Dáil Éireann Debate, Tuesday - 18 May 2021
104. Deputy Colm Burke asked the Minister for Social Protection the way room rental income is treated for those with a serious condition or disability when assessing a disability allowance application in circumstances in which the rent collected is entirely for the purposes of meeting mortgage payments and keeping a person’s home; and if she will make a statement on the matter. [26076/21]
View answerDisability Allowance is one of a range of means-tested social assistance payments operated by my Department. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse / partner, if applicable), applying for the relevant scheme. The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves so that social welfare expenditure can be directed towards those who need it most.
Accordingly, where an individual is renting part of their family home, the cash value of the rental income is assessed. However, such rental income is reduced by a range of deductions.
These include: a proportion of any mortgage interest paid by the claimant on the part of the property rented; a 15% deduction for voids (i.e. periods when the accommodation is vacant between lettings); and, if the rooms let are furnished, a 5% deduction for wear and tear.
Any change to my Department’s means assessment policies would have to be considered in the overall policy and budgetary context.
