

Entitlement to Redundancy

Employed - for 104 weeks continuously

Employees who have more than 104 weeks continuous service are entitled to a Statutory Redundancy payment by law.

Employed - for less than 104 weeks continuously

Employees who have less than 104 weeks continuous service are not entitled to a Statutory Redundancy payment.

Last Updated: 31/08/2011 ^ back to top

Managing Your Money

When you have a limited income it is important that you know how to check on where your money is going and what to do if you are having trouble paying back debts.

Getting Help

The Money Advice and Budgeting Service (MABS) is a free and confidential service for people with debt and money management problems. There are 53 MABS services in Ireland, staffed by trained Money Advisers. Money Advisers will:

• Help you deal with your debts and make out a budget
• Examine your income to ensure you are not missing out on your entitlements
• Contact/liase with your creditors with offers of payment on your behalf.
• Help you decide on the best way to make the payments.

You can contact the MABS Helpline, on 1890 283 438 Monday to Friday, 9.00 am - 8.00 pm. Visit their website www.mabs.ie for more information.

Some Personal Budget Tips:

• Start by doing your budget weekly and then do it monthly.
• Get all members of the family involved.
• Work out how much you spend weekly on Gas, ESB, rent, telephone, etc.
• Work out how much money you will need to put aside to meet future expenses, e.g. communion, confirmation, holidays or car insurance.
• Don't forget to include items such as clothing, childcare, household items, medical expenses, sports, gifts, etc.
• Try to put some money aside every week or every month, even if it is only a very small amount.
• When buying things on credit or borrowing money don't be tempted to sign any contracts until you have read them fully and thought them over carefully.

 

Last Updated: 31/08/2011 ^ back to top

SWA Appeals

If a payment has been refused you have the right to appeal that decision. You can apply to the CWO or the SCWO to have the decision reviewed, if this is not successful then you can appeal to the HSE Appeals Office and finally the Social Welfare Appeals Office.

At each stage you should appeal a decision as soon as possible after the initial decision has been made.

Community Welfare Officer (CWO)

• Check to make sure the CWO had all the relevant information available to them at the time they made their decision and provide any new information.
• Ask if there is any possibility of the decision being reversed.
• Ask the CWO exactly why the payment is being refused and request the decision in writing on the grounds that you may wish to appeal.

Superintendent Community Welfare Officer (SCWO)

• Contact the Superintendent CWO explaining your case and ask them to review the original decision of the Community Welfare Officer. -
• Provide any additional supporting information as may be appropriate.

HSE Appeals Office

Each HSE area has an 'Appeals Officer' who is responsible for appeals. You can complete an official appeals form or simply write a letter to your local Appeals Officer (see Chapter 7). You should;

• Give the reasons why you feel the decision was unreasonable.
• Provide any extra information you feel may be useful in reconsidering the decision.
• Ask for an oral appeal. Although these are rarely given you should try to talk directly to the Appeals Officer.

In practice, the Appeals Officer should check back with the Superintendent CWO who was responsible for upholding the original decision of the CWO. The Appeals Officer will then write to you informing you of the result of the appeal.

Social Welfare Appeals Office

If you are unhappy with the result of the HSE appeal, you may then appeal to the Social Welfare Appeals Office (see Chapter 7).

 

i You cannot take a further appeal to Social Welfare Appeals for Exceptional Needs Payments or Urgent Needs Payments.

 

Appeals Processing Times

Processing times for appeals can vary depending on the nature and detail of the issue under appeal. Standard HSE appeals, without an oral hearing, can be completed in a number of weeks. Where an oral hearing is granted, this can take several weeks longer.

Appeals to the Social Welfare Appeals office are experiencing significant delays. Standard appeals can take a number of months and appeals that have requested an oral hearing can take up to 12-18 months.

Payment Pending Appeal

Where a person is appealing a refusal of a weekly SWA payment, it may be possible to apply for an 'interim' SWA weekly payment from the HSE pending the outcome of the original appeal. Please contact the INOU for more information on (01) 856 0088.

 

Last Updated: 31/08/2011 ^ back to top

Coping with Poverty

The INOU is constantly campaigning for much needed improvements in the social welfare system and for real 'cost of living' payments for all welfare recipients. In the meantime, we realise that it is important for people to get as much help, information and advice as possible.

In this chapter we explain a range of supports available, how to access them and how to get the most benefit from them.

Last Updated: 21/07/2011 ^ back to top

Applying for a Supplementary Welfare Allowance Payment

You can make an application for any of the above Supplementary Welfare Allowance (SWA) payments through the Community Welfare Officer (CWO) at your local health centre.

In certain areas Rent Supplement is dealt with by a specific office, not the Community Welfare Officer, and can only be applied for by post through a PO Box number. Please contact the HSE for more information on your local HSE Office or Rent Supplement Office on 1850 24 1850 or the INOU on (01) 856 0088

 

Basic Weekly SWA payments

The Social Welfare Miscellaneous Provisions Act 2003 allows a CWO to determine if a person is Genuinely Seeking Work, where that person would normally be expected to apply for a Jobseeker's payment. If you have applied for a Jobseeker's Allowance/Benefit payment or are appealing the refusal of a JA/JB payment CWOs now have the authority to seek proof of your efforts in 'Genuinely Seeking Work' (see chapter 1) when assessing your entitlement to a basic weekly SWA payment. If they decide that you are not Genuinely Seeking Work they could refuse your application for an SWA payment.

 

Your HSE office can provide official application forms to complete. Application forms can be downloaded from the CWS website at http://communitywelfareservice.ie/cws_public/. Remember to keep a copy of your original application if possible

This application will give you the opportunity to explain all the reasons why you need help at that particular time; it will help you to explain your case to the CWO.

• You will need to bring the following items when making your application:
• Proof of where you live and proof of identity.
• Relevant letters from doctors, community workers, social workers, etc. as appropriate.
• If you are looking for Rent Supplement bring your rent book or rent receipts.
• If you are applying for Diet Supplement bring letters from your dietician and consultant.
• Official written quotes from shops or repair-shops if seeking help with essential household goods.

You will be means-tested and decisions normally take about a week. The quicker you can give the CWO all the information needed to make the means test, the quicker s/he can process your claim.

If you are refused payment, you are entitled to be told the reason for refusal in writing. Always keep a copy of this document in case you want to appeal the CWO's decision. Contact the INOU on (01) 856 0088 for more information.

 

Last Updated: 31/08/2011 ^ back to top

Debt Management

Debt only becomes a problem when you can no longer continue to repay a loan or pay the bills - when you are no longer in control. There are ways out of debt. -

• Check if you are getting all your entitlements or if there is any way you can increase your income.
• Check if you can increase your income by cutting back on spending.
• List all your debts in order of importance. If you are in danger of losing your home because of rent/mortgage arrears that debt should be your first priority. -
• If in difficulty, contact your creditors as soon as possible. Begin with the most important debts. You can explain your situation and prevent any action being taken against you.
• Where possible use the services of an advice/support worker when trying to work out a repayment agreement with a creditor.

In dealing with ESB or gas bills the local ESB/Bord Gáis offices should work with the customer to come to a realistic repayment method.

Last Updated: 31/08/2011 ^ back to top