Dáil Éireann Debate, Tuesday - 23 June 2015
179. Deputy Mary Mitchell O'Connor asked the Tánaiste and Minister for Social Protection the reason the sale and purchase of alternative homes before the age of 66 does not disregard the amount of €190,500 for a means test; and if she will make a statement on the matter. [24889/15]
View answer180. Deputy Mary Mitchell O'Connor asked the Tánaiste and Minister for Social Protection the reason the sale of an alternative home before the age of 66 is not explored for equity; and if she will make a statement on the matter. [24890/15]
View answerI propose to take Questions Nos. 179 and 180 together.
In assessing means for social assistance purposes, account is taken of any cash income the person may have, together with the value of capital and property (except the family home).
Capital may include the following:
- Stocks and shares of every description, which are assessed according to their current market value.
- Savings certificates / bonds / national instalment savings, which are also assessed according to their current market value.
- Monies invested in a bank, building society etc.
For the purposes of most social assistance schemes, the first €20,000 of capital is disregarded for means test purposes and the balance is assessed by reference to a formula. In the case of disability allowance, the first €50,000 is disregarded, while in the case of supplementary welfare allowance, the first €5,000 is disregarded.
In the case of persons under 66 in receipt of disability allowance or the blind pension, the proceeds derived from the sale of the principal private residence can be disregarded, subject to an upper limit of €190,500. These are the same arrangements as for recipients of the state pension non-contributory (SPNC), and social welfare legislation provides that this disregard applies “when the claimant or beneficiary disposes of his or her principal residence for the purposes of:
(i) purchasing alternative accommodation which is or will be occupied by him or her as his or her only or main residence,
(ii) funding the renting of alternative accommodation which is or will be occupied by him or her as his or her only main residence,
(iii) funding the payment of fees to a nursing home which has been registered in accordance with section 4 of the Health (Nursing Homes) Act 1990 (No. 23 of 1990),
(iv) residing with a carer, as defined in section 99 or section 179, who is in receipt of carer’s benefit or carer’s allowance in respect of the care and attention provided to the claimant or beneficiary, or
(v) residing in accommodation suitable for elderly persons which incorporates communal and support facilities and which is provided by a body approved by the Minister for the Environment, Heritage and Local Government for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act 1992 (No. 18 of 1992)”.
The current arrangements reflect the fact that older people and people with long-term disabilities may have sell their principal residence to move to more suitable alternative accommodation including moving to a nursing home or to live with a carer. It is not considered appropriate to apply similar arrangements to other means tested claimants aged under 66 such as recipients of jobseeker's allowance.
