Social welfare payments often operate under a strict means test, but now you can earn an extra €14,000 a specific way and it will be disregarded by the Department of Social Protection
The Minister for Social Protection has announced that people may earn up to €14,000 using the rent-a-room scheme and keep their means-tested social welfare payment. Many social welfare payments operate under a strict means test, meaning you can't claim it unless your income is under a certain amount.
However, rental income of up to €14,000 will be disregarded by the Department of Social Protection as they have extended this rule for another two years. Dara Calleary has this week announced the extension of the amendments to social protection regulations for people renting a room in their own home. This allows someone in receipt of a means-tested social welfare payment to rent a room in their own home and have the rental income disregarded, to a limit of €14,000. The measure was first introduced in May 2022 and was extended by a further two years in March 2023. Almost 750 people have availed of the measure to date. Commenting on the measure, Minister Calleary said: “I am delighted to announce the extension of the social protection regulations for people renting a room in their own home. “This measure extends a relief, similar to that available to income tax payers, to people in receipt of social welfare payments to make rooms available in their homes. “The measure provides a small but valuable contribution in what continues to be a very tight accommodation market. It reflects our desire to ensure rooms that are available in homes across the country are freed up for potential tenants.” For those not on social welfare, rent-a-room relief lets you earn up to €14,000 per year tax-free if you rent out a room in your home to private tenants. You can also get the relief if you rent out a self-contained unit, such as a basement flat or a converted garage.
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