New payments for councillors, known as representational payments, were introduced with effect from January 2002. The amount of the representational payment varies depending on the particular office held. Councillors are regarded as office holders in the same manner as TDs, MEPs, Senators and members of the Judiciary. Accordingly, the representational payment is treated, for social welfare purposes, as income from self employment and dealt with on that basis for social welfare payments.
For the purposes of disability allowance and other social assistance schemes, income derived from the representational payment is assessed as means. However, any legitimate expenses incurred in carrying out the self employment, for which the councillor is not otherwise compensated, may be disregarded in assessing the representational payment.
This may reduce the amount of means assessed so that the impact on the weekly rate of disability assistance would be reduced. Each case would have to be examined by reference to its own circumstances. For disability allowance purposes, a further disregard of €120 per week applies to earnings from employment or self employment that is rehabilitative in nature. This is subject to the approval of the Department's chief medical adviser on foot of satisfactory medical evidence. I consider that the present arrangements are appropriate and I am satisfied that local representatives are treated fairly in regard to social welfare entitlements.