Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Social Welfare Benefits.

Denis Naughten

Question:

253 Mr. Naughten asked the Minister for Social, Community and Family Affairs the plans, if any, to review the current situation where disabled persons maintenance allowance is not paid to individuals who are in receipt of court awards and which subsequently could be claimed back from the court award in view of the fact that these individuals are losing out on their eligibility for free travel; and if he will make a statement on the matter. [14097/00]

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

There is no disqualification for receipt of disability allowance, formerly disabled persons maintenance allowance in the case of a person who receives compensation arising from a court award and disability allowance is not taken into account by the court in assessing damages in an action for personal injuries. However, as in the case of all other social assistance payments, disability allowance is subject to a means test. For the purposes of assessing means, the proceeds of court awards are treated as capital.

Under the current arrangements for assessing capital, the first £2,000 is disregarded, the next £20,000 is assessed at 7.5% and the balance is assessed at 15%. This means that a single person can have capital of up to £38,347 and still qualify for a minimum payment of disability allowance.

Following a review undertaken by my Department last year, provision has been included in the Social Welfare Act, 2000, for the introduction of a new method of assessing the value of capital for social assistance purposes, with effect from October this year.

The new method of assessing capital will operate as follows: the first £10,000 of capital will be 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.

Under the new arrangements a single person will be able to have capital of up to £41,999 and still qualify for a minimum payment of disability allowance, an increase of £3,652 on the current arrangements.

Any further relaxation of the means test would have financial implications and would have to be considered in a budgetary context in light of available resources and having regard to the Government's other priorities.