Dáil Éireann Debate, Wednesday - 7 February 2024
295. Deputy Patrick Costello asked the Minister for Social Protection if she will consider increasing the minimum income threshold for people in receipt of disability allowance if their spouse, civil partner or cohabitant works; and if she will make a statement on the matter. [5032/24]
View answer296. Deputy Patrick Costello asked the Minister for Social Protection her views on whether it is appropriate that persons in receipt of disability allowance can lose their allowance as a result of marriage or cohabitation, thus increasing their reliance on their partner; and if she will make a statement on the matter. [5033/24]
View answerI propose to take Questions Nos. 295 and 296 together.
Disability Allowance is a means-tested social assistance scheme, which is also subject to a medical assessment and habitual residency requirement.
It is the nature of means-tested schemes that above a certain level of means a person is not entitled to a payment, as it is deemed their own means are sufficient to provide for their needs.
Where a person makes an application for Disability Allowance, the means assessment includes income from employment or self-employment, income from a social security pension from another country and maintenance payments.
If a claimant is married, in a civil partnership or cohabiting, the means of the couple will be assessed. This is the case even if only one of the couple is claiming a payment.
In the assessment of capital means, the couple’s savings, investments, shares and property are included. However, the home in which the claimant lives is not included in the assessment of means unless the person receives an income from it.
It must be noted that the entire amount of income or capital is not included while assessing means. The first €50,000 of capital and savings is fully disregarded, the next €10,000 is assessed at €1 per thousand, the following €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand. These disregards are the highest among social welfare schemes.
For people in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. A person can actually earn up to €495.10 per week and still retain a proportion of their Disability Allowance payment.
Where the spouse/civil partner/cohabitant is engaged in insurable employment a disregard of €20 per day applies subject to a maximum of €60 per week and the balance is assessed at 60%.
Means is assessed on a household basis and as such must be reassessed if a person’s living circumstances change.
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.
Any change to the means threshold would have to be considered as part of the Budget process.
I trust this clarifies the matter for the Deputy.
