Dáil Éireann Debate, Wednesday - 15 September 2021
478. Deputy Ivana Bacik asked the Minister for Social Protection her plans to address the disparities (details supplied) inherent in payments between the blind pension and disability allowance, which may leave blind persons significantly worse off than those with other disabilities; and if she will make a statement on the matter. [43685/21]
View answerThe social protection system includes a variety of social assistance payments with different rules in relation to means testing, reflecting the different contingencies under which payments are made. 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.
A person may be entitled to Disability Allowance where they have an injury, disease or disability that has continued, or may be expected to continue, for at least one year.
The Blind Pension is a means-tested payment paid to blind and visually impaired people. It is unique in the social protection system as it is a payment provided to people with a specific physical impairment. As such, it contains different eligibility and means assessment criteria to Disability Allowance. Unlike Disability Allowance, recipients of Blind Pension may also qualify for a range of other primary schemes such as Jobseeker’s Benefit, Illness Benefit, and One-Parent Family Payment.
Earlier this year, I signed Regulations which introduced a new income disregard for Disability Allowance recipients who have been granted bursaries, stipends or scholarships towards completing a PhD. It is subject to an annual limit of €20,000 per annum (i.e. if a recipient gets more than one bursary, the combination cannot exceed €20,000) and is available for a maximum of four years.
My Department encourages other social welfare recipients to avail of education and training through the Back to Education scheme, as well as by referrals to Education and Training Board courses through the Department's Intreo service. In addition, income received from the SUSI grant is disregarded in the means test for most social welfare schemes.
In addition, there are a number of scholarships, such as those awarded by certain charitable organisations, which are not assessed as part of the means test for social welfare payments. These include payments under the 1916 Bursary Fund and under Higher Educational Scholarships for Adult Learners from Uversity to a maximum of €7,000 per annum. Uversity is a registered charity that has been awarding Higher Education Scholarships to adult learners since 2018.
For both Disability Allowance and the Blind Pension, capital is assessed as part of the means test. Capital assessed 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. Property personally used (a claimant’s home) is not included in the means assessment.
The Department uses an assessment formula, which is set out in legislation, to calculate a person's weekly means from capital. For Blind Pension, and most other social assistance schemes, the formula is as follows; the first €20,000 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 capital assessment formula applying to Disability Allowance is unique in the social welfare system, in that the first €50,000 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.
Any changes to the means test for Disability Allowance or the Blind Pension would need to be considered in an overall budgetary and policy context.
The issue of taxation of social welfare payments is a matter for the Minister for Finance.
