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Social Welfare Code.

Dáil Éireann Debate, Tuesday - 1 February 2005

Tuesday, 1 February 2005

Questions (203)

Brian O'Shea

Question:

203 Mr. O’Shea asked the Minister for Social and Family Affairs if money received by persons on the maturing of their investment under the SSIA scheme, will be assessed as means in regard to entitlement to social welfare payments; and if he will make a statement on the matter. [2726/05]

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Written answers

In assessing means for social assistance purposes, moneys held in special savings investment accounts are treated in the same manner as other capital. Account is taken of any cash income the person may have, along with the value of capital and property, except the home. Capital may include stocks and shares of every description, which are assessed according to their current market value, savings certificates, bonds and national instalment savings, which are assessed according to their current market value and money invested in a bank, building society etc.

Last October, I asked the Department of Social and Family Affairs to conduct a comprehensive examination of the current arrangements for the assessment of capital, particularly as they apply to SSIAs, with a view to bringing forward proposals in budget 2005. On budget day, I was pleased to announce that the amount of capital disregarded for means test purposes for all schemes, other than supplementary welfare allowance, will be increased from €12,694.38 to €20,000, an increase of over €7,300. The enhanced disregard applies to all capital, regardless of whether it is held in an SSIA or with a credit union, An Post or any other bank or other financial institution. The new arrangements will mean that a single non-contributory pensioner with no other means can have capital of up to €28,000 and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple. It is estimated that the measure, which takes effect in June 2005, will benefit approximately 12,000 claimants at a cost of €5.1 million in a full year.

SSIAs were introduced in 2001 as part of an overall Government strategy to encourage a regular savings culture among the population in general. The new arrangements announced by me on budget day are consistent with this strategy and are designed to ensure that 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.

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