Dáil Éireann Debate, Tuesday - 7 July 2020
534. Deputy Holly Cairns asked the Minister for Employment Affairs and Social Protection if she will allow persons to exclude savings for a specific purposes, for example, to purchase a home, to be excluded from means-testing for the carer’s allowance; and if she will make a statement on the matter. [14572/20]
View answerThe system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital.
For the Carer's Allowance means test, the first €20,000 of capital is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
The assessment of capital reflects the fact that there is an expectation that people 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.
Disregarding savings or other capital which a person intends to use for specific purposes, such as to purchase a home, would have significant budgetary implications and would give rise to inconsistencies in how means tests are applied across schemes. It would also significantly increase the complexity of the means assessment, in terms of identifying the amount of capital to be disregarded for a specific purpose, as well as ensuring that the capital is used for that specified purpose.
Carers may be entitled to other supports, such as rent supplement or housing assistance payment, to help meet housing expenses.
Any proposals to change the capital means assessment for means-tested social assistance schemes would have to be considered in the overall budgetary context.
