Vol. 487 No. 2
113 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs if he will address the anomaly which exists in pre-retirement allowance whereby the disregard when assessing capital is £2,000 for a single person and the same amount applies to a married couple; and if he will make a statement on the matter. [3679/98]
The differing needs of couples as compared with single people are recognised under the means-tested social assistance payment schemes, such as the pre-retirement allowance, PRETA, through the provision of higher rates of payment rather than higher means disregards. For example, a couple in receipt of PRETA is entitled to receive £107.50 a week, increasing to £117.70 from June, as opposed to £67.50, increasing to £70.50 from June, for a single person. The payment of increased level of benefits to couples also means that they can have higher joint means than a single person and still qualify for payment. For example, a couple can have approximately £49,500 in capital and still qualify for a minimum payment, whereas a single person can have approximately £35,600.
In assessing means for the purposes of PRETA account is taken of any cash income the claimant may have, together with any investments in capital or property. Under new provisions for the assessment of capital, which were introduced last October, the first £2,000 of capital is disregarded, the next £20,000 is assessed at 7.5 per cent of the capital value and the balance is assessed at 15 per cent. Accordingly, a single person whose only means consist of capital of £2,000 will qualify for a payment of £67.50 a week, whereas a couple with the same amount of means will qualify for £107.50 a week. This also means that a couple can have substantially higher amounts of capital and still qualify for the same level of benefit as a single person. For example, a couple can have capital of up to £26,500 and still qualify for a payment of £67.50 — the level of payment made to a single person who has capital of £2,000.
The principle of achieving consistency and uniformity across all social welfare schemes and, in particular, in relation to the operation of the various means tests, is a desirable objective and one which the Department has been pursuing, where possible, over the years. The further standardising of the different methods of assessing means would have cost implications and would therefore, have to be considered in a budgetary context.
