Noel Ahern
Question:94 Mr. N. Ahern asked the Minister for Equality and Law Reform the income limit or formula for calculating the limit for free legal aid in separation cases. [10578/97]
Written Answers. - Free Legal Aid.
In order to qualify for assistance under the Civil Legal Aid Act, 1995, an applicant must, inter alia, satisfy a means test to determine whether his or her disposable income and disposable capital are within the limits as set out in the Civil Legal Aid Regulations, 1996. While the income of a husband and wife would normally be aggregated for civil legal aid purposes, the regulations provide that they are treated separately where the parties are in conflict with each other, or where they are living separately or apart. The effect of this rule is that in a very high proportion of matrimonial cases a wife will qualify for legal services, even if her husband is financially secure.
Disposable income is the income which remains when specified deductions are made from the total income received from all sources, per annum. These deductions, which are set out in the 1996 regulations, include the following
|
Allowances |
Maximum Allowed |
|
£ |
|
|
Applicant's spouse |
1,328 |
|
Dependent child |
668 |
|
Payment towards household expenses by unmarried person |
1,256 |
|
Rent |
2,976 |
|
Mortgage |
3,802 |
|
Travelling expenses |
265 |
|
Hire Purchase payments |
265 |
|
Loan interest payments |
602 |
|
Life & Health Insurance |
754 |
|
Board & Lodgings (50% of payment) |
1,599 |
|
Child care expenses |
668 |
|
Income tax |
Full amount |
|
Social Insurance |
Full amount |
|
Rates |
Full amount |
For the purpose of the Civil Legal Aid Act, 1995, capital includes money in the applicant's bank, credit union, building society or post office accounts, or the applicant's house and normal household chattels, property or land. Disposable capital is the value of capital after making such deductions as specified in the 1996 regulations. These deductions include the full amount of any outstanding loan, mortgage or debt, and the expenses which would be incurred in realising assets. Where the capital resource consists of the applicants home and normal household chattels, it is reckonable as disposable capital only to the extent that the unencumbered value of the house and such chattels exceeds £45,000. The capital value of any other house property in which the applicant has an interest shall be the full market value of that interest. Where the capital resource consists of land, including farm land, its value shall exclude any amount which is attributable to the family home.
Present eligibility limits for receipt of services under the 1996 Act, as set out in the Civil Legal Aid Regulations, 1996, are £7,350 per annum disposable income and £200,000 disposable capital. No capital contribution is payable in respect of that portion of an applicant's disposable capital which is under £2,000. While a person whose disposable income does not exceed £5,060 per annum would be required to pay a contribution of £4 for legal advice and £23 for legal aid, a person whose disposable income exceeds £5,060 but is not greater than £7,350 would be required to pay a larger contribution, up to a maximum of £64 for legal advice and £595 for legal aid. Also, the 1996 regulations provide that, in circumstances where the maximum contribution payable by an applicant is assessed at £23 and the board considers that it would cause that person severe hardship to pay the maximum contribution, the board may either waive the contribution or accept a lower contribution.