Case Studies » One Parent Family » One Parent Family Payment - Case from 2016 Annual Report (ref: 2016/09)

2016/09 One-Parent Family Payment

Oral hearing Question at issue: Assessment of means

Background: In separating from her spouse, the appellant received €140,000 as her share of the proceeds of the sale of the family home. Normally, that money would fall to be assessed as means in determining eligibility for One-Parent Family Payment using the formula for assessing capital outlined in social welfare legislation. However, it was not included in the means assessment initially as the appellant had stated that the funds were to be used to purchase a new home for herself and her children. Under Guidelines issued to Deciding Officers by the Department of Social Protection, a period of three to six months is generally allowed for the completion of a house purchase in such circumstances. As no purchase had been made following the expiry of that period, the capital which the appellant retained was assessed as means with effect from a specified date and she made an appeal against the decision.

Oral hearing: The Appeals Officer outlined the manner in which capital is assessed and advised as to the allowances normally made where a capital sum is to be used to purchase a

home. He noted that in the appellant’s case the normal period allowed to complete a purchase had expired some time ago. The appellant accepted that this was the case but said she hoped she might be facilitated a little longer until she could get back on her feet.

The appellant advised that she has a child with special needs who is attending school in the local area and receiving support services there. On that basis, she indicated that she was very reluctant to move too far. She outlined details of a number of properties she had been involved in trying to purchase since she separated. She spoke of having been involved in a protracted process to purchase a particular house but said it had fallen through ultimately. She submitted supporting documentary evidence. She referred to a deposit she had put on a house more recently, in an area close to where she was living, but advised that the sale

had also fallen through.

The appellant went on to outline her efforts to improve her qualifications so that she could secure employment. Having completed a course in a particular area of interest, she had obtained a FETAC qualification and was actively looking for work.

The Appeals Officer asked about the apparent depletion of the capital from €140,000 to €101,000. The appellant acknowledged that she had been dipping into the capital and said that the amount had been reduced even further since her One-Parent Family Payment had been terminated. She undertook to provide a recent bank statement. She went on to say that she was aware that she has been effectively priced out of the market but hoped to get full-time employment which would put her in a better position to buy a house.

Consideration: The Appeals Officer noted the appellant’s efforts to purchase a home from the capital derived from the sale of the former family home and the fact that she had been unable to use the capital in the time allowed. He noted also that the capital sum had been depleted over time and that she was unlikely now to be able to buy a property. However, he concluded that the Department had been more than reasonable in disregarding her capital for a period in excess of that provided for in the Guidelines. In the circumstances, he concluded that the point had been reached where the legislation on the assessment of capital must be applied in determining her means.

Outcome: Appeal disallowed.