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Know Your Rights

2014 Social Welfare, Health and Taxation
In every situation information is the key to understanding,
discussing, interpreting or attaining your rights. Here,
Andrew provides that key.
Dermott Jewell, Chief Executive, Consumers Association of
Ireland
In an age of great uncertainty, having an intimate knowledge
and understanding of ones rights is an essential life tool.
Andrew McCann provides this in spadefuls, and he does it
in a very understandable and straightforward manner.
Jim Power, Economist

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Disclaimer and Waiver of Liability

Whilst every effort has been made to ensure the accuracy of
the information and material contained in this book, nevertheless it is possible that errors or omissions may occur in the
content. The author and publishers assume no responsibility for and give no guarantees or warranties concerning the
accuracy, completeness or up-to-date nature of the information provided in this book. The author and publishers do not
accept any liability for the consequences of any actions taken,
legal or otherwise, on the basis of the information provided in
this book. This book is not a complete source of information
on all aspects of social and civic rights. If you need professional or legal advice you should consult a suitably qualified
person.

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Know Your Rights

2014 Social Welfare, Health
and Taxation

Andrew McCann

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Dedication
This book is dedicated to my wife Nollagh McCann, who died in
November 2013 after a short illness, aged 41. Nollagh was my best
friend, my rock, my drive, my focus, my ambition and my true love.
She supported and pushed me to further myself with my educational
qualifications, career and projects (including the Know Your Rights
series) and waited patiently for me to complete each Know Your Rights
book. Working on this book over the last couple of months has assisted me
in some small way to cope with my great loss and this void in my life. I
know she would have pushed me and wanted me to do this edition, and in
her own way she has helped and guided me through this difficult period.
I am donating all my royalties from this book to the Sunflower Chernobyl
Appeal (Dublin Group) (www.chernobylchildren.ie). This project is a
not-for-profit registered charity which has no staff or administration
costs and all the work is carried out on a purely voluntary basis. Every
single cent raised is used directly to support this charity. In light of
the recent controversy in the news regarding funding of charities I am
pleased to have been and still be actively involved with this charity. The
charity brings children in need of respite to Ireland from Belarus, and
the children are hosted by Irish families during their stay. In addition,
funding for this project will also assist in improving the condition of
orphanages in Belarus and improving the lives of the children who
reside there. I am planning and looking forward to visiting Belarus and
assisting with the work at the orphanages in 2014.
Finally I would like to take this opportunity to thank all the staff of
Beaumont Hospital, Dublin (including ICU) for caring for my wife
during her difficult time and to thank everyone for their kind thoughts
and words, prayers, comfort and support.

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About the Author

Andrew McCann is the author, since 2006, of the annual

publication Know Your Rights (Orpen Press), now in its ninth
edition, and is an advocate since 2002.
Andrew is a regular contributor on TV (TV3 Ireland AM),
national radio (2FM Colm Hayes Show and previously on
the Gerry Ryan Show; Newstalk 106108 FM Pat Kenny Show
and Lunchtime with Jonathan Healy), regional radio (Highland
Radio Shaun Doherty Show) and local radio.
Andrew has also published articles in national newspapers (Irish Examiner and The Sun) and in magazines (You &
Your Money). In addition, Andrew has completed consultancy
work for large pharmaceutical companies and employers
as well as lecturing to medical consultants and practitioners. Andrew has represented clients at Rights Commissioner
hearings, Employment Appeal Tribunals, Equality Mediation
hearings and Social Welfare Appeals.
Andrew McCann holds a Bachelor of Arts in Law
(Dublin Institute of Technology) and is a graduate of the
Marketing Institute of Ireland. He has also successfully completed a Higher Certificate in Advocacy (Sligo Institute of
Technology) and has a Certificate in Management Skills for
Managers of Advocacy Services (Institute of Technology,
Blanchardstown). He has also completed a Diploma in Social
Studies and accredited training in the area of mediation.
Previously Andrew worked as a management consultant in
the area of customer relationship management and for a large
telecoms company in various roles.
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About the Author

Andrew has also written additional publications in the area

of employment and family law (Know Your Rights: Employment
and Family Rights) and consumer rights (Know Your Rights:
Consumer Rights), both published by Orpen Press.
Andrew lives in Kinsealy, Malahide, Co. Dublin.

