Social welfare, taxation,
Secondary benefits and work
James McClean
Job Coach
Employment Response North West
‹#›
Key questions you need to ask.
 What
benefit are you on?
 Rules and regulations on your
Benefit
 What will you keep? What will you
lose?
 +’s and –’s
 “Measure twice and cut once!”
JAMES MCCLEAN
ERNW
‹#›
Types of payment you will most
likely encounter.

DA Disability Allowance
 DB Disability Benefit.(ILLNESS BENEFIT)
 IP Invalidity Pension
 BP Blind Pension
 UA Unemployment Assistance (Dole)
(JOBSEEKERS ALLOWANCE)
 UB Unemployment Benefit (Stamps)
(JOBSEEKERS BENEFIT)
 Disablement Pension / Unemployability
Supplement.
JAMES MCCLEAN
ERNW
‹#›
Stamp based versus Means tested
 Stamp
based means you must have a
certain number of Stamps or PRSI
contributions to qualify.
 Means tested means that your
“means” and possibly means of your
spouse or partner may be taken into
account when calculating eligibility.
JAMES MCCLEAN
ERNW
‹#›
•ILLNESS BENEFIT(FORMERLY DB)
Disability Benefit.

Unable to work due to illness or disability.
 Must have PRSi contributions to qualify for
this payment.
 (Be careful! As if you have less than 260
paid contributions you may only receive
this for 12 months)
 Generally seen as a short term payment (If
you were off work for two weeks or so with
the “flu” this is the payment you would be
receiving)
JAMES MCCLEAN
ERNW
‹#›
•IP Invalidity Pension

Longer term version of Disability Benefit.
Generally you would need to be on DB for
at least one year before you would apply
for this payment unless in exceptional
circumstances such as diagnosed as
terminally ill etc.
 Higher rate of payment than DB and also
includes free travel and is a “passport” to
applying for other secondary benefits such
as free TV licence, electric and phone
JAMES MCCLEAN
ERNW
‹#›
•Disablement Pension

If you have had an injury at work and have
claimed occupational injury benefit then
you may qualify for this.
 The injury must have resulted in a residual
disability.
 < 20% loss of faculty then you receive a
lump sum payment.
 >20% loss you may be awarded a pension
payable along with other payment such as
JAMES
DBMCCLEAN
or IP.
‹#›
ERNW
Job Seekers Benefit

Very similar to UA except you are entitled to
draw this benefit based on your PRSI
contributions so you are not means tested.
 Normally look at your record of
contributions from two years previously so
if you were making claim in 2007 then you
would need to have the correct amount of
contributions in 2005.
JAMES MCCLEAN
ERNW
‹#›
MEANS TESTED PAYMENTS
DA Disability Allowance

Paid in recognition of the difficulty that an
individual with a disability will have in
obtaining employment as opposed to
someone of the same age and sex who
does not have a disability.
 Individuals means are assessed but for
someone living with parents then income
of parents are not taken into account.
JAMES MCCLEAN
ERNW
‹#›
Blind Pension

Similar to Disability Allowance
 Person may qualify for Blind Supplement
as well but will probably lose it if taking up
employment due to means testing by
Health Services Executive who administer
the Supplement.
 If you have been working and acquire
Blindness then you MIGHT also qualify for
Disability benefit as well.
JAMES MCCLEAN
ERNW
‹#›
JOB SEEKERS ALLOWANCE
 Your
means and means of your
partner / spouse are taken into
account.
 To qualify you must fulfil three
conditions :
 You must be AVAILABLE, FIT FOR
AND ACTIVELY SEEKING FULL TIME
EMPLOYMENT.
JAMES MCCLEAN
ERNW
‹#›
REHABILITATIVE
EMPLOYMENT

If you take up Rehabilitative Employment,
while on Disability Allowance or Blind
Pension the first E120 of earnings is
disregarded in the means test. If on
Invalidity Pension or Disability Benefit you
may be permitted to work up to 20 hours.
You will require medical evidence from
your GP and written approval from the
Department of Social Welfare.
Employment on a CE scheme may be
treated as rehabilitative.
JAMES MCCLEAN
ERNW
‹#›
EARNINGS ABOVE €120.00
PER WEEK. DA +BP
From June 2006, earnings above €120.00
per week removed at rate of 50% e.g. 50
cent in the euro. UP TO A MAXIMUM OF
€350 PER WEEK EARNINGS.ANYTHING
ABOVE €350 PER WEEK RESULTS IN
DEDUCTION OF EURO FOR EURO.
 Earn €350.00 per week then lose €115.00
from DA or BP
 Earn €360.00 per week and lose €125.00
from DA or BP

JAMES MCCLEAN
ERNW
‹#›
Example of effects on partners means
tested payment.

