Dáil Éireann debate -
Thursday, 22 Oct 1987

Vol. 374 No. 5

Written Answers. - Means Testing.

81.

Mr. J. Bruton

asked the Minister for the Environment if his attention has been drawn to the fact that a British study The Reform of Social Security by Dilnot, Kay and Morris, published by the Institute of Fiscal Studies, page 44, estimated that the administrative cost of operating the means test for supplementary benefit was 10 pence for every pound paid out; the calculations, if any, he has done in respect of each of the means tested schemes or income threshold operated by his Department or by agencies under his aegis; and if he will make a statement on the matter.

82.

Mr. J. Bruton

asked the Minister for the Environment if he, or any body under his aegis, operates means tests or income thresholds for any purpose, for example tax exemption, eligibility for charge or benefit; in respect of such means test or income thresholds (a) the levels at which they operate and the period over which they are assessed; (b) if account is taken of the income of a spouse, and if so, the way in which this has been done; (c) if account is taken of the income of other household members; and if so, the way in which this has been done; (d) if account is taken of the costs of maintaining dependent children or other dependants; (e) if any income for example social welfare payments, or the imputed value of home ownership is ignored or discounted in any way; (f) if the value of property, real or personal, is included and if so, the basis on which it is included; (g) when the levels were last revised in line with inflation; and (h) if there is a distinction in the way the means test operates between a couple who are married and a couple living together but not married.

Minister for the Environment (Mr. Flynn)

I propose to take Questions Nos. 81 and 82 together.

Eligibility for housing loans from local authorities is subject to the income of the applicant or that of his/her spouse — whichever is the greater — not exceeding £10,000 in the preceding tax year. The limit of £10,000 has applied since mid-1986 in the case of annuity and convertible loans and since April 1983 in the case of income related loans.

Criteria for determining entitlement to local authority houses, assessing differential rents and waiving service charges are set by individual local authorities and may vary from one authority to another.

Because of the nature of the services involved, which do not involve a direct payment of benefit to an applicant, it would not be practicable to establish a relationship between the costs and benefits arising from the operation of income limits and an assessment of the services in this way has not, therefore, been done.