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Contents

Introduction ..................................................................................... xiii

Chapter 1: Social Welfare A Simple Guide to
How It Works ...............................................................
Rates of Payment 2014 ..........................................................
Eligibility for Social Welfare Payments .............................
Contribution-Based Payments ........................................
Means-Tested Payments .................................................
Occupational Injury Benefits..........................................
Minimum Eligibility Payments (SWA) .........................
Multiple Social Welfare Payments .................................
Assessment for a Spouse, Partner or Civil
Partner and/or Children ..............................................
Habitual Residence .........................................................
Special, Exceptional and Urgent Needs
Payments .....................................................................
Free Schemes ..........................................................................
Fuel Allowance ...............................................................
Free Travel ......................................................................
Household Benefits Package ............................................
Living Alone Allowance .................................................
Free Driving Licence.......................................................
Other Information .................................................................
Social Welfare Appeals....................................................
Overpayment ..................................................................
Reporting Fraud..............................................................

1
1
2
2
6
7
7
9
9
10
13
13
13
14
15
17
17
18
18
20
21

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Contents

Chapter 2: Work and Education Supports and

Entitlements .................................................................
Unemployment Support Payments ....................................
Jobseekers Benefit ...........................................................
Jobseekers Allowance .....................................................
Help for the Self-Employed .............................................
Education................................................................................
Enterprise Initiatives.............................................................
Employment and Educational Initiatives ..........................
JobsPlus Programme .......................................................
JobBridge .........................................................................
Work Placement Programme (WPP) ..............................
Work Activation .............................................................
SpringBoard ....................................................................
MOMENTUM Programme ...........................................
Ts ..................................................................................
Community Employment (CE).......................................
Gateway Local Authority Social Employment
Scheme .........................................................................
EURES (European Employment Services).....................
Subsidised After-School Child-Care Scheme ..................

23
23
25
41
51
52
62
64
64
66
67
67
68
69
69
70
71
72
72

Chapter 3: Family Supports and Entitlements ....................... 75

Family Income Supplement ................................................. 75
One-Parent Family Payment ............................................... 78
Existing Claimants (prior to 27 April 2011).................. 79
Existing Claimants (after 27 April 2011) ...................... 80
New Claimants (since 4 July 2013) ................................ 80
Exceptions ....................................................................... 80
Transitional Arrangements (Ceasing OPF on
Child-Related Age Grounds) ....................................... 81
Case Study 1 ................................................................... 82
Case Study 2 ................................................................... 83
Child Benefit .......................................................................... 84
Back to School Clothing and Footwear Allowance .......... 86
Maternity Leave and Benefit ............................................... 89
Rent Supplement and Mortgage Interest Supplement .... 92
Rent Supplement Assessment Example 1....................... 95
Rent Supplement Assessment Example 2....................... 97
Widow(er)s or Surviving Civil Partners Financial
Supports .............................................................................. 100
Bereavement Grant ......................................................... 101
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Contents

Chapter 4: Illness, Disability and Carers Supports ................

Illness Payments ....................................................................
Injury Benefit ..................................................................
Illness Benefit ..................................................................
Partial Capacity Benefit ..................................................
Invalidity Pension...........................................................
Disability Allowance.......................................................
Care Supports ........................................................................
Home-Based Supports.....................................................
Employing a Carer .........................................................
Nursing Home Support Scheme (Fair Deal) ................
Grants for House Improvements ....................................
Carers Payments ..................................................................
Domiciliary Care Allowance...........................................
Respite Care Grant .........................................................
Carers Benefit.................................................................
Carers Allowance ...........................................................
Medical and GP Visit Cards ................................................
Medical Cards for the Over-Seventies ............................
Long-Term Illness Scheme and Drugs Payment
Scheme ................................................................................
Accident and Emergency (A&E) and Hospital Charges .

103
103
104
105
110
115
117
122
122
123
123
130
134
134
136
137
139
140
152

Chapter 5: Pensions ........................................................................

Widow(er)s or Surviving Civil Partners Pensions .........
Contributory Pension .....................................................
Non-Contributory Pension .............................................
State Pensions ........................................................................
State (Contributory) Pension .........................................
State (Non-Contributory) Pension .................................
Additional Benefits .........................................................

161
161
161
164
166
168
182
188

Chapter 6: Tax How to Calculate and Reduce Your

Tax Bill ..........................................................................
Budget 2014 Income Tax Rates, Bands and Credits ......
Universal Social Charge and Taxes ....................................
Universal Social Charge (USC) ......................................
Emergency Tax ...............................................................
PRSI ................................................................................
Health Levy and Private Health Insurance ....................
Self-Employment.............................................................
Income Tax ......................................................................

189
189
190
190
193
193
195
196
197

154
156

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Contents

Civil Partners .........................................................................

