Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Estimates for Public Services.

Richard Bruton

Question:

402 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if the Estimates for 2002 have been collated on the basis of changes in the valuation placed on savings or in the exempted threshold where a house is sold to move to smaller accommodation; and the values that will apply in 2002. [29064/01]

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

The Estimates for 2002, presented to the Dáil and published on 15 November, were framed on the basis of current rules and conditions. They do not, therefore, incorporate any changes in relation to the means assessment of savings or the proceeds from the sale of residence. Any changes in this regard are matters for consideration in the context of the annual budget.

The current rules in relation to the assessment for means test purposes of savings and the proceeds from the sale of residence are as follows:

1. Assessment of Savings-InvestmentsSection 17(1)(f2>b) of the Social Welfare Act, 2000, introduced a revised method of assessing capital, that is, savings and investments, for social assistance schemes, other than supplementary welfare allowance:

Capital	Assessment
First £10,000	Nil
Next £10,000	£1 per £1,000
Next £10,000	£2 per £1,000
Excess	£4 per £1,000
First 12,697.38	Nil
Next 12,697.38	1.27 per 1,269.74
Next 12,697.38	2.54 per 1,269.74
Excess	5.08 per 1,269.74
Excess	5.08 per 1,269.74

Example: A person with savings of £16,000, 20,315.81, would be assessed with means of £6, £7.62, per week. A person with savings of £25,000, 31,743.45, would be assessed with means of £20, 25.39, per week.

In so far as it relates to old age non-contributory pension, blind pension, widow/widower's non-contributory pension, one-parent family payment payable in respect of a widow/widower and orphan's non-contributory pension, the revised assessment took effect from 13 October 2000.

2. Sale of Residence DisregardA person aged 66 or over who is in receipt of an old age non-contributory pension, widow/ widower's contributory or non-contributory pension, or a one-parent family payment 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 from the sale being exempted from the means test, subject to a ceiling of £150,000.

Up to 4 July 2000 the ceiling was £75,000, 95,230.36. This was increased to the current level of £150,000, 190,460.71, with effect from 5 July 2000 in the Social Welfare (Consolidated Payments Provisions) (Amendment) (No. 10) (Sale of Residence) Regulations, 2000, S.I. No. 232 of 2000.