Dáil Éireann debate -
Wednesday, 17 May 2000

Vol. 519 No. 3

Written Answers - Housing Aid for the Elderly.

Jim Mitchell

Question:

202 Mr. J. Mitchell asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that Dublin Corporation and other local authorities are seeking in part to solve the housing crisis by purchasing the homes from senior citizens and in turn housing them in local authority senior citizens dwellings for a reduction in the price of the house below market value; if his attention has further been drawn to the fact that many senior citizens interested in moving to secure and comfortable senior citizen dwellings are fearful of doing so because of the possibility they may lose their means-tested benefits including non-contributory widows and old age pensions, carers' allowance, disability allowance and medical card; if his attention has been drawn to the fact that the disregarded £75,000 in circumstances like this was set in 1990 and has not been increased since; if he will substantially increase this figure especially in the Dublin area; and if he will make a statement on the matter. [13803/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

Matters relating to housing policy are the responsibility of my colleague, the Minister for the Environment and Local Government, while eligibility for medical cards is a matter for my colleague, the Minister for Health and Children.

Under the sale of residence provisions, operated by the Department since October 1991, a person, aged 66 or over, who is in receipt of a means-tested payment from the Department may sell his-her principal residence and either buy or rent alternative accommodation or move into a private nursing home, with the balance of the gross proceeds being exempted from the means-test, subject to a ceiling of £75,000. In the case of a couple, the spouse-partner must also be over 66 years of age.

A detailed review of the sale of residence provisions is under way in my Department. One of the key issues being examined in this review in light of the continuing increases in property prices, is the ceiling of £75,000.

In relation to the general assessment of capital for non-contributory pensions, I should point out that, from October next, I am introducing major new improvements in the method of assessing capital for means purposes as follows.

The first £10,000 of capital will be completely disregarded. Capital between £10,000 and £20,000 will be assessed on the basis of £1 weekly means for each £1,000 of capital; capital between £20,000 and £30,000 will be assessed on the basis of £2 weekly means for each £1,000 of capital, and capital above £30,000 will be assessed on the basis of £4 weekly means for each £1,000 of capital. These limits will be doubled in the case of a married couple.