Single Persons ........................................................................
Single Parents ........................................................................
Married Couples/Civil Partners (One Income)................
Married Couples/Civil Partners (Two Incomes) .............
Single Assessment ..........................................................
Joint Assessment .............................................................
Widow/Widower or Surviving Civil Partner ..................
Marginal Tax Relief ...............................................................
Taxation on Social Welfare Payments ................................
Rent Relief ..............................................................................
Medical Expenses ..................................................................
Rent-a-Room Scheme............................................................
Childminding Relief .............................................................
Tax Relief for Disabled Drivers and Passengers...............
Provision of Bicycles .............................................................
Tuition Fees ............................................................................
Deposit Interest Retention Tax (DIRT)...............................
Tax on Redundancy ..............................................................
Dependent Relative Allowance...........................................
Employing a Carer ................................................................
Incapacitated Child Allowance ...........................................
Tax Credits (Clothing) ..........................................................
PAYE Online ..........................................................................
Tax Relief on Mortgages.......................................................
Stamp Duty (Property) .........................................................
Home Renovation Incentive (HRI)/Home Heating ........
Excise Duty.............................................................................
Pensions ..................................................................................
Household Charge ................................................................
Local Property Tax ................................................................
Water Charges .......................................................................
Septic Tank Charges .............................................................
Capital Acquisitions Tax (CAT) and Capital Gains
Tax (CGT) ...........................................................................
Tax Returns ............................................................................

198
198
204
210
214
215
216
218
220
223
224
225
229
230
231
232
232
233
234
236
236
237
238
239
240
242
243
245
246
246
248
255
257
258
264

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Introduction

Know Your Rights 2014 Social Welfare, Health and Taxation,

now in its ninth edition, is needed now more than ever.
Budget 2014 affects every person in Ireland through the
implementation of the full year of the Local Property Tax
and increases in medication costs for people with Medical
Cards, as well as cuts in Child Benefit and the removal of
the Bereavement Grant. In addition, there are increases in
PRSI, heating costs (coal), cigarettes and alcohol, as well as
reductions in the Household Benefits Package, i.e. the abolition of the telephone allowance. Finally, we will also see a
change in eligibility for the social welfare sick/injury pay
scheme (Illness/Injury Benefit) where the waiting period
has increased from three to six days, standardisation of the
Maternity and Adoptive Benefit rate, reduction in payments
to the young unemployed under the age of 26 and increases
in Deposit Interest Retention Tax. Therefore nobody is unaffected. Know Your Rights 2014 Social Welfare, Health and
Taxation also includes changes announced in the Finance (No.
2) Bill 2013, to be passed shortly.
The forecasted Budget expenditure for 2014 is 49.61 billion, with income expected to be only 42.02 billion, leaving a
deficit of 7.59 billion. Translating this to our own household
incomes, we are still spending more than whats coming in.
Therefore, if that is our household situation, what can we do
to make things better? Know Your Rights 2014 Social Welfare,
Health and Taxation will help you to identify ways to reduce
your tax liability, thus increasing your net pay after tax, as
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Introduction

well as highlighting financial supports for both you and your

family to increase your weekly income and reduce your outgoings. So, quite simply, this book is your savings plan for
2014 and hopefully it is well worth the investment!
Chapters 1, 2 and 3 examine the complex area of social welfare. Expenditure under the Department of Social Protection
will be 19.63 billion in 2014. Chapter 1 explains the basis
of the welfare system and the key differences between PRSI
contribution-based and means-tested payments, as well
as the universal benefit payment of Child Benefit. In addition, Chapter 1 also discusses credited contributions, the
Supplementary Welfare Allowance (SWA) payment, habitual
residency conditions and EU family benefits. Finally, this
chapter examines secondary benefits as well as the complex
area of social welfare appeals, overpayments and reporting
fraud. Tip-offs for fraud have increased by 2,500 per cent
since 2008. The Minister for Social Protection projects savings
of 30 million in 2014 by reducing fraud and overpayments
and tightening control mechanisms.
Chapter 2 examines the area of unemployment and support for returning to work or education. With 12.8 per cent of
the population, equating to just under 377,000 people, unemployed (in December 2013), this is a vast area of need and in
this chapter we show clear examples of financial supports for
those who are unemployed, suffer partial loss of employment
or return to part-time employment. The Minister for Social
Protection implemented 32 million of cuts in 2014 in the area
of Jobseekers Allowance through reducing payment rates to
people under the age of 26.
Chapter 2 also examines the maintenance grant system for
students, including mature students planning to return to
college, both full-time and part-time, for the academic year
2014/2015. Finally, this chapter examines all the employment
and education initiatives available to help eligible persons
gain valuable experience and educational opportunities to
retrain, as well as financial incentives for employers to hire

