Income maintenance payments available under the social welfare code consist of a range of social insurance benefits. They are based on PRSI contributions and a further range of social assistance payments that are payable subject to a means test to people who are not qualified for insurance based payments. The purpose of the means tests is to ensure that, for those who do not have social insurance cover or who have insufficient PRSI contributions to qualify for benefit, resources are targeted at those most in need.
A person who is ill long-term or disabled can qualify for either long-term disability benefit or invalidity pension, if they have sufficient PRSI contributions. Where such a person has not worked or does not have sufficient PRSI contributions, they may qualify for disability allowance, which is means-tested.
People who are ill long-term or disabled are treated under the social welfare code in the same way as people who experience other contingencies such as unemployment, old age and widowhood. The means test for the disability allowance scheme is not considered to be discriminatory.
Since the take-over of the disability allowance scheme from the health boards in 1996 a range of improvements have been introduced in the means test for disability allowance purposes. These include: substantial increases in the amount of earnings from rehabilitative employment; self-employment that can be disregarded for means test purposes, currently €120 a week; and major improvements in the method of assessing capital with the first €12,697 being disregarded.
As a consequence of these and other general improvements in the disability allowance, there has been a substantial increase in its take-up. The number of recipients has more than doubled, an increase from 34,500 in October 1996 to 69,398 at the end of March 2004.
One aspect of the disability allowance differs from other social welfare payments and involves people who are in full-time residential care. One of the conditions that applied to the disability allowance scheme formerly was that payment was not made to people in residential care or in a hospital. Since my Department took over the running of the scheme this disqualification was progressively relaxed. Many of those who had previously been disqualified because they were in residential care are now entitled to a payment.
A working group was established to examine the takeover by my Department of the spending allowances paid to people with disabilities in residential care who were not entitled to disability allowance and for the standardisation of the level of these allowances. One of its functions will be to examine the best method for the transfer of responsibility for the payment of these allowances and of the funds involved.