Vol. 458 No. 8
155 Mr. Hughes asked the Minister for Social Welfare the changes, if any, to the current rates of 5 per cent on the first £400 of capital and 10 per cent on the balance which has occurred since 1934 in respect of unemployment assistance schemes; and when an examination with a view to rationalising the different methods of assessing the value of capital as contained in the Programme for Competitiveness and Work will commence. [17832/95]
The means test applied in determining entitlement to unemployment assistance, and other analogous schemes, includes a notional assessment of the value of any capital or investments held by the applicant. The first £400 of capital is assessed at 5 per cent, while the balance is assessed at 10 per cent. The provisions in question have not been modified since their introduction in 1934. Successive budgets have instead focused on increasing the rates of payment for all recipients as the best option for targeting those most in need. At present rates of payment, a single person may have capital of almost £33,000, and a couple with two children may have capital of just under £66,000, and still qualify for some unemployment assistance.
The provisions for the assessment of capital are, however, currently being reviewed in my Department with a view to devising proposals for a standard method of assessment of capital for all social assistance payments, including unemployment assistance. In view of the substantial costs involved, however, any changes in this area would have to be considered in the context of available resources.