If working 1,2 or 3 days earning €120.00 per week.they
would disregard approx €44.44 and then deduct half of
the difference off partners payment so €120.00-€44.44=
€75.56. €75.56 / 2= €37.28 deduction from
spouse/partner payment.
If working 4,5 or 6 days earning €120.00 per week.they
would disregard approx €88.88.and then half of the
difference off partners payment so €120.00-€88.88=
€31.12. €31.12/2= €15.56 deduction from
spouse/partner payment. If both working then both
would lose the above rates.
JAMES MCCLEAN
ERNW
‹#›
Rules for working whilst on Job Seekers
Allowance
•Contrary to belief you CAN legally work whilst drawing “Dole”!
•Maximum days of work are 3 in each working week.
•Example :Single person working 3 days and earning €70.00 per
day.
•Disregard first €10.00per day, they lose 60% of balance from
Dole. So €60.00*60% =€36.00 multiplied by 3 days =€108.00
deducted from “Dole” payment of €185.80. Income would be,
earnings = €210.00 +Dole of €77.80.
•There is NO €10 disregard if person is married so they would
lose 60% of the whole €70.00 per day worked which is a
deduction of €42.00 per day of their Dole.
JAMES MCCLEAN
ERNW
‹#›
DB or IP Rehabilitative employment
•Before anyone on DB or IP can take up employment and keep their
benefit they must ABSOLUTELY apply to Social and Family affairs to
do so. This is called applying for an exemption. The work must be
classed as “Rehabilitative” BY the Department and an exemption will
normally be granted for 6 or 12 months. A further exemption may be
granted at the end of that period if the work is deemed to be
rehabilitative or fitting that person out for taking up alternative
employment or that the persons health, e.g. Mental health is
improving through engagement in that employment. Normally takes
about 6 weeks for exemption to be granted or not.
• The person can work up to 20 hours per week and they can earn as
much as they want / can without it affecting the rate of IP they are
receiving. Spouse/partner's payment be be affected if it is means
tested.
JAMES MCCLEAN
ERNW
‹#›
Rules for working whilst on Job
Seekers Benefit
•You can work up to a maximum of 3 days per week and you
lose a days JSB for each day worked, even if you only work for
2 hours in a day it is classed as a days work. Income disregards
or amount earned do not affect your UB payment.
•Remember whether on UA or UB you are expected to be
actively seeking full time employment on the days you are not
working so if a client only wants to or is unable due to illness /
disability to seek full time employment then this payment may
not suit them as they may be asked to provide evidence of
pursuing full time employment by their Social and Family Affairs
office.
•If a client becomes ill or disabled whilst in receipt of UA or UB
they can apply for DB, IP, DA,BP or possibly Supplementary
Allowance or Occupational Injury Benefit.
JAMES MCCLEAN
ERNW
‹#›
Retention of Secondary benefits
•Generally, you will automatically retain any secondary benefits
you are receiving such as Free Travel, when engaged in
APPROVED rehabilitative employment but be aware that means
tested payments or benefits such as Rent allowance, Medical card,
Mobility allowance, Blind Welfare allowance etc MIGHT be affected
by earnings either up to or above the €120.00 threshold
mentioned. For example there is a disregard by The HSE of
€120.00per week from rehabilitative employment when assessing
for Rent Allowance but there is no automatic disregard when
assessing Medical card eligibility and it is solely at the discretion
of each HSE area office whether to grant the medical card or not.
JAMES MCCLEAN
ERNW
‹#›
FAS SUPPORTS

Wage Subsidy Scheme- Fas provide
financial support to an employer who takes
on a person with a disability.
 Workplace/Equipment Adaptation GrantProvides funding up to make the workplace
more accessible or equipment easier to use
 Supported Employment Programme- In
conjunction with the Health Board, a job
coach is available to approach employers
and assist in any way they can.
JAMES MCCLEAN
ERNW
‹#›
OTHER FAS SUPPORTS
 Job
Interview interpreter grant
 Personal
reader grant
 Disability
awareness training grant.
 Employee
JAMES MCCLEAN
ERNW
Retention Grant
‹#›
WAGE SUBSIDY SCHEME
 Biggest
difference with old ESS
scheme is that employee, if
qualifying, CAN NOW access back to
Work Allowance as well.
 Additional costs subsidy
 Employment Assistance officer.
JAMES MCCLEAN
ERNW
‹#›
BACK TO WORK
ALLOWANCE
 Retain
percentage of social welfare
along with unlimited wages over a 3
year period.
 Retain Medical Card and Free Travel
for the 3 years.
 Retain percentage of Rent Allowance
on a sliding scale for 3 years
(possibly 4!)
JAMES MCCLEAN
ERNW
‹#›
Taxation

New employee must gain a Tax Credit
(used to be Tax free allowance) or
employer is obliged to tax their earnings
at emergency tax rate. This is refundable
after Tax credit has been applied for and
gained, refund is paid directly by the
employer if claimed during the same tax
year, if claimed after that then apply to
Revenue Commissioners.
 Fill a Form 12A and send to Revenue
commissioners to gain your Tax Credit
JAMES MCCLEAN
ERNW
‹#›
What is Taxable and what is not?
Disability Allowance is Not Taxable income.
 Blind Pension IS Taxable but recipients are
entitled to extra Tax credits.
 First 6 weeks of Disability Benefit is Not
taxable and after that only the adult portion is
taxable i.e. any DB claimed for dependent
children is not taxable at all.
 Income arising from investments made with
compensation arising from court awards for
example a road traffic accident and where
this is the sole or main income for the person
then it is exempt from DIRT. and certain other
taxes.
JAMES
MCCLEAN
‹#›

ERNW
Pay Related Social Insurance
 ALL
employees MUST have some
form of “stamp” put on for them by
the Employer.
 Class J stamp at least but if earnings
are more than approx. €36 per week
then class “A” stamp is required.
 Employees holding a Medical Card
only have to put on a class A2 stamp.
JAMES MCCLEAN
ERNW
‹#›
What does a “Stamp” entitle me to?

Occupational Injury Benefit (employees
are covered for accident or disease that
occurs during course of their employment
duties, even travelling directly to or from
their employment!)
 Build up entitlement to Stamp based
payments / benefits such as DB, IP,
Contributory Old age pension, Dental and
optical benefits
JAMES MCCLEAN
ERNW
‹#›
Disabled Persons Grant

This is a grant paid by the County Council
to adapt houses for people with
disabilities. Works include provision of
ramps, widening of doorways, adding a
downstairs bedroom or bathroom etc.
They pay 90% of the cost up to a
maximum for private houses. Where a
house is being built specifically for a
person with a disability there is a specified
grant for that as well. Apply to the local
Co.Council
JAMES
MCCLEAN
‹#›
ERNW
Free Travel Pass

Who qualifies?
 Everyone over 66 and living in the state
 Anyone on Disability Allowance, Blind
Pension or Invalidity Pension
 People who transferred to Retirement
Pension from DA or Invalidity at 65
 Anyone receiving Carer’s Allowance
Note: You may also apply for a Companion
Pass if you are medically certified as unfit
to travel alone
JAMES MCCLEAN
ERNW
‹#›
Transport and Travel
Disabled person’s parking card
Allows people to park in designated parking areas
and free of charge in disc parking areas. It is
valid for 2 years and costs 25 euro. It applies to
the person not the car. You will automatically
qualify if you have a primary medical certificate.
Can be used abroad. Forms available from Irish
wheelchair association, Ballinagappa road, Clane,
co.Kildare. Tel 045 893094 or disabled drivers
association Ballindine, Co Clare

JAMES MCCLEAN
ERNW
‹#›
Transport and Travel

Disabled Drivers and Passengers Tax Relief
You must have a Primary Medical Certificate.
You may claim a refund /exemption of VAT and VRT
on the price of the car and a refund of VAT on
price of any necessary adaptations.
Repayment of excise duty on fuel up to 600 gallons
a year.
Exemption from motor tax.
JAMES MCCLEAN
ERNW
‹#›
Transport and Travel

Motorised Transport Grant
This is a means tested Health Board grant
towards buying/adapting a car for
someone with a severe disability to help
them get or keep employment.
You must be over 17 and under 66 and hold
a driving licence. In certain cases family
member can be the driver
If you get the grant you will not get Mobility
Allowance for 3 years.
JAMES MCCLEAN
ERNW
‹#›
Transport and Travel Procedures

Mobility Allowance
This is a means tested Health Board
payment for people who are unable to
walk or for whom the exertion required to
walk would be dangerous.
You must be between 16 and 66.
It is paid monthly and you will only get the
lower rate if you claim the Disabled
Drivers and Passengers Relief.
JAMES MCCLEAN
ERNW
‹#›
Rent Allowance

If your client moves to rented accommodation to pursue
employment they may qualify for Rent Allowance from the
local HSE. Please check with your area what is the
maximum permissible rent as say for example the “cap” is
€85 per week and your client moves into a flat at €90 per
week then they would not be entitled to any Rent
Allowance.
Local Authority housing rent is normally based on income
so if client is unemployed then they would be on the lowest
rent but this might increase if they take up employment but
there is a limit to the amount of increase on rent they can
apply each year and now many local authorities are
disregarding a certain amount of income from
Rehabilitative employment for people with disabilities when
reviewing
JAMES
MCCLEAN rents.

ERNW
‹#›
Household Benefits package



People on DA, BP, or IP can apply for this which
would give them free T.V. Licence, free electricity
units, free telephone units and they may also
qualify for Living Alone Allowance and free fuel.
People on DB cannot apply for the household
benefits package but it is worth checking
eligibility if they are living with someone who
would qualify in their own right
They are better to apply before they take up
employment
JAMES MCCLEAN
ERNW
‹#›