asked the Minister for Defence 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 thresholds operated by his Department or by agencies under his aegis; and if he will make a statement on the matter.
Written Answers. - Means Testing.
103.
, Limerick West): The only scheme administered by my Department that includes means testing is that relating to the grant of special allowances to veterans of the War of Independence and the grant of allowances to widows of (1917-1921) service medal holders.
These allowances are additional to the normal social welfare benefits and are intended for the needy. A means test is therefore essential to ensure that the maximum benefit is channelled to those whose need is greatest. The abolition of the means test would defeat the purpose of the schemes and result in a significant increase in the cost involved.
104.
asked the Minister for Defence 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.
, Limerick West): A means test is included in the scheme of special allowances for veterans of the War of Independence and allowances for widows of service (1917-1921) medal holders.
A special allowance is an annual sum of such amount as when added to the applicant's yearly means will not equal or exceed a prescribed sum. Yearly means in the context include the means of the applicant's spouse. The value of assessable means is based on reports furnished by social welfare officers.
The means test for these allowances has been relaxed progressively over the years and is now far from severe. Social welfare benefits are only partially assessed as means and budgetary increases in those benefits are either substantially or entirely disregarded.
Items assessed as means include:
(1) the yearly value of a plot, or farm. In assessing the value of a holding, the social welfare officer makes allowance for all outgoings, including annuity, rates, seeds, fertilisers, labour and stock. Generally assessments are low;
(2) the yearly value of capital — the first £200 being disregarded, the next £375 taken at 5 per cent and the remainder at 10 per cent;
(3) the amount of wages, superannuation, profit from business or other cash income;
(4) one-half of the amount of disability benefit payable under the Social Welfare Acts as at the 5 January, 1969. All increases granted from the 6 January 1969 are disregarded;
(5) a nominal amount in respect of various pensions and allowances for invalidity, and retirement pension, old age and blind pensions, widow's pensions, deserted wife's benefit and allowance, unemployment benefit and unemployment assistance;
(6) the amount exceeding £30 of a military service pension or a disability or wound pension or a combination of such pensions as at October 1964. The increases granted in such pensions since 1 August 1965 are not taken into account. The amount exceeding £30 of one-half of the 1 October 1964 rate of pension is assessed in the case of an allowance payable to a widow/widower of a military service pensioner;
(7) the profit from the weekly contributions of members of a family over 18 years who are living at home; the amount contributed for board and lodging is not assessed. (A nominal allowance of £12 a year in respect of each child under the age of 18 years or over that age if incapable of self-support, is included in the prescribed sum.);
(8) the value of free maintenance, to the extent to which it does not impose a hardship on the provider, and the value of earned maintenance whichever is the higher; the maximum assessment for a spouse's maintenance is £104 per annum;
(9) the yearly value of free lodging or a house free of rent, which is taken at £2.60 per annum in the case of an individual and at £5.20 per annum in the case of a married couple.
Awards of these allowances are made for a period of four years. During that period, the allowance is not reviewed by my Department regardless of any improvement in the applicant's means. However, the allowance holder is entitled to seek a revision of his allowance at any time during the currency of the award if his means have worsened, in which event his case would again be investigated by a social welfare officer.
A minimum figure of £185.00 per annum was determined in 1980 for persons who qualify on means for a special allowance. The current rate is £435. This is also the minimum rate paid to widows of medal holders.
No provision has been made in the scheme to cover the case of a couple living together but not married.
The only other area in which a means test is applied by my Department is that relating to the extension of service beyond the normal retiring age in the case of certain employees on grounds of hardship. I understand that particulars of the relevant amounts which apply to Departments generally are being furnished to the Minister for Finance.
No body under the aegis of my Department operates a means test.