Dáil Éireann Debate, Wednesday - 29 September 2021
151. Deputy Claire Kerrane asked the Minister for Social Protection if consideration has been given to providing pro-rata rates of disability allowance in recognition of the low thresholds involved in the means testing of this payment and with regard to the cost of disability regardless of household income; and if she will make a statement on the matter. [46965/21]
View answerThere are currently in excess of 156,000 persons in receipt of means-tested disability payments from the Department, comprising some 154,500 persons in receipt of the Disability Allowance (DA) and some 1,060 in receipt of Blind Pension (BP).
The means assessment of DA 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.
In the means test for DA, cash income that is assessed includes any income from employment or self-employment (and spouse/partner, if applicable), income from a social security pension from another country and maintenance payments.
Capital assessed as part of the means test 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.
The family home is never assessed as part of the means test, regardless of who is the legal owner.
The following table sets out the formula for assessing means from capital for DA.
|
AMOUNT OF CAPITAL |
WEEKLY MEANS ASSESSED |
|
Up to €50,000 |
Nil |
|
€50,000 - €60,000 |
€1 per each €1,000 |
|
€60,000 - €70,000 |
€2 per each €1,000 |
|
Over 70,000 |
€4 per each €1,000 |
Recipients of DA are also supported to pursue employment or self-employment through earning disregards in the means test. A recipient can earn up to €140 per week from employment or self-employment without their payment being affected, while weekly earnings between €140 and €350 are assessed at a 50% rate (i.e. 50% are disregarded for the purposes of the means assessment). Earnings from employment over €350 per week are assessed on a euro for euro basis.
The conditions attached to payment of DA are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency – be that illness, disability, unemployment or caring.
The continued application of the means test not only ensures that the recipient has a verifiable income need but that resources are targeted to those with greatest need.
The Department continues to keep the range of supports available under review. Any proposed changes need to be considered in an overall policy and budgetary context.
