Dáil Éireann Debate, Tuesday - 17 January 2017
647. Deputy John Brady asked the Minister for Social Protection his plans to address concerns regarding persons who slip through the social protection safety net; his further plans regarding closing loopholes which leave older citizens impoverished; and if he will make a statement on the matter. [1474/17]
View answerI understand from the Deputy’s office that this question refers to a person who does not qualify for the State Pension Contributory and applied for the State Pension Non Contributory (SPNC). However, she did not qualify for SPNC due to her means, and was unsuccessful in her appeal of this decision.
In assessing means for social assistance payments such as SPNC, account is taken of the income and the value of property of the claimant and his or her spouse/partner, where applicable. Social welfare legislation provides that the yearly value of property, including capital, owned but not personally used or enjoyed is assessable for means-testing purposes. Such property includes all monies held in financial institutions or otherwise, the market value of shares as well as houses and premises owned by a claimant which may or may not be put to commercial use. However, it does not include property such as the family home a person is personally using or enjoying i.e. residing in or, for example, a premises used by the claimant in carrying out a business.
The current market value of the relevant property is established (having regard to local property prices) as well as the amount of any outstanding mortgages on that property. The balance (market value less outstanding mortgage) is assessed by reference to a notional formula.
The current assessment method, involving a disregard of an initial amount of capital and an increasing notional weekly value for amounts in excess of the disregarded amount, applies for most welfare schemes. The formula reflects the policy of ensuring that those with property and capital of modest amounts of capital receive the greater share of available support while those with larger amounts avail of it to contribute, at least partially, towards meeting their needs. This approach is one of the key elements of a means-tested income support system.
The Deputy may wish to note that it is open to this person to re-apply for SPNC if her circumstances have changed or to apply for Supplementary Welfare Allowance if the resources currently available to her are insufficient to meet her needs.
I hope that this clarifies the matter for the Deputy.