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Introduction

unemployed persons (JobsPlus). The Minister for Social

Protection has invested 1.6 billion in support for activation
programmes.
Chapter 3 examines family support payments, including
Family Income Supplement (FIS) and the One-Parent Family
Payment. The One-Parent Family Payment has seen major
reform over the last two years, with the ultimate aim of reducing both earnings exemptions and payments to all one-parent
families, regardless of how long they are on the payment, to
those whose children are aged seven or over by 2015. This
chapter also contains details on the transitional arrangement
for parents who cease the One-Parent Family Payment (due to
the age of their children) and the new Jobseekers Allowance
Transition Payment, as well as clear case studies assessing
income from employment and maintenance payments and
the impact on recipients of the One-Parent Family Payment.
In Chapter 3 we also examine the Back to School Clothing
and Footwear scheme as well as supports for families through
the book rental scheme. Finally, we examine both Maternity
and Adoptive Benefit, in conjunction with the standardisation of payment rates in 2014, as well as the complex area
of Rent Supplement and the removal of Mortgage Interest
Supplement (MIS) support payments for families in mortgage
difficulties and the phasing out of MIS for existing claimants
by 2017.
Chapter 4 examines payments and supports for those who
are sick, both short-term and long-term, and support payments
for carers. We will also show why fewer applications for disability and carers payments are being approved and what you
can do to prevent your claim being rejected and support your
appeal. In 2013 there were 141,000 claims rejected (of which
31,962 were claims for Illness Benefit), of which 23,715 were
appealed. We look at the Fair Deal nursing home scheme
(amended in 2013) and provide a practical understanding of
the assessable factors. Chapter 4 also examines the numerous
grants for adaption to homes. Finally, Chapter 4 explains the

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Introduction

benefits and eligibility criteria for the Medical Card and GP

Visit Card, with the use of case studies. Recent reports show
there are just under two million people in receipt of either a
Medical or GP Visit Card; however the Minister for Health
intends to reduce the number of Medical Card holders by
reducing eligibility for the over-70s and reviewing all existing
card holders eligibility (probity), as well as having previously removed certain financial eligibility criteria in 2013. As
of October 2013, 50,000 Medical Cards, including 17,000 discretionary Medical Cards, have been withdrawn after review.
Chapter 5 examines the area of pension payments for
widows, widowers and surviving civil partners and also eligibility for the State Pension. From 2014 people will have to
wait until they are aged 66 to seek a State Pension payment
as the State (Transition) Pension has been removed for new
applicants aged 65 after 1 January 2014. In this chapter we
will also examine in detail and through case studies how to
calculate your State Pension, when to apply and how to plan
ahead in getting and maintaining your PRSI records.
Finally, Chapter 6 examines all aspects of the tax system,
and explains in simple, jargon-free language how to calculate
your income tax, USC and increased PRSI costs with clear
examples across a number of different family status categories as well as incorporating the changes to the new Single
Person Child Carer Tax Credit (replacing the One-Parent
Family Tax Credit). It also identifies available tax credits that
may be available to you to reduce your tax liability. Receipts
from income tax are expected to be 17.05 billion in 2014. It
is estimated that at least 800 million of tax credits could go
unclaimed every year. Chapter 6 will identify all the main,
and some unknown, tax credits that go unclaimed every year
that could be better in your pocket!
Chapter 6 also examines the Local Property Tax, and
explains in detail how it is calculated, how you can pay, and
how you can possibly seek a deferral. In this chapter we also
discuss septic tank charges and imminent water charges in

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2015. Finally, Chapter 6 also examines Capital Gains Tax

and Capital Acquisition Tax (more commonly known as
Inheritance Tax) as well as tax returns and the new PRSI
requirements for chargeable persons.
Know Your Rights: 2014 Social Welfare, Health and Taxation
answers a vast range of topical day-to-day questions relevant
to the consumer and citizen. If you have a question that has
not been covered in this book, please send it in and I will do
my best to address it. Questions should be forwarded to:
Orpen Press
Lonsdale House
Avoca Avenue
Blackrock
Co. Dublin
Tel: 01 2785090
Email: info@orpenpress.com
I can also be contacted through my website: www.yourrights.
ie.

Click here to order Paperback

Click here to order eBook (ePub)
Click here to order Kindle version

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