Case Studies » Back to Work Family Dividend » Back to Work Family Dividend - from 2015 Annual Report (ref: 2015/17)

Background: The Back to Work Family Dividend scheme was introduced in January 2015, and intended as an income support in circumstances where people who have children cease to claim social welfare payments and seek to rely on income from employment or self-employment.  It is paid in the form of a financial support, or dividend, payable over a two year period and determined with reference to a person’s entitlement to an increase in payment in respect of a qualified child, calculated at the point where they cease to claim a social welfare payment and subject to a minimum payment for each child.

In the case at issue, the appellant’s claim was disallowed on grounds that his employment took place in Northern Ireland and that he was not eligible under the terms of the scheme. In setting out his grounds of appeal, he asserted that no reference had been made in the guidelines to advise that such employment was outside the scope of the scheme. 

Consideration: The Appeals Officer referred to the governing legislation which provides that ‘employment’ in the context of this payment means ‘insurable employment’ as an ‘employed contributor’.  He noted that employed contributors are those persons working in the State under a contract of service (employees) and making contributions to the Social Insurance Fund and, accordingly, that this excludes persons working in Northern Ireland.  In addition, he observed that under EU Regulations, family benefits such as the Back to Work Family Dividend may be claimed only in the State in which the worker is employed and to which he or she pays social insurance.  Accordingly, the Appeals Officer concluded that the appellant did not qualify for payment under the scheme. 

Outcome: Appeal disallowed.