The supplementary welfare allowance scheme, SWA, is the safety net within the overall social welfare system in that it provides assistance to eligible people in the State whose means are insufficient to meet their basic needs and those of their dependants. Its primary purpose is to ensure that every person in the state has sufficient resources to meet their basic needs. In assessing a person's means for the purpose of SWA, including the rent supplement aspect of the scheme, the legislation provides that all income both in cash and in kind is taken into account. While income derived from certain sources can be disregarded, applicants for SWA are generally expected to use their own income or capital, if they have any, to meet their basic needs in the first instance.
The method of assessment to which the Deputy refers relates to the assessment of capital such as savings or the value of property other than the applicant's home. For the purpose of the means test, capital is assessed using the following formula: 5% of the first €507.90 plus 10% of the balance above €507.90. This is then divided by 52 to give the weekly value of the means. A single person with capital of €70,000 will qualify for SWA at a reduced rate, while a person with dependants will still qualify even if they have substantially higher amounts of capital.
I am aware that interest rate paid to depositors is low at present. However, the purpose of the formula is to assess capital value rather than the interest accruing to an individual. Any changes in the means assessment criteria for receipt of supplementary welfare allowance would have to be considered in a budgetary context. In this regard I am satisfied that the formula is reasonable and I have no immediate plans to alter it.