Vol. 446 No. 2
33 Mr. J. O'Keeffe asked the Minister for Social Welfare his views on whether it is fair to pensioners and others in receipt of social welfare entitlements to have an artificial rate of 10 per cent applied in respect of a notional income on their capital, in view of the fact that the actual amount being received at present may only be a fraction of this; the proposals, if any, he has to deal with this anomaly; and if he will make a statement on the matter. [463/94]
The means tests used to determine entitlement to all social assistance schemes include an assessment of the value of any capital or investments held by the applicant. The assessment rates vary depending on the scheme. For old age pension purposes an initial £200 of capital is disregarded, 5 per cent of the next £375 is assessed and the balance is assessed at the 10 per cent rate. The figure arrived at is then divided by 52 to obtain the weekly means and £1 is added to the weekly value thus calculated.
A similar procedure is used to determine entitlement for unemployment assistance and supplementary welfare allowance with the first £400 of capital assessed at 5 per cent and the balance assessed at 10 per cent.
I will be examining the possibility of rationalising the different methods of assessing the value of capital in the context of the commitment in the Programme for Competitiveness and Work to streamlining and standardising application and assessment procedures, including means testing, in respect of social welfare and other applicants for means-tested State assistance.
