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Case study: Calculating Rent Supplement

This is an example showing how Rent Supplement is calculated in 2014

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. She will not get any increases for their children because Paul's income is over €400 a week. 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: Calculate the household's gross assessable weekly income from all sources

Income source Amount
Assessable income from employment €440
Carer's Allowance €204
Family Income Supplement €25.20
Gross assessable weekly income €669.20

Note that Child Benefit and Domiciliary Care Allowance are not included as income. 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.

Step 2: Find out what your income in excess of the Supplementary Welfare Allowance (SWA) rate is

To do this you deduct the Over 65 disregard, the Carer’s disregard, travel costs, PRSI and the Appropriate SWA rate for your circumstances from your gross assessable income to find out what your income in excess of the SWA rate is.

Gross assessable weekly income (see Step 1) €669.20
Less Carer's disregard* -€79.20
Less PRSI (4% of €440) -€17.60
Less appropriate SWA rate for a couple with 2 children -€370.40
Income in excess of the SWA rate €202

*The amount of Carer's Allowance (CA) in payment 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: €204

Less IQA: €124.80
Susan's Carer's disregard is €79.20

Step 3: Calculate the Additional income disregard

Additional income = (A+B) - C Income

A = Gross income from:

  • Full or part-time work
  • Family Income Supplement

€440

€25.20

Total A: €465.20
B = assessable income from other sources:
  • Carer’s Allowance/Benefit
  • Subtract Carer’s disregard (Subtract SWA IQA rate from actual carer's payment)

€204

-€79.20

Total B:

€124.80
C = SWA rate for family circumstances €370.40

Total C:

(A+B) – C = Additional Income €219.60
Subtract PRSI, pension contributions, income continuance -€17.60
Additional Income for disregard €202

If Additional Income for disregard is less than or equal to €75 this figure is the Additional income disregard.

If not do this calculation:

Subtract €75 -€75
Subtotal €127

25% of subtotal

€31.75

Add €75 + 25% of subtotal to get Additional Income disregard

€106.75

Step 4: Subtract the Additional Income disregard from your income in excess of the SWA rate (figure at the end of Step 2). This figure is your contribution from means.

Income in excess of the SWA rate: €202

Less Additional Income disregard: €106.75

Contribution from means: €95.25

Step 5: Find your total weekly contribution to rent by adding your contribution from means to your minimum Household Contribution.

Contribution from means: €95.25

Plus Minimum Household Contribution: €40

Total weekly contribution to rent: €135.25

You must pay a minimum contribution towards your rent in addition to any assessable income. This is €30 for a single person and €40 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 €40.

Step 6: Find your Rent Supplement payment by subtracting your total weekly contribution to your rent from your weekly rent.

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: €219.23

Less Susan and Paul's total weekly contribution to rent: €135.25

Susan and Paul will get a weekly Rent Supplement of €83.95

Page updated: 14 March 2014

Language

Gaeilge

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