Working for Work : Chapter 2 : Coping with Poverty

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