asked the Minister for Social Welfare if his attention has been drawn to the unfair assessment on small investments to social welfare applicants and particularly to non-contributory oldage pension applications; his views on whether this system of assessment is just; the steps if any, he proposes to take to rectify the matter; and if he will make a statement on the matter.
Written Answers. - Social Welfare Benefits.
133.
In assessing means for entitlement to all social assistance payments account must be taken of the yearly value of capital which the the applicant may have. In the case of the old age pension scheme the first £200 of capital is disregarded, the next £375 is assessed at 5 per cent and the balance at 10 per cent. Where the value assessed exceeds £52 a year or £1 a week an additional £1 a week is assessed.
The present system of assessment of capital allows persons with investments to qualify for pension. For example, allowing for the fact that the first £6 of means, £12 in the case of a married couples, is disregarded in determining the level of pension payable, an applicant for an old age pension who is married can have capital of up to £5,975 invested and still qualify for a maximum pension. Applicants can have capital of up to £51,735 and still qualify for the minimum pension.
The whole area of means testing for social assistance is currently being examined with a view to rationalising the different rules of assessment which apply under different schemes. The method of assessment of capital is being examined in that context.