In assessing means for social assistance payments, account is taken of the income and the value of capital (including redundancy payments) of the claimant and their spouse/partner.
For means assessment purposes, savings are assessed by reference to the following formula:
Capital – Assessment Formula
AMOUNT OF CAPITAL
|
WEEKLY MEANS ASSESSED
|
Up to €20,000
|
Nil
|
€20,000 - €30,000
|
€1 per each €1,000
|
€30,000 - €40,000
|
€2 per each €1,000
|
Over €40,000
|
€4 per each €1,000
|
In the case of state pension non-contributory and carer’s allowance claimants who are one of a couple, the amounts above are doubled. The initial capital disregard is €50,000 for claimants of disability allowance and €5,000 for claimants of supplementary welfare allowance.
It should be noted that no account is taken of interest or dividend payments received in the means assessment. The assessment formula reflects the fact that there is an expectation that persons with reasonable amounts of capital and property are in a position to use that capital or to realise the value of property to support themselves without having to rely solely on a means tested welfare payment.
Any changes to the current arrangements would have to be considered in an overall policy and Budgetary context.