Case study: Calculating Rent Supplement

This is an example showing how Rent Supplement is calculated in 2013.

Case study

Susan and Paul have 2 children aged 6 and 12. Paul has been unemployed for 1 year but has recently found work and will start his new full-time job in a couple of weeks. His net income from work will be €440 each week.

Susan had been getting half-rate Carer’s Allowance because Paul was getting Jobseeker’s Benefit and claiming for her as an adult dependant. When Paul returns to work she will get full-rate Carer’s Allowance. Their 6-year old child is getting Domiciliary Care Allowance. Their only other income is from Child Benefit. However, they may also apply for Family Income Supplement when Paul starts work.

Susan wants to know if they can keep any of their Rent Supplement when Paul starts work.

Their rent is €950 per month which is within the limit for their area. They have been assessed by their local authority as in need of housing under the Rental Accommodation Scheme so they can retain their Rent Supplement while Paul is in full-time employment.

Step 1: Total weekly household income

Find their total weekly household income.

Income source Amount per week
Assessable income from employment €440
Carer’s Allowance (see Note 1) €204
Child Benefit €64.61
Domiciliary Care Allowance €71.42
Family Income Supplement €56.40

Total Household Income €836.43

Step 2: Deduct Supplementary Welfare Allowance rate

Subtract the basic Supplementary Welfare Allowance (SWA) weekly rate for their household from their total income.

Total Household Income (see Step 1) €836.43
Less SWA rate (see Note 2) - €370.40
Total €466.03

Step 3: Deduct any income not taken into account

Subtract any income disregarded or not usually taken into account and you are now left with their weekly assessable income.

Income (see Step 2) €466.03
Less Carer’s Allowance (see Note 3) €79.20
Less Domiciliary Care Allowance €71.42
Less Child Benefit €64.61
€250.80

Additional Household income disregard

First subtract €75 from €250.80 (see Note 4) = €175.80
Next get 25% of €175.80 and subtract it
(To get 25% you divide €175.80 by 4)
€175.80 ÷ 4 = €43.95

€175.80 - €43.95 = €131.85

Susan and Paul’s total weekly assessable income is €131.85

Step 4: Add assessable income and household contribution

Find Susan and Paul’s contribution toward their rent.

Weekly assessable income €131.85
Add household contribution (see Note 5) €35
Total contribution to rent €166.85

Step 5: Subtract total rent contribution from rent

Then subtract their total weekly contribution (see Step 4) from their weekly rent to get the weekly Rent Supplement they will be paid.

Rent (see Note 6) €219.23
Less total contribution €166.85
Total Rent Supplement €52.38

Susan and Paul will get a weekly Rent Supplement of €52.38

Notes

Note 1
Susan may also get a Respite Care Grant in June from the Department of Social Protection. The Respite Care Grant is not taken into account as income.

Note 2
The basic SWA rate in 2013 for a couple with 2 children is as follows:
Personal rate €186
Increase for a Qualified Adult (IQA) €124.80
Increase for a Qualified Child (€29.80 per child) €59.60
Total €370.40

Note 3
The amount of Carer's Allowance (CA) above the appropriate SWA rate for the carer is not taken into account. The appropriate SWA rate for the carer is either the Increase for a Qualified Adult (if you are a couple) or the personal rate (if you are a single person).

Susan is living with her partner Paul. The SWA rate for a qualified adult is subtracted from her Carer’s Allowance and the remainder is not taken into account.

Carer’s Allowance (CA) €204
Less IQA €124.80
CA not assessable €79.20

Note 4
The Additional Household Income Disregard is a certain amount of your household income which is not taken into account. €75 of any ‘additional household income' income is not taken into account. Also, 25% of ‘additional household income’ over €75 is not taken into account. There is no upper limit on the amount that can be disregarded.

Note 5
You must pay a minimum contribution towards your rent in addition to any assessable income. This is €30 for a single person and €35 for a couple. This minimum contribution may be increased depending on the number of non-dependent members in the household getting social welfare payments. In this case, the minimum household contribution is €35.

Note 6
Susan and Paul are paying €950 per month for accommodation.

To get the weekly rent figure, multiply €950 by 12 and divide by 52.

Monthly rent €950 x 12 ÷ 52 = €219.23

Weekly rent is €219.23