Vol. 558 No. 5
81 Mr. Crawford asked the Minister for Social and Family Affairs the way in which her Department calculates the interest earned on savings for assessment purposes; when this formula will be adjusted to reflect the current market returns; and her views on whether it is reasonable that people are being assessed as earning 10% interest, when they cannot get 3.5% actual interest return. [24737/02]
In assessing means for social assistance purposes account is taken of any cash income the person may have, together with the value of capital and property. For the purposes of assessing the value of capital and property a notional assessment method is used. The use of the notional method avoids the necessity of frequent reviews of the entitlements of a very significant number of recipients whenever interest rates fluctuate or whenever the capital is moved from one investment option into another.
The Social Welfare Act, 2000, provided for the introduction of a new assessment method for capital and property which came into effect in October of that year. This new method applies to all social assistance schemes – other than supplementary welfare allowance. Under these arrangements the first £10,000 or €12,697.38 of capital is disregarded and the assessment is on a sliding scale for amounts above this. At present a single pensioner with capital of up to €20,315.80 qualifies for a full pension while a single pensioner with capital of up to €63,486.89 qualifies for a minimum pension.
