Vol. 456 No. 4
71 Mr. Hughes asked the Minister for Social Welfare when the present notional interest rate of 5 per cent on the first £400 of capital for unemployment assistance assessment purposes was introduced; and whether he intends to adjust this to a realistic level having regard to prevailing rates. [13993/95]
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 in order to determine the level of their weekly social welfare entitlement. The assessment rates vary depending on the scheme. In the case of unemployment assistance and supplementary welfare allowance, 5 per cent is assessed against the first £400 of capital and 10 per cent is assessed on the balance. The figure arrived at is then divided by 52 to give the weekly value. This method of calculation has been a feature of the unemployment assistance scheme since 1934. A similar assessment is used for old age pension purposes, i.e. after an initial disregard of £200, 5 per cent of the next £375 is assessed and then 10 per cent of the balance.
The Programme for Competitiveness and Work contains a commitment to streamlining and standardising application and assessment procedures, including means testing, in respect of social welfare and other applicants for means tested State assistance. In this context, the question of rationalising the different methods of assessing the value of capital for social assistance purposes will be examined.
