Additional Needs Payment and loans for unemployed people in Ireland

A payment, not a loan

The Additional Needs Payment, run through the Department of Social Protection, helps with essential expenses that you cannot cover from your weekly income or other resources, such as savings. You do not repay it. That makes it a very different thing from the loans described elsewhere on this site, and for many urgent costs it is the right first call.

You can qualify even if you are not receiving a social welfare payment, and it may be available to people on a low income from work, whatever the hours. There is no set rate: the amount depends on your circumstances and on what the Community Welfare Officer decides is needed.

What the payment can cover

The Department lists a range of essential needs, and anything outside them is unlikely to be funded. It does not cover non-essential expenses or costs that belong to another government department or agency.

• Higher heating and electricity costs.
• Essential repairs, and replacing household appliances or furniture.
• A deposit for private rented accommodation.
• Furniture and bedding when setting up a home for the first time.
• Funeral costs.
• Recurring travel, such as to hospital appointments.
• Items for a child such as a pram, cot or essential safety equipment.
• Immediate needs after an emergency, such as a house fire.

How a decision is reached

You must live in Ireland and have an essential expense that you cannot pay from your income or other sources. A Community Welfare Officer reviews your household income, savings, investments and expenses, along with the type of help you are asking for.

Because the assessment looks at everything, be ready to explain your situation plainly. A broken washing machine in a home with young children, for example, is easier to present than a general request for cash. If the answer is no, you may still ask what other support exists.

Applying: online or on paper

The quickest route is online through MyWelfare.ie. If you prefer paper, you can collect the SWA1 form at an Intreo Centre or Branch Office, ask for one to be posted through the online request form, or download it and send it to your local office. The Department's information line is 0818 607080.

Have these documents ready: PPS numbers for you, your spouse or partner and your children, proof of identity, and records of your income, expenses and finances, such as payslips and bank statements.

When a loan makes more sense

If your need is not covered, or the payment is smaller than the cost, a loan may be worth considering. For someone on a social welfare payment, the realistic options are narrow: credit unions, a few banks that have their own criteria, and community schemes. Doorstep moneylenders should be the last resort.

A credit union can often be the least costly route. Credit unions cannot charge more than 12 per cent a year, or 12.68 per cent APR, and many charge less. The difficulty is that you need to be a member who lives or works in the credit union's area, and the credit union must be satisfied that you can repay.

The It Makes Sense loan scheme

Participating credit unions offer It Makes Sense loans for people receiving a social welfare payment, especially those who may not be able to get credit elsewhere. You must be over 18, and loans range from €100 to €2,000 over one month to two years. They may be used for any purpose, including clearing existing debts.

Repayments are collected through the Household Budget Scheme, standing order or direct debit. Total deductions from your weekly payment cannot exceed 25 per cent, including rent and bill deductions, so someone already at that limit is turned down and directed to MABS. Credit unions usually decide within 24 hours once you are a member, and you will need to show social welfare slips or two months of statements.

Staying safe while you wait for help

Be wary of anyone who offers to secure an Additional Needs Payment for a fee. You can apply yourself, online or through your local office. Keep your PPS number and bank details to yourself unless you are certain who is asking.

Treat borrowing for ordinary running costs with care. Even a cheap loan adds a fixed commitment to a small income. Compare your options with the free tools of MABS, and phone 0818 07 2000 if you cannot see how the repayments would fit.