Dáil Éireann Debate, Wednesday - 7 February 2024
294. Deputy Patrick Costello asked the Minister for Social Protection if she will consider increasing the minimum income threshold for working people in receipt of disability allowance; and if she will make a statement on the matter. [5031/24]
View answerDisability allowance (DA) is a means-tested payment for people with a specified disability who are aged 16 or over and under the age of 66. The applicant must be suffering from an injury, disease, congenital deformity or physical or mental illness or defect which has lasted for one year or is expected to last for one year and, as a result of which, they are substantially restricted in undertaking work which would otherwise be suitable having regard to the person’s age, experience and qualifications. The person must also satisfy a means test and be habitually resident in the State.
My Department continues to keep the range of income and employment supports under review. Any proposed changes to the supports provided must also be considered in an overall budgetary context.
I can confirm that a €20 per week increase in the DA earnings disregards, from €120 to €140 per week, was introduced in Budget 2021 and commenced in June 2021.
Furthermore, I can also confirm that a €25 per week increase in the DA earnings disregards, from €140 to €165 per week, was introduced in Budget 2023 and commenced in January 2023.
Recognising that all work is rehabilitative, the DA scheme is structured to encourage recipients to avail of opportunities to engage in either insurable employment or self-employment. When an individual engages in work, they can avail of an income disregard of 100% of the first €165 earned per week. 50% of earnings between €165 and €375 are also disregarded for the purpose of the means test. Any amounts over €375 are assessed in full. This disregard is available to all DA recipients who engage in employment and there are no restrictions on the hours worked each week.
The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves so that social welfare expenditure can be directed towards those who need it most.
Under the make work pay initiative, where a DA recipient's means exceed the limits, even after the disregard is applied to their earnings, they are entitled to retain their free travel pass for five years. My Department has also put in place a system for the fast-track reinstatement of DA for people with disabilities who have taken up or returned to an employment which subsequently did not work out within 12 months.
A Green Paper on Disability Reform was published in September, to begin the conversation about improving these supports and further addressing the cost of disability.
The aim of the Green Paper is two-fold. First, it seeks to better insulate disabled people who cannot work from poverty by providing for higher rates of payment. Second, it seeks to support and encourage a higher level of employment for people with disabilities by tailoring the provision of employment supports to suit a person’s capabilities.
I encourage all those with an interest to express their views in our public consultation by making a submission in writing or by video. It is essential that we hear from as many disabled people and representatives as possible. I have extended the consultation period until 15 March 2024 to ensure everyone has adequate time to make a submission.
I trust this clarifies the matter for the Deputy.
