Dáil Éireann Debate, Wednesday - 15 December 2004
86 Mr. Gilmore asked the Minister for Social and Family Affairs if he has completed his consideration of whether SSIA premiums will be included in the assessment of income for social welfare payments once they mature; the conclusions which have been reached in this respect; and if he will make a statement on the matter. [33448/04]
View answer91 Ms Lynch asked the Minister for Social and Family Affairs if he will review the way in which capital is assessed in the assessment of income for social welfare payments; his views on whether the current system is unrealistic and unfair; and if he will make a statement on the matter. [33451/04]
View answer95 Mr. Gormley asked the Minister for Social and Family Affairs the way in which social welfare means testing arrangements are not to be applied to earnings gained from the special savings investment accounts. [33471/04]
View answerI propose to take Questions Nos. 86, 91 and 95 together.
As I informed the House last month, I had requested my Department to carry out a comprehensive examination of the current arrangements for the assessment of capital, particularly in so far as they apply to SSIAs. This examination has now been concluded.
I was pleased to announce in the context of the budget that the amount of capital disregarded for means test purposes for all schemes, except supplementary welfare allowance, will be increased from €12,694.38 to €20,000, an increase of over €7,300.
It is estimated that approximately 12,000 claimants will gain as a result of the improvement. This measure, which takes effect from June 2005, will cost €5.1 million in a full year.
I introduced this improvement in the context of the overall Government strategy to encourage a regular savings culture among the population in general. As part of this strategy, the innovative special savings investment accounts were introduced in 2001 and these accounts have been opened by a very large number of people, including pensioners and other social welfare recipients.
The new arrangements are designed to ensure that the social welfare means testing arrangements do not act as a disincentive to claimants to become savers or to harshly penalise those who have been regular savers in the past.
The enhanced disregard applies to all capital regardless of where it is held, be it in an SSIA, a credit union, with An Post or any other account with a bank or other financial institution.
For means testing purposes, capital also includes stocks and shares and the capital value of property, other than the family home. The new arrangements will mean that a single non-contributory pensioner can have capital of up to €27,600 and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple. Revised and simplified assessment rates for capital in excess of €20,000 will be introduced in the Social Welfare Bill to be published early in 2005